An example of a practice the Code of Conduct seeks to eliminate:
One particular eastern European bearing manufacturer ("A", in country "B") has threatened action against eBearing after we questioned their business practices. "A" is and presents itself as a bearing manufacturer, with design and engineering resources. However, for all high-volume ball bearings, "A" has long contracted with a bearing manufacturer in China for finished inners and outers, marked with "A"'s part number, company trademark, and country "B". The finished components are shipped from China, along with rolling elements, retainers and unmarked seals, to "A" in eastern Europe. "A" then simply assembles the components, performing no machining, grinding or secondary operations, and in fact rarely performing any quality control or inspection. These finished bearings are then wrapped, packaged and sold to OEM and replacement customers worldwide as bearings manufactured by "A" in country "B". With considerable effort -- and immense help from several of our key Asian contacts -- eBearing was able to track the finished components back to the source in China. The source freely admitted its role (and offered to produce for us, too, "any brand"). eBearing then contacted "A", presented the findings and asked the company to justify its presentation of the bearings as domestically manufactured. Since then, the company's President has alternated various threats with assertions that what "A" does is a, "common and accepted bearing industry practice around the world."