This article examines the relevance and value of Confucian Ethics to contemporary Business Ethics by comparing their respective perspectives and approaches towards business activities within the modern capitalist framework, the principle of reciprocity and the concept of human virtues. Confucian Ethics provides interesting parallels with contemporary Western-oriented Business Ethics. At the same, it diverges from contemporary Business Ethics in some significant ways. Upon an examination of philosophical texts as well as empirical studies, it is argued that Confucian Ethics is able (...) to provide some unique philosophical and intellectual perspectives in order to forge a richer understanding and analysis of the field of contemporary Business Ethics. (shrink)

Adolescents have increasing discretionary income, expenditures, and purchasing power. Inventory shrinkage costs $123.4 billion globally to retail outlets. Adolescents are disproportionately responsible for theft and shoplifting. Both parents and peers significantly influence adolescents’ monetary values, materialism, and dishonesty as consumers. In this study, we develop a theoretical model involving teenagers’ social attachment and their consumer ethics, treat adolescents’ money attitude in the context of youth materialism as a mediator, and simultaneously examine the direct and indirect paths. Results of 1018 adolescents (...) illustrate that social attachment discourages unethical beliefs directly, but encourages it indirectly through monetary values. Our multi-group analyses demonstrate a novel paradox: The correlation between parental and peer attachments is smaller in France than in China, but similar across gender. Parents contribute more than peers to social attachment in France, but both carry equal weight in China. There is a negative direct path for the Chinese sample and for girls. Indirectly, parental attachment prevents French teenagers’ unethical beliefs, whereas peer attachment promotes boys’ unethical intention, supporting the notion—bad company corrupts good morals. Across both culture and gender, monetary attitude excites dishonesty consistently for all adolescents. A negative direct path exists for Chinese boys only. Overall, social attachment reduces unethical beliefs. Parental and peer supports shape teenagers’ monetary intelligence and ethical or unethical decision making, differently, across culture and gender. We provide theoretical, empirical, and practical implications to ethical parenting, peer attachment, monetary values, and business ethics. (shrink)

This article examines whether and to what extent Confucianism as a resilient Chinese cultural tradition can be used as a sound basis of business practice and management model for Chinese corporations in the twenty-first century. Using the core elements of Confucianism, the article constructs a notion of a Confucian Firm with its concepts of the moral person ( Junzi ), core human morality ( ren, yi, li ) and relationships ( guanxi ), as well as benign social structure (harmony), articulated (...) in corporate and organizational terms. The basic character of the Confucian Firm is described, and its philosophical and cultural foundation is critically assessed with respect to its moral legitimacy and relevant to today’s China. China’s recent Corporate Social Responsibility (CSR) development is a high profile response to global business ethics concerns. Efforts have been made to emulate and develop good business practice fashioned in CSR norms and visions. The so-called “human-based” and “virtue-based” business practices rooted in local cultural heritage have been touted as a Chinese response to this problem. This investigation is particularly relevant in the context of the increasingly prominence of the Chinese corporations (China Inc.) in the wake of the rise of China as a global power. How relevant is Confucianism to the building of a modern Chinese corporation that is willing and able to practice reasonable norms of business ethics? The findings of this discussion, which include the organizational implications of the Confucian familial collectivism, have implications for other Chinese communities (Taiwan, Hong Kong, and Singapore) where Confucian tradition is endorsed and practiced. (shrink)

The leader–member relationship has been identified as a key determinant of successful working relationships and business outcomes in China. A high-quality leader–member relationship helps managers and employees to meet the demands they face and gives them the opportunity to develop socially, emotionally and morally. Such relationships form the basis of the overall well-being and success of the organisation. This article contributes to relationally oriented leadership theories and more specifically to the leader–member exchange theory by examining the theory in the context (...) of Western expatriate managers and Chinese employees in China. The first aim of the study is to analyse the similarities and differences between the LMX theory, which owes its origins to Western corporate experience, and the social and moral norms of guanxi, a crucial element in the Chinese value system. Since Westerners and Chinese people can give different interpretations to guanxi, the second aim of the article is to discuss the ethical challenges to the Western manager arising from guanxi. The findings of this study have implications not only for China, but also for other Chinese communities where guanxi is endorsed and practised. (shrink)

