UK: Innovation in Emerging Markets - Strategies for Achieving Commercial Success - Part Two

Last Updated: 24 July 2006
Most Read Contributor in UK, August 2017
This article is part of a series: Click Innovation in Emerging Markets - Strategies for Achieving Commercial Success - Part One for the previous article.

To read Part One of this article please click on the Previous Page link at the bottom of the page

Tailoring talent management

To succeed in emerging markets, many manufacturers will need to rethink how they recruit, develop, deploy, and connect the skilled employees on which they rely.19 Once seen as an inexhaustible supply of low-cost labor, many emerging markets are now facing the same shortages of skilled labor that are all too familiar in developed countries.

Fiercer competition

The competition among multinational corporations for skilled employees, together with the growing demand from local companies, has driven up salaries in emerging markets. For example, salaries for many supervisory positions in India rose by roughly 20 percent in 2005. 20 Companies are hoping that the increase in the supply of engineering graduates may moderate these wage increases. In India, 450,000 new students enrolled in engineering schools in 2005, up from 250,000 the previous year. However, manufacturing companies are finding that they are competing with the booming technology sector for skilled electronics engineers, which has driven up wages and made it more difficult to retain staff.

The talent squeeze has put a premium on training. Global companies often need to increase their investment in upgrading the skills of newly hired employees to global standards in such areas as production control, quality control, and technology applications.

Companies are also recruiting management talent from "returnees", that is, individuals who have had work experience in the United States or Europe. Returnees are especially valuable in bridging global and local business cultures. In China, for example, companies are increasingly tapping talent pools in Singapore, Hong Kong, and Taiwan for operating managers.

Providing opportunities for professional growth and advancement is also proving critical in retaining the best employees. Following the acquisition of Eastern European assets, Mondi has had professionals from Western Europe spend time in the newly-acquired mills and vice versa, providing both with an opportunity to expand their skills and experience. Philips encourages its staff worldwide to patent new technologies and publish high-quality scientific papers. The Indian automotive manufacturer Mahindra & Mahindra has created a separate engineering services company, Mahindra Engineering, that allows its key engineers to expand their skills by working on a wide range of projects across the company.

Global manufacturers are also working with local universities to expand the talent pool. For example, Sealed Air is building a packaging laboratory with Shanghai University. The company is providing equipment, training, and career guidance, as well as being involved with the development of textbooks to ensure the curriculum incorporates the latest practices.

Understanding local Expectations

Global companies have developed company-wide HR policies and practices to create consistency in their operations around the world. But as they expand their operations in emerging markets, many of which may be "culturally distant" from their home markets, they are finding these approaches need to be adjusted to match the local culture and employee expectations.

Employees in some countries routinely expect a variety of benefits not usually provided in developed markets. In Russia, companies often provide far more holidays than in developed markets, while in some Eastern European countries companies find that absenteeism and the use of sick leave are much higher than they are accustomed to in the United States or Western Europe.

In India, companies often provide housing, loans at subsidized interest rates, a car, a lunch allowance, or other benefits. Companies find they need to manage employee expectations when managers are reassigned to a developed market and expect the company to provide housing.

Cultural differences are particularly important when it comes to evaluating performance. In India, for example, it is considered impolite to criticize a person’s performance. This has led many companies to revise their evaluation criteria to include "soft" factors such as the ability to work well with colleagues, loyalty, sincerity, and discipline. Including these softer factors give companies the ability to provide positive comments, when an employee has not met more measurable job expectations or objectives. Some companies in India periodically offer more prestigious titles to employees as a way to reward them, even when their responsibilities have not changed.

In Southeast Asian countries, including Indonesia, Thailand, and the Philippines, although companies have the legal right to terminate an employee, this is not seen as culturally acceptable. There is a great respect for age in these countries and an expectation that promotions will be based on seniority. As a result, companies in Southeast Asia often have salary distributions with many employees clustered near the median, rather than the bell curve that United States and Western European companies prefer.

Although global companies in Mexico may bring in a head of manufacturing or IT from the home office, the importance of understanding both the local culture and local regulations is one reason why a local executive is often chosen to run the HR function. These companies find that a Mexican professional already understands the complexities of labor relations and governmental social and health plans.

