The present paper reports the results of a vignette- and questionnaire-based research project investigating the influence of Moral Intensity (MI) on decision making in a New Zealand business context. The use of a relatively sensitive research design yielded results showing that – in contrast to previous research – objective manipulations, as well as subjective perceptions, of three of the six MI components were of particular importance in accounting for a comparatively large proportion of the variation in four outcome variables. There (...) were no interactions of appreciable magnitude between MI components, or variations across scenarios. Also, no support was found for a reliable multi-dimensional structure of perceptions of Moral Intensity. Implications of the findings are discussed. (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)

This paper extends the discussion of guanxi beyond instrumental evaluations and advances a normative assessment of guanxi. Our discussion departs from previous analyses by not merely asking, Does guanxi work? but rather Should corporations use guanxi? The analysis begins with a review of traditional guanxi definitions and the changing economic and legal environment in China, both necessary precursors to understanding the role of guanxi in Chinese business transactions. This review leads us to suggest that there are distinct types of, and (...) uses for guanxi. We identify the potentially problematic aspects of certain forms of guanxi from a normative perspective, noting among other things, the close association of particular types of guanxi with corruption and bribery. We conclude that there are many different forms of guanxi that may have distinct impacts on economic efficiency and the well-being of ordinary Chinese citizens. Consistent with Donaldson and Dunfee (1999), we advocate a particularistic analysis of the different forms of guanxi. (shrink)

This paper investigates ethical perceptions among Hong Kong Chinese managers of themselves and peers according to age, location of education and employment (local vs. multinational), based upon responses to thirteen potentially unethical situations.The major conclusions of the study are: (1) there is little consistency among perceptions of ethical situations; (2) Hong Kong managers perceive their peers as more unethical than themselves; (3) ethical perceptions in some situations are affected by age and to a lesser extent, place of education; and (4) (...) significant interactions were found between age and the nature of employer, as well as between the place of education and the nature of employer. (shrink)

There is an increasing interest in how managers describe and respond to what they regard as moral versus nonmoral problems in organizations. In this study, forty managers described a moral problem and a nonmoral problem that they had encountered in their organization, each of which had been resolved. Analyses indicated that: (1) the two types of problems could be significantly differentiated using four of Jones' (1991) components of moral intensity; (2) the labels managers used to describe problems varied systematically between (...) the two types of problems and according to the problem's moral intensity; and (3) problem management processes varied according to the problem's type and moral intensity. (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)

Guanxi as one of the key factors leading to business success in China (PRC) has ironically been synonymous with bribery. This raises some serious questions: should Western foreign firms do business in China? How should they do business with Chinese firms? This study investigated the relationship between guanxi orientation and cognitive moral development in an attempt to determine whether the level of guanxi orientation of Chinese business people affects their ethical reasoning. Based on a classification of Chinese enterprises (Nee, 1992), (...) it was found that Chinese enterprises rely on guanxi for business to different extents. However, their levels of cognitive moral development are not significantly different, suggesting that guanxi orientation has very little to do with ethical reasoning (as captured through an established measure of cognitive moral development). Furthermore, time in profession was found to positively affect guanxi orientation; however, age failed to predict guanxi orientation and education turned out to be a negative predictor of guanxi orientation. (shrink)

This review summarizes and critiques the empirical ethical decision-making literature from 1996–2003. One hundred and seventy-four articles were published in top business journals during this period. Tables are included that summarize the findings by dependent variable – awareness, judgment, intent, and behavior. We compare this review with past reviews in order to draw conclusions regarding trends in the ethical decision-making literature and to surface directions for future research.

