This study examines the influence of women on the boards of directors of National Health Service Foundation Trusts in England. FTs provide a public service where social performance is the primary objective, although financial constraints must be met. Female presence is higher for executive directors than non-executives, reflecting the high number of women employed in the sector. We find that a high female presence among executive and non-executive directorships does not result in significant differences either in financial return or service (...) quality. When gender diversity on boards is consistently high, the benefits on performance of having more women on the board may not be discernible. However, female Chairs or Chief Executives result in significant reductions in negative social outcomes, such as lower clinical negligence costs, without harming financial management. The findings of this study, carried out in a context of high female presence and where a woman frequently occupies one of the two most influential board positions, Chair and Chief Executive, have implications for gender diversity and gender targets on the boards of directors in business and other sectors. (shrink)

There is growing regulatory pressure on firms worldwide to address the under-representation of women in senior positions. Regulators have taken a variety of approaches to the issue. We investigate a jurisdiction that has issued recommendations and disclosure requirements, rather than implementing quotas. Much of the rhetoric surrounding gender diversity centres on whether diversity has a financial impact. In this paper we take an aggregate (market-level) approach and compare the performance of portfolios of firms with gender diverse boards to those without. (...) We also investigate whether having multiple women on the board is linked to performance, and if there is a within-industry effect. Overall, we do not find evidence of an association between diversity and performance. We find some weak evidence of a negative correlation between having multiple women on the board and performance, but that in some industries diversity is positively correlated with performance. (shrink)

This article explores how the diversity of board resources and the number of women on boards affect firms' corporate social responsibility (CSR) ratings, and how, in turn, CSR influences corporate reputation. In addition, this article examines whether CSR ratings mediate the relationships among board resource diversity, gender composition, and corporate reputation. The OLS regression results using lagged data for independent and control variables were statistically significant for the gender composition hypotheses, but not for the resource diversitybased hypotheses. CSR ratings had (...) a positive impact on reputation and mediated the relationship between the number of women on the board and corporate reputation. (shrink)

Appointment as a director of a company board often represents the pinnacle of a management career. Worldwide, it has been noted that very few women are appointed to the boards of directors of companies. Blame for the low numbers of women of company boards can be partly attributed to the widely publicized "glass ceiling". However, the very low representation of women on company boards requires further examination. This article reviews the current state of women's representation on boards of directors and (...) summarizes the reasons as to why women are needed on company boards. Given that more women on boards are desirable, the article then describes how more women could be appointed to boards, and the actions that organizations and women could take to help increase the representation of women. Finally, the characteristics of those women that have succeeded in becoming members of company boards are described from an international perspective. Unfortunately, answers to the vexing question of whether these women have gained board directorships in their own right as extremely competent managers, or whether they are mere token female appointments in a traditional male dominated culture, remains elusive. (shrink)

The monitoring role performed by the board of directors is an important corporate governance control mechanism, especially in countries where external mechanisms are less well developed. The gender composition of the board can affect the quality of this monitoring role and thus the financial performance of the firm. This is part of the “business case” for female participation on boards, though arguments may also be framed in terms of ethical considerations. While the issue of board gender diversity has attracted growing (...) research interest in recent years, most empirical results are based on U.S. data. This article adds to a growing number of non-U.S. studies by investigating the link between the gender diversity of the board and firm financial performance in Spain, a country which historically has had minimal female participation in the workforce, but which has now introduced legislation to improve equality of opportunities. We investigate the topic using panel data analysis and find that gender diversity – as measured by the percentage of women on the board and by the Blau and Shannon indices – has a positive effect on firm value and that the opposite causal relationship is not significant. Our study suggests that investors in Spain do not penalise firms which increase their female board membership and that greater gender diversity may generate economic gains. (shrink)

According to the author, the subordination of Chinese women continued under different models of sex equality in China in the twentieth century. In Reconceiving Women's Equality in China Lijun Yuan discusses and assesses four models of women’s equality. After exposing the common feature of their failure to reach the social ideal of women’s equality, the author proposes a more democratic conception of women’s equality that will allow ideals to continue changing as material circumstances change in different stages of social development.

