Sharon L. Allen, chairman of the board of Deloitte and Touche USA LLP and the first woman chairman of the board from a leading professional services firm, told a meeting of IT outsourcing executives that ethical behavior on the part of U.S. Firms is critical to success in building relationships with the Chinese market.

Addressing an audience that included government officials from both the United States and China, IT executives and global outsourcing experts gathered for the International Executives Association's 2005 China IT Service Summit, Allen observed, "As we review our collective efforts to construct a strong Chinese presence and compete for business there, I'd like to suggest one U. S. export that is critical to being successful. And that's ethical behavior."

She explained, "Just as everywhere else in the world, behaving with integrity and deference – being a good guest, if you will – is key to doing business with China. The Chinese have the longest sustained cultural and social identity of any people on earth. To be successful, patience, understanding and a commitment to building trust, is paramount."

To establish its stake in China, Deloitte Touche Tohmatsu has committed to investing U.S. $150 million over the next five years, the most significant investment it has ever made in a single country. Deloitte and Touche USA LLP is the U.S. member firm of Deloitte Touche Tohmatsu.

Suggesting an approach to forging successful relationships in China, Allen said, "Nothing can help bridge the cultural gap better than true integration. We've made it a priority to build our individual national firms organically on foreign soil. I believe recruiting, hiring and nurturing talent that's home-grown is the first key to success in a new market."

She continued, "We've seen some major American corporations try to succeed by exporting leadership and working groups from the U.S., with little regard for building a country base. To me, that invites failure."

"We celebrate and embrace cultural differences, because that's built into our DNA. And we develop our national practices with that in mind. It's not only our philosophy. It makes eminent business sense, especially in China."

Allen began her 30-plus-year career with Deloitte and Touche in Boise, Idaho, and rose to become the first woman chairman of its U.S. Board of Directors in May 2003. She leads the firm's governance process and oversees the firm's relationships with a number of major multinational clients. Allen also serves on the board of the global organization Deloitte Touche Tohmatsu, for which she chairs the risk management committee and serves on the board's global governance committee.