This paper expands the definition of gray-marketing to include some ethically problematic marketing activities and techniques used in personal selling in China. Based on this, a conceptual model of gray-marketing for a particular type of selling in which both the sellers and the buyers exhibit problematic ethics in an exchange and the associated hypotheses are developed and tested. The findings show that, first, the respondents have different ethical evaluations of different marketing practices used in personal selling such as giving and (...) accepting gifts, buying and accepting meals, and offering and accepting kickbacks. Some of these practices may not be considered unethical. Second, in terms of ethical assessment, gray-marketing practiced by buying agents is more unacceptable than when practiced by sales agents. Third, a person's ethical evaluation of gray-marketing behavior, empathy for gray-marketing, and belief that gray-marketing has serious consequences, significantly affects his inclination to use gray-marketing. This paper concludes with a discussion of some possible applications of our research findings. (shrink)

Guanxi in China is a very ancient concept embedded in the Confucian concept of life and one that is a ‚hot' topic in that it is currently attracting increasing attention from both Western and Chinese scholars. One aspect of Guanxi which has been the subject of most of the research of late is the influence of Guanxi on firm performance. However, relatively few studies have examined how Guanxi at the individual level is transferred into a firm to influence its financial (...) performance. This study first reclassifies Guanxi into obligatory, reciprocal, and utilitarian types at the individual level as a means to clarifying the confusion brought above from previous studies. It then provides a conceptual framework in which to systematically characterize the link between Guanxi at the individual level and organizational dynamics: that is, how is Guanxi at the individual level shifted to a firm and how does it affect organizational dynamics of that firm at the organizational level. Finally, it provides a deeper understanding of the financial implications of Guanxi to business firms in China. (shrink)

This paper examines the relationship of ethical decision-making by individuals to corporate business ethics and organizational performance of three groups: SMEs, Outstanding SMEs and Large Enterprises, in order to provide a reference for Taiwanese entrepreneurs to practice better business ethics. The survey method involved random sampling of 132 enterprises within three groups. Some 524 out of 1320 questionnaires were valid. The survey results demonstrated that ethical decision-making by individuals, corporate business ethics and organizational performance are highly related. In summary, then, (...) high levels of organizational performance were directly attributable to high levels of applied corporate and individual ethics. Furthermore, there is a demonstrable tendency for Outstanding SMEs to reject ethically unsound practices such as padded expense accounts, tax evasion and misleading advertising. The measurement criteria used to assess organizational performance, however, did not include an objective evaluation of financial performance. (shrink)

The practice of business ethics is a constant concern for both business and academics. Thus this study attempts both to explore the effective performance of business ethics and to provide a learned reference. The researcher has gathered relevant literature, developed a notion of business ethics operation which have been put to the test within four selected enterprises across the Taiwan Strait. The findings reveal that different types of ethical leadership and catalytic mechanism precipitated four operations and a swathe of different (...) approaches to business ethics. The study has, it is hoped, justified academic interest in business ethics by obtaining experimental results which demonstrate the merits of promoting their practice. (shrink)

This paper describes the results of a field experiment involving 400 employees from ten financial institutions operating within the Shenzhen Special Economic Zone of the People's Republic of China. It was found that, when faced with an agency-based problem, employees indicated they would be less inclined to advise management of the existence of unethical work practices. Younger employees without supervisory experience displayed significant risk aversion. Traditional Chinese values associated with Confucian work dynamism, were shown to be poor predictors of moral (...) choice response. A parsimonious regression model was developed that provides evidence that the universal trait Masculinity/Femininity acted to offset the negative influence of the agency problem. On the other hand, an operative's level of education attainment exerted a negative influence on moral response scores. (shrink)

Moral choice, as a precursor to behaviour, has an important influence on the success or failure of business entities. According to Rest, 1983, Morality, Moral Behavior and Moral Development (John Wiley & Sons, New York), moral choice is prompted, amongst other things, by a motivational component. With this in mind, data obtained from a sample of four hundred financial sector operatives, employed in a rapidly developing region of China, was used to construct a relatively stable set of motivational typologies which (...) could be used to predict choice within an agency-based context. A non-egoist version of the agency theory was developed, which permitted the modelling of alternative heuristic patterns. Altruists and persons identified as bordering on the verge of being classified as psychological egoists, refused to reorganize their motives when responding to a problem that included both moral hazard and adverse selection criteria. It was also possible to identify certain personal and contextual issues which discriminated between the typologies. (shrink)

