In every business, there are laws and strategies to win over business deals while competing in the market. In Chinese culture, their business decision is based on the concept of Guanxi which is network of connections of people to make their business deals. A company with better connections compared to the other company wins the deals (Ferrell, Odies & John n.p ). The Germans culture called the Teutonic is also used to win over the business deals. Ethics in a company attract more customers hence the productivity of the company increases in the increase of the performance. Ethics in business is most essential which attracts more customers compared to loose of clients.
In China, kickbacks such us, free rides, lunch or gifts, are allowed during closing a business deal. In the case study, Chen says "Some companies organize overseas visits, some provide management training, and some arrange golf outings. This is a good business practice in China". Germans think kickbacks are due to lack of ethics in business practice and it is supported by Schulman when he told Chen "we cannot concede on these issues, " (Ferrell, Odies & John n.p ). The culture clash in the meeting arises whether to use the Chinese way of doing business or the Germany way. The Chinese way includes the kickback of taking the clients to visit the headquarters of the company. When the business is done in Chinese culture, it will attract a lot of people in China than Germany and the company will be of incurring profits more compared to conceding the Germany way. At the same time, the company will lose clients that prefer ethical issues in a company.
Cultural Self-Awareness Threshold
Liu being the President of Almond Company, he has two decisions to make either, to bend the Germany rules or not creating a room to compromise the rules. Liu should stick with the business culture which included ethics in business (Fernando, Mario, & Moore 186). Liu's decision focuses on gaining target customers that will share its values and not go after companies that insist on kickbacks for them to business with Almond. Setting standards for safety and ethics achieves short term successes when the rules are hidden which will eventually fail. Without bending the business culture there is a long-term success. Losing business culture makes the visions and missions lose value hence losing clients who are after ethics in business.
Knowledge of Cultural Worldview Frameworks Threshold
It is important for a business to keep its clients through business culture if the Almond Company loses its culture and values their performances decreases. The strength of this business is that it's not only in China but it's a worldwide business which needs ethics for it runs smoothly (Crane, Andrew, & Matten n.p). It has global experience because it's working in different parts of the world and also it has been having experience in China. The standards and policies of Almond Chemicals reflect on the German culture. Through the joint venture business, the financial position of Almond Chemical is quite stronger.
Applying the Chinese culture can lead to legal issues which may end up messing the company's performance and its reputation. The Chinese way of doing business will increase clients in the local areas but in the headquarters which is in Germany clients will reduce hence the performance of the company will be not equal in both states. This will take a different approach when German culture will be used because in both states there must be loyal clients who don't like bribes and will be attracted to the business 'Belle & Stuart 87'. For example, in TNT Company of the clients wanted 105as a kickback and the C.E.O of the company refused and he said, "At last I've found a company that refuses" and he invested millions yuan in China.
Verbal and Non-verbal Communication Threshold
Liu should persuade the Chinese side with emotion and the German side with a reason of ethics, his job of mediating a resolution will be far easier. Liu is thinking of Almond's reputation and its future business dealings in China so he should stick to the idea of handling the business in the German way (Rossouw, Deon, and Leon n.p). Despite China using Guanxi as verbal communication, it has its positive and negative effects on the market, both in China and Germany. Non-verbal communication in Teutonic culture is through setting standards and policies that 'sell' the companies.
Barraquier, Anne, et al. "Innovations in Teaching Business Ethics and Business &Society." Proceedings of the International Association for Business and Society. Vol. 28. 2017.
Belle, Stuart M. "Knowledge Stewardship as an Ethos-Driven Approach to Business Ethics." Journal ofbusiness ethics142.1 (2017): 83-91.
Ciulla, J., et al. "Call for papers: Special issue on philosophical approaches to leadershipethics." Business Ethics Quarterly(2015).
Crane, Andrew, and Dirk Matten. Business ethics: Managing corporate citizenship and sustainability inthe age of globalization. Oxford University Press, 2016.
Fernando, Mario, and Geoff Moore. "MacIntyrean virtue ethics in business: A cross-culturalcomparison." Journal of business ethics 132.1 (2015): 185-202.
Ferrell, Odies C., and John Fraedrich. Business ethics: Ethical decision making & cases. NelsonEducation, 2015.
Rossouw, Deon, and Leon Van Vuuren. Business ethics. Oxford University Press, 2017.
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