Avon Suspends 4 Execs in Bribery Investigation

By: Tucker Reals
Topics: In The News

Avon Products Inc., the legendary American cosmetics giant, has suspended four executives amid an ongoing internal investigation into alleged bribery of government officials in China and Latin America, according to a report in The Wall Street Journal.

The New York-based company, which posts global profits in 2009 of more than $10 billion, has suspended the president, chief financial officer and senior government liaison from its China division, reported the Journal, citing unnamed sources "familiar with" the investigation.

Also pulled out of the office, according to the report, was the company's former top internal auditor, who worked out of New York.

A company spokeswoman confirmed that four employees had been placed on administrative leave pending the results of the investigation.

The Journal's sources say the alleged improprieties included the purchase of trips to France, New York, Canada and Hawaii for Chinese officials who have dealings with Avon.

Avon said in 2008 that it was investigating the possibility that some expenses for entertainment and travel had "been improperly incurred," but the Journal reports the amount of money involved has now grown, and the internal probe has spread to Latin America -- the most lucrative market for the cosmetics manufacturer.

Tucker Reals
Tucker Reals is a senior news editor and overnight site editor for CBSNews.com, based at CBS News' London bureau.

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by I_am_me1953 April 13, 2010 11:06 AM EDT: ...vanity of vanities, all is vanity

Ecclesiastes 1:2; Reply to this comment

by jankebenzone April 13, 2010 6:59 AM EDT

Ten billion profit??? Wow, and avon is only one in hundreds. Women's fashion , jewellery, and esp. appearance must rank among the world's biggest industries. Vanity?

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by I_am_me1953 April 13, 2010 11:08 AM EDT: Did you see "The Devil's Advocate" with Al Paccino as Satan? At the end of the movie Paccino's parting line states that vanity is his favorite sin.