One of the hot research topics today is relationship marketing. However, little research has been carried out in understanding the complex concepts of Guanxi (relationship) in a Chinese society. This research describes a study to operate the constructs of guanxi and explores the importance of guanxi in relationship development in order to present a new Guanxi framework. A study of both Western and Chinese literature provides foundations of the Guanxi perspectives. The constructs of adaptation, trust, opportunism and favour are identified. (...) Adaptation and trust are found to be positively correlated with sales stability and quality. Whilst, adaptation is negatively correlated with relationship termination costs. Both theoretical framework (a new perceptual map) and managerial implications are given. In addition, recommendations for future research are made. (shrink)

The research presented in this paper focuses on business ethical values inChina, a country in which the process of institutional transformation has left cultural values in a state of flux. A survey was conducted in China and the U.S. by using five business scenarios. Survey results show similarities between the Chinese and American decision choices for three out of five scenarios. However, the results reveal significant differences in rationales, even forsimilar decisions. The implications of similarities and differences between the U.S. (...) and Chinese samples are discussed. (shrink)

We present two studies that examine the effects of guanxi on multiple social groups from the perspective of Chinese business people. Study 1 (N = 203) tests the difference in perceived effects of six guanxi contextualizations. Study 2 (N = 195) examines the duality of guanxi as either helpful or harmful to social groups, depending on the contextualization. Findings suggest guanxi may result in positive as well as negative outcomes for focal actors and the aggregate.

According to the reports in the past decade, some Asian subcontractors, mainly Taiwan, Hong Kong and Korea transnational corporations, tend to be labor abusive in their overseas investment destinations like China or Southeast Asia. Taking Vietnam as an example, this paper raises questions as to why Taiwanese transnational companies can control workplace unions in a trade-union-supportive regime. Given the government s constraint of political rights, and the individualized workplace unions, the function of trade unions in Vietnam is destined to be (...) limited. The trade unions turn out be an arm of management, rather than representing workers interests in these transnational companies. This article also explores the influence of the newly developed codes of conducts from Western buyers. In the survey of three companies which are required to follow the codes of conduct by buyers, trade unions had no more freedom than those in companies without codes of conduct. The paper discusses the implications of this research, offering strategies for labor rights improvements. (shrink)

This study draws on Kohlberg''s Cognitive Moral Development Theory and Hofstede''s Culture Theory to examine whether cultural differences are associated with variations in ethical reasoning. Ethical reasoning levels for auditors from Australia and China are expected to be different since auditors from China and Australia are also different in terms of the cultural dimensions of long term orientation, power distance, uncertainty avoidance and individualism. The Defining Issues Tests measuring ethical reasoning P scores were distributed to auditors from Australia and China (...) including Hong Kong and The Chinese Mainland. Results show that auditors from Australia have higher ethical reasoning scores than those from China, consistent with Hofstede''s Culture Theory predictions. (shrink)

We examine the use of Confucian relational morality as an alternative reference point to that of modernist morality in judging workplace ethical conduct. A semi-structured interview based study involving 46 ethnic Chinese managers and 30 non-Chinese expatriate managers in Singapore, provided evidence of the use of traditional guanxi-linked morality as a moral resource by some of the former group in judging workplace ethical dilemmas. While such morality played only a minor role in moral reasoning, and was largely overshadowed by modernist (...) morality, the research nonetheless demonstrates that moral reasoning reflects wider cultural heritage, and is not merely a function of corporate culture and individual moral development. (shrink)

This study examines a model involving income, the love of money, pay satisfaction, organizational commitment, job changes, and unethical behavior among 211 full-time employees in Hong Kong, China. Direct paths suggested that the love of money was related to unethical behavior, but income (money) was not. Indirect paths showed that income was negatively related to the love of money that, in turn, was negatively related to pay satisfaction that, in turn, was negatively associated with unethical behavior. Pay satisfaction was positively (...) related to organizational commitment. Thus, the love of money is the root of evil, but money is not. (shrink)

This study examines the effects of nationality (U.S. vs. China) and personal values on managers’ responses to the Perceived Role of Ethics and Social Responsibility (PRESOR) scale. Evidence that China’s transition to a socialist market economy has led to widespread business corruption, led us to hypothesize that People’s Republic of China (PRC) managers would believe less strongly in the importance of ethical and socially responsible business conduct. We also hypothesized that after controlling for national differences, managers’ personal values (more specifically, (...) self-transcendence values) would have a significant impact on PRESOR responses. The hypotheses were tested using a sample of practicing managers enrolled in part-time MBA programs in the two countries. The results indicate that nationality did not have a consistent impact on PRESOR responses. After controlling for national differences, self-transcendence values had a significant positive impact on two of the three PRESOR dimensions. Conservation values such as conformity and tradition also had a significant association with certain dimensions of the PRESOR scale. (shrink)