Despite the growing number of studies on the topic of guanxi in a work context, there is a paucity of research on supervisor-subordinate guanxi in the field of organisation and management. This article critically reviews the extant literature on guanxi in human resource management and organisational behaviour and applies an inductive approach to explore the perception of guanxi from both superior and subordinate perspectives in the People's Republic of China. The study reports positive and ethical features of guanxi as well (...) as unethical and negative practices in the Chinese workplace. On the positive side, guanxi comprises reciprocal exchange and perceived positive attributes, whereas its darker aspects include perceived unfairness and supervisor-targeted impression management. Managerial and research implications are discussed. (shrink)

. This paper explores the relationship between gift giving, guanxi and corruption through a study of the relationships between UK manufacturing companies in China and their local component suppliers. The analysis is based on interviews in the China-based operations of 49 UK companies. Interviews were carried out both with senior (often expatriate) staff and with local line managers who were responsible for everyday purchasing decisions and for managing relationships with suppliers. The results suggest that gift giving is perceived to be (...) a significant problem in UK-owned companies in China. However the relationship between these payments and established understanding of gift giving within guanxi-networks appears to be weak. Gift giving appears to be associated with illicit payments, corruption and the pursuit of self-interest. Firms seek to reduce the incidence of illicit transactions by changing staff roles, instituting joint responsibilities, which include the separation of different aspects of sourcing/purchasing, ineasing the involvement of senior staff in the process and through the education of employee and suppliers. (shrink)

This study develops an internal–external institutional framework that explains why firms act in socially responsible ways in the emerging country context of China. Utilizing a mixed method of in-depth interviews and a survey study of 225 Chinese firms, the author found that internal institutional factors, including ethical corporate culture and top management commitment, and external institutional factors, including globalization pressure, political embeddedness, and normative social pressure, will affect the likelihood of firms to act in socially responsible ways. In particular, implicit (...) ethical corporate culture plays a key role in predicting different aspects of corporate social responsibility, while external institutional mechanisms mainly predict market-oriented CSR initiatives. This study contributes to the research on CSR antecedents by showing that in the emerging economy of China, CSR toward nonmarket stakeholders is more closely intertwined with corporate tradition and values, while legitimacy-seeking CSR activities are still limitedly rewarded. (shrink)

The construct of Cognitive Moral Development (CMD) has drawn much attention in the study of business ethics for over two decades. The Defining Issues Test (DIT) has made a significant contribution to the literature as an easy-to-administer CMD instrument, and the Moral Judgment Test (MJT), an alternative scale, has also been used widely especially in Europe. The two scales differ in their approaches to measuring CMD, focusing on stage preference (DIT) and stage consistency (MJT), yet empirical comparisons have been scarce. (...) The present research empirically compares the two scales in terms of their correspondence with ethical ideology as a reference scale, and it demonstrates a clear distinction between the DIT and the MJT. Although they both aim to measure CMD, their dissimilar approaches lead to distinctly different implications. (shrink)

Guanxi in China is a very ancient concept embedded in the Confucian concept of life and one that is a ‚hot' topic in that it is currently attracting increasing attention from both Western and Chinese scholars. One aspect of Guanxi which has been the subject of most of the research of late is the influence of Guanxi on firm performance. However, relatively few studies have examined how Guanxi at the individual level is transferred into a firm to influence its financial (...) performance. This study first reclassifies Guanxi into obligatory, reciprocal, and utilitarian types at the individual level as a means to clarifying the confusion brought above from previous studies. It then provides a conceptual framework in which to systematically characterize the link between Guanxi at the individual level and organizational dynamics: that is, how is Guanxi at the individual level shifted to a firm and how does it affect organizational dynamics of that firm at the organizational level. Finally, it provides a deeper understanding of the financial implications of Guanxi to business firms in China. (shrink)

