Editors Focus--The New Back Yard Rulebook

For Americans conducting business overseas, this saying cuts two ways. While respecting other nation’s laws is the obvious message, what happens when laws and practices in other countries present opportunities for bribery, corruption, unsafe working conditions or other reckless acts?

The U.S. government should be given credit for attempting to address portions of this dilemma through the Foreign Corrupt Practices Act of 1977. Along with an emerging global court system and a vigilant global press eager to uncover U.S. bad guys, the enforcement of this Act can help U.S. companies abide by the spirit of the "back yard" rule.

Globalization, of course, also brings representatives of other nations into the U.S. business community. Certainly, in theory, the back-yard rule should also apply to the family of nations conducting business here.

Seen through U.S. eyes, two 800-pound gorillas seem to rule the global economy: Wal-Mart and the People’s Republic of China. Critics and supporters of Wal-Mart are many and varied, but the company’s behavior remains within the reach of regulators and legislators here.

The conduct of China’s business and government representatives operating in the United States is less controllable. China quickly appeared in the U.S. economic back yard, and critics within the recycling industry wonder if a little more studying of U.S. rules and manners might be in order.

Concerns expressed include actions by the China Certification & Inspection Co. (CCIC) and other quasi-governmental entities and commerce agencies that are in violation of legal practices that are held in high esteem in the United States. These complaints include a "guilty-until-proven-innocent" mentality; selectively enforced rules and unevenly granted privileges; and a disregard for two-way communication or any sort of appeals process.

An observer is tempted to point out that these same accusations have long been leveled by many of the same business owners against U.S. government agencies, with the IRS, OSHA and the EPA being among the most commonly criticized.

The key difference lies in the power to address grievances. While nothing is easy about it, individuals and trade groups have the ability to lobby, conduct public relations campaigns, testify before Congress and support politicians who share their beliefs when facing U.S. laws and regulations they wish to oppose.

Globalization—specifically as China’s role as the world’s factory shows—is bringing a new author of the back yard rules. Scrap brokers and processors who export to China may be among the first to learn that new rules are in place, and lobbying for a change in those rules may not be an option.