Consideration of the Role of Guanxi in the Ethical Judgments of Chinese Managers

The importance of personal connections and relationships, or guanxi when doing business with the Chinese is widely acknowledged amongst Western academics and business managers alike. However, aspects of guanxi-related behaviours in the workplace are often misunderstood by Westerners with some going so far as to equate guanxi with forms of corruption. This study extends earlier study of Tan and Snell: 2002, Journal of Business Ethics 41(December), 361–384) in its investigation of the underlying modes of moral reasoning in ethical decisions relating to aspects of guanxi, amongst Hong Kong managers. Managers’ ethical judgements and underlying moral reasoning relating to a series of guanxi-related behaviours were recorded. Content analysis yielded categories that correspond with categories of moral reasoning described in Kohlberg’s (1969, Handbook of Socialization Theory and Research, Rand McNally, Chicago, pp. 347–480) model. As hypothesised, it was found that harsher ethical evaluations of guanxi-related behaviours were positively correlated with the stage of moral reasoning. The most common types of reasoning were those corresponding to Kohlberg’s stages four and five which relate to moral reasoning based on law and order, and on reason rather than emotion. Stage 6, concerned with more universalistic approaches to moral reasoning, was utilised considerably less, consistent with popularly held beliefs of the relativistic nature of Chinese ethics.     

Defining ‘business ethics’: Like nailing jello to a wall

Business ethics is a topic receiving much attention in the literature. However, the term ‘business ethics’ is not adequately defined. Typical definitions refer to the rightness or wrongness of behavior, but not everyone agrees on what is morally right or wrong, good or bad, ethical or unethical. To complicate the problem, nearly all available definitions exist at highly abstract levels. This article focuses on contemporary definitions of business ethics by business writers and professionals and on possible areas of agreement among the available definitions. Then a definition is synthesized that is broad enough to cover the field of management in a sense as full as most managers might conceive of it. Phillip V. Lewis is Professor of Management and Chairman of the Department of Management Sciences at Abilene Christian University. His most important publications includeOrganizational Communication: The Essence of Effective Management, Grid (1975, 1980), andManaging Human Relations, Kent (1983).     

The State of Business Ethics in Israel: A Light Unto the Nations?

Whether the nation of Israel has become a “light unto the nations” in terms of ethical behavior among its business community remains in doubt. To examine the current state of business ethics in Israel, the study examines the following: (1) the extent of business ethics education in Israel; (2) the existence of formal corporate ethics program elements based on an annual survey of over 50 large Israeli corporations conducted over 5 years (2006–2010); and (3) perceptions of the state of business ethics based on interviews conducted with 22 senior Israeli corporate executives. In general, and particularly as a young country, Israel might be considered to have made great improvements in the state of business ethics over the years. In terms of business ethics education, the vast majority of universities and colleges offer at least an elective course in business ethics. In terms of formal business ethics program elements, many large companies now have a code of ethics, and over time continue to add additional elements. Most respondents believed they worked in ethical firms. Despite these developments, however, there appears to be significant room for improvement, particularly in terms of issues like: nepotism/favoritism; discrimination; confidentiality; treatment of customers; advertising; competitive intelligence; whistle-blowing; worker health and safety; and the protection of the environment. When compared with the U.S. or Europe, most believed that Israeli firms and their agents were not as ethical in business. A number of reasons were suggested that might be affecting the state of business ethics in Israel. A series of recommendations were also provided on how firms can better encourage an ethical corporate culture. The paper concludes with its limitations.     

Internet Technologies in China: Insights on the Morally Important Influence of Managers

Within Science and Technology Studies, much work has been accomplished to identify the moral importance of technology in order to clarify the influence of scientists, technologists, and managers. However, similar studies within business ethics have not kept pace with the nuanced and contextualized study of technology within Science and Technology Studies. In this article, I analyze current arguments within business ethics as limiting both the moral importance of technology and the influence of managers. As I argue, such assumptions serve to narrow the scope of business ethics in the examination of technology. To reinforce the practical implications of these assumptions and to further illustrated the current arguments, I leverage the recent dialog around U.S. Internet technologies in China. The goal of this article is to broaden that which is morally salient and relevant to business managers and business ethicists in the analysis of technology by highlighting key lessons from seminal STS scholars. This article should be viewed as part of a nascent yet burgeoning dialog between business ethics and Science and Technology Studies – a dialog that benefits both fields of study.     

