BUSINESS ETHICS IN CHINA

Transcription

1 BUSINESS ETHICS IN CHINA

2 PHILOSOPHY Taoism Confucianism Buddhism Modern Thought 2

3 The pre-republican era (till the beginning of the 20 th century) The Republican era (early 20 th century till around 1948) The Communist era ( ) The Reform era (1976 onwards)))) 3

4 TAOISM The Taoist Sage learns from observing the way of nature (flowing water, wind) and letting nature guide the way through life. 4

5 Origins & Texts Legendary founder: Lao Tzu (6 Th Century BCE) Primary text: Tao Te Ching ( Book of the Way and the Power ) Chuang Tzu (4 th Century BCE) 5

6 Tao Concepts The Tao ( path or way ) The nameless The uncarved block All pervading within and beyond nature Te ( power or virtue ) One s natural ability brought to peak potential through following the way. 6

7 Tao Concepts Wei-wu-wei: active non-action Passive non resistance to the natural forces of life Natural way to get things done with the least effort and greatest successes Go with the flow, yield to the natural way of things Applied in all walks of life Relativity: Good and Bad as a matter of perspective The Taoist stage is non-judgmental 7

8 Wu Chi & T ai Chi Born in Wu Chi (wholeness), it s then divided and goes to T ai Chi and at death back into Wu Chi Union of opposites Yin-female, soul, dark Yang- male, spirit, light Androgyny is balance of yin & yang Wu Chi T ai Chi 8

9 Law of Polar Reversal Balance is in everyone Must know evil to know good Anima (feminine part of psyche), animus (masculine part of psyche) Basis of integration. Transcend & transform opposites into wholeness Androgyny- Healthiest emotional state is to have both (feminine & masculine) 9

10 Taoist Way Seeking Health and Longevity: through diet, meditation, exercise and stress free life Alchemy: seeking the chemical elixir of life to achieve immortality Meditation: Inner Alchemy Meditation - seeking spiritual rather than chemical transformation Natural/ Holistic Healing: Herbal medicine, acupressure, acupuncture,exercise 10

11 Taoist Ethics Government should : Not emphasize status, intelligence, or possessions. Govern with least visibility and with a serving attitude. Reduce laws and govern lightly. Treat other countries nonaggressively. 11

12 CONFUCIANISM A political and social philosophy seeking harmony at all levels: Within the self The family The community The state The nation The world The cosmos 12

13 Goal of Confucianism To develop one s Jen: Human heartedness- the innate goodness of humanity and becoming a Chun Tzu: The Great Man 13

14 The Five Classics (Wu Jing) 1. The I Jing ( Book of Changes ) 2. The Shu Jing ( Book of History ) 3. The Shih Jing ( Book of Odes *poetry+) 4. The Li Ji ( Book of Rites ) 5. The Ch un-ch iu ( Spring & Autumn Annals ) 14

15 The Four Books: 1. The Analects 2. The Great Learning 3. The Doctrine of the Mean 4. The Works of Mencius 15

16 Teachings- About Man Like Taoists,Confucius held the traditional view that all men are born good. People are spoiled by bad influences, bad environment, evil examples and yielding to evil appetites. Each person has the ability to fulfill duty as listed in the rules of conduct. Greatest concern was for conduct in a social context 16

17 Teachings- About God Expressed belief in all superior heaven- God, T ien Vaguely monotheistic No personal, assisting relationship with T ien Prescribed no prayer, divination or shamanism common to the Chinese folk religion of his day 17

18 Teachings-Pursuit of Virtues The Five Constants: Love, benevolence (jen) Righteousness (yi) Propriety (li) Wisdom (zhi) Fidelity, trust (xin) 18

19 Jen/Ren- Love/Benevolence The ideal is not the individual but the person in relationship-welfare of others and readiness to help The Golden Rule is What you do not want done to yourself, do not do to others". 19

20 Righteousness- Vi Duty based on reciprocity Since your mother and father took care of you for the first three years of your life you must reciprocate by living in mourning for three years after their death. 20

21 Propriety-Li Confucius used the term for reverence and loyalty for others which includes knowing the right thing to do and doing it appropriately Respect relationships love and respect parents, ancestors, siblings, rulers The Doctrine of the Mean, avoid extremes 21

22 Li applied to Five Relationships (wu-lun): Ruler and subject Husband and wife Father and son Elder and younger brothers Older and younger friends The relationship is hierarchical -Respect and obedience of one group is in return for benevolence and support on the part of the other group. 22

23 Wisdom-Zhi The innate knowledge of what is right and wrong. Confucius: The wise are free from perplexities. Know-how rather than know-that. Put things into practice 23

24 Fidelity/Trust-Xin Truthful and straightforward in speech and faithful to promises Conscientious in the discharge of one s duties to others Observing the rules of right conduct in one s heart as well as in outward actions 24

25 Taoism versus Confucianism Confucianism stresses moral goodness of human beings [i.e. jen] the Taoists stressed the harmony and perfection of nature. Taoists are critical of human institutions used by Confucians (and others) to regulate human behavior. Lao Tzu commends a simple life with few duties lived in harmony with the Tao, in contrast to the Confucian view that the good life requires a conformity to li (i.e. a complex system of rules of propriety), with the aim of developing or cultivating our full humanity 25

26 Sun Yat-Sen November 12, 1866 March 12, 1925 Born to a Cantonese peasant family in Cuiheng. First provisional president when the Republic of China was founded in Developed a political philosophy known as the Three Principles of the People which still heavily influences Chinese governments

