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4 - Ethical Business Cultures in China

from Part I - Ethical Business Cultures: Country Perspectives

Published online by Cambridge University Press:  19 October 2017

By
Jessica Li
Edited by
Douglas Jondle  and
Alexandre Ardichvili
Douglas Jondle
Affiliation:
Bains Jondle & Associates LLC
Alexandre Ardichvili
Affiliation:
University of Minnesota
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Summary

Abstract

Chinese business ethics emerged as a field of research after the beginning of economic reforms in late 1970s to early 1980s. In the 1990s, China grew to become a manufacturing powerhouse, and Chinese products have been widely exported around the world. Issues associated with defective products, such as toothpaste tainted with antifreeze and pet food containing melamine, also arose and generated negative publicity (Lu, 2009). After China entered the World Trade Organization (WTO) in 2001, concerns were raised about the inappropriate conduct of Chinese businesses (Brand & Slater, 2003). This triggered an interest in examining the ethical conduct of Chinese business organizations.

The first part of this chapter covers the development of Chinese ethical business culture and the impact of historical, cultural, economic, and political factors. It discusses the profound influence on ethical business environment and ethics of Confucian philosophy, Communist ideology, and the government regulatory agencies. Special attention is paid to the role of informal networks and the unique practice of guanxi. Next, the chapter discusses the ethics policies and practices at the firm level to investigate the roles of leadership, managerial culture, and ethics training in ethical business practices in China. Implications are discussed from the viewpoints of both foreign and Chinese firms to provide a global perspective.

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Ethical Business Cultures in Emerging Markets , pp. 55 - 80
Publisher: Cambridge University Press
Print publication year: 2017

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