"Ethical & Cultural Issues Influencing Doing Business in China"

Essay by psmoke14University, Master'sA+, June 2006

download word file, 11 pages 4.0

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Executive Summary

The Chinese have a vast web of traditions, customs and networks that shape their business culture. It is important to learn and understand these critical components for doing business in China. It can be a confusing and fascinating experience for a westerner unfamiliar with Chinese customs and history. To learn the Chinese culture and history is to learn ancient Asian history. It is important that you do so. Confucianism and history play a major part in Chinese society and business today. Guanxi is the most critical component of business success in China. Guanxi is what will establish your company as a major competitor or could keep it from becoming established at all. A good guanxi relationship, particularly with the government, can make all the difference to a foreign company doing business in China. Knowledge of proper protocol for gift giving, greetings and conversation will help you to establish such important connections.

The topic of bribery and corruption and how guanxi and other alternatives can counter it, is an important issue to consider for any company. This paper will reflect on how to successfully establish yourself through knowledge of the culture/history and guanxi, as well as how to deal with corruption. It will also show you the best way to relate to one another by using the accepted means in Chinese culture.

Ethical/Cultural Issues Effecting Businesses in China

Ethical and cultural issues are important factors for westerners to consider when doing business in China. Due to the differences in customs and culture, Asian business practices vary greatly from that of western culture. Confucianism has been a major influence in Chinese society as well as the business culture. Understanding these critical components of Chinese culture will help you determine the best way of relating to each other. In what...