logo





The Quotes are Powered By Forexpros, the Forex, Futures, and Stock Markets Portal.




Companies News

    Advertisement







Stora Enso entangled in a bribery scandal in China

Wednesday, 03 July 2013
Stora Enso is strong Scandinavian company with a global face. It describes its operation as a rethinker of the paper, biomaterials, wood products, and packaging. Stora Enso operates worldwide and employs some 28 000 people and also in China, were the webs of corruption has caught up with the company or not.

According to reports, one of Stora Enso's subsidiaries has been blacklised from delivering packaging components to Motorola after a bribery scandal emerged in one of Stora Enso's braches.

The story goes that Stora Enso which bought 51 percent of the packaging company Inpac in 2010, has been dragged into a bribery issue which the company is now contesting.

The company used to deliver mobile phone packaging components to mobile phone maker, Motorola. But according to Swedish business daily, Dagens Industri, it emerged that Motorola in China identified that some of its employees have been receiving bribes from Inpac for business continuity.

This corrupt and bribery practice which supposed to shut out other competitors from bidding into providing more competitive services to Motorola, and therefore making Inpac a default supplier, has not improved business relations between Motorola and Stora Enso. This is said to have taken place in 2010 and 2011.

When the scandal became known Motorola sacked those involved and blacklisted Stora Enso in China as a supplier, writes Dagens Industri.
The forest giant has however countered that the corruption occurred before it became the majority owner of Inpac.

"Stora Enso is not blacklisted by any of the company's customers in China. As a result of Stora Enso's partial acquisition of a Chinese company in 2011,  Stora Enso became aware of an error that occurred in 2008, three years before the acquisition. This was resolved in accordance with the Stora Enso Code of Conduct... After the acquisition Stora Enso's Code of Conduct was introduced in the company. Stora Enso has zero tolerance against corruption of all kinds, "Tommy Borglund, Information on Renewable Packaging at Stora Enso told the Swedish paper.
by Scancomark.com Team

Print Friendly and PDF