Advancing Global Business Ethics in China

This chapter presents China's global business outlook within an analysis of Corporate Social Responsibility (CSR) to reduce poverty through human welfare improvement. The chapter examines human rights within China's social, environmental, and economic resources domestically and globally. Although China's economic acceleration has been substantial, its inability to consistently observe and enforce international human rights laws and norms detracts from its economic success. This is not something that China can easily achieve due to challenges of social instability and increasing demographic problems stemming from a large population with diverse needs. The authors suggest ways to enhance human rights conduct according to the UN Guiding Principles in China and in other countries through responsible management education.

Advancing Global Business Ethics in China

This chapter presents China's global business outlook within an analysis of Corporate Social Responsibility (CSR) to reduce poverty through human welfare improvement. The chapter examines human rights within China's social, environmental, and economic resources domestically and globally. Although China's economic acceleration has been substantial, its inability to consistently observe and enforce international human rights laws and norms detracts from its economic success. This is not something that China can easily achieve due to challenges of social instability and increasing demographic problems stemming from a large population with diverse needs. The authors suggest ways to enhance human rights conduct according to the UN Guiding Principles in China and in other countries through responsible management education.

The transformation of Chinese business ethics in line with its emergence as a global economic leader

Purpose – This paper aims to present the evolution of Chinese business ethics and CSR policy. China currently has business ethics and corporate social responsibility (CSR) concerns primarily because its economy is in evolution. As the Chinese economy is in transition from the late 1970s from a command–Communist economy to a more hybrid system Beijing model (a system based on a capitalist market controlled through bureaucracy), much has to be understood if one wants to participate in its vast economic potential. Design/methodology/approach – The study is based on the building of a model that depicts the evolution of business ethics in China as a base for further research. Findings – With the rapid development of the Chinese economy, opportunities are opening up to Chinese entrepreneurs and connected officials. This has led to money worship and, in some cases, thorough unethical behavior. The uncertain and ever-changing rules of the game generate opportunity for business ethics and CSR problems. This wealth creates temptation and incentives to cut corners to get rich fast. Much research has tried to explain business ethics in China through the understanding of Guanxi (Chinese social network of reciprocal business relations common in Confucian cultures), but in my view, the evolutionary aspect of it is missing to explain the present and future situation. Whereas considerable research has dealt with the growth of Chinese industries in recent years, the key relationship between changes in its economy and shifts in Chinese business ethics has been neglected. This paper presents the evolution of Chinese business ethics and CSR policy. Originality/value – The paper illustrates the evolution of Chinese business ethics and how one has to adapt if one wants to succeed in its ever evolving and maturing market. A model is presented that can assist in future research in the area.

The evolution of Chinese business ethics

Purpose – This article aims to present a historical overview of the evolution of business ethics in China and highlights the ways in which its ethical structure lags behind its rapid economic expansion. Understanding Guanxi, the Chinese social network of reciprocal business relations common in Confucian cultures, has long been recognized as one of the major success factors when doing business in China (Hwang et al., 2009). Recognizing the significant impact of Guanxi and its influence on everyday dealings in China is, thus, crucial for Western firms. Whereas considerable research has dealt with the growth of Chinese industries in recent years, the key relationship between changes in its economy and shifts in Chinese business ethics has been neglected although it impacts the ways Westerners, in particular, both clinch deals and judge Chinese firms. The implications of this disparity for global business are discussed. Design/methodology/approach – The discussion draws on the academic literature and the researchers’ experience in how business and business ethics are conducted between Western and Chinese firms. This paper presents a content analysis of theoretical articles and compares them to conceptual and empirical approaches, with an emphasis on a pragmatic approach to fostering a better understanding of the evolution of Chinese business ethics and its implications on business practices. Findings – Maps the evolution of business ethics in China and need to adapt to an ever changing business environment. Originality/value – This study offers a new insight to the evolution of Chinese business ethics and highlights its importance in business interactions. It illustrates the co-evolution of business ethics in parallel with the advancement of the Chinese economy. This paper is the first paper that addresses the issue of the evolution and formation of Chinese business ethics and links it to economic progress and opening up to the West.