Companies operating in emerging markets will often need to modify their approaches to managing talent to respond to varying job expectations and cultural norms if they are to find and keep the talent they need. Accommodations to local conditions will equally be required as companies seek to employ their global supply chains and operating models in emerging markets.

Mastering the complexity of global value chains

For companies to deliver commercially viable products at dramatically lower prices, an efficient global value chain is essential. In its ongoing benchmark research across more than 850 manufacturers around the world, Deloitte has found that only 15 percent of the largest, most global, and most complex companies have successfully mastered the growing complexity of their value chains. Yet these companies have been rewarded handsomely— growing faster and generating profit levels up to 50 percent higher than those achieved by their less capable peers.21 As they expand sales in emerging markets, companies will need to balance the efficiency that a global value chain provides with the responsiveness needed for local subsidiaries to compete effectively. One promising approach is to create "micro" operations that can flexibly customize products to meet the needs of local markets or customer segments, while basing them on the efficiency and expertise provided by a global platform.

Adapting to local Realities

The design of a global value chain may look wonderful on paper, but companies have learned that implementation is an entirely different matter. Each emerging market has different conditions that need to be accommodated. In China, for example, inadequate infrastructure often makes shipping difficult. Companies find they need to compensate for long lead times and uncertain schedules by maintaining higher inventory levels than they are accustomed to in more developed markets. To address the distribution challenges, many companies have forged joint ventures with local distribution companies.

In Russia, the best-laid plans can be frozen in place if a company is not prepared for the snow and frigid temperatures that sweep through each winter and can wreak havoc with logistics and distribution operations. Warehouses need to be well-insulated and heated, entailing additional expense. Since it can be difficult or impossible to deliver goods in the depth of winter, companies find they need to maintain more warehouses located throughout the country than they would elsewhere.

Companies operating in India face obstacles in reaching rural villages. Using a nontraditional distribution network, the consumer-goods company Unilever, through its Indian subsidiary Hindustan Lever Limited, is working with community groups of women to sell its products in villages of less than 2,000 people.22 The Indian Tobacco Co. has installed kiosks with Internet access in villages to allow farmers to access the company’s intranet to check prices for their grain, which the company buys to make processed foods.23 The company has set a goal of having 100,000 villages participating in the program by 2010.

Starting with a clean Sheet

Manufacturers in emerging markets have an opportunity to "clean sheet" their production and delivery models, unconstrained by their legacy infrastructure. To achieve its goal of producing a car that will sell for US$2,200, Tata Motors is redesigning its entire product development, sourcing, manufacturing, and distribution system. For its new car, the company will use a combination of steel and composite plastic, and employ industrial adhesive along with traditional nuts and bolts.24 But perhaps most revolutionary, Tata is restructuring how its cars are assembled and sold. The company has plans to make the basic components and then ship kits to trained franchisees that will assemble them for customers on demand.

The joint venture Decision

A fundamental question that each company must confront is whether to go it alone or instead to enter into a joint venture. Executives were asked how often their company used joint ventures in individual emerging markets. Forty-four (44) percent of the responses were that joint ventures were used at least some of the time, while 19 percent were that they were used frequently. The larger manufacturers surveyed were more likely to report employing joint ventures, with 60 percent of responses from executives at companies with US$1 billion or more in revenues reporting joint ventures were used at least some of the time, compared to just 32 percent for those at smaller enterprises.

When companies first enter an emerging market they often enter into a joint venture or contract with a local firm that offers knowledge of the local market, regulations, business culture, and language. As they become more comfortable, however, many companies prefer to establish wholly owned subsidiaries, unless there is a compelling reason to use a joint venture such as the need to access distribution networks.

Sometimes a company will simply contract for a service until they have gained more experience in an emerging market. When Emerson initially began to source engineering services from India, they contracted with a local firm. Once they were comfortable with how to operate engineering projects across time zones and work with India, however, they established their own Indian operations.

In other cases, the decision to enter into joint ventures in order to establish operations in certain markets is mandated by government regulations. In China, for example, equity ownership by foreign companies in some industries is limited to a maximum of 50 percent. For example, while automotive equipment manufacturers can be owned outright, foreign ownership of Original Equipment Manufacturers ("OEMs") is limited to 50 percent. 25 This may explain why executives said that their company was more likely to employ joint ventures in China— 59 percent said that they employed them either extensively or somewhat, compared to 44 percent for the other Asian countries examined (India, Indonesia, and South Korea), 33 percent for Latin America (Argentina, Brazil, and Mexico), and 30 percent for the Czech Republic, Poland, and Russia.

