Question

The improper payments made by APC occurred during the time frame that Andrea Jung served as Avon's CEO. Was she "responsible" for those payments even if she was unaware of them? Why or why not?

Answer 1

Answer: Technically, Andrea Jung should be considered "responsible" for those payments although she's not aware of them.

Explanation:

Technically, Andrea Jung should be considered "responsible" for those payments although she's not aware of them.

To start with, the parents of Andrea Jung are citizens of China by birth and since birth have been in China, which makes us believe that Jung is very familiar with the business culture of China. Conclusively, she is very good at her job and has good credits in her marketing skills and international business skills.

She is aware that Avon being a direct selling business is against the Law in China since 1998, so it is reasonable to conclude that she's got a bias for the Chinese and culture probably based on some personal ties. And this definitely punctured her business ethics.

She is well aware of the failure of this market for Avon since Avon's products are illegal in China, but she insisted on this market penetration strategy. It is glaring therefore that Andrea Jung was determined and undetered to doing whatever it will take to increase their sales in China, even if the law of the country is broken.

For Avon products, Andrea Jung designed a Task Force in charge of "direct selling" in China (APC), and she was very much interested in it. Then, her personal involvment in Avon's goal in trying to convince the Chinese government to lift the direct selling ban became obvious as she engaged in some travels to China seeking the consent of top Chinese government personnels.

Therefore for her to say had no clue about the improper payments, she definitely was not unaware of the Chinese cultures and how bribery had become the usual thing. She was an 100% accomplice and was fully aware of all the transactions.

She is responsible therefore considering her actions.