Thursday, July 2, 2015

The Daily Stat from Harvard Business Review

July 2, 2015


Chinese Companies’ Political Connections Can Be Lethal for Employees


In China, the worker death rate in firms whose executives are politically well-connected is 5 times higher than in comparable firms, say Raymond Fisman of Columbia University and Yongxiang Wang of the University of Southern California. Well-connected executives apparently use their clout to circumvent safety oversight. In the past, Chinese officials have blamed corruption for the poor safety record of the coal industry; in 2003, the worker mortality rate per ton of coal extracted in Chinese mines was 30 times higher than in South African mines, the researchers say.




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