Linking Linear/Nonlinear Thinking Style Balance and Managerial Ethical Decision-Making

This study presents the results of an empirical analysis of the relationship between managerial thinking style and ethical decision-making. Data from 200 managers across multiple organizations and industries demonstrated that managers predominantly adopt a utilitarian perspective when forming ethical intent across a series of business ethics vignettes. Consistent with expectations, managers utilizing a balanced linear/nonlinear thinking style demonstrated a greater overall willingness to provide ethical decisions across ethics vignettes compared to managers with a predominantly linear thinking style. However, results comparing the ethical decision-making of balanced thinking managers and nonlinear thinking managers were generally inconsistent across the ethics vignettes. Unexpectedly, managers utilizing a balanced linear/nonlinear thinking style were least likely to adopt an act utilitarian rationale for ethical decision-making across the vignettes, suggesting that balanced thinkers may be more likely to produce ethical decisions by considering a wider range of alternatives and ruling out those that are justified solely on the basis of their outcomes. Implications are discussed for future research and practice related to management education and development, and ethical decision-making theory. Kevin S. Groves is an Assistant Professor of Management and Director of the PepsiCo Leadership Center at California State University, Los Angles. His research interests include managerial thinking styles, ethical decision-making, executive leadership development and succession planning systems, charismatic leadership, and leader emotional intelligence. He teaches undergraduate, MBA, and doctoral-level classes across a range of management and leadership subjects, including management competency development, organizational behavior, business ethics, and organization development and change. Dr. Groves’ recent research has been published in such journals as the Journal of Management, Human Resource Development Quarterly, Journal of Management Development, Leadership and Organization Development Journal, Journal of Management Education, and the Academy of Management Learning & Education. He received a Ph.D. in Organizational Behaviour from Claremont Graduate University. Charles Vance teaches in the area of human resource management at Loyola Marymount University. He recently completed Senior Specialist and regular Fulbright appointments in Austria and China respectively. He is the author with Yongsun Paik of the new text, Managing a Global Workforce, (M.E. Sharpe, 2006). His nonlinear penchant is expressed quarterly in cartoons and other attempts at humor in the ending “Out of Whack” section of the Journal of Management Inquiry. Dr. Yongsun Paik is a professor of international business and management in the College of Business Administration, Loyola Marmount University. He holds a Ph. D. degree in International Business from University Washington. His primary research interests focus on international human resource management, global strategic alliances, and Asia Pacific business studies. He has recently published articles in such journals as Journal of World Business, Management International Review, Journal of International Managemtn, Business Horizons, International Journal of Human Resource Management, Journal of Management Inquiry, Human Resource Management Journal, among others.     

International Bribery: Does a Written Code of Ethics Make a Difference in Perceptions of Business Professionals

This article analyzes the attitudes of United States business professionals toward the issue of international bribery, and in particular, whether or not having a written code of ethics has an effect on these attitudes. A vignette relating to international bribery from a widely used survey instrument was employed in a nationwide survey of business professionals to gather information on ethical attitudes of respondents. Data were also collected on gender of respondents, whether or not respondents were self-employed, whether or not the respondents’ firms had a written code of ethics, and to what extent the respondents’ firms generated revenues from international operations. Attitudes concerning whether or not international bribery is ever acceptable exhibited wide dispersion. Respondents from firms that have a written code of ethics were significantly less likely to find international bribery acceptable. Firms that generate revenues from international operations were significantly more likely to have a written code of ethics than were firms which did not generate revenues from international operations. Implications of the findings for business policy are discussed. Joseph A. McKinney is Ben H. Williams Professor of International Economics at Baylor University. He was previously on the faculty of the University of Virginia, and has served as visiting professor to universities in Japan, France, the United Kingdom and Canada. His research interests include business ethics, international trade policy, and regional economic integration. Carlos W. Moore is the Edwin W. Streetman Professor of Marketing at Baylor University, where he has been on the faculty for more than 30 years. His research interests include business ethics, marketing and advertising evaluation, and small business strategies. He has done consulting on bank marketing and new product development.     

