Trustworthiness and ethical considerations: a review of personal connections in China

This study is to assess the significance of guanxi or personal connections in Chinese management, its contribution to trust in business dealings, and its relation to ethical judgement in Chinese management. The paper begins with a background to the term Guanxi where it argues that personal connections would be an adequate and preferable term for guanxi, since although the phenomenon in practice is specific to China it is not unique to China. Guanxi or personal connections in China should be seen as part of China’s traditional culture, but without attaching a mystical value to the concept. Understanding of the phenomenon and awareness of how to deal with Chinese business is fundamental to trust both domestically and in foreign business dealings. However it is through a grasp of ethical considerations and a deeper awareness of morality that personal connections can be soundly based and goes beyond the rule of law to meet China’s potential for socio-economic success.