Despite the growing interest in female expatriates, few empirical studies have focussed on corporate career development activities available to women. Given the faltering corporate support for female business expatriates in general, one may presume that such organizational activities are less available to women than to men. To test this proposition, a large number of Western female and male business expatriates assigned to Hong Kong responded to a mail survey. Controlling for differences between the two gender groups, three significant gender differences (...) were found, all indicating a lower availability of these corporate activities to women than to men, partially supporting expectations. These corporate career development activities were fast track programs, individual career counseling and career planning workshops. Implications of these findings for globalizing firms as well as for their female employees are discussed in detail. (shrink)

This study examines the importance of microcultural differences on perceived ethical problems. This study also sought to identify the relationship between perceived ethical problems and value orientations as shown in the Hunt and Vitell's (1993) General Theory of Marketing Ethics. The data was collected from 173 Javanese, 128 Batak, and 170 Indonesian-Chinese marketing managers in Indonesia. The results indicate that, (1) Religious Value Orientation is positively related to the perceived ethical problems scores, and (2) there are significant differences among the (...) three ethnic microcultural groups relative to their perceived ethical problems scores. These results imply that acculturation training program for expatriates should include aspects of microcultures and ethical perceptions held by the local managers. The establishment of ethical corporate culture and formalised codes of conduct are recommended for future ethics training. (shrink)

Leaders and managers of today''s multinational corporations face a plethora of problems and issues directly attributable to the fact that they are operating in an international context. With work-sites, plants and/or customers based in another country, or even several countries, representing a vast spectrum of cultural differences, international trade and offshore operations, coupled with increased globalisation in respect to political, social and economic realities, contribute to new dilemmas that these leaders must deal with. Not the least of these being a (...) Code of Ethics and ethical decision making.This paper examines the differences in culture between a group of managers from the United States and similar group from Croatia using Hofstede''s theory of International Cultures. The study explores how these cultural dimensions may help in our understanding of the differences in reported whistleblowing. The authors then postulate four hypotheses regarding various aspects of whistleblowing. These Hypotheses were than tested using a survey administered to a sample of U.S.A. and Croatian managers. Finally, the paper discusses the findings and practical implications for contemporary managers in the international arena. (shrink)

With the current globalisation and complexity of today’s business environment, there are increasing concerns on the role of business ethics. Using culture and religion as the determinants, this paper presents a cross-national study of attitudes toward business ethics among three countries: Australia, Singapore and Hong Kong. The results of this paper have shown the attitudes toward business ethics to be significantly different among the three countries. It was also found that respondents who practised their religion tend to consider themselves more (...) ethically minded than those who do not. Additional findings on gender have also revealed significant differences between the males and females for respondents in Singapore and Australia. Males are generally considered more ethical than females across the three countries studied. (shrink)

. This paper explores the relationship between gift giving, guanxi and corruption through a study of the relationships between UK manufacturing companies in China and their local component suppliers. The analysis is based on interviews in the China-based operations of 49 UK companies. Interviews were carried out both with senior (often expatriate) staff and with local line managers who were responsible for everyday purchasing decisions and for managing relationships with suppliers. The results suggest that gift giving is perceived to be (...) a significant problem in UK-owned companies in China. However the relationship between these payments and established understanding of gift giving within guanxi-networks appears to be weak. Gift giving appears to be associated with illicit payments, corruption and the pursuit of self-interest. Firms seek to reduce the incidence of illicit transactions by changing staff roles, instituting joint responsibilities, which include the separation of different aspects of sourcing/purchasing, ineasing the involvement of senior staff in the process and through the education of employee and suppliers. (shrink)