Gaining visibility

The use of advanced information systems to increase efficiency by providing more accurate, upto- date information has proved especially important in emerging markets. In the United States, CEMEX delivers products directly to work sites. However, many construction activities in emerging markets are small jobs only requiring a few bags of cement, so the company delivers instead to a network of distributors in these countries. CEMEX has also created an ordering system with over 2,000 distributors across Mexico and other Latin American countries that stock its cement and other products. The system not only makes it easier for distributors to reorder products, it provides CEMEX with greater visibility into the distribution chain so it can effectively deliver products and efficiently manage its production schedules and inventories.

The company has also used technology to assist customers in paying for its products. Since many cement purchases in Mexico are financed by relatives working in the United States, CEMEX has created a system through which customers can wire funds at low cost directly from the United States to their family members in Mexico.

IDS, which is listed on the Hong Kong Stock Exchange, is the logistics arm of the Li & Fung Group. It provides integrated distribution services and is rolling out hand-held personal digital assistant computers ("PDAs") to improve order processing and gain visibility of sales, inventory, and receivables. Tested in the Philippines and now being introduced in China, the system will allow sales employees to immediately place their orders online, substantially improving operations management.

TAL provides another example of increased visibility. The company has linked activities in its Asian factories directly to points of sale at retailers in the United States. Instead of receiving store-level data from a retailer such as J.C. Penney, TAL receives point-of-sale data on the retail chain’s customers. The data are fed into TAL’s demand forecasting model so that each of its factories is told which shirt styles, sizes, and colors to replenish for each individual store.

Efficiency is always a paramount consideration in designing an operating model. However, in emerging markets companies often should temper the drive for efficiency with the need to design operations that mitigate the increased risks these countries present.

Managing risks

Operating in any country entails risks, but emerging markets present special challenges. Global companies in these markets must operate effectively in different cultures and languages, guard against increased threats to their intellectual property, be prepared to respond to potential political or economic instability, and comply with myriad local laws, regulations, and tax regimes. Governance risk is an added concern stemming from such issues as the membership of directors in local subsidiaries, corporate ethics and integrity, delegations of authority, and joint venture arrangements. Risks to the supply chain can lead to delays in manufacturing and distributing goods.

To make matters even more challenging, the political and regulatory environments in emerging markets are often in flux. In 2005, more than 3,000 new laws were promulgated at national and provincial levels in China. Changes can occur even more frequently at local levels. In many countries, there is vigorous debate on the level of state participation in commerce, the appropriate level of foreign investment, and the need to preserve and expand employment. Governments and quasi-governmental organizations can promulgate technology and other standards that can effectively constitute non-tariff barriers to trade. Manufacturers have to monitor these changing environments and to join with other companies to advocate for open standards and fewer barriers to competition.26

Currency and other market risks that can reduce the purchasing power of buyers are another concern, and these are often affected by government policies. For example, a number of analysts expect the yuan to appreciate against the U.S. dollar, and India is beginning to consider the full convertibility of the rupee. These changes could significantly affect the costs and profitability of operations in China and India.27

Safeguarding intellectual property

Most companies are particularly focused on threats to their intellectual property in emerging markets. Risks include the theft of key process and product know-how by staff or joint venture partners and the counterfeiting of branded products. The potential increase in risk is one of the concerns that companies have when considering joint ventures in markets where statutory protections for intellectual property are either weak or not enforced effectively. For example, the U.S. government estimates that violations of intellectual property rights in China cost multinational companies US$60 billion each year.28 In a survey by the American Chamber of Commerce in China of its member companies, 90 percent said enforcement of intellectual property rights by the Chinese government was ineffective.29

To mitigate these risks, companies have to assume additional costs in distributing proprietary activities across facilities or selectively moving key processes to more secure locations. For example, one surveyed company has kept the manufacturing of select high-value packaging using proprietary processes in the United States to protect its trade secrets. The company also sources its components from a variety of locations, and then conducts assembly in a different country again—all to reduce risk. Mando, South Korea’s largest automotive parts manufacturer, has taken a similar approach. While it conducts customer-focused research in emerging markets, it has kept basic research and the manufacturing of its higher-value products in South Korea to safeguard its intellectual property.

