Chinese multinational corporations (MNCs) follow own, culturally rooted ethical practices, which are predominantly relationship-oriented (particularism, collectivism). They often stand at odds with Western ethical principles, which are based on different cultural characteristics (e.g., universalism, individualism) and concepts of duty, impartiality, individual rights, and justice.
When Chinese MNCs globalize, they encounter a variety of ethical issues when dealing with business partners or local employees, in particular in Western countries. What is regarded in China as ethical behavior might be regarded as unethical in the West and vice versa. For example, the application of some Chinese business practices might be regarded ethically problematic in the West. By contrast, some business ethics concepts of Western origin, such as corporate social responsibility (CSR) and the reporting about a company’s social performance, are not well accepted and implemented by Chinese MNCs. This, however, entails problems, once Chinese MNCs internationalize into countries, where Western business ethics tools are more the norm.
This Bachelor thesis should critically review the literature on ethical aspects of the internationalization process of Chinese MNCs. On this basis, practical recommendations on how to address these issues should be developed.
References (preliminary):
Ardichvili, A., Jondle, D., and Kowske, B. 2010. Dimensions of ethical business cultures: comparing data from 13 countries of Europe, Asia, and the Americas, Human Resource Development International, 13(3), pp. 299-315.
Garcia, F., Mendez, D., Ellis, C. and Gautney, C. 2014. Cross-cultural, values and ethics differences and similarities between the US and Asian countries, Journal of Technology Management in China, 9(3), pp. 303-322.
Leung, T.K.P. 2004. A Chinese-United States joint venture business ethics model and its implications for multinational firms, International Journal of Management, 21(1), p. 58.
Provis, C. 2008. “Guanxi” and conflicts of interest, Journal of Business Ethics, 79(1/2), pp. 57-68.
Wright, P.C., Szeto, W.F. and Lee, S.K. 2003. Ethical perceptions in China: The reality of business ethics in an international context, Management Decision, 41(2), pp. 180-189.