Four Chinese executives suspended amid Avon probe

10:47, April 14, 2010      

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Avon Products Inc., the world's largest direct seller of cosmetics, has suspended four employees pending internal investigations, according to the Wall Street Journal.

Avon asked three executives in Asia and another in New York to take an administrative leave of absence, pending the probe's outcome, company officials confirmed.

Avon is investigating alleged bribery that began with the company's China operation and now involves a dozen or more countries.

In October 2008, Avon announced that the investigation had begun in June that year focusing on unfair business practices in China. The investigation was triggered by an employee who sent a letter to Avon Chairman and CEO Andrea Jung, saying that there were improper travel-related expenses used for treating Chinese government officials.

The company's investigation focuses on compliance with the U.S. Foreign Corrupt Practices Act (FCPA), a law that outlaws bribery of foreign officials, according to the Journal article.

According to informed sources, the fault of the investigated staff may include paying for Chinese government officials associated with Avon business to travel in France, New York, Canada and Hawaii.

By People's Daily Online


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