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. (shrink)

“Responsibility” in Chinese consists of two words: “ze” and “ren” . In modern Chinese, although the two words “ze” and “ren” are mostly used as one word, people can still discern the close relationship between ze and right and between ren and the duty associated with a position or a power. In modern life, however, there is a serious problem with these historically close, key relationships. This paper raises the crucial question: how should we understand and deal with the separation (...) of freedom from responsibility, right from obligation, and duty from power, particularly within China? The first part of the paper investigates the understanding of responsibility and concepts of duty, obligation, right, and power in the Chinese context. The second part analyzes the key issues of responsibility associated with the expansion of rights and powers in today’s China. The concluding part explores agents’ responsibilities on different levels and offers suggestions on how to cultivate responsibility as part of a systematic moral education. (shrink)

Xiaohe Lu is Professor at the Institute of Philosophy and Executive Director of the Centre for Business Ethics, Shanghai Academy of Social Sciences. Georges Enderle is Arthur and Mary O’Neil Professor of International Business Ethics at the Mendoza College of Business, Univer­sity of Notre Dame.

Making use of capital to develop China’s socialist market economy requires China not only to fully recognize the tendency of capital civilization but also to realize its intrinsic limitations and to seek conditions and a path for overcoming contradictions in the mode of capitalist production. Karl Marx’s theory of capital provides us with a key to understanding and dealing properly with problems of capital. At the same time we should also pay heed to Western research on, experience with, and lessons (...) from capitalist economies developed over the past four centuries summarized in the field of “business ethics”. (shrink)

Making use of capital to develop China’s socialist market economy requires China not only to fully recognize the tendency of capital civilization but also to realize its intrinsic limitations and to seek conditions and a path for overcoming contradictions in the mode of capitalist production. Karl Marx’s theory of capital provides us with a key to understanding and dealing properly with problems of capital. At the same time we should also pay heed to Western research on, experience with, and lessons (...) from capitalist economies developed over the past four centuries summarized in the field of “business ethics”. (shrink)

More and more people in China are now realizing that the country has already become a globalizing economy, but some contend that China's economy is still far from being based on knowledge. However, as globalization necessarily brings with it a knowledge economy, China is of necessity involved in the new economy, and has in consequence encountered many new ethical issues. In the first part of the paper some of these issues are discussed – issues of intellectual property protection, issues related (...) to the exploitation of Chinese know‐how and knowledge products by foreign companies, and issues of cultural colonization. These issues are complicated, widespread and novel, and there is a need to develop ethical guidelines to deal with these issues. Although the perspective of the analysis is Chinese, these same problems are faced by countries the world over. (shrink)

If market transactions are optimal, why do so many transactions occur within firms themselves? Ronald H. Coase explains this phenomenon by arguing that market transaction costs differ from intra-company transaction costs and that clear intra-intra-firm property rights have the effect of reducing transaction costs. But what exactly are the relevant transaction costs, and what factors determine them? Oliver Hart argues that market contracts are incomplete, and that the key to improving efficiency is putting the power to deal with these unspecified (...) circumstances into the hands of owners within the same entity.In this paper, I argued that, the development of the theory and practice of business ethics as well as China’s innovative practice in recent decades provide a new perspective, one that is especially relevant to the issues raised by Case and Hart and that bear directly on the reform of China’s state-owned enterprises. (shrink)

More and more people in China are now realizing that the country has already become a globalizing economy, but some contend that China's economy is still far from being based on knowledge. However, as globalization necessarily brings with it a knowledge economy, China is of necessity involved in the new economy, and has in consequence encountered many new ethical issues. In the first part of the paper some of these issues are discussed – issues of intellectual property protection, issues related (...) to the exploitation of Chinese know‐how and knowledge products by foreign companies, and issues of cultural colonization. These issues are complicated, widespread and novel, and there is a need to develop ethical guidelines to deal with these issues. Although the perspective of the analysis is Chinese, these same problems are faced by countries the world over. (shrink)

The global financial crisis, triggered by the subprime mortgage crisis in the USA, raises an important issue—namely, private production without the control of private property. The credit system has concentrated increasingly large social assets into the hands of financial institutions governed by a few people. This paper argues that the use of social capital for private production has played a key role in causing the subprime mortgage crisis. The credit and banking systems have abolished the private nature of capital and (...) have instead provided a basis for organizing and implementing social production. However, these systems have not “overcome the antithesis between the character of wealth as social and as private.” Therefore, it behooves us to explore what we can learn from the US financial crisis concerning how best to protect social interests, i.e., how to make the social capital produce for society. (shrink)