This study examines whether and how female board directors may affect corporate social performance (CSP) by drawing on social role theory and feminist ethics literature. The empirical analysis, based on a sample of 126 firms drawn from the S&P500 group of companies over a 5-year period, suggests that board gender diversity (BGD) significantly affects CSP. However, this impact depends on the social performance metric under investigation. In particular, more gender diverse boards exert stronger influence on CSP metrics focusing on ‘negative’ (...) business practices, such as the ‘concerns’ dimension of the Kinder Lydenberg Domini, Inc. (KLD) ratings. This is because such CSP ratings have the potential to induce higher levels of ‘empathic caring’, which strongly appeals to female directors. Hence, this study reveals further hidden connections in the BGD–CSP link which have important implications for managers, nongovernmental organisations and socially responsible investors. (shrink)

Has the diversity of corporate boards of directors improved? Should it? What role does diversity play in reducing corporate wrongdoing? Will diversity result in a more focused board of directors or more board autonomy? Examining the state of Tennessee as a case study, the authors collected data on the board composition of publicly traded corporations and compared those data to an original study conducted in 1995. Data indicate only a modest improvement in board diversity. This article discusses reasons for the (...) scarcity of women on boards and concludes that, to enhance strategic decisions, board membership should reflect the corporation''s consumer population. Thus, women are a critical but overlooked resource. Areas for future research are also considered. (shrink)

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)

The current literature shows great interest in the issue of gender diversity on boards of directors. Some studies have hypothesized a direct relationship between diversity and the value of the firm, but not many examine the intermediate mechanisms that may exert an influence on such relationships. We employ two stages of GMM estimation methodology to exhibit evidences of the relationship between gender diversity and compensation of top managers in the Spanish context. Results show that gender diversity positively affects the effectiveness (...) of boards—in terms of composition, structure, size and functioning—influencing a proper design of top managers compensation linked to company performance. Evidences suggest that legislative actions aimed at increasing the presence of women on boards of directors are justified not only for ethical reasons, but also for reasons of economic efficiency. (shrink)

With the internationalisation of the Chinese market, Confucian ethics began to draw researchers' attention. However, little research has been conducted in the specific application of Confucian ethics in marketing communication. This article fills in the research gap by examining how Confucian ethics underpins the discourse of Chinese Expo invitations. Chinese sales managers' views are incorporated into the analysis as substantiation of findings. Confucian ethics embraces both qing (emotion) and li (reason) and relevant ethical values such as guanxi (connections), qing, and (...) mianzi (face) play an important role for advertising Expos and trade fairs. The study also highlights the complexities of Chinese Expo advertising that is embedded in inviting behaviour. These findings shed light on understanding Confucian ethics in marketing communications in general and have implications for ethical international marketing and advertising practices. (shrink)

Although the history of adopting the Western Corporate Social Responsibility (CSR) concept in China spans less than 20 years, the core principles of CSR are not new and can be legitimately interpreted within traditional Chinese culture. We find that the Western CSR concepts do not adapt well to the Chinese market, because they have rarely defined the primary reason for CSR well, and the etic approach to CSR concepts does not take the Chinese reality and culture into consideration. This article (...) resolves these problems and contributes a new definition of CSR, called here – the Harmony Approach to CSR. Simply, the Chinese harmony approach to CSR means 'respecting nature and loving people'. It is the first time CSR has been defined in relation to Confucian interpersonal harmony and Taoist harmony between man and nature. Conceptually, this definition will broaden our understanding and will fit the characteristics of the Chinese market better. The idea of incorporating cultural contexts into CSR concepts could also contribute to future CSR studies. In business practice, it will help corporations to adopt CSR on their own initiative. The proposed virtues of traditional Chinese wisdom, in particular, will guide corporations to a new way of improving their CSR performance. (shrink)

Using a sample of 12,061 firm-year observations from the Chinese stock market for the period of 2001–2011 and geographic-proximity-based Confucianism variables, this study provides strong evidence that Confucianism is significantly negatively associated with minority shareholder expropriation, implying that Confucianism does mitigate agency conflicts between the controlling shareholder and minority shareholders. This finding suggests that Confucianism has important influence on business ethics, and thus can serve as an important ethical philosophy or social norm to mitigate the controlling shareholder’s unethical expropriation behavior. (...) Moreover, my findings reveal that the nature of the ultimate owner attenuates the negative association between Confucianism and minority shareholder expropriation, suggesting that Confucianism’s negative impact on minority shareholder expropriation is less pronounced for state-owned enterprises than for non-state-owned enterprises. The above results are robust to a variety of sensitivity tests and my findings are valid after controlling for the potential endogeneity between Confucianism and minority shareholder expropriation. (shrink)

