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A Shakedown Posing as Tax Evasion?Some of you have heard that Jude Shao, a member of the Class of '93, has spent the last five years in a Shanghai jail. Classmates who believe Shao was erroneously convicted of tax evasion in a sham trial have organized a letter-writing campaign and have lobbied in Washington, D.C., in hopes that visibility will lead to a new trial or release for Shao, a Chinese-born American citizen who started a business that exported U.S.-made medical equipment to China. Spearheaded by Caroline Pappajohn and Chuck Hoover, Shao's classmates are planning a briefing by panelists knowledgeable of Shao's situation and Chinese law and customs during their 10th reunion this month. The briefing is an opportunity not just for the Class of '93 but for others in this community to deal with an uncomfortable aspect of working in the global economy. Shao, who is allowed only one visit a month from his sister and one from the U.S. consul general, says evidence that was ignored at his trial could clear him. He has told his classmates in letters that his troubles began when he refused to pay a bribe to the local tax auditor. In an era when business executives are faulted for weak ethics, it seems especially important for all of us to consider any evidence that some have sacrificed their freedom for principles.
In the spring of 2000 the School hosted a panel discussion on ethics in the global economy as part of its 75th anniversary, and this magazine reported on it in a cover story. A member of the Class of '63 — 30 years ahead of Shao — wrote us a letter suggesting that the panel and story had not sufficiently probed questions of corruption and bribery. "Perhaps there was not more discussion because bribery is against the law for U.S. citizens. Perhaps it is just uncomfortable to talk about. That does not make it any less a real issue," wrote Tom Williamson, a retired auto executive, who added that he had never been asked to approve a bribe but would be surprised if many in his business and era had not paid them. In countries where corruption is debilitating, he contended, governments cannot solve the corruption problem, only business people can end it. Many of you in this audience have probably faced difficult ethical choices in this country as well as abroad. In an article in this issue, a member of the Class of '72 tells us about losing a project because he refused to make a "god of wealth" offering in Nepal. Perhaps it is time to revisit this issue. If any of you have experiences that you would like to share with this community, we would be happy to pursue an in-depth look in an upcoming issue of this magazine. In the meantime, we will try to aid the Class of '93 in their effort to aid Shao by reporting on their panel discussion. You can look for coverage on our website after May 6 at www.gsb.stanford.edu/news/bmag/. Kathleen O'Toole
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