Gift Giving, Guanxi, Bribery and Corruption Challenges in Australia–China Business: an Ethical Tension Between the Global South and the East

Abstract

The Australia–China business relationship is immensely important for the economic prosperity and living standards of both the countries. There are major differences in business culture between the two countries – Australia from the Global South with Anglo Imperial business traditions and practices, compared with the fast-developing economic might of China, the largest country by population and economic scale in the Far East. China is currently experiencing a crackdown on corruption under President Xi Jinping which started in 2012. Gift giving, guanxi (significant relationships), bribery and corruption are some of the biggest business relationship management issues between Australia and China. Appropriate gift giving and guanxi are distinguished here from bribery and corruption. Guanxi has been associated in the business and academic literature with deterioration in business ethics practices, including bribery and corruption – however, the literature also notes that this does not need to be the case. Following a review of the institutional setting and the literature here, a series of research propositions are developed that provides a framework within the whole ethics of governance regime for a corporation to manage bribery and corruption challenges for corporations. This framework can be used for Australian Stock Exchange, Hong Kong Stock Exchange listed companies which have legal systems parented in the United Kingdom; elements of the model may be useful in the China business setting.

Citation

O’Shannassy, T.F. (2017), "Gift Giving, Guanxi, Bribery and Corruption Challenges in Australia–China Business: an Ethical Tension Between the Global South and the East", Ethics in the Global South (Research in Ethical Issues in Organizations, Vol. 18), Emerald Publishing Limited, Leeds, pp. 131-151. https://doi.org/10.1108/S1529-209620170000018006