A Chinese Perspective: Business Ethics in China Now and in the Future

China now manufactures or assembles over 50% of the world’s products. However, the world has been reeling from daily accounts of defective “Made in China” products. China has been at the forefront of growing concern, not only about its products and enterprises, but also about its business ethics. This article analyzes recent events connected with the Made in China label from the perspective of evolving Chinese business ethics. Part 1 analyzes three of these events. Part 2 details and analyzes the state of business ethics in China today. Part 3 concludes by exploring the future of business ethics in China. The main conclusion is that business ethics in China faces two kinds of ethical challenges: how to restrict the lawless in as short a period of time as possible and how to protect and advance the interests of employees, investors, and the public through corporate management and public administration.     

Leadership, Ethics and Responsibility to the Other

Of recent time, there has been a proliferation of concerns with ethical leadership within corporate business not least because of the numerous scandals at Enron, Worldcom, Parmalat, and two major Irish banks – Allied Irish Bank (AIB) and National Irish Bank (NIB). These have not only threatened the position of many senior corporate managers but also the financial survival of some of the companies over which they preside. Some authors have attributed these scandals to the pre-eminence of a focus on increasing shareholder value in Western business schools and/or to their failure to inculcate ethical standards. In this paper, we challenge these accounts and the aetiological view of knowledge from which they derive but are grateful for the consensus that they convey regarding the importance of business ethics. The paper focuses on different approaches to ethical leadership concluding with a view that some hybrid of MacIntyre’s virtue ethics and Levinas’s ethics of responsibility may serve as an inspiration for both educators and practitioners. Dr. David Knights is a Professor of Organisational Analysis in the School of Economic and Management Studies at Keele University. He previously held chairs in Manchester, Nottingham and Exeter Universities. He is a founding and continuing editor of the journal Gender, Work and Organisation and his most recent books include: Management Lives, Sage, 1999 (with H. Willmott) and Organization and Innovation, McGraw-Hill, 2003 (with D. McCabe). Majella O’Leary is a Lecturer in Management at the University of Exeter. Her research interests include corporate scandals, ethical leadership, disaster sensemaking, and organizational storytelling. Majella’s most recent publications have appeared in Human Relations and European Journal of Business Ethics.     

Managers’ Moral Decision-Making Patterns Over Time: A Multidimensional Approach

Taking multidimensional ethics scale approach, this article describes an empirical survey of top managers’ moral decision-making patterns and their change from 1994 to 2004 during morally problematic situations in the Finnish context. The survey questionnaire consisted of four moral dilemmas and a multidimensional scale with six ethical dimensions: justice, deontology, relativism, utilitarianism, egoism and female ethics. The managers evaluated their decision-making in the problems using the multidimensional ethics scale. Altogether 880 questionnaires were analysed statistically. It is concluded that relying on the utilitarian principles is a core ethical evaluation criterion amongst top business managers in Finland. This study proves that managers’ moral decision-making patterns change over time. According to the results of this research, managers’ moral decision-making became more multidimensional during the study period. The change is explained by (1) the inclusion of female ethics items in the scale which allows managers to show more diversity in their decision- making, (2) the change in the Finnish economic context from depression to economic prosperity and growth during the study period, which is conducive to the spread of post materialist values, such as the importance of social relations and (3) the increasing public discussion of the importance ethical issues in business.     

The Role of Business Schools in Ethics Education in Iceland: The Managers’ Perspective

This article explores managers’ views on various ways in which business schools can contribute to providing solid ethics education to their students, who will ultimately become the next generation of business leaders. One thousand top level managers of Icelandic firms were approached and asked a number of questions aimed at establishing their view on the relationship between ethics education and the role of business schools in forming and developing business ethics education. Icelandic businesses were badly hurt by the 2008 crisis, and therefore Iceland provides an interesting foundation for an empirical study of this sort as the aftermath of the crisis has encouraged managers to consciously reflect on the way their business was and should be conducted. Based on the results of the survey, a few main themes have developed. First, it appears that according to practicing managers, business schools should not be held responsible for employees’ unethical behavior. Nevertheless, managers believe that business schools should assist future employees in understanding ethics by including business ethics in teaching curricula. Second, managers believe that the workplace is not where ethics are learned, while also insisting that former students should already have strong ethical standards when entering the workplace. Third, managers call for business schools not only to contribute more to influencing students’ ethical standards, but also to reshape the knowledge and capabilities of practicing managers through re-training and continuous education. Based on the results of the study, the article also offers some recommendations on how to begin reformulating the approach to business ethics education in Iceland, and perhaps elsewhere.     