Acquiring risk Intelligence

How can companies better manage risk in emerging markets? To be successful, manufacturers need to do more than simply protect their assets from "unrewarded" risks such as non-compliance with regulatory requirements or operational failure.

They should also consider the risks of failing to capture the accelerated growth that led them to invest in emerging markets in the first place. Companies should assess the amount of risk they are prepared to accept in each country, identify the potential risks associated with each of their investments, and then compare their risk exposure to their ability to exploit upside opportunities.

The first priority is to take a comprehensive approach that systematically identifies, evaluates, and manages all the types of risk it faces across the organization, considering both emerging and developed markets. By taking a holistic view that integrates local and global risk parameters, companies can achieve risk intelligence that informs decision-making by better calculating the potential impact of risks on enterprise value. For some companies, existing Six Sigma and lean manufacturing quality management processes can be used to roll out integrated risk management practices as companies launch their emerging market ventures.

Some companies are using "operational hedging"—distributing their operations across different countries—to minimize the potential impact of political, economic, and operating risks.30 For example, when a country accounts for five percent to six percent of sales, Emerson will relocate key manufacturing, labor, and sourcing operations to other locations to reduce its risk exposure.

Companies also need to explicitly identify and manage the interdependencies among all the risks they face. Our analysis of the global companies that had suffered the largest declines in share price over a 10-year period found that for 80 percent of these companies the losses were due to interactions among more than one type of risk event.31 Companies can capture significant benefits by taking a comprehensive approach to managing all the risks they face.

A consistent organizational approach is important to monitor and mitigate risk across business units and geographies. Clear reporting channels are essential to ensure that risk intelligence can move quickly across the company when an issue arises and be quickly elevated, if necessary, to senior management, the audit committee, and the board of directors.

While risks are inevitable in any business operation, the additional risks present in emerging markets make it even more important for manufacturers to identify the salient risks in each country and implement a comprehensive risk management strategy, paying special attention to intellectual property protection. The effort entails increased costs, and the commitment of senior management attention, but can make an invaluable contribution to long-term success.

Methodology and respondent profile

The study builds on a survey of 418 manufacturing executives from companies headquartered in 28 countries that assessed the strategies and approaches to innovation that companies use in emerging markets. The survey focused specifically on 10 important emerging markets: Argentina, Brazil, China, Czech Republic, India, Indonesia, Mexico, Poland, Russia, and South Korea.

The companies surveyed were headquartered in a variety of regions including United States/Canada (36 percent), Western Europe (36 percent), Latin America (11 percent), Japan, (6 percent), and Australia (5 percent). The industries represented included automotive (28 percent), chemicals, oil, metals, and other process companies (27 percent), nondurable consumer products (22 percent), industrial equipment (18 percent), and durable consumer products (13 percent).

(Note: Percentages total to more than 100 since executives could select multiple industries.)

The survey gained insights from executives at companies of a range of sizes as measured by the annual revenues of their parent company, with a substantial representation of large manufacturers. Thirtythree (33) percent of the executives surveyed worked at companies with annual revenues of less than US$250 million, 23 percent at companies with between US$250 million and US$1 billion in annual revenues, and 44 percent at companies with US$1 billion or more in annual revenues.

Additional information was gathered from in-depth interviews with senior executives at leading manufacturers as well as from the experience of Deloitte member firms in assisting manufacturing companies in emerging markets around the world.

End Notes

1 The World Bank, World Development Indicators 2005 database,

2 The World Bank, World Development Indicators 2005 database,

3 The World Bank, World Development Indicators 2005 database,

4 U.S. Central Intelligence Agency, The World Factbook, June 13, 2006,

5 "Special Report: China and India," BusinessWeek, August 22, 2005.

6 Cris Prystay, "Branding Gains Respect in Emerging Markets," The Wall Street Journal Asia, January 3, 2006; "Here Be Dragons," The Economist, September 2, 2004.

7 "Special Report: China and India," BusinessWeek, August 22, 2006.

8 "Special Report: China and India," BusinessWeek, August 22, 2006.

9 "Here Be Dragons," The Economist, September 2, 2004.