This article begins with a review of the literature on the ethics of tax evasion and identifies the three main views that have emerged over the centuries, namely always ethical, sometimes ethical, and never or almost never ethical. It then reports on the results of a survey of HK and U.S. university business students who were asked to express their opinions on the 15 statements covering the three main views. The data are then analyzed to determine which of the three (...) viewpoints is dominant among the sample population. Although it was found that HK scores were significantly different from the U.S. scores, both HK and U.S. respondents were opposed to the view that tax evasion is always or almost always ethical. The strongest arguments justifying tax evasion were in cases where the government was corrupt, the tax system was unfair and unaffordable. The weakest arguments for justifying tax evasion were in cases where there was a selfish motive. The underlying cultural differences are further explored in hope of accounting for differing perceptions of ethics of tax evasion. Policy implications for increasing people’s awareness of ethics on tax evasion are also highlighted. (shrink)

Based on a consumer survey conducted in France, Germany, and the U.S., the study investigates consumers'' readiness to support socially responsible organizations and examines their evaluations of the economic, legal, ethical, and philanthropic responsibilities of the firm. French and German consumers appear more willing to actively support responsible businesses than their U.S. counterparts. While U.S. consumers value highly corporate eco-nomic responsibilities, French and German consumers are most concerned about businesses conforming with legal and ethical standards. These findings provide useful guidance (...) for the efficient management of social responsibility initiatives across borders and for further academic inquiries. (shrink)

As more and more firms operate globally, an understanding of the effects of cultural differences on ethical decision making becomes increasingly important for avoiding potential business pitfalls and for designing effective international marketing management programs. Although several articles have addressed this area in general, differences along specific, cultural dimensions have not been directly examined. Hence, the purpose of this study was to examine differences in ethical decision making within Hofstede's cultural framework. The results confirm the utility of Hofstede's cultural dimensions (...) and place ethical decision making within an overall theoretical framework. Sales agents from a high power distance, uncertainty avoidant, Confucian, collectivist culture (i.e., Taiwan) placed more value on company and fellow employee interests (vis-à-vis self interests) than did managers from a masculine, individualistic culture (i.e., the United States). American and Taiwanese managers did not differ in their deontological norms or on the importance that they placed on customer interests. The theoretical and managerial importance of these findings are also discussed. (shrink)

Western attempts to obtain Chinese compliance with intellectual property rights have a long history of failure. Most discussions of the problem focus on either legal comparisons or explanations arising from levels of economic development (based primarily on the example of U.S. disregard for such rights during the 18th and 19th centuries). After decades of heated negotiation, intellectual property rights is still one of the major issues of misunderstanding between the West and the various Chinese political entities. This paper examines the (...) sources of this problem from the standpoint of traditional Chinese social and political philosophy (specifically Neo-Confucianism). It points out that the basic assumptions about the nature of intellectual property, which arose during the 17th and 18th centuries in Europe, are fundamentally at odds with the traditional Chinese view of the role of intellectuals in society. It suggests that policies which do not take these differences into account, but which attempt to transfer Western legal concepts without the underlying social constructs are responsible for much of the lack of success in the area of intellectual property rights. (shrink)

In this article, we analyzed the effect of various factors on moral judgment and ethical attitudes of working persons. It was found that the effect of various socio-demographic factors on ethical attitudes varied between the two different categories of ethical issues under study, issues which involve explicit violation of laws vis-à-vis issues which involved social concerns. Our results did not support the implication of Callahan’s hypothesis that males are more sensitive to rule-based ethical issues while women are to issues involving (...) social concerns; it was found that females have a lower acceptability of unethical behaviors related to both categories of issues in Hong Kong, whereas gender effect was not statistically significant in Mainland China. University education also had no significant effect on ethical attitudes. Religion played an important role in affecting ethical attitudes, however, its effect varied with different types of religions; Christianity was found to be most favorable to higher ethical standards, but people of traditional Chinese religion had a higher acceptability of unethical behaviors involving social concerns compared to people with no religion. Our finding also indicated that employees in state-owned enterprises, private employees, employees in foreign-investment firms, and employers in Mainland China all had a higher acceptability of unethical law-breaking behaviors compared to workers in collectives, throwing doubt on the validity of convergence theory in Mainland China. (shrink)

This paper investigates the relationship between ethics and income among individuals of different religions in the HKSAR of China. The presence of both traditional Chinese religion and Christianity from the West makes our study particularly interesting. The content of ethical beliefs varies with religion and thus the effect of ethics on income may also vary across religion. Furthermore, a reverse causal relationship may run from income to ethics. Since culture and taste affect the consumption behavior of a person, depending on (...) the religion of the person, a person with a higher income may or may not like to ‘acquire’ more ethics. Our empirical results find that there is indeed a simultaneous relationship between income and being ethical so that a single equation estimation of income on ethics and vice versa generates biased estimates. Using a two-stage instrumental variable estimation, our study finds that being ethical contributes to higher income for Christians and the non-religious group, but lowers it for people of traditional Chinese religion. On the other hand, an increase in income increases the likelihood of a person’s being ethical for both Christians and the people of traditional Chinese religion, but reduces it for the non-religious group. (shrink)

