Avon Fires 4 Executives in Probe of Corruption in China, Other Countries
Avon is conducting an internal investigation into corruption during which four executives in China have already been fired. From Bloomberg:
The company suspended the four in April 2010 as part of an internal investigation into its compliance with the U.S. Foreign Corrupt Practices Act. The executives included the general manager and finance chief of the company’s China unit, which generates 2 percent of Avon’s revenue. Other employees could be affected, according to the May 3 filing.
Avon, based in New York, is conducting compliance reviews “in a number of other countries selected to represent each of the company’s international geographic segments,” according to the filing. The reviews and internal investigation are focused on expenses for, among other items, entertainment and gifts “in connection with our business dealings, directly or indirectly, with foreign governments,” according to the filing.
[...] The fired executives are S.K. Kao, the former general manager; Jimmy Beh, the China chief financial officer; C.Q. Sun, the former head of corporate affairs for China; and Ian Rossetter, the former head of global internal audit and security, the newspaper reported.