10 The concept of a disruptive innovation is discussed in The Innovator’s Solution (Cambridge, MA, Harvard Business School Press, 2003), by Michael E. Raynor, director of strategy at Deloitte Research, and Clayton M. Christensen of the Harvard Business School.

11 Jeremy Grant, "The Switch to the Lower-Income Consumer," Financial Times, November 15, 2005; Jeremy Grant, "Check the Depth of the New Customer’s Pocket," Financial Times, November 16, 2005.

12 The World Bank, World Development Indicators 2005 database,

13 Andy Reinhardt and Elizabeth Johnson, "Cell Phones for the People," BusinessWeek, November 14, 2005; "Philips Opens Low Cost Mobile R&D Center In Shanghai," Dow Jones International News, November 11, 2005.

14 Gail Edmondson, "Renault’s Manual Overdrive," BusinessWeek Online, July 19, 2005.

15 Manjeet Kripalani, "Asking the Right Questions," Business Week, August 28, 2005.

16 Pete Engardio and Michael Arndt, "Caterpillar Further Expands Business in China," PR Newswire, January 25, 2005; "Unilever Indonesia, Gadjah Mada University to Cooperate in R&D," Asia Pulse, September 7, 2004; Lucy Norton, "Ericsson to Locate R&D Operations in India," Global Insight Daily Analysis, October 24, 2006; Ch. Unnikrishnan, "Pfizer to Ramp up R&D in India," Business Standard, October 6, 2005; "India: Global R&D Hub?," Financial Express, November 11, 2005.

17 "Global Outsourcing of Engineering Jobs: Recent Trends and Possible Implications," Testimony of Ronil Hira, Ph.D., P.E., Chair, R&D Policy Committee of The Institute of Electrical and Electronics Engineers – United States of America to the Committee on Small Business, United States House of Representatives, June 18, 2003.

18 Simona Covel, "Eastern Europe Stakes Its Claim as Just the Right Site for Growth," The Wall Street Journal, September 8, 2004.

19 Deloitte Research, It’s 2008: Do You Know Where Your Talent Is? (New York, 2005).

20 Manjeet Kripalani, "Desperately Seeking Talent," BusinessWeek, November 7, 2005.

21 Global Benchmark Survey by Member Firms of Deloitte Touche Tohmatsu. The relationship between innovation and global value chains is discussed in Deloitte Research, Unlocking the Value of Globalization: Profiting from Continuous Optimization (New York and London, 2005); Deloitte Research, Mastering Innovation: Exploiting Ideas for Profitable Growth (New York, 2004); and Deloitte Research, Mastering Complexity: Powering Profits and Growth through Value Chain Synchronization (New York, 2003).

22 Susanna Howard, "P&G, Unilever Court the World’s Poor," The Wall Street Journal, June 1, 2005.

23 Manjeet Kripalani, "Asking the Right Questions," BusinessWeek, August 28, 2005.

24 Manjeet Kripalani, "Asking the Right Questions," BusinessWeek, August 28, 2005.

25 "Car Parts to Get Larger Market Share," Shenzhen Daily, February 24, 2005.

26 Deloitte Research, Changing China: Will China’s technology standards reshape your industry? (New York, 2004).

27 Deloitte Research, Managing in the Face of Exchange-Rate Uncertainty: A case for operational hedging (New York, 2006).

28 "The Boot is on the Other Foot," The Economist, April 1, 2006.

29 American Chamber of Commerce in the People’s Republic of China, The AmCham-China White Paper: American Business in China, April 18, 2005.

30 Deloitte Research, Managing in the Face of Exchange-Rate Uncertainty: A case for operational hedging (New York, 2006).

31 Disarming the Value Killers: A Risk Management Study, 2005, Member Firms of Deloitte Touche Tohmatsu.

These materials and the information contained herein are provided by Deloitte Touche Tohmatsu and are intended to provide general information on a particular subject or subjects and are not an exhaustive treatment of such subject(s).

Accordingly, the information in these materials is not intended to constitute accounting, tax, legal, investment, consulting, or other professional advice or services. The information is not intended to be relied upon as the sole basis for any decision which may affect you or your business. Before making any decision or taking any action that might affect your personal finances or business, you should consult a qualified professional adviser.