This paper analyses the ethical performance of foreign-investment enterprises operating in China in comparison to that of the indigenous state-owned enterprises, collectives and private enterprises. It uses both the deontological approach and the utilitarian approach in conceptualization, and applies quantitative and econometric techniques to ethical evaluations of empirical evidences. It shows that according to various ethical performance indicators, foreign-investment enterprises have fared well in comparison with local firms. This paper also tries to unravel the effect of a difference in business (...) culture and competitive market forces on ethical performance by comparing the behavior of foreign-investment enterprises with that of the indigenous state-owned enterprises and collectives on the one hand, and with that of the indigenous private enterprises on the other. (shrink)

This study examined differences in the values patterns of business students from Anglo-American and Far Eastern country clusters using Allport et al.'s (1970) Study of Values. Differences were noted on five of the six attitudes; Theoretical, Economic, Political, Social, and Religious. Next, using multiple comparison method the value patterns of newly arrived Far Eastern students and Far Eastern students who had spent considerable time in the U.S. were compared for changes in value patterns that may be attributable to their stay (...) and study in the United States. Differences were found in terms of five of the six evaluative attitudes between the two groups. Value pattern of Far Eastern students who had lived and studied in the U.S. for a considerable period of time was also compared with that of Anglo-American students to examine the degree of convergence in their value systems. Findings of this study suggest that as a result of frequent and sustained cross-cultural contacts in another cultural environment, the value profile of individuals tend to get modified, so as to include the values preferred and desired in the new social environment. (shrink)

This paper addresses ethical issues surrounding global supply chains of multinational companies in developing countries. In particular, it considers the development and application of industry-wide ethical standards and codes of conduct for multinational supply chains in China. We describe and analyze the ethical norms and compliance components of such industry-wide regimes in the toy, textile, and consumer electronics industries. We argue that this development represents an positive attempt to institutionalize emergent international ethical standards and practices into this component of the (...) Chinese economy. (shrink)

In this paper we discuss cronyism that exists between superiors and subordinates. Cronyism is defined as favoritism shown by the superior to his or her subordinate based on their relationship, rather than the latter's capability or qualification, in exchange for the latter's personal loyalty. We argue that two cultural antecedents, namely particularism and paternalism, give rise to strong ingroup bias and unreserved personal loyalty, which in turn lead to cronyism. We examine the consequences of cronyism at the individual level with (...) respect to job satisfaction, organizational commitment, and ingratiation. We also discuss how cronyism affects performance, morale, and inertia at the organizational level. Cronyism can be observed in all cultures; however, its manifestation is likely to vary from one culture to another. (shrink)

This research examines the extent to which similarities and differences exist in the codes of professional conduct of certified (chartered) accountants across the following countries: the United States, Taiwan, South Korea, Malaysia, Ontario (Canada), Australia, India, and Hong Kong. These eight countries exemplify some of the diversity in economic, political, legal, and cultural environments in which public accountants practice. The professional codes of ethics establish the ethical boundary parameters within which professional accountants must operate and they are a function of (...) these environments.The results of the study reveal that commonalities exist on some ethical rules indicating that some rules are indeed "culture free". Cross-country variations, however, exist as to the specificity and elaborateness of the rules. Such variations can be attributed to cultural and legal differences, as well as the length of time each professional organization has been in existence. An understanding of the similarities and differences in the codes is important to individuals who may work in these countries. Professional accountants involved in international business must understand the implications of the decisions they make in light of the ethical codes and moral values of their counterparts in foreign countries. After a discussion of the similarities and differences in the codes, the implications of these comparisons for accounting practice are discussed. (shrink)

China is moving from a centralized to a market economy to bring about efficiency in its economy and to form a business partnership with the West. With its reform adopting an open-door policy, there may be a need to assure its partners in the western world that appropriate steps would be taken to develop and foster a business culture with which the western countries and the Chinese businesses can work. The present study attempted to find whether there has been a (...) change in business ethical culture, accounting system and practice in the Chinese business between 1978 and the present, and the degree of similarity in the Chinese ethics and guidelines compared to Western ethics and guidelines. The result of the study has been analyzed from an institutional perspective to explore institutional change. The result showed that there is general growing support of Chinese management toward change in business ethical culture and practice. It was observed that there was not much similarity in the documents used for ethical guidance and control with those of the West. The findings of the paper are expected to be relevant to international investors and executives interested in investing or working in China. (shrink)