Using a sample of 11,357 firm-year observations from the Chinese stock market for the period of 2001–2011, we investigate whether and how religion can mitigate earnings management. Specifically, based on geographic-proximity-based religion variables, we provide strong and robust evidence to show that religion is significantly negatively associated with the extent of earnings management, suggesting that religion can serve as a set of social norms to mitigate corporate unethical behavior such as earnings management. Our findings also reveal that the negative association (...) between religion and earnings management is less pronounced for firms with closer distance to the regulatory centers than for their counterparts, implying the substitutive effects between religion and the distance to regulators on mitigating earnings management. The above results are robust to different measures of earnings management, various religion variables, and a variety of sensitivity tests. (shrink)

Guanxi, or social networks common in Confucian cultures, has long been recognized as one of the major factors for success when doing business in China. However, insider networks in business are certainly not confined to Asian cultures, nor is the attendant possibility for corruption. This study obtained original data to investigate current Taiwanese perceptions of (1) how guanxi is established and cultivated; (2) how guanxi actually is practiced now and people’s acceptance of it; and (3) the effects of guanxi on (...) business operations, employment/promotion, and social justice and fairness. The researchers also hope to (4) verify some arguments made by pioneering researchers. The authors speculate on how these attitudes may affect behavior in business transactions in hopes of making readers more aware of differing cultural values that may create unexpected ethical dilemmas. They suggest that professional ethical codes should provide guidance on the practice of guanxi in a Confucian society and that special emphasis or training in interpreting those codes may be required. (shrink)

This article investigates the gender diversity of the corporate board of European Union banks. Employing a large sample of 612 European banks from 20 European countries, it identifies organizational characteristics that could be predictive of women’s presence on bank boards. We identify three factors that play a particularly important role in defining bank board gender diversity. First, the proportion of women on the board is higher for lower-risk banks. We argue that there may be some statistical discrimination behind this relation, (...) although it could also be explained by a real risk-aversion hypothesis. Second, banks with larger boards have a higher proportion of women on their boards, which could be considered a signal of some kind of preference for homogeneity on small boards. Finally, banks that have a growth orientation are more prone to include women on their board, since they may be seen as providers of diverse external resources that are more valued by firms operating under critical circumstances. (shrink)

Confucian ethics as applied to the study of business ethics often relate to the micro consideration of personal ethics and the character of a virtuous person. Actually, Confucius and his school have much to say about the morals of the public administration and the market institutions in a more macro level. While Weber emphasizes the role of culture on the development of the economy, and Marx the determining influence of the material base on ideology, we see an interaction between culture (...) – specifically Confucian business ethics – and the economy. In this paper, we are going to study this interaction in several crucial stages of development of Confucianism. The paper concludes by postulating the relevance of Confucian business ethics to the global knowledge economy. (shrink)

This study examines the presence and roles of female directors of U.S. Fortune 500 firms, focusing on committee assignments and director background. Prior work from almost two decades ago concludes that there is a systematic bias against females in assignment to top board committees. Examining a recent data set with a logistic regression model that controls for director and firm characteristics, director resource-dependence roles and interaction between director gender and director characteristics, we find that female directors are less likely than (...) male directors to sit on executive committees and more likely than male directors to sit on public affairs committees. There is little if any evidence of systematic gender bias in director assignment to other board committees. We find some evidence that boards evaluate resource dependence differently for women than men. (shrink)

Using a sample of Chinese listed firms in polluting industries for the period of 2008–2010, we empirically investigate whether and how Buddhism, China’s most influential religion, affects corporate environmental responsibility (CER). In this study, we measure Buddhist variables as the number of Buddhist monasteries within a certain radius around Chinese listed firms’ registered addresses. In addition, we hand-collect corporate environmental disclosure scores based on the Global Reporting Initiative (GRI) sustainability reporting guidelines. Using hand-collected Buddhism data and corporate environmental disclosure scores, (...) we provide strong and robust evidence that Buddhism is significantly positively associated with CER. This finding is consistent with the following view: Buddhism can serve as social norms to evoke the consciousness of social responsibility, and thereof strengthen CER. Our findings also reveal that the positive association between Buddhism and CER is attenuated for firms with higher law enforcement index. The results are robust to various measures of Buddhism and a variety of sensitivity tests. (shrink)

