The reading Unyielding an Oligarch vs. Putin was surely a tragic report. It shows how power is abused at its best. Mr Khodorkovsky a leading business magnet and the owner of Yukos oil was detained and trial for the crimes he did not commit. The only sin committed by him was to support rival political forces of President Vladimir Putin
The situation becomes complex in the case of Chinese government. The reading provides a picture of the attitude of intolerance from the Government of China. It provides that although the government has taken serious actions against the committers of crime, but at the same time it also took actions against those activists who brought the issue on the surface and stood against it. It provides an indication to me, and my company that is working in China has to be extra cautious.
Pros and Cons from the industry perspective
The Pros regarding the industry perspectives are that any business, no matter how big it is, can be called by law enforcing agencies, if it is found involved in practices against the law.
The cons are; every investor and businessman would think twice before investing in Russia due to the mishandling and vindictive proceedings against Mr. Khodorkovsky.
The Pros are that the milk industry has been greatly affected by this scandal. People would have less confidence in condensed milk products, and the sales may decline considerably.
The cons are that people at the same time would be looking for a reliable and trustworthy company whose products they believe meet global health and hygiene standards. This provides a great opportunity to us to venture into milk industry with global standards.
Opportunities and challenges the issue identifies.
The challenges are several. At one side it includes working in Russia without the involvement of governmental agencies and other sides, implementation of standard procedures and consultation with large corporations such as PricewatersCoopers cannot prove to be an effective option, if the company wants to keep its business transparent in the best manner.
The opportunities include venture into the milk industry with global standards, the challenges include highly suspicious behavior of the bureaucracy.
Action implied for management team and company
The actions implied by Mr Khodorkovsky’s case clearly defines to all the business working in Russia to make sure they keeps their concentration fully on the business and does not involve in any type of political support or activity. Furthermore, the business must also remain cautioned from the law implementing agencies even when it is not involved in any suspicious activity.
The actions it implies to me and the management are, any discrepancy in business operations or activities against public health and safety would be dealt with iron hands. No compensation can be expected from the law if such is violated in Chinese mainland.
Changes required in goals, strategies and policies.
It points to several structural changes in the business for us. First of all the business should make sure that its operations are transparent according to Russian standards first and global standards afterwards. The business must not involve in political funding or support. The standard business theory does not provide any justification of Mr Khodorkovsky case.
The situation becomes complex with the fact that a business can continue operating if is able to hide its harmful activities from the law enforcement agencies. Hence, a venture into the milk industry has to be cautious and careful. The increasing awareness in Chinese civil society also demands the practice of high standards in business. The legal punishments in china are more threatening than that of U.S or Europe. Hence, business should be carried out with care and consideration.