These materials and the information contained therein are provided as is, and Deloitte Touche Tohmatsu makes no express or implied representations or warranties regarding these materials or the information contained therein. Without limiting the foregoing, Deloitte Touche Tohmatsu does not warrant that the materials or information contained therein will be error-free or will meet any particular criteria of performance or quality. Deloitte Touche Tohmatsu expressly disclaims all implied warranties, including, without limitation, warranties of merchantability, title, fitness for a particular purpose, noninfringement, compatibility, security, and accuracy.

Your use of these materials and information contained therein is at your own risk, and you assume full responsibility and risk of loss resulting from the use thereof. Deloitte Touche Tohmatsu will not be liable for any special, indirect, incidental, consequential, or punitive damages or any other damages whatsoever, whether in an action of contract, statute, tort (including, without limitation, negligence), or otherwise, relating to the use of these materials or the information contained therein.

If any of the foregoing is not fully enforceable for any reason, the remainder shall nonetheless continue to apply.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

To print this article, all you need is to be registered on

Click to Login as an existing user or Register so you can print this article.

This article is part of a series: Click Innovation in Emerging Markets - Strategies for Achieving Commercial Success - Part One for the previous article.
In association with
Related Video
Up-coming Events Search
Font Size:
Mondaq on Twitter
Register for Access and our Free Biweekly Alert for
This service is completely free. Access 250,000 archived articles from 100+ countries and get a personalised email twice a week covering developments (and yes, our lawyers like to think you’ve read our Disclaimer).
Email Address
Company Name
Confirm Password
Mondaq Topics -- Select your Interests
 Law Performance
 Law Practice
 Media & IT
 Real Estate
 Wealth Mgt
Asia Pacific
European Union
Latin America
Middle East
United States
Worldwide Updates
Check to state you have read and
agree to our Terms and Conditions

Terms & Conditions and Privacy Statement (the Website) is owned and managed by Mondaq Ltd and as a user you are granted a non-exclusive, revocable license to access the Website under its terms and conditions of use. Your use of the Website constitutes your agreement to the following terms and conditions of use. Mondaq Ltd may terminate your use of the Website if you are in breach of these terms and conditions or if Mondaq Ltd decides to terminate your license of use for whatever reason.

Use of

You may use the Website but are required to register as a user if you wish to read the full text of the content and articles available (the Content). You may not modify, publish, transmit, transfer or sell, reproduce, create derivative works from, distribute, perform, link, display, or in any way exploit any of the Content, in whole or in part, except as expressly permitted in these terms & conditions or with the prior written consent of Mondaq Ltd. You may not use electronic or other means to extract details or information about’s content, users or contributors in order to offer them any services or products which compete directly or indirectly with Mondaq Ltd’s services and products.


Mondaq Ltd and/or its respective suppliers make no representations about the suitability of the information contained in the documents and related graphics published on this server for any purpose. All such documents and related graphics are provided "as is" without warranty of any kind. Mondaq Ltd and/or its respective suppliers hereby disclaim all warranties and conditions with regard to this information, including all implied warranties and conditions of merchantability, fitness for a particular purpose, title and non-infringement. In no event shall Mondaq Ltd and/or its respective suppliers be liable for any special, indirect or consequential damages or any damages whatsoever resulting from loss of use, data or profits, whether in an action of contract, negligence or other tortious action, arising out of or in connection with the use or performance of information available from this server.

The documents and related graphics published on this server could include technical inaccuracies or typographical errors. Changes are periodically added to the information herein. Mondaq Ltd and/or its respective suppliers may make improvements and/or changes in the product(s) and/or the program(s) described herein at any time.


Mondaq Ltd requires you to register and provide information that personally identifies you, including what sort of information you are interested in, for three primary purposes:

  • To allow you to personalize the Mondaq websites you are visiting.
  • To enable features such as password reminder, newsletter alerts, email a colleague, and linking from Mondaq (and its affiliate sites) to your website.
  • To produce demographic feedback for our information providers who provide information free for your use.

Mondaq (and its affiliate sites) do not sell or provide your details to third parties other than information providers. The reason we provide our information providers with this information is so that they can measure the response their articles are receiving and provide you with information about their products and services.

If you do not want us to provide your name and email address you may opt out by clicking here .

If you do not wish to receive any future announcements of products and services offered by Mondaq by clicking here .