In this study, we attempt to explain the divergent results found in the relationships between supervisor–subordinate guanxi and employee work outcomes. Specifically, we propose that the relationships between supervisor–subordinate guanxi and participatory management, turnover intentions, and organizational commitment are mediated by job satisfaction. Based on the data collected from a sample of 196 employees of three local manufacturing firms in Zhejiang Province, China, we found that job satisfaction fully mediated the effects of supervisor–subordinate guanxi on participatory management and intentions to (...) leave, but partially mediated the relationship between supervisor–subordinate guanxi and organizational commitment. Theoretical and practical implications are discussed. (shrink)

Using professional accountants as respondents in Hong Kong, this study strives to develop a model to depict the effect of ethical reasoning on the relationships between guanxi and auditors; behaviour in an audit conflict situation. The results of the study found that (1) there is a significant relationship between an auditor's ethical judgement and one's moral cognitive development; (2) there is a relationship between an auditor's ethical judgement and the existence of guanxi; and (3) the impact of guanxi on an (...) auditor's judgement is depending on the level of ethical reasoning. (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)

Ancient Chinese ideas of moral education could be said to have five main dimensions – philosophical foundations, content, principles, methods and evaluation – which are described in this paper. An analysis of the fundamental features of Confucian thinking on moral education shows that it took the idea that human beings have a good and kind nature as its logical starting point. It built a system of ethical norms, based on the idea that an individual's feelings come from the inner mind, (...) combined with external rites. Its methods of moral education are diverse, with an emphasis on learning from exemplars, environmental conditions and practice, as well as the cultivation of moral responsibility and social commitment. Its quintessential ideas were ‘virtue lies in practice’ and ‘life is moral education’. The paper concludes by arguing that Confucian thinking on moral education has ongoing value for research and practice in contemporary moral education. (shrink)

Abstract:This paper reports a phenomenological sub-study of a larger project investigating the way Hong Kong Chinese staff tackled their own ethical dilemmas at work. A special analysis was conducted of eight dilemma cases arising from a request by a boss or superior authority to do something regarded as ethically wrong. In reports of most such cases, staff expressed feelings of contractual or interpersonally based obligation to obey. They sought to save face and preserve harmony in their relationship with authority by (...) choosing between “little potato” obedience, token obedience, and undercover disobedience. Only where no such obligation existed was face in relation to authority unimportant, and open disobedience chosen. In Kohlbergian terms, ethical reasoning at the conventional stages (three and four) predominated in dilemmas of obedience. Findings imply that if corruption were to originate at the top, codes of conduct recently introduced into Hong Kong may be of limited effect in stalling it. (shrink)

Jones (1991) has proposed an issue-contingent model of ethical decision making by individuals in organizations. The distinguishing feature of the issue was identified as its moral intensity, which determines the moral imperative in the situation. In this study, we adapted three scenarios from the literature in order to examine the issue-contingent model. Findings, based on a student sample, suggest that (1) the perceived and actual dimensions of moral intensity often differed; (2) perceived moral intensity variables, in the aggregate, significantly affected (...) an individual''s moral judgments; and (3) some dimensions of moral intensity (namely, perceived social consensus and perceived magnitude of consequences) mattered more than others. (shrink)

This experiment examined the effects of three elements comprising Jones' (1991) moral intensity construct, (social consensus, personal proximity, and magnitude of consequences) in a cross-cultural comparison of ethical decision making within a human resource management (HRM) context. Results indicated social consensus had the most potent effect on judgments of moral concern and judgments of immorality. An analysis of American, Eastern European, and Indonesian responses also indicted socio-cultural differences were moderated by the type of HRM ethical issue. In addition, individual differences (...) in personal ethical ideology (relativism and idealism) varied reliably with moral judgments after controlling for issue characteristics and socio-cultural background. (shrink)

Within the theoretical framework of the moral intensity model of ethical decision making (Jones, 1991), two studies ascertained the contention that ethicality judgements are contingent upon the perceived intensity of the moral issue. In addition, Study 1 extended the validity of the moral intensity notion to whistle-blowing behaviour; Study 2 addressed the effect of the individual difference variable, need-for-cognition, on differential utilization of intensity dimensions in the ethical decision process. A scenario approach was used in both studies. Results have provided (...) convergent support for the issue-contingency nature of ethical decisions. Study 1 also showed that felt empathy for potential victims predicted the likelihood of whistle-blowing behaviour, and that the perceived overall ethicality of a wrongdoing predicted felt empathy when potential victims are psychologically and physically close. Results of Study 2 further suggested a greater utilization of issue-relevant information by high need-for-cognition individuals in ethical decision making. (shrink)

This paper represents an effort to distinguish between two types of guanxi prevalent in mainland China: favor-seeking guanxi that is culturally rooted and rent-seeking guanxi that is institutionally defined. Different rules of maneuvering the two types of guanxi are identified in light of Chinese cultural and business ethics. Strategies for entering guanxi in mainland China are also suggested.