27 Sun Yat-Sen: Three principles The Principle of Mínzú : Nationalism The Principle of Mínquán : Democracy The Principle of Mínshēng : Socialism 27

28 The Principle of Mínzú - Nationalism Freedom from imperialist domination. "The People's Relation/Connection" or "Government of the People. 28

29 The Principle of Mínquán - Democracy "The People's Power" or "Government by the People. It represented a Western constitutional government. The power of politics (zhèngquán). The power of governance (zhìquán) 29

30 The Principle of Mínshēng - Socialism The People's Welfare/Livelihood" or "Government for the People. An industrial economy and equality of land holdings for the Chinese peasant farmers. Livelihood divided into four areas: food, clothing, housing, and transportation. Chiang Kai-shek supplied an annex to The Principle of Mínshēng, adding education and leisure, and explicitly argued that Minshēng was not to be seen as supporting communism. 30

31 Maoism- Communism Blend of Modern and Confucian thought The Cultural Revolution ( 1964)demolished imperialism completely The Obedience of masses to socialist party was a significant shift. 31

32 ESSENCE OF CHINESE ETHICAL VALUES Inner harmony Social harmony Structural harmony 32

33 Inner Harmony 1. The middle way 2. Moderation 3. Self control 4. The five constant virtues righteousness, wisdom, fidelity, filial piety and considered appropriateness 5. Paternalism 6. Education & Self development 33

34 Social Harmony Jen- human heartedness Li cultivation of appropriateness in every situation Collectivism/relationship oriented Familism Reciprocity Face Guanxi 34

35 Structural Harmony Wu Lun firm hierarchical relationship between princeminister, father-son, husband-wife, older brotheryounger brother, friend-friend Hierarchy Respect for authority Patriarchy Limited and bounded trust 35

36 GUANXI The exertion of influence or guanxi which flows from the 5 relationships, implies : relationship and consequences in an intricate system of overt or covert as well as formal or informal social signals. Guanxi is governed by the unwritten law of reciprocity which is to be kept in constant maintenance and long-term balance. Guanxi is often interpreted as connections by foreigners. Notion of old boys clubs, fraternities or peer group network is not guanxi 36

37 GUANXI The exertion of influence or guanxi which flows from the 5 relationships, implies : relationship and consequences in an intricate system of overt or covert as well as formal or informal social signals. Guanxi is governed by the unwritten law of reciprocity which is to be kept in constant maintenance and long-term balance. Guanxi is often interpreted as connections by foreigners. Notion of old boys clubs, fraternities or peer group network is not guanxi 37

38 FACE- Six types Enhancing one s own face Giving face to another Losing one s own face Damaging another s face Saving one s own face Saving the face of another 38

39 Case -1 A German expat one asked his Chinese driver to take the passenger seat, while he drove the car himself. Next day when the German saw the car was not cleaned and asked the driver, he answered : The person who drives, also washes the car.the German wanted to charge the driver for insubordination. Is the German being ethical? 39

40 Case 1-German Manager and Chinese Driver 1. This is not a case of insubordination and insult; it is rather violation of the FACE of the driver. 2. Explain to the driver that it is common for a foreigner to take the wheel and this does not connote loss of confidence in the drivers ability. Hence there is no loss of face. 40

41 3. The German has to be explained even though he is a foreigner there is FACE that gives him certain privileges along with obligations which includes respect that he should accord to other faces -both higher and lower. 4. Explain that the face is not mere face losing or face saving as westerners understand but is a factor of higher concern in Chinese minds which reflects ethical, professional and social standing of a person and to which are assigned status and defined roles 41

42 Case -2 The German president on arriving to the China Germany Joint venture in Guanghzhao found a particular Liaison officer to be redundant even though he was highly respected and paid. He wanted to terminate the position much against the advice of locals. Is the German correct? 42

43 Case 2- Ambassador of the enterprise The Chinese manager is not a liaison officer for the company and should be definitely retained as he is important for maintaining GUANXI In simple terms Guanxi is not trouble shooting or fire fighting as some foreigners are likely to think. Rather it is like a fire extinguisher and much more ;which should always be there to not only prevent fire but also open doors.the Chinese believe Guanxi should never be described as if you do its magic disappears 43

44 Case -3 While doing the due diligence the Chinese were adamant that a certain price be attributed to a boiler that was functioning at low capacity being of an old technology but in use. The German s could not understand why a value should be attached to it at all. Are the Chinese being unfair? 44

45 QUALITY The Chinese attribute a value to a product or a task if it still fulfills the purpose or intended function. Thus the boiler has some value as it is still functioning For Germans quality is evaluated by objective quasi - absolute standards and norms that are largely independent of changing circumstances. Hence the boiler has no value. Notions of value, utility and quality derives from the deeper philosophical tenets of Taoism, Confucianism and spirituality. 45

46 Case -4 Bill is Chinese born but educated in the west entrepreneur. He exports and imports globally objects of art and has a great a flair for this business. His father has a factory in China that employs more than 500 workers who live in cramped conditions and work long hours for which they are paid over time. They get only two holidays per month, but during Chinese New year they get a month off. The supervisor is a tough task master. And Bill resents the overall management style and wants to bring reforms 46

47 Issues Can Bill go against his fathers style of functioning? Are the workers exploited? Is the factory breaking rules with over utilization of capacity? How will the Western markets feel about the treatment given to workers? 47

48 Bill cannot violate the Confucian value of Filial Piety The face of the father cannot be lost People are not exploited but get a chance to work hard and earn. The extra production is often seen by Chinese government as good for domestic economy 48