The Only Solution to the Decline in Business Ethics: Ethical Managers

This paper defines business ethics as a seriesof behaviors that adhere to values held by theindividual manager, the manager's supervisorsand subordinates, general society and, mostimportantly, the manager's customers andclients. The concept of business ethics isexplored through several levels of businessorganizations and operating environments.The paper then examines recent evidence of thedecline in business ethics by noting a fewexamples involving Beech-Nut, Hertz, MichaelMilken, E.F. Hutton, Sears, Salomon Brothers,Dalkon Shield, Exxon Valdez, S&L scandal,brokerage analysts. Surveys are cited toindicate that the American public believes thatbusiness ethics are declining.To further analyze the topic, the authorreports on a series of structured interviewswith managers in a variety of organizations.Fourteen senior managers were interviewed: 4from large county government, 3 from stategovernment, 4 from large corporations, 3 fromsmall businesses. The managers were asked theiropinions concerning the decline of businessethics, and for their recommendations topossibly retard the decline. All managers saidthey believed that ethics are in decline andthat the public believes ethics are declining.The recommendations for retarding or reversingthe decline yielded several suggestions: teachethics in schools and business organizations,develop and enforce Codes of Ethical Conductwithin all organizations, establish bettermonitoring and reporting mechanisms, and hireethical managers.The paper builds on theinterview results by coupling the managers'remarks with admonitions from many authors:while teaching ethics and Codes of EthicalConduct are important, the most importantfactor is the ethical behavior of managers(leaders). Ethical leadership is fundamentalsince ethical behavior is an individual – not acorporate – matter. In practice, ethics is notsomething that a manager ``does'; it issomething that the manager ``is.'     

Identifying the gaps in ethical perceptions between managers and salespersons: A multidimensional approach

This research examines, in a general manner, the degree and character of perceptual congruity between salespeople and managers on ethical issues. Salespeople and managers from a diversity of organizations were presented with three scenarios having varying degrees of ethical content and were asked to evaluate the action of the individual in each scenario. Findings indicate that, in every instance, the participating managers tended (1) to be more critical of the action displayed in the scenarios, (2) to view the action as violating a sense of contract or promise, and (3) to view the action as less culturally acceptable than did the salespeople.Tony L. Henthorne is Associate Professor of Marketing at the University of Southern Mississippi. Dr. Henthorne has published in such journals asPsychology and Marketing andJournal of Professional Services Marketing.Donald P. Robin is Professor of Business Ethics and Professor of Marketing at the University of Southern Mississippi. Dr. Robin is coauthor with Eric Reidenbach of two recent books on business ethics. Dr. Robin has contributed several articles on business ethics in such journals asJournal of Marketing, Journal of the Academy of Marketing Science, andJournal of Business Ethics. He is also a frequent lecturer on the topic of business ethics.R. Eric Reidenbach is the Director of the Center for Business Development and Research and Professor of Marketing at the University of Southern Mississippi. Dr. Reidenbach has written numerous articles for such journals asJournal of Business Ethics, Journal of Marketing, Journal of Macromarketing, andJournal of the Academy of Marketing Science. Dr. Reidenbach has coauthored two books on business ethics.     

Three ethical frames of reference: insights into Millennials' ethical judgements and intentions in the workplace

The paper investigates the ethical decisions of Millennials, who are not only part of an expanding cohort of the workforce, but also represent potential future managers with a growing influence on work practices and employment relationships. In the conceptual model, we propose that three ethical frames of reference, represented by perceived organisational ethics, perceived employee ethics and reflective moral attentiveness, antecede ethical judgements, which further influence the ethical intentions of Millennials. Using structural equation modelling, we test the model for three different business ethics scenarios: paying a consulting fee, dumping hazardous waste, and running an offensive advertising campaign. The findings confirm the link between ethical judgements and intentions across the board, while the influence of the ethical frames of reference varies among the scenarios. We propose that the differences in the predictive ability of the ethical frames of reference depend on the nature of the ethical issue, which holds important implications for today's managers in their attempts to encourage ethical behaviour of Millennial employees.     