Using a sample of Chinese listed firms for the period of 2004–2010, this study examines the impact of religion on corporate philanthropic giving. Based on hand-collected data of religion and corporate philanthropic giving, we provide strong and robust evidence that religion is significantly positively associated with Chinese listed firms’ philanthropic giving. This finding is consistent with the view that religiosity has remarkable effects on individual thinking and behavior, and can serve as social norms to influence corporate philanthropy. Moreover, religion and (...) corporate philanthropic giving have a significantly weaker (less pronounced) positive association for state-owned enterprises than for non-state-owned enterprises. The results are robust to a variety of sensitivity tests. Our results highlight religious influence on corporate philanthropic giving in contemporary China, an old traditional country with a typical communist economy. (shrink)

Academic debate on the strategic importance of women corporate directors is widely recognized and still open. However, most corporate boards have only one woman director or a small minority of women directors. Therefore they can still be considered as tokens. This article addresses the following question: does an increased number of women corporate boards result in a build up of critical mass that substantially contributes to firm innovation? The aim is to test if ‘at least three women’ could constitute the (...) desired critical mass by identifying different minorities of women directors (one woman, two women and at least three women). Tests are conducted on a sample of 317 Norwegian firms. The results suggest that attaining critical mass – going from one or two women (a few tokens) to at least three women (consistent minority) – makes it possible to enhance the level of firm innovation. Moreover, the results show that the relationship between the critical mass of women directors and the level of firm innovation is mediated by board strategic tasks. Implications for both theory and practice, and future research directions are discussed. (shrink)

First I briefly review the emergence and development of business ethics, following three stages (1978–1984; 1984–1994; 1994 to the present) and driven by four factors: the inheritance of Chinese traditional ethics; the influence of Marxist philosophy and ethics; the reflections on the economic reform; and the influence of business ethics from abroad. Then, from a practical and a theoretical perspective, I discuss the main challenges for business ethics in China: issues of the economic system, of corporate ethics, and of management. (...) After commenting on the role of business ethics for the social development in China, I offer some reflections about what China can contribute to, and learn from, other peoples. (shrink)

This paper argues Confucianism is a compelling managerial ethic for several reasons: 1) Confucianism is compatible with accepted managerial practices. 2) It requires individuals and organizations to make a positive contribution to society. 3) Recognizes hierarchy as an important organizational principle and demands managerial moral leadership. 4) The Confucian "golden Rule" and virtues provide a moral basis for the hierarchical and cooperative relationships critical to organizational success. The paper applies Confucianism to the H. B. Fuller in Honduras: Street Children and (...) Substance Abuse case. (shrink)

While many studies have investigated the ethical perceptions, ideologies and value systems of the Chinese, few studies have focused on mainland China, and even fewer have examined regional differences within China. This study examines the factor structure of Forsyth's (1980) Ethics Position Questionnaire in a sample of managers from the PRC. According to Forsyth, individual differences in Relativism and Idealism influence judgements of moral issues (Forsyth, 1980). In a sample of 115 managers, results show that two similar constructs to those (...) described by Forsyth do exist in the Chinese sample. However the precise interpretation of the item groupings through a Chinese perspective, may reveal some discrete areas of difference in the labelling of these constructs. The study also finds that managers in the South of China scored significantly higher in Idealism than managers in the North. Results are presented and implications for future research are discussed. (shrink)

In this article, we examine the factors determining the representation of women on boards of directors by considering three main questions. The first question deals with the relationship between characteristics of ownership and governance on one side, and female directorship on the other. The second major question concerns the demographic attributes of women directors, such as nationality, foreign experience, educational level, business expertise, and connections to external sources. The third important question refers to women in senior positions on French boards (...) (e.g., as independent members or board subcommittee members) in relation to firm characteristics and women’s demographic attributes. Our study focuses on French large- and mid-capitalized companies belonging to the SBF120 stock market index during a 5-year period running from 2000 to 2004. First, our results give evidence that the appointment of women directors is strongly related to family ownership and board or firm size. Second, the appointment of women directors is related to their professional services, valuable skills, and network links. Furthermore, we show that women face a double glass-ceiling problem, and note that French firms rely more on the demographic attributes of their women directors when they are appointed to senior board positions. Our study sheds light on issues concerning the law that comes into force in 2016, which imposes quotas of women members on boards of directors in French companies. (shrink)

