A country’s regimes are imposed to protect the country’s interest, but these protections will create unavoidable conflict-of-interest where businesses are conducted. Likewise, the super power China and the United States, the perpetual political changes create a direct implication to the day-to-day business activities and the type business investment plan to enter the country. Hence, conflict-of-interests are commonly tensions between the different in political ideologies, social issues, historical and culture background. As these interests are the catalysts to the type of regimes that the country will impose; moreover, these regimes will favour the different types of industries. For that reason, the organisations need to conduct
In this grey area, the industries take advantages of the poorly regulated regime and the human right issues. But some company had forgotten about the imprecation to the prestige of their brand name; just like the case of Reebok {text:bibliography-mark} whereby unethical working conditions were practices. Untimely, the ethical investments will ounce between the cost factor; manufacturing product in Unite State which will incur the cost of production, or manufacturing product in China will losing the prestige of the brand. Where, the company failure to consider the imprecation in employment contract politics and human right issues will obliterate the brand equity, however most company had out-weighted the cost benefit, and had move their manufacturing into China. Transparency of the government, play a part in the business planning process, in term of investment and financing management {text:bibliography-mark} . For example, the Basel I was later replace by “Basel II capital accord framework” {text:bibliography-mark} had presented a challenge for the financial organisation operating in United States to please both the government bodies and the distribution of the shareholder wealth. This regime targets the financial institution to improve on their transparency and accountability as well as reducing the chances of another global financial crisis; which had swept through the whole