Requirements:

A: Explain basic concept, principles, and issue of business ethics both local and international contexts

B: Discuss moral dilemmas and problems that arise in business from stakeholders perspective and considers the defensible ways ethical principles and standards ought to be applied to business

First article,

Revealed, Illegal WeChat Pay Mode & Chinese Mafia in Bali

Last week there was a lot of news about a number of tours and shops being closed the provincial government of Bali as the Chinese mafia. The perpetrators of these crimes use WeChat Pay in transactions.

President Director of PT Alto Halodigital International (AHDI) Rudy Ramli revealed that the Chinese mafia is using cheap travel as a cover. They offer package tours from China to Bali for Rp. 600,000 per package from the previous Rp. 8 million.

Once in Bali, continued Rudy Ramli, the Chinese tourists will be directed to several merchants owned or partnered with the Chinese Mafia who are claimed to sell manufactured goods Indonesia, even though these goods are produced and in stock in China.

"The goods in the shop are only displays. The items are in China and sent directly to consumer's home. They transact using WeChat Pay, "explained Rudy Ramli to CNBC Indonesia, Tuesday (27/11/2018).

Rudy Ramli added that the use of WeChat Pay in this transaction is illegal. The reason they do not collaborate with domestic companies in processing the transaction.

There are two illegal practices used in this transaction. First, using a mechanism transfers between WeChat Pay accounts. So the money does not go to Indonesia, but remains in China's financial system and uses the yuan.

"Another way, the rogue merchant owners from China carry electronic data machines capture (EDC) directly from China and transact there. This method is also detrimental to Indonesia because the funds do not go to Indonesia, "explained Rudi.

Second article,

Legal in Indonesia Chinese Tourists Can Use WeChat Pay

WeChat Pay, a provider of electronic wallets from China, has been legal to operate in Indonesia since 1 January 2020. In line with WeChat Pay's compliance with the rules for electronic transactions in Indonesia.

"WeChat Pay is officially running, if in the past there was no legal umbrella, now because it has there is a legal umbrella regarding QRIS , "said Deputy Governor of Bank Indonesia, Sugeng last time.

However, the popular chat platform from the land of the panda is not available to the people of Indonesia. The reason is, WeChat Pay is only intended for Chinese tourists visiting Indonesia who like to transact through these electronic wallets.

However, Indonesia still benefits from WeChat Pay, one of which is knowing the amount international foreign tourist transactions, especially China when visiting Indonesia.

Collaborate with CIMB Niaga

Bank Indonesia states that WeChat Pay is legal to use in line with regulatory compliance cooperation, one of which is by cooperating with PT Bank CIMB Niaga Tbk.

As one of the commercial bank business activities/Bank Umum Kegiatan Usaha (BUKU) IV groups, CIMB Niaga is successful collaborating with IT companies for the non-cash payment service WeChat Pay using the Quick Response (QR) Code , especially the QR Code Indonesia Standard (QRIS) as a condition of operation.

In addition, CIMB is in charge of being the acquirer who processes transactions of foreign issuers and a minimum of 30 percent for floating funds.

CIMB Niaga has also successfully worked together to implement the non-cash payment service WeChat Pay by using the Quick Response (QR) Code , especially the QR Code Indonesia Standard (QRIS)

Note: please find out about government regulations regarding the transaction system prevailing finance in Indonesia and the reasons why the rules are made that way.

Questions:

1. Describe any problem that is not in accordance with internal ethics doing business in the first article above with reference to the theory (A, B)

2. Explain what solutions were made to overcome the problem and explain what ethical breach issues have not been resolved (A, B)