Rio Tinto’s red envelopes of cash for Chinese journalists

How we got China so wrong

John Garnaut

July 12, 2009

WHEN Rio Tinto holds press events in China, its public relations firm sometimes hands out red envelopes of cash to Chinese journalists who are kind enough to turn up.

Well, doesn’t every company in China do it?

No, the best multinational companies do not. And the best Chinese journalists don’t accept those “expense” payments, either.

Rio Tinto has strong rules and a strong corporate ethos that should mean that China’s “conclusive evidence” about the company paying bribes turns out to be unsubstantiated.

“Rio Tinto expects principal contractors, suppliers and others with whom we have a substantial involvement, to maintain high standards themselves,” said a Rio Tinto spokesman yesterday.

“Rio Tinto is prepared to withdraw from business relationships if any partners do not live up to our values.”

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