Business Ethics in China

           Nowadays, many companies and investors have taken interest of China’s fast economic growth. As China’s economy policies have shifted from centrally planned socialist system to a more open market the country economic had growth rapidly for around 10 percent per year. Moreover, this country is considered as the largest market in the world with a population of more than 1 billion people living in that country.
However, despite of China fast-growing economy and its market size and potential here lies a challenge on how can foreign company do business in China more ethically and without violating breaking the international laws. Participants at a recent meeting of Business and Organizational Partnership at Santa Carla University’s Markula Centre for Applied Ethics came up with solutions to answer question regarding business ethic in China. Here are a few question and answer that have been discussed by the participants.

1. Key principles and practices that help to manage global Code of Conduct and business standards in China:
> Make a local Chinese employee as the face of the company code of conduct.
> Make sure that the code is translated into local language and be sure that the translation is correct.
> Find similar value implemented such as importance of family.
> Discuss cases and scenarios that could happen locally in training session.
> Consider to reframe company’s large and international core values to align with local cultural values.
> Focus on company’s sustainability so the employee will understand the importance of the code.

2. “Core values” role in creating in creating ethical culture:
> Although core values are important, but people in other culture may interpret it differently.
> Specify on how core values are implemented as difference culture may have different practice of those values.
> Discuss with both managers and workers overseas regularly on how to best implement the core values.

3. The most effective processes and procedures to detect and compliance problems
> Separate the reporting process of the whistle blower from human resource (HR) and legal departments.
> Allow employee to report about a person misconduct that have direct access to the board of directors.
> Create an ombudsmen position for a senior manager for a year so that this person will help in resolving problem with company practices.

Lastly, I uploaded a video of Kirk O. Hanson, Executive Director of The Markkula Center for Applied Ethics interviewing Stephan Rothlin, General Secretary of The Center for International Business Ethics in Beijing about what we can learn about Chinese culture and value.