Open AccessCorporate Ethics: China vs. USA
Author(s) -
Peng Chan,
Dennis Pollard,
Shirley Chuo
Publication year - 2011
Publication title -
the international business and economic research journal/the international business and economics research journal
Language(s) - English
Resource type - Journals
eISSN - 2157-9393
pISSN - 1535-0754
DOI - 10.19030/iber.v6i2.3340
Subject(s) - business ethics , china , guanxi , argument (complex analysis) , public relations , patience , profit (economics) , corporate social responsibility , political science , business , sociology , social psychology , psychology , economics , law , biochemistry , chemistry , microeconomics
Fairness is one of the basic aspects of business exchange. Ethics are principles used to establish fairness. This study will look at background and origins for different American and Chinese ethical beliefs. It is important for U.S. and Chinese firms to understand each others cultural perspectives, especially as the Chinese market opens up. Methods to resolve ethical conflict will be reviewed. Business agents from both cultures can relate and deal with each other if they have the knowledge, skills, and patience to do so. This study builds on prior research that suggests that younger Chinese are more concerned with profit than with abiding by regulations or adhering to corporate ethics. The major argument of this study is that future Chinese business leaders, born after Chinas one-child policy was implemented in 1979, will be primarily concerned with self-interest and making decisions that will benefit them individually. Guanxi (interpersonal connections or human relationships), corporate ethics and social responsibility (CESR) beliefs will be reduced in importance and influence. American managers should incorporate this information when formulating a China strategy.