In the Chinese stock market, controlling shareholders often use inter-corporate loans to expropriate a great amount of cash from listed firms, through a process called “tunneling.” Using a sample of 10,170 firm-year observations from the Chinese stock market for the period of 2001–2010, I examine whether and how Buddhism, China’s most influential religion, can mitigate tunneling. In particular, using firm-level Buddhism data, measured as the number of Buddhist monasteries within a certain radius around Chinese listed firms’ registered addresses, this study (...) provides strong evidence that Buddhism intensity is significantly negatively associated with tunneling. This finding is consistent with the view that Buddhism has important influence on corporate behavior and can serve as a set of social norms and/or an alternative mechanism to mitigate controlling shareholders’ unethical tunneling behavior. In addition, my findings also reveal that the negative association between Buddhism intensity and tunneling is attenuated for firms that have high analyst coverage. The results are robust to various measures of Buddhism intensity and a variety of sensitivity tests. (shrink)

Although previous studies focus on the role of women in the boardroom and corporate response to natural disasters, none evaluate how women directors influence corporate philanthropic disaster response (CPDR). This study collects data on the philanthropic responses of privately owned Chinese firms to the Wenchuan earthquake of May 12, 2008, and the Yushu earthquake of April 14, 2010. We find that when at least three women serve on a board of directors (BOD), their companies’ responses to natural disasters are more (...) significant. Age diversity among women on BODs as well as good corporate profitability (e.g., high earnings per share) positively moderates the relationship between women on BODs and CPDR. (shrink)

No other book in the entire history of the world has exerted a greater influence on a larger number of people over a longer period of time than this slim volume. The spiritual cornerstone of the most populous and oldest living civilization on Earth, the Analects has inspired the Chinese and all the peoples of East Asia with its affirmation of a humanist ethics. As the Gospels are to Jesus, the Analects is the only place where we can encounter the (...) real, living Confucius. In this gem-like translation by Simon Leys, Confucius speaks with clarity and brilliance. He emerges as a man of great passion and many enthusiasms, a man of bold action whose true vocation is politics. Confucius (551-479 B.C.) lived in an age of acute cultural and political crisis. Many of his observations mark a world sinking into violence and barbarity. Unable to obtain the leading political role he sought, he endeavored to reform society and salvage civilization through ethical debate, defining for ages to come the public mission of the intellectual. (shrink)

The research presented in this paper focuses on business ethical values inChina, a country in which the process of institutional transformation has left cultural values in a state of flux. A survey was conducted in China and the U.S. by using five business scenarios. Survey results show similarities between the Chinese and American decision choices for three out of five scenarios. However, the results reveal significant differences in rationales, even forsimilar decisions. The implications of similarities and differences between the U.S. (...) and Chinese samples are discussed. (shrink)

We examine the use of Confucian relational morality as an alternative reference point to that of modernist morality in judging workplace ethical conduct. A semi-structured interview based study involving 46 ethnic Chinese managers and 30 non-Chinese expatriate managers in Singapore, provided evidence of the use of traditional guanxi-linked morality as a moral resource by some of the former group in judging workplace ethical dilemmas. While such morality played only a minor role in moral reasoning, and was largely overshadowed by modernist (...) morality, the research nonetheless demonstrates that moral reasoning reflects wider cultural heritage, and is not merely a function of corporate culture and individual moral development. (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)

While substantial evidence is emerging internationally of positive increases in the participation of women on company boards, there is less evidence of any significant change in the proportion of women in senior executive ranks. This paper describes evidence of positive changes in the number of women on boards in Australia. Unfortunately these changes are not mirrored in the senior executive ranks where the proportion of women remains consistently low. We explore some of the reasons for these disproportionate changes and examine (...) the likely effect of the recent amendments to the Australian stock exchange’s corporate governance code designed to improve gender diversity both on boards and throughout organisations. Based on the early corporate response to these regulatory changes, it is interesting to consider whether Australia’s approach in promoting voluntary self-regulation at the corporate level may be as effective in the long run as the emerging trend in Europe to apply legislated quotas for female corporate board representation. Interview evidence is presented suggesting that the primary reasons for the lack of women in leadership are not simply lack of opportunity at the apex of the corporation, but issues at mid-management level that are unlikely to be resolved by mandatory board quotas. In some circumstances carefully monitored voluntary targets may be more effective at promoting cultural and strategic change at the heart of the corporation. In summary, mandatory quotas may achieve early and significant results in terms of female board representation. However, voluntary targets for women’s participation on boards and in executive ranks may promote more effective cultural and practical change in support of greater representation of women in leadership. (shrink)

