Core Viewpoint - The article discusses a significant corruption case involving a high-ranking executive at Ele.me, highlighting issues in supply chain management and corporate governance that allowed for the misconduct to occur [1][5]. Group 1: Corruption Case Details - The corruption case involved Han Liu, the former CEO of Ele.me, who, along with others, accepted bribes exceeding 40 million yuan from suppliers starting in July 2023 [1][2]. - The investigation revealed that Han Liu and his associates leveraged their control over logistics and supplier management to benefit bribing suppliers, creating a complete chain of interest transfer [2][4]. Group 2: Systemic Issues - The case raises questions about the systemic failures within Ele.me, particularly the concentration of power and lack of transparency in supplier selection criteria [3][4]. - The internal controls and anti-corruption mechanisms at Ele.me were found to be severely lacking, with a significant delay in detecting the corruption, which persisted for nearly two years [5][8]. Group 3: Implications for ESG - The incident has implications for ESG (Environmental, Social, and Governance) practices, indicating that the governance aspect is often overlooked, especially regarding the absolute power held by executives [5][6]. - The lack of a transparent compliance system for supplier management has been identified as a critical vulnerability that facilitated the corruption [5][8]. Group 4: Broader Industry Context - The article suggests that the flat management structure typical in internet companies may increase the risk of corruption, as it grants significant power to lower-level employees [10][11]. - The unique characteristics of internet companies, such as the anonymity and high turnover of digital resources, create additional challenges for traditional regulatory frameworks to detect corruption [10][11]. Group 5: Recommendations for Improvement - To combat corruption, companies should enhance their internal oversight mechanisms and consider separating powers to prevent the concentration of authority [12]. - Establishing a governance responsibility loop that includes problem detection, reporting, handling, and disclosure is essential for effective anti-corruption measures [12].

Core Viewpoint - The corruption case involving the former CEO of Ele.me highlights significant failures in supply chain management and internal controls, leading to a systemic issue of bribery and misconduct within the company [1][3][4]. Group 1: Corruption Case Details - The Shanghai police reported the arrest of seven suspects in a bribery case involving over 40 million yuan, with the former CEO of Ele.me, Han Liu, being a key figure [1]. - Han Liu and others exploited their authority in logistics and supplier management to gain improper benefits for suppliers, creating a complete chain of interest transfer [2]. - The corruption persisted for nearly two years before being discovered internally in early 2025, when Ele.me reported the findings to the police [4]. Group 2: Systemic Issues and Governance - The concentration of power in the logistics operations of Ele.me, particularly in supplier selection and resource allocation, lacked transparency and effective checks and balances [3]. - The absence of a robust internal monitoring structure allowed suppliers to engage in bribery to secure their positions and gain preferential treatment [3][5]. - The case raises concerns about the effectiveness of Ele.me's anti-corruption systems and the governance structures in place, indicating a need for improvement in compliance and transparency [5][6]. Group 3: Implications for ESG and Corporate Culture - The incident has tarnished the reputation of Alibaba's ESG efforts, which had previously been considered advanced in the industry [6][7]. - Internal corruption undermines employee trust in the company's integrity and can lead to decreased morale and talent attrition, as well as damaging the perception of fairness among suppliers [9]. - The case serves as a warning for internet platform companies regarding the importance of integrating governance responsibilities into operational risk management, particularly in supplier management and decision-making processes [14][15].