Corruptions case have become popular in many countries around the world. Many countries are working hard to bring corruption cases down. China is one of the countries which is on the frontline to ensure corruption cases are significantly reduced. Most corruption cases involve foreign companies, and China has taken serious action for companies involved. GlaxoSmithKline is one of the companies that has faced fines and its boss given a 3-year jail term. This happened as a result of a corporate investigation in China which targets to bring corruption cases down. Below is a brief discussion of important things you need to know about the corporate investigation in China.

Corporate whistleblowing

Whistle blowing is highly encouraged in China. This helps in alleviating corruption cases in companies. Whistleblowing rules have changed, and most of the rules enhance rights and protection of individuals who use right channels to report and file complaints against corrupt firms. On top of that, the amendments give a whistleblower ability to ask for protection from relevant authorities against property damage and physical harm. The law protects persons who report corruption cases happening in their companies. With the law, the company cannot terminate or demote any person who reports corruption in retaliation.

With financial incentives and protection against retaliation, employees can comfortably lookout for wrongdoings happening in their companies. This means that everybody in the company is careful and always avoid incidences that can be associated with corruption. For that reason, rules and regulations should be available to all corporate employees to make them understand the laws that govern whistleblowing. On top of that, companies should codify policies that make corruption investigations easy.

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Internal investigation procedures

Many things may trigger a corporate investigation in China. It may occur when a third party or an employee report alleged wrongdoing to the authorities. Accusations need to be investigated and verified if they are wrongdoings. A company should conduct an internal investigation to try and find out if the allegations are true or not. It is essential to do an internal investigation to avoid the risk of negative publicity. When the investigation begins, the company should inform all involved persons not to create additional documents concerning the matter that is under investigation.

Protection of state secrets

When dealing with foreign companies, China is highly sensitive when it comes to information that may be reviewed by foreign parties. The sensitive information is referred to as state secrets. The information is mostly related to government-related, science and technology and social and economic development. For that reason, companies must handle any corruption cases with care as failure to comply with States Secrets Law can lead to a serious offense. Therefore, international companies must do a state secrets analysis before investigations.


When it comes to corporate investigations in China, care is needed. Many allegations will be reported, and companies need to take right steps to avoid negative publicity. Internal investigations should be conducted early enough after whistleblowing.  Also, businesses should have legal resources that will help them navigate differences in investigations between China and countries of origin. On top of that, they should come up with policies that increase transparency.

This Article Originally posted on January 3, 2020 @ 8:26 pm

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