A well-known common wisdom asserts that strong social bonds undermine delinquency. However, there is little empirical evidence to substantiate this assertion regarding adolescence academic cheating across cultures. In this study, we adopt social bonding theory and develop a theoretical model involving four social bonds and adolescence self-reported academic cheating behavior and cheating perception. Based on 913 adolescents in France and China, we show that parental attachment, academic commitment, and moral values curb academic cheating; counterintuitively, peer involvement contributes to cheating. We (...) test our theoretical model across culture and gender, separately, using multi-group analyses. For French teens, peer involvement encourages and moral values undermine cheating; for Chinese adolescents, all four social bonds contribute to cheating, similar to the whole sample. For girls, parental attachment deters, but peer involvement enhances cheating. For boys, parental attachment is the only social bond that does not affect cheating. We treat social integration as a mediator of the relationship between peer involvement and social bonds that construct, in turn, is related to cheating and ask: Considering popularity, who are likely to cheat? Our answers provide an interesting paradox: Popularity matters, yet popular French girls and unpopular Chinese boys are likely to cheat. Social sharing is a positive pro-social behavior in consumer behavior. However, academic cheating and rule breaking, reflecting self-serving altruism and the red sneakers effect, at a very young age may have the potential to grow into the Enron Effect later in their lives as executives in organizations. We shed new lights on both the bright and dark sides of social bonds on cheating, demonstrate bad company corrupts good morals, differently, across culture and gender, and provide practical implications to social bonding, business ethics, and cheating. (shrink)

The importance of personal connections and relationships, or guanxi when doing business with the Chinese is widely acknowledged amongst Western academics and business managers alike. However, aspects of guanxi-rehted behaviours in the workplace are often misunderstood by Westerners with some going so far as to equate guanxi with forms of corruption. This study extends earlier study of Tan and Snell: 2002, Journal of Business Ethics 41 (December), 361-384) in its investigation of the underlying modes of moral reasoning in ethical decisions (...) relating to aspects of guanxi, amongst Hong Kong managers. Managers' ethical judgements and underlying moral reasoning relating to a series of guanxi related behaviours were recorded. Content analysis yielded categories that correspond with categories of moral reasoning described in Kohlberg's (1969, Handbook of Socialization Theory and Research, Rand McNally, Chicago, pp. 347-480) model. As hypothesised, it was found that harsher ethical evaluations of guanxi-vehted behaviours were positively correlated with the stage of moral reasoning. The most common types of reasoning were those corresponding to Kohlberg's stages four and five which relate to moral reasoning based on law and order, and on reason rather than emotion. Stage 6, concerned with more universalistic approaches to moral reasoning, was utilised considerably less, consistent with popularly held beliefs of the relativistic nature of Chinese ethics. (shrink)

This article offers a rare study of the content and performance of political strategies in China’s highly institutionalized setting. A conceptual framework based on institutional theory findings is proposed to develop a set of expected political behavior. This is then confronted to data from a convenient sample of 233 firms. The results show that there are indeed recognizable patterns of political strategy, most of which are bent by the strong institutional environment toward accommodation rather than confrontation or defiance. The strategies (...) identified were found to be related to the nature of the firms’ available resources and to the firms’ ability to extract benefits or bend the government’s behavior in their favor. (shrink)

Confucian ethics play a pivotal role in guiding Chinese thinking and behaviour. Aesthetic leadership is emerging as a promising paradigm in leadership studies. This study investigates the practice of aesthetic leadership in Chinese organizations on the basis of Chinese philosophical foundations. We adopt a process perspective to access the aesthetic constellation of meanings present in the Chinese understanding of leadership, linking normative Confucian values to a pragmatic value rational world view, that rests on an ontology of vaguely defined norms that (...) are malleable to different cultural contexts. Value rational pragmatism is explored in order to develop a deeper understanding of normative aesthetic leadership in China and to contrast it to instrumental aesthetic leadership. We empirically demonstrate the contextual specificity of aesthetic leadership in eight Chinese private- and state-owned enterprises (POEs and SOEs) through qualitative case studies. The findings provide a deeper insight into Chinese aesthetic leadership by proposing a dynamic leadership approach, from both ethical and instrumental perspectives, in the Chinese context. (shrink)