The role of ethics and social responsibility in achieving organizational effectiveness: Students versus managers

This paper investigates the differences in perceptions between business students and service-sector managers regarding the role that ethics and social responsibility serve in determining organizational effectiveness. An organizational effectiveness instrument containing business ethics and social responsibility items served as a questionnaire for a sample of 151 senior business undergraduates and 53 service-sector managers. The results indicated that while students acting as managers rate some social responsibility issues as more important than do managers, they also rate ethical conduct and a few dimensions of social responsibility lower than do managers. The findings have direct implications for both business practitioners and educators.Kenneth L. Kraft received his D.B.A. from the University of Maryland in 1982 and is currently an Associate Professor of Management at Old Dominion University in Norfolk, VA. His recent papers explore the relationships between strategy, structure, social responsibility, and organizational effectiveness in a variety of settings. Anusorn Singhapakdi is Assistant Professor of Marketing at Old Dominion University. His current research interests center on marketing/business ethics and selected public policy issues in marketing. He has published in Journal of Macromarketing, Journal of the Academy of Marketing Science, International Journal of Value Based Managementas well as other journals and proceedings.     

Facing society's demands for environmental protection: Management in practice

Although managers must stay abreast of all socictal concerns in developing organizational objectives, protecting the environment seems to be a major issue for consumers in the 1990s. This increased environmental concern leaves managers no choice but to go beyond mere social obligation when it comes to protecting the environment. Society is demanding social responsiveness at a minimum, and the call for social responsibility seems to be getting louder and clearer. This paper reviews the response business has made to this call for responsibility for the environment. Specifically, this paper will address the impact of increased business awareness on: (1) the passage of laws and legislation to protect the environment (social obligation); (2) specific organization actions to meet consumer demands (social responsiveness); (3) specific organization endeavors which reflect a sincere attempt to address the environmental issue (social responsibility). An awareness of these activities should aid managers in developing future plans which will allow them to become more responsible for our environment.Allayne Barrilleaux Pizzolatto is Assistant Professor of Management at Nicholls State University. Her research interests include business ethics, managing by fun, and job applicant testing. Dr. Pizzolatto has published in various journals includingJournal of Management Education, Journal of Vocational Behavior, andLabor Law Journal.Cecil A. Zeringue, II is a MBA student at Nicholls State University. He is also the general manager/system analyst of an electrical supply company.     

Using a Qualitative Approach to Gain Insights into the Business Ethics Experiences of Australian Managers in China

This study investigated the business ethics experiences of Australian managers in China, using qualitative methodology to identify themes. Thirty-one Australian managers who had spent on average 8.7 years working in business connected to China participated in in-depth interviews regarding their business ethics experiences in China. Commonly, managers identified issues relating to a broad spectrum which could be labelled "bribery and facilitation". Other repeated themes included requests for visa assistance, employee theft, nepotism and non-adherence to contractual obligations. This study has important implications for helping Australian managers improve the way they approach potential ethical situations in China. Four key coping strategies can be identified from the data: managers spoke of not compromising their own morals, of attempting to understand the motivation of Chinese colleagues, of talking to others and of adhering to company policy. These strategies suggest practical steps may be taken by organisations when training managers for business activities in China. In particular, structuring of mentoring relationships between experienced and less experienced practitioners may be of assistance. Cultural training for managers and clear company policy on contentious issues such as bribery may also be of benefit. The themes identified in the study also have implications for academics researching expatriate business peoples' experiences in China.     

Business and Marketing Ethics as Professional Ethics. Concepts, Approaches and Typologies

Marketing ethics is normally marketed as a sub-specialization of business ethics. In this paper, marketing ethics serves as an umbrella term for advertising, PR and sales ethics and as an example of professional ethics. To structure the paper, four approaches are distinguished, with a focus on typical professional conflicts, codes, roles or climates respectively. Since the moral climate approachis more inclusive than the other approaches, the last part of the paper deals mainly with moral climates, within the above-mentioned marketing sub-professions.     

