Question: Controlling Alibaba s Problem with Counterfeits Alibaba may be barely known outside China, but today this Chinese e - commerce company is growing by leaps
Controlling Alibabas Problem with Counterfeits
Alibaba may be barely known outside China, but today this Chinese ecommerce company is growing by leaps and bounds. To further fund the growth it seeks at home and abroad, Alibaba recently raised $ billion from its IPO, listing itself in the United States. It employs about people and posted revenues of over $ billion in with over million users annually. Alibaba reports approximately $ billion in annual sales on its sites, which is more than all the online sales combined in the United States.
Alibabas founder Jack Ma has promised to expand his companys toehold in the United States. He stresses that his company will remain true to its stated principles, which put customers first, employees second, and shareholders third. Our philosophy is that we want to be an ecosystem, he says. Our philosophy is to empower others to sell, empower others to service, making sure the other people are more powerful than us
Counterfeit goods that have long plagued Alibabas retail platforms. One of their sites, Taobao, was placed on a US government watch list of notorious markets in Alibaba responded with efforts to combat fakeshiring a staff of and enlisting volunteers to help identify counterfeit goods, setting aside million yuan almost $ million to buy and test suspected fakes, and designing algorithms that help spot fakes by monitoring hundreds of data such as price. The company also invested in a $ million lobbying effort in Washington to seek removal from the list. While the removal effort initially paid off, in Taobao was again placed on the watch list and again in Alibaba has become more aggressive in addressing counterfeiting by suing these vendors. In Alibaba claimed success, reporting that only out of every transactions was suspected of being counterfeit goods.
Answer the following question:
What is Alibabas ethical responsibility for controlling the sale of counterfeit goods on its websites?
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