This article examines whether and how the participation of women in the firm’s board of directors and senior management enhances financial performance. We use the Fama and French (1992, 1993) valuation framework to take the level of risk into consideration, when comparing firm performances, whereas previous studies used either raw stock returns or accounting ratios. Our results indicate that firms operating in complex environments do generate positive and significant abnormal returns when they have a high proportion of women officers. Although (...) the participation of women as directors does not seem to make a difference in this regard, firms with a high proportion of women in both their management and governance systems generate enough value to keep up with normal stock-market returns. These findings tend to support the policies currently being discussed or implemented in some countries and organizations to foster the advancement of women in business. (shrink)

In China, Buddhism and Taoism are two major religions. Using a sample of 10,363 firm-year observations from the Chinese stock market for the period of 2001–2010, I provide strong and robust evidence that religion (i.e., Buddhism and Taoism on the whole) is significantly negatively associated with owner-manager agency costs. In particular, using firm-level religion data measured by the number of religious sites within a radius of certain distance around a listed firm’s registered address, I find that religion is significantly negatively (...) (positively) associated with expense ratio (asset utilization ratio), the positive (reverse) proxy for owner-manager agency costs. This finding is consistent with the following view: religiosity has remarkable effects on the way how an individual thinks and behaves, and thereof can curb managers from unethical business practices. Moreover, my findings suggest that the negative association between religion and owner-manager agency costs is attenuated for firms with strong external monitoring mechanisms such as higher Marketization and high-quality auditors. Furthermore, after separating Buddhism from Taoism, my finding indicates that above conclusions are only available for Buddhism, suggesting that different religions may have asymmetric influence on owner-manager agency costs. Above results are robust to various measures of religiosity and a variety of robustness checks. (shrink)

This paper proposes that an important method for understanding the ethics of Japanese management is the systematic study of its Confucian traditions and the writings of Confucius. Inconsistencies and dysfunction in Japanese ethical and managerial behavior can be attributed to contradictions in Confucius' writings and inconsistencies between the Confucian code and modern realities. Attention needs to be directed to modern Confucian philosophy since, historically Confucian thought has been an early warning system for impending change.

The intellectual debates on wise entrepreneurship behavior such as decision making tend to focus on the relationship between economic rationality and morality, while overlooking the important role affect plays. To fill in this gap, this paper proposes a theoretical framework based on the Confucian concepts of ren and yi and studies their practical manifestation in qing and li 1 for decision making. Drawing from 32 in-depth interviews and 52 vignettes with Chinese SME entrepreneurs, this study has found that qing plays (...) an essential role in decision making. Chinese entrepreneurs had to deal with the dilemma relating to qing and li 1 holistically to reach a balanced outcome in their everyday business practices. As a major contribution, this study extends the study of Confucian ethics by highlighting ren-yi as an important perspective for understanding Chinese entrepreneurial decision making and also for promoting the affective dimensions for entrepreneurial ethical decision making in general. (shrink)

We live in an increasingly globalizing world, in which countries are closely linked by international trade and investment ties. Cross-cultural comparative studies of national values and ethics have attracted growing research interest in recent years, because shared practices, values and ethical standards depend on shared beliefs. However, the findings of such studies have been unable to reach a consensus on the impact of culture on ethics-related attitudes and behavior. Empirically, many "cross–cultural" differences reported by previous studies might actually stem from (...) cross-national differences. In order to partially fill this gap, this study advocates an analytical framework that isolates the role of cultural and national differences in order to test their relationship to individual level variables. Within this framework, we test competing hypotheses based on both cultural and national contexts by comparing groups of Chinese and American respondents together with a "bridging group" of Chinese Chinese-Americans. Theoretically, this contextual approach helps resolve the debate on the role of culture, by showing that culture plays a far more important role in shaping value orientations than the national background. Specifically, the two ethnic Chinese groups had many cultural values in common, and differed significantly from the Caucasian group. Implications are discussed. (shrink)