The business of ethics and the ethics of business

This is an essay in personal business ethics of executives as distinguished from the institutional ethics of corporations. Its purpose is to give practical moral guidance to executives for the conduct of their lives both as corporate decision-makers and as human beings. The pivotal concept in this model of personal business ethics is a direct appeal to the self-interest of executives in their being moral. Our thesis is that generally there is a twofold return on investment in ethics (ROIE) for executives. The first one is related to employee output: by becoming a self-actualizing moral type, executives indicate commitment to excellence. Accordingly, they so manage employees that the latter can also live up to their full potential and excell. And that would increase corporate productivity and product or service quality. The second payback of morality is personal: fully developed, self-actualized managers are generally happier people than those whose growth has been arrested. In brief, moral self-actualization is the same as commitment to excellence and there is a payback in being the best. Return on investment in ethics and return on investment in excellence can both be abbreviated as ROIE. We accomplish the purpose and establish the thesis of this essay by seeking answers to the following questions: What business does ethics have in business? What business does business have in ethics? Is there a return on investment in ethics for executives? and Does being moral help executives become more effective managers? In sketching answers to these questions, we first show why executives need a personal business ethics especially in today's world. Then, we sketch the nature of ethics and of business. After these introductory materials, the body of the paper argues for a personal business ethics for executives by correlating elements of management theory with ethics. Specifically, it links a theory of employee motivation with a scale of values, management character types with moral types, and management leadership styles with morality. Then, the practical technique of life by objectives (LBO) is explained. It can help executives manage their lives more effectively in both the business and ethical sense. We conclude by explaining ideals of excellence which can guide executives in their work and development both as managers and as human beings.     

Google in China: A Manager-Friendly Heuristic Model for Resolving Cross-Cultural Ethical Conflicts

Management practitioners and scholars have worked diligently to identify methods for ethical decision making in international contexts. Theoretical frameworks such as Integrative Social Contracts Theory (Donaldson and Dunfee, 1994, Academy of Management Review 19, 252–284) and more recently the Global Business Citizenship Approach [Wood et al., 2006, Global Business Citizenship: A Transformative Framework for Ethics and Sustainable Capitalism. (M. E. Sharpe, Armonk, NY)] have produced innovations in practice. Despite these advances, many managers have difficulty implementing these theoretical concepts in daily practice. Using the example of recent decisions by internet service providers Google, Yahoo, and MSN regarding censorship requirements in China, we offer six heuristic questions to help managers to resolve cross-cultural ethical conflicts in which the firm’s way of doing business differs from the practice in the host country. Recognizing that companies can take different approaches to law and ethics (Paine, 1994, Harvard Business Review 72(2), 107–117), our aim is to provide a management decision process to deal with demands or opportunities for engaging in questionable business practices in a host country.     

An examination of the ethical beliefs of managers using selected scenarios in a cross-cultural environment

Academic literature addressing the topic of business ethics has paid little attention to cross-cultural studies of business ethics. Uncertainty exists concerning the effect of culture on ethical beliefs. The purpose of this research is to compare the ethical beliefs of managers operating in South Africa and Australia. Responses of 52 managers to a series of ethical scenarios were sought. Results indicate that despite differences in socio-cultural and political factors there are no statistically significant differences between the two groups regarding their own ethical beliefs. Results thus support the view that culture has little or no impact on ethical beliefs.Russell Abratt (DBA Pretoria) is Professor of Marketing at the University of Witwatersrand, Johannesburg, South Africa. His research interests include business ethics and promotional strategy. His work has been published in various sources includingJournal of Business Ethics, European Journal of Marketing, International Journal of Advertising andIndustrial Marketing Management.Deon Nel (DCom Pretoria) is Professor of Marketing at the University of Pretoria, South Africa. His research interests include business ethics and group decision making in organisations. His work has been published in various sources includingJournal of Business Ethics, European Journal of Marketing, Management Research News.Nicola Higgs is a graduate student at the University of the Witwatersrand, Johannesburg, South Africa.