Is guanxi ethical? This question is largely ignored in the existing literature. This paper examines the ethical dimension of guanxi by focusing on the consequences of guanxi in business, from ethically misgiving behaviour to outright corruption. Guanxi may bring benefits to individuals as well as the organisations they represent but these benefits are obtained at the expenses of other individuals or firms and thus detrimental to the society. As guanxi has an impact on the wider public other than the guanxi (...) parties, it must be studied in the context of all stakeholders. It can be argued that guanxi is an inevitable evil under the current political and socio-economic systems in China. Its role and importance in business life will be diminished as the country moves towards an open market system. (shrink)

A model of corporate ethics and social responsibility (CESR) was developed and empirically tested among Chinese business undergraduates in Hong Kong and Singapore. As predicted, it was found that CESR beliefs were negatively related to Machiavellianism and two Confucian concepts, guanxi (interpersonal connections) and mianzi (face). CESR beliefs were also lower among Hong Kong than Singaporean youths. The negative effects of guanxi, mianzi, and Machiavellianism were more pronounced for the Hong Kong than Singapore sample. Implications of these findings are discussed (...) and directions for future research suggested. (shrink)

Exploratory research was undertaken in four locations in the Asia Pacific Rim to investigate the cognitive frameworks used by managers when considering ethical business dilemmas. In addition to culture, gender and organisational dimensions were also studied. Aggregate analysis revealed no significant differences in the cognitive frameworks used by business managers in Hong Kong, Malaysia, New Zealand, and Canada. Of the eight frameworks used in the study four cognitive frameworks appeared to feature predominantly. Utilising the results of regression analysis the most (...) salient cognitive frameworks utilised by managers were identified as; Self Interest, Neutralisation, Justice and Categorial Imperative, with Neutralisation and Self Interest being the most significant among all managers. Religious Conviction and the Light of Day framework (which relates to fear of being exposed) did not feature prominently in the analysis. A few significant differences in the ethical frameworks used by males and females were identified. For males in all four locations Self Interest, Neutralisation and Justice appeared to be dominant frameworks, while considerable variability was seen in the frameworks used by females. Marginally significant differences were observed in the cognitive frameworks used by managers with differing functional responsibilities. Across all locations respondents with general management responsibilities relied predominately on Self Interest, while those with marketing responsibilities utilised Neutralisation. Respondents with an accounting orientation also relied predominately on Neutralisation and Categorial Imperative frameworks. (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)

In response to recent recommendations for the teaching of principled moral reasoning in business school curricula, this paper assesses the viability of such an approach. The results indicate that, while business students' level of moral reasoning in this sample are like most 18- to 21-year-olds, they may be incapable of grasping the concepts embodied in principled moral reasoning. Implications of these findings are discussed.

This paper presents a cross-cultural analysis of ethics with U.S. and Hong Kong Chinese managers as subjects. These managers were given the Strategies of Upward Influence instrument and asked to evaluate the ethics of using various political strategies to attain influence within their organizations. Differences were found between Hong Kong and U.S. managers on a variety of dimensions, indicating important differences between these two groups on their perceptions of ethical behavior. In the paper, we identify potential reasons for the findings, (...) and suggest directions for future work in this area. (shrink)

"Small treasuries" (xiaojinku) are off-book accounts found in many large enterprises in China for the purpose of rewarding managers and their subordinates, building up guanxi (personal networks), and even financing the business operations of their danwei (work units). We analyze CESTs with reference to their antecedents, constructs, and consequences. Our analysis indicates that while CESTs can, in some cases, help organizations deal with immediate financial problems, they have negative impacts on organizational performance in relation to the moral hazard of managers, (...) as well as the allocation of organizational resources, in respect of sustainability of strategic advantages and growth, and mismanagement of organizations. Because of the involutionary behavior of managers in Chinese enterprises, we propose that it will require not only organizational controls, but also a fundamental change in these managers' ideology for solving the problems of CESTs. (shrink)