Corporate social responsibility (CSR) has become increasingly popular in advanced economies in the West. In contrast, CSR awareness in Asia is rather low, both on the corporate and state level. However, recent events have shown that the CSR is receiving more attention by corporations in Asia. Recent development in CSR in Taiwan is one example of such a trend. A 2005 survey on the 700 publicly listed companies in Taiwan on␣CSR has highlighted the current CSR situation. Concurrently, the numbers of (...) corporate scandals and corruption have dramatically increased over the past 6 years. Corporate CSR activities co-existing with pervasive corporate scandals create a phenomenon of contradictions. This article aims to report via the survey findings the current development of business ethics in corporate Taiwan; and to interpret the findings in context of Taiwan’s business ethos, especially its Confucian familism and crony capitalism. (shrink)

"Small treasuries" (xiaojinku) are off-book accounts found in many large enterprises in China for the purpose of rewarding managers and their subordinates, building up guanxi (personal networks), and even financing the business operations of their danwei (work units). We analyze CESTs with reference to their antecedents, constructs, and consequences. Our analysis indicates that while CESTs can, in some cases, help organizations deal with immediate financial problems, they have negative impacts on organizational performance in relation to the moral hazard of managers, (...) as well as the allocation of organizational resources, in respect of sustainability of strategic advantages and growth, and mismanagement of organizations. Because of the involutionary behavior of managers in Chinese enterprises, we propose that it will require not only organizational controls, but also a fundamental change in these managers' ideology for solving the problems of CESTs. (shrink)

Many argue that transgenic technology will have wide-ranging implications for farmers in developing nations. A key concern is that competencies may be destroyed by predominantly foreign multinational transgenic technologies, exacerbating problems of social exclusion in the case of subsistence farmers. Conversely, those that fail to adopt the technology may become uncompetitive, particularly in commodity-based export markets. Drawing on interview data conducted in Brazil and supporting data collected in North America, Europe and China, we found that the impact of transgenic technology (...) varies. It has less impact on farmers that adapt the products to their crop systems and environment, and greater negative implications for less formally educated subsistence farmers in consequence of both complexity and compatibility. Earlier attempts at industrializing agriculture through technological innovation led to vastly improved agricultural output and exports, but the benefits of productivity was not equitably distributed [D. Lee: 2005, American Journal of Agricultural Economics 87, 1325-1334], nor was it designed to meet specific local environmental and socioeconomic farmer conditions, exacerbating social exclusion. Multinationals attempting to introduce transgenic technology without considering the broader social and ethical implications will invite resistance. We discuss the implications for policy makers, multinationals and small-scale farmers. (shrink)

This study explores linkages between what Chinese managers generally know about environmental issues, how strongly they value environmental protection, and different types of behaviours/actions they may take within their organizations on behalf of the environment. From a sample of 305 managers in Guangzhou and Beijing, it was found that both environmental knowledge and values are more predictive of more personal managerial behaviours, such as keeping informed of relevant company issues and working within the system to minimize environmental impacts, than more (...) overt behaviours. Moreover, for these more personal actions, environmental knowledge and values were found to have both main and interactive effects. By comparison, it was found that both environmental values and knowledge had additive effects on managerial tendencies to initiate new programs within their domain of responsibility. Only environmental values was found to have a modest influence environmental advocacy. (shrink)

While there had still been an increasing flow of foreign direct investment (FDI) into China during the 2002 downturn in FDI globally, such investments have historically been only sporadically successful. Much writing has detailed and discussed problems associated with China FDI but several costs remain dangerously overlooked. One such cost is that of micro-monitoring plants for work conditions and employee treatment in violation of local Chinese laws and possible home country ethics. Further, a more personal cost is presented – the (...) personal cost associated with maintaining an investment in a facility that violates standards of ethical employee treatment. Background information related to these issues is presented, along with a general overview of FDI in China. (shrink)