This study examines the effects of nationality (U.S. vs. China) and personal values on managers’ responses to the Perceived Role of Ethics and Social Responsibility (PRESOR) scale. Evidence that China’s transition to a socialist market economy has led to widespread business corruption, led us to hypothesize that People’s Republic of China (PRC) managers would believe less strongly in the importance of ethical and socially responsible business conduct. We also hypothesized that after controlling for national differences, managers’ personal values (more specifically, (...) self-transcendence values) would have a significant impact on PRESOR responses. The hypotheses were tested using a sample of practicing managers enrolled in part-time MBA programs in the two countries. The results indicate that nationality did not have a consistent impact on PRESOR responses. After controlling for national differences, self-transcendence values had a significant positive impact on two of the three PRESOR dimensions. Conservation values such as conformity and tradition also had a significant association with certain dimensions of the PRESOR scale. (shrink)

While Chinese societies often appear centralized and traditional, presumably impeding technology and innovation, these values may simply reflect the negative-leaning poles of Confucianism. This study proposes a Confucian work ethic dimension that stresses justified tradition. In combination with Western innovative cultures, this Chinese style might facilitate learning about knowledge and morality in an interaction seemingly unique to the Chinese science and technology sector. Specifically, contrary to the Western style that tolerates conflict to achieve harmony, Confucian work ethics -an Eastern way (...) -prefer to respect hierarchy to attain harmony. Samples from the multinational corporations in Shanghai and privately owned enterprises in Hsinchu of Taiwan represent two levels of Westernization. The findings reveal that the two types of cultures almost equally influence the facilitation of learning about morality, whereas the Western way more effectively teaches about professional knowledge and the Eastern way more effectively teaches general knowledge. In addition, though the samples from both locations enjoy positive advantages from their combined cultures, Shanghai appears more Westernized than Taiwan, and Taiwan benefits more from Confucian work ethics and a higher level of quality learning, particularly with regard to morality. This result may suggest the benefits of Confucius' ideas, if they are not used excessively to emphasize the negative aspects. (shrink)

We present two studies that examine the effects of guanxi on multiple social groups from the perspective of Chinese business people. Study 1 (N = 203) tests the difference in perceived effects of six guanxi contextualizations. Study 2 (N = 195) examines the duality of guanxi as either helpful or harmful to social groups, depending on the contextualization. Findings suggest guanxi may result in positive as well as negative outcomes for focal actors and the aggregate.

Guanxi (literally interpersonal connections) is in essence a network of resource coalition-based stakeholders sharing resources for survival, and it plays a key role in achieving business success in China. However, the salience of guanxi stakeholders varies: not all guanxi relationships are necessary, and among the necessary guanxi participants, not all are equally important. A hierarchical stakeholder model of guanxi is developed drawing upon Mitchell et al.’s (1997) stakeholder salience theory and Anderson’s (1982) constituency theory. As an application of instrumental stakeholder (...) theory, the model dimensionalizes the notion of stakeholder salience, and distinguishes between and among internal and external guanxi, core, major, and peripheral guanxi, and primary and secondary guanxi stakeholders. Guanxi management principles are developed based on a hierarchy of guanxi priorities and management specializations. The goal of this application of instrumental stakeholder theory is to construct, for Western business firms in China, a means to reliably identify guanxi partners by employing the principles of effective guanxi. These principles are described in the form of testable propositions that advance social scientific research in this area of international business ethics. (shrink)

Economic openness, both in terms of increased international trade exposure and enhanced inter-firm networking, has been a key element of China’s economic emergence since the implementation of market reforms and the “opening-up policy” over 30 years ago. Unfortunately, these changes have also coincided with the increased incidence of bribery and corruption. Both in general, and in the specific context of China, research on the relationship between a firm’s tendency toward openness and its propensity to engage in bribery is scarce. This (...) study seeks to fill this gap based on empirical evidence provided by a large sample of Chinese firms. The findings of the study reveal that firms’ increased networking and openness tend to occur contemporaneously with greater bribery and corruption. We suggest that this may be due to the misuse of guanxi-based networks that coincide with the presence of firms’ open network strategies, heightened by the potential loss of resource and capability heterogeneity (and hence reduced competitive advantages) in the context of openness. We further find that firms paying bribes do so as an attempt to overcome unnecessary bureaucratic processes and ineffective institutional support that might tend to hinder their development. (shrink)