Automotive company ethics programs and overseas component operations in China

Automotive Company: China

The automotive industry in China has seen significant growth over the last decades. The country's economic growth has increased the potential for the industry in t his market, since there is an increase in demand for passenger vehicles by general citizens. This has made the market favorable for new entrants, and for existing market participants to grow and prosper (Holweg, Luo, and Oliver, 2005).

The automotive company in question then also operates in China, and is known as Chong Hu Motors. It generally provides non-commercial passenger vehicles to average citizens. The pricing is therefore also average to cater to the affordability of the market. Generally, representatives of the most popular models are offered, with the latest models being on display. The company also has a used vehicles department for citizens who are concerned with affordability. Vehicles that are not on display can be ordered. There is also an option to pre-order vehicles that have not yet reached the market.

The company has branches throughout the country, although its headquarters are in Beijing. Currently, the company has 50 branches throughout the country, with plans to open more.

Value Statement

The company is very concerned with providing value for money. In all its dealings with customers, employees are required to provide an honest assessment of the vehicle being purchased. Customers who seem uncertain are provided with a list of choices, comparing the benefits of the vehicles. All questions should be answered honestly and thoroughly, especially where used vehicles are concerned.

Furthermore, the finance department is also subject to regular auditing to ensure that the company's finances are being managed in an ethical and appropriate way.

Where business partner are concerned, all contracts and work are conducted according to a fully negotiated agreement. All parties concerned should be in agreement before contracts are signed. Long-term contracts with suppliers and partners are renegotiated on a regular basis to ensure that all parties remain both satisfied and appropriately ethical.

As part of the community it serves, Chong Hu Motors is also concerned with being socially responsible. As such, it is a regular contributor to charitable efforts such as providing education to all children, ensuring that old age homes are up to standard, and my means of hosting a number of charitable events per year. The money from these events is given to a different charity every year.

Basic Code of Conduct

In terms of hiring practices, Chong Hu Motors will hire new employees based solely upon their qualifications and perceived abilities. There will be no consideration given to differentiating factors such as creed, ethnicity, gender, or physical disability. If a person is considered the most highly qualified and able for a position, he or she will be appointed in that position. Having said this, diversity is considered to be an important issue, and steps will be taken to ensure that employees are representative of the cultural and ethnic population of its location.