The rising tide of corporate scandals and audit failures has shocked the public, and the integrity of auditors is being increasingly questioned. It is crucial for auditors and regulators to understand the main causes of audit failure and devise preventive measures accordingly. This study analyzes enforcement actions issued by the China Securities Regulatory Commission against auditors in respect of fraudulent financial reporting committed by listed companies in China. We find that auditors are more likely to be sanctioned by the regulators (...) for failing to detect and report material misstatement frauds rather than disclosure frauds. Further analysis of the material misstatements indicates that auditors are more likely to be sanctioned for failing to detect and report revenue-related frauds rather than assets-related frauds. In sum, our results suggest that regulators believe auditors have the responsibility to detect and report frauds that are egregious, transaction-based, and related to accounting earnings. The results contribute to our knowledge of auditors’ responsibilities for detecting frauds as perceived by regulators. (shrink)

The Perceived Role of Ethics and Social Responsibility (PRESOR) instrument was developed in the United States by Singhapakdi et al. (1996b) as a reliable and valid scale to measure the perceived role of ethics and social responsibility in achieving organizational effectiveness. This study was carried out to confirm the factorial structure of the instrument and to assess its reliability and validity for use in Hong Kong, the finance and service heart of the Asia-Pacific region and a culture with clear differences (...) in ethical attitudes and perceptions from those of the United States. Constructive replication of the exploratory factor analytic procedure of the original study with a representative sample of Hong Kong managers failed to support the hypothesized scale structure but instead suggested a different, two-factor, structure. Confirmatory factor analysis defined the alternative model which comprised two interpretable, negatively intercorrelated factorial scales, "Importance of ethics and social responsibility" and "Subordination of ethics and social responsibility in the achievement of organizational effectiveness". The model showed a high level of goodness-of-fit for the population and the two subscales, comprised of five items and four items respectively, were shown to have acceptable internal consistency reliability. Correlational and multiple regression analysis showed highly significant levels of association with the ethical ideology dimensions of the EPQ (Forsyth, 1980), used in the validation of the original scale, and with two ethical philosophy subscales derived from the ATBEQ (Preble and Reichel, 1988). The instrument is short, easily administered, is psychometrically sound and has considerable potential in the study of the perceived role of ethics and social responsibility in the achievement of organizational effectiveness. (shrink)

Is there a relationship between the psychological construct of hierarchic managerial role motivation and the moral construct of role-related ethical orientation? In this study we examine this question using responses from a sample of 147 business students in Hong Kong. Managerial role motivation or motivation to manage is defined as an internal force that leads select individuals to pursue, enjoy, and succeed in management positions in relatively large hierarchical organizations. As hypothesized, respondents with higher levels of managerial role motivation demonstrated (...) greater managerial role-related ethical orientation as compared with their less managerially motivated counterparts. Similarly, respondents with higher levels of respect for authority figures, competitive games, competitive situations, assertive role, imposing wishes, and a liking for routine administrative functions possessed greater ethical orientations. The research significance, limitations and future field applications are discussed. (shrink)

This study developed and tested a model of culture’s effect on budgeting systems, and hypothesized that system variables and reactions to them are influenced by culture-specific work-related and ethical values. Most organizational and behavioral views of budgeting fail to acknowledge the ethical components of the problem, and have largely ignored the role of culture in shaping organizational and individual values. Cross-cultural differences in reactions to system design variables, and in the behaviors motivated or mitigated by those variables, has implications for (...) the design and effectiveness of budgeting systems. The data largely support our research model, demonstrating the hypothesized national cultural differences in system design variables (e.g., participation, standards tightness, budget emphasis, etc. which we characterized as the opportunity and incentives to create budgetary slack), and the expected relationship between incentives (but not opportunity) to create slack and slack creation behavior. The data demonstrate hypothesized cultural differences in ethical ideology but show ethical ideology related to slack creation behavior only for U.S. managers. A discussion of the results and their implications is included. (shrink)

The growing body of whistleblowing literature includes many studies that have attempted to identify the individual level antecedents of whistleblowing behavior. However, cross-cultural differences in perceptions of the ethicality of whistleblowing affect the judgment of whistleblowing intention. This study ascertains how Chinese managers/professionals decide to blow the whistle in terms of their locus of control and subjective judgment regarding the intention of whistleblowing. Hypotheses that are derived from these speculations are tested with data on Chinese managers and professionals. Statistical analysis (...) largely supports the hypotheses, which suggests that an individual''s locus of control does moderate the relationship between ethical judgment and whistleblowing. (shrink)