Information Collection and Use

We require site users to register with Mondaq (and its affiliate sites) to view the free information on the site. We also collect information from our users at several different points on the websites: this is so that we can customise the sites according to individual usage, provide 'session-aware' functionality, and ensure that content is acquired and developed appropriately. This gives us an overall picture of our user profiles, which in turn shows to our Editorial Contributors the type of person they are reaching by posting articles on Mondaq (and its affiliate sites) – meaning more free content for registered users.

We are only able to provide the material on the Mondaq (and its affiliate sites) site free to site visitors because we can pass on information about the pages that users are viewing and the personal information users provide to us (e.g. email addresses) to reputable contributing firms such as law firms who author those pages. We do not sell or rent information to anyone else other than the authors of those pages, who may change from time to time. Should you wish us not to disclose your details to any of these parties, please tick the box above or tick the box marked "Opt out of Registration Information Disclosure" on the Your Profile page. We and our author organisations may only contact you via email or other means if you allow us to do so. Users can opt out of contact when they register on the site, or send an email to with “no disclosure” in the subject heading

Mondaq News Alerts

In order to receive Mondaq News Alerts, users have to complete a separate registration form. This is a personalised service where users choose regions and topics of interest and we send it only to those users who have requested it. Users can stop receiving these Alerts by going to the Mondaq News Alerts page and deselecting all interest areas. In the same way users can amend their personal preferences to add or remove subject areas.


A cookie is a small text file written to a user’s hard drive that contains an identifying user number. The cookies do not contain any personal information about users. We use the cookie so users do not have to log in every time they use the service and the cookie will automatically expire if you do not visit the Mondaq website (or its affiliate sites) for 12 months. We also use the cookie to personalise a user's experience of the site (for example to show information specific to a user's region). As the Mondaq sites are fully personalised and cookies are essential to its core technology the site will function unpredictably with browsers that do not support cookies - or where cookies are disabled (in these circumstances we advise you to attempt to locate the information you require elsewhere on the web). However if you are concerned about the presence of a Mondaq cookie on your machine you can also choose to expire the cookie immediately (remove it) by selecting the 'Log Off' menu option as the last thing you do when you use the site.

Some of our business partners may use cookies on our site (for example, advertisers). However, we have no access to or control over these cookies and we are not aware of any at present that do so.

Log Files

We use IP addresses to analyse trends, administer the site, track movement, and gather broad demographic information for aggregate use. IP addresses are not linked to personally identifiable information.


This web site contains links to other sites. Please be aware that Mondaq (or its affiliate sites) are not responsible for the privacy practices of such other sites. We encourage our users to be aware when they leave our site and to read the privacy statements of these third party sites. This privacy statement applies solely to information collected by this Web site.

Surveys & Contests

From time-to-time our site requests information from users via surveys or contests. Participation in these surveys or contests is completely voluntary and the user therefore has a choice whether or not to disclose any information requested. Information requested may include contact information (such as name and delivery address), and demographic information (such as postcode, age level). Contact information will be used to notify the winners and award prizes. Survey information will be used for purposes of monitoring or improving the functionality of the site.


If a user elects to use our referral service for informing a friend about our site, we ask them for the friend’s name and email address. Mondaq stores this information and may contact the friend to invite them to register with Mondaq, but they will not be contacted more than once. The friend may contact Mondaq to request the removal of this information from our database.


This website takes every reasonable precaution to protect our users’ information. When users submit sensitive information via the website, your information is protected using firewalls and other security technology. If you have any questions about the security at our website, you can send an email to

Correcting/Updating Personal Information

If a user’s personally identifiable information changes (such as postcode), or if a user no longer desires our service, we will endeavour to provide a way to correct, update or remove that user’s personal data provided to us. This can usually be done at the “Your Profile” page or by sending an email to

Notification of Changes

If we decide to change our Terms & Conditions or Privacy Policy, we will post those changes on our site so our users are always aware of what information we collect, how we use it, and under what circumstances, if any, we disclose it. If at any point we decide to use personally identifiable information in a manner different from that stated at the time it was collected, we will notify users by way of an email. Users will have a choice as to whether or not we use their information in this different manner. We will use information in accordance with the privacy policy under which the information was collected.

How to contact Mondaq

You can contact us with comments or queries at

If for some reason you believe Mondaq Ltd. has not adhered to these principles, please notify us by e-mail at and we will use commercially reasonable efforts to determine and correct the problem promptly.