China

JD.COM Announces Six Internal Corruption Cases

Summary:

  • JD.com (JD.NASDAQ) recently disclosed six internal corruption cases, as reported by Tencent Finance.
  • JD has dismissed the employees involved in the corruption cases. Three employees who were involved in two serious corruption cases have been detained by the Police.
  • JD has not disclosed the total amount of bribes in the corruption cases.

Why It Matters:

  • JD is a leading Chinese e-commerce company. All the six cases are related to employees providing extra support to certain shops, which run online stores on JD’s platforms, in return for personal benefits.
  • Most employees involved in the corruption cases are in procurement or business development positions.
  • JD’s CEO Liu Qiangdong is very cautious about internal corruption and the company has extremely strict rules governing internal corruption.