Research Paper on Business Interactions: Finding a Balance Between Ethical Dilemmas

Introduction

Different countries globally have different cultures. In global business interactions, several ethical dilemmas arise regarding the right way to do things. One country's code of ethics prohibits what the other country does (Hanson, 2014). Should the country compromise its standards for the gain of the business? Is there a common ground that can be reached regarding these ethical dilemmas? These are some of the questions that countries have to consider. Some of the difficulties facing global business ventures include child labor, corruption, environmental conservation, and human rights (Wempe, 2019). This paper deals with corruption as a challenge in today's business interactions. It explores the issue of corruption as an ethical dilemma from the perspective of the US and China.

Is your time best spent reading someone else’s essay? Get a 100% original essay FROM A CERTIFIED WRITER!

Save 25%

Why Corruption Is an Ethical Dilemma

Research estimates have shown that over $1 trillion are paid in bribes every year. This leads to misuse of public resources causing food shortage, crumbling education system, and deprivation of government services. While it is considered unethical to bribe government officials, the perception changes when it relates to low-level bureaucrat. Where do we draw the line? Cultural differences exist in the relationship between business organizations and stakeholders. According to Wahyu & Siahaan (2018), Corruption affects the conduct of business partners, erodes ethics, and creates an unhealthy business culture. Therefore, corruption is an ethical dilemma facing business venture world-over.

Comparison Between China and the US in Regard to Corruption

The US has been doing business with China for many years. The rules and ethical standards enforced by the US differ from those in China. In the US, the emphasis is laid on ethical standards in every business venture, big or small. It would be an act of corruption if one were to purchase goods at a higher price than that stipulated in the business agreement. This practice brings moral obligation, which is appreciated by all in the US. However, while the Americans may consider this the basic moral standard, others may not recognize it as such. In China, "guanxi" is the principle that guides ethical conduct. It stipulates that personal relationships and obligations come before everything else, including the written law (TaeShik, 2014)

The nature of business interactions, as specified in Guanxi, leaves so many opportunities for corrupt behavior. Work ethics are not given priority. Take this example; a man is permitted by Guanxi to forfeit work for the sake of doing business with a local man whom he had known for long. While this is the ethical behavior in China, Americans would consider it monotonous and illogical (Stevens, n.d.). That means an employee in China puts personal interests before the company's progress. Whatever needs to be done for the benefit of personal relationships is welcome. On the other hand, Americans are not permitted to put themselves or friendships before work. This in the US constitutes unethical and corrupt behavior.

Impact of Corruption on Businesses in the US and China

The cultural differences between China and the US create tensions that have a negative effect on business interactions between these two countries. The desire for ethical conduct in businesses followed by the Americans has been rejected by the Chinese. In response, China intensifies on guanxi in an effort to enforce their stand while limiting the influence of US culture on its people as Jiang, (2017) confirms. In business transactions, the US aims to reduce costs for the customers and increase shareholder value. This goes against guanxi, which imposes costs on products rather than reducing them. This results in a negative effect on competitiveness.

Business transactions between two countries require an understanding of the ethical standards held by the states. It is nearly impossible to redefine the culture of China for an American to find it noble. They have to respect the moral standards held by Chinese and be ready to abide by them if any fruitful business interactions are to occur. This is where the dilemma comes in. According to Moore, J. (2017), Americans believe in business ethics in and out of the country. While they may be able to enforce them within the country, the conditions outside seem to push for a breach into the fabric that has so far held the business sector in good shape. In these circumstances, should an American forget the moral standards and act in accordance with the requirement of Chinese guanxi?

On the other hand, some companies from the US have also been caught in acts of corruption in China. In 2017, six employees from Nestle were found guilty of bribing health practitioners to buy baby formula. Other companies such as IBM, Daimler, and Pfizer were also caught in the same practice and heavy penalties imposed on them to warn other companies and organizations from following the same route (Newell, 2018). Thus said, corruption is a widespread disease eating deep into the fabric of society. Many African countries have not been left behind too. Research has shown that corruption impacts businesses negatively and can only be eliminated if the political leaders are ready to follow and enforce ethical standards without favoritism.

Conclusion

There are many ethical dilemmas surrounding the business sector. Each country holds on to its culture, and some are willing to enforce their regulations regardless of the impact on business, clients, and relationship between trading countries. While the US upholds ethical business structure by putting the company first before individuals, China has its own way of handling business associations. In Chinese culture, personal relations are allowed to take dominance over trade associations. Both countries believe that their way is the right way and consider the other country as unethical. The question remains; which way is right? Corruption is an n ethical dilemma that has continued to impact societies, businesses, and countries negatively for many years.

References

Case Studies in the US and Canadian Public Sector Tackling Fraud and Corruption. (2017). Fraud and Corruption in Public Services, 155-163. doi:10.4324/9781315093949-11

Hanson, K. O. (2014). Six Unavoidable Ethical Dilemmas Every Professional Face. Business and Society Review, 119(4), 537-552. doi:10.1111/basr.12045

Jiang, G. (2017). Corruption and Anticorruption in China. Corruption Control in Post-Reform China, 1-10. doi:10.1007/978-981-10-4050-4_1

Moore, J. (2017). Corruption and the Ethical Standards of British Public Life. Oxford Scholarship Online. doi:10.1093/oso/9780198809975.003.0019

Newell, J. L. (2018). Definitions of political corruption, and why study corruption. Corruption in contemporary politics. doi:10.7765/9780719088926.00007

Ruan, J. (2016). Guanxi and Social Capital. Guanxi, Social Capital, and School Choice in China, 37-73. doi:10.1007/978-3-319-40754-8_3

Stevens, B. (n.d.). Corporate Ethical Codes as a Vehicle of Reducing Corruption in Organizations. Research Companion to Corruption in Organizations. doi:10.4337/9781849801928.00021

TaeShik Kim. (2014). A Study on the Issues of Corruption and the Solutions in China - Focused on comparing with the Anti-Corruption System of Hong Kong. Journal of Ethics, 1(97), 307-330. doi:10.15801/je.1.97.201409.307

Wahyu Prananta, A., & Siahaan, H. (2018). Social Engineering for Ethical Dilemma about Anti-Corruption Intellectual Consciousness. International Journal of Engineering & Technology, 7(4.15), 413. doi:10.14419/ijet.v7i4.15.23593

Wempe, J. (2019). Ethical Dilemmas. Encyclopedia of Business and Professional Ethics, 1-5. doi:10.1007/978-3-319-23514-1_73-1