No research explored intellectual capital about green innovation or environmental management. This study wanted to fill this research gap, and proposed a novel construct - green intellectual capital - to explore the positive relationship between green intellectual capital and competitive advantages of firms. The empirical results of this study showed that the three types of green intellectual capital - green human capital, green structural capital, and green relational capital - had positive effects on competitive advantages of firms. Moreover, this study (...) found that green relational capital was the most common among these three types of green intellectual capital, and the three types of green intellectual capital of Medium & Small Enterprises were all significantly less than those of large enterprises in the information and electronics industry in Taiwan. In sum, companies investing many resources and efforts in green intellectual capital could not only meet the trends of strict international environmental regulations and popular environmental consciousness of consumers, but also eventually obtain corporate competitive advantages. (shrink)

The study extends the Theory of Planned Behavior (TPB) in a cross-cultural setting, incorporating ethical judgments and locus of control in a comparison of Taiwanese and US businesspersons. A self-administered survey of 698 businesspersons from the US and Taiwan examined several hypothesized differences. Results indicate that while Taiwanese respondents have a more favorable attitude toward a requested bribe than US counterparts, and are less likely to view it as an ethical issue, their higher locus externality causes ethical judgments and behavioral (...) intentions to conform to normative influences of in groups and superiors. In the Taiwanese sample, locus externality effectively functions as a countervailing pressure against the unethical behavior in the scenario. No such effect is found in the US sample. A path model fitted to the data shows that locus internals exhibit more consistency among attitudes, judgments, and behavioral intentions than locus externals. Implications for managers and researchers are discussed, and suggestions and precautions for development of efficacy-enhancement programs are offered. (shrink)

The present study takes Confucian entrepreneurs as an entry point to portray the dynamics and problems involved in the process of putting moral precepts into practice, a central issue in business ethics. Confucian entrepreneurs are defined as the owners of manufacturing or business firms who harbor the moral values of Confucianism. Other than a brief account of their historical background, 41 subjects from various parts of Mainland China, Taiwan, Hong Kong, Singapore and Kuala Lumpur were selected for in-depth interviews. By (...) studying the moral choices they made in the market, it was discovered that, contrary to the prevalent mode of inquiry in economics either to reduce all social phenomena to rational calculations or to consider moral actions in terms of utilitarian values, their economic action cannot be accounted for by the postulate of utility maximization, and that the efforts to do business according to their moral principles can be very costly. The study also attempts to document how these Confucian entrepreneurs reconciled the conflict between the moral values they cherished and the instrumental goals they pursued, and will seek to uncover how they responded when faced with this dilemma. (shrink)

Managers with different cultural backgrounds and under different circumstances have different views on what is acceptable ethical behaviour. This study attempts to determine whether major companies in Hong Kong share the same views as North American academics on what management ethical standards ought to be, and if so, whether any control mechanisms have been established to instill ethical behaviour within their organizations. Notable differences between the practice in these companies and those from a similar survey conducted in North America are (...) identified and explained. The management accountant''s role in the development and implementation of such mechanisms is investigated. (shrink)

This study empirically examines how Chinese executives perceive the role of guanxi and ethics played in their business operations. By factor-analyzing 850 valid replies collected from a comprehensive survey, the present study identifies three distinct ethics-related attitudes and two distinct guanxi-related attitudes for Chinese executives. The cluster analysis of the composite scores of these five attitudinal factors further indicates the existence of three distinct groups of Chinese executives that vary in their ethics and guanxi orientations. The three groups are unethical (...) profit seeker (UPS), anti-governance, guanxi-cultivator (AGGC), and apathetic executive (AE). The three groups are also found to be significantly different in such demographic characteristics as age and the ownership structure of the serving organization. Specifically, the inter-group comparison suggests that younger Chinese executives, and those working for privately-owned firms and joint ventures are more inclined to engage in unethical activities for profits. These findings provide useful insights for international investors to formulate their human resource and negotiation strategies in China. (shrink)

In recent years, there has been increased awareness of unethical consumer practices in Asian countries. Asian consumers have gained a bad reputation for buying counterfeit products, such as computer software, fashion clothing and watches. In 1993, the estimated losses to US software companies due to Chinese counterfeiting stood at US $322 million (Kohut, 1994). The present study uses a consumer ethics scale developed by Muncy and Vitell (1992) to investigate consumers' ethical judgments from a Chinese perspective. The result shows that (...) consumers in different cultures utilize similar rules to assess the ethicality of a given situation. However, findings also show certain cultural elements that are unique in influencing Chinese consumers' ethical judgments. The results also indicate the need for the continued development of and investment in consumer education in Asia. (shrink)

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. (shrink)