Search results

There are some notable ethical problems about role obligations, including the three prominent issues of role relativism, role definition, and role identification. The first is the problem to what extent roles may create duties or rights at odds with other moral requirements, the second is where roles are unclear or conflicting in what they prescribe, and the third is about the extent to which people commit themselves to their roles, or dissociate themselves from those roles. The three problems are significant in business ethics. A Confucian approach to roles can assist in dealing with them. Classical texts suggest a nuanced approach to roles, which allows greater flexibility, paying attention to context and detailed circumstances, always relating role prescriptions to respect and concern for other people, and emphasizing the importance of sincerity and authenticity in role performance. Such an account is consistent with virtue ethics approaches to business ethics.

Within both Western and Eastern traditions of virtue ethics, there is a Doctrine of the Mean, suggesting that errors may lie either in excess or in deficiency. The need to avoid both excess and deficiency in the allocation of finite resources is a concern in many sorts of business decisions, some with ethical implications. One finite resource is the resource of attention, and ethical problems can arise from failures to attend to important things. Both Aristotle and classical Confucianism accept the importance of paying attention to circumstances rather than following fixed rules or blindly maximising value. For organisations to give appropriate attention to different things requires suitable intra-organisational reporting and communication. Then there is still need for awareness that resources are finite, and for activity that is sustainable, highlighting the related idea of harmony, especially salient in the Confucian tradition.

This chapter aims to examine the introduction and development of the concept of corporate social responsibility (CSR) within a Chinese social, cultural, and political context. It mainly looks at the CSR movement in China in order to explain how the traditional values of Confucianism contributed to the development of CSR discourse which is similar to and differs from some other countries in North America and Europe.

The chapter is primarily theoretical in perspective. It also adopts a discourse approach, specifically Fairclough’s three-step approach by drawing upon a large state-owned corporate group’s website documents and interview data in order to create new meanings of Chinese CSR shaped by Confucian moral philosophy.

The chapter argues that development of Chinese CSR theory incorporates a revival of Confucian moral philosophy into modern Western business management philosophy. It demonstrates a hybrid model for CSR practices which combine aspects of both Confucian business ethics and Western CSR theory.

The research results are valid for state-owned enterprises and may not be generalized to other types of Chinese businesses such as private-owned enterprises and small business enterprises. Further research is needed to develop comparisons.

The chapter suggests a people-oriented leadership style which emphasizes the importance of people in the organization and is proven to be successful in the improvement of employee well-being and organizational productivity.

The originality of introducing interview data offers a benchmark for the study of CSR discourse in Chinese context. The chapter also provides a guide for business managers to design the strategies based on their own countries’ cultural, political, social, and institutional framework.

This paper aims to present the evolution of Chinese business ethics and CSR policy. China currently has business ethics and corporate social responsibility (CSR) concerns primarily because its economy is in evolution. As the Chinese economy is in transition from the late 1970s from a command–Communist economy to a more hybrid system Beijing model (a system based on a capitalist market controlled through bureaucracy), much has to be understood if one wants to participate in its vast economic potential.

The study is based on the building of a model that depicts the evolution of business ethics in China as a base for further research.

With the rapid development of the Chinese economy, opportunities are opening up to Chinese entrepreneurs and connected officials. This has led to money worship and, in some cases, thorough unethical behavior. The uncertain and ever-changing rules of the game generate opportunity for business ethics and CSR problems. This wealth creates temptation and incentives to cut corners to get rich fast. Much research has tried to explain business ethics in China through the understanding of Guanxi (Chinese social network of reciprocal business relations common in Confucian cultures), but in my view, the evolutionary aspect of it is missing to explain the present and future situation. Whereas considerable research has dealt with the growth of Chinese industries in recent years, the key relationship between changes in its economy and shifts in Chinese business ethics has been neglected. This paper presents the evolution of Chinese business ethics and CSR policy.

The paper illustrates the evolution of Chinese business ethics and how one has to adapt if one wants to succeed in its ever evolving and maturing market. A model is presented that can assist in future research in the area.

While current management theory is largely based on economic assumptions, there is evidence to suggest capitalism is at a crossroads. Humanistic management is accordingly proposed as an alternative new paradigm. The present study follows this approach in considering Confucianism as a humanistic practice. The purpose of this study is to explore humanistic leadership displayed by a Confucian leader and how he/she presents humanistic concern in corporate management to pursue the common good.

This study adopted a structured–pragmatic–situational approach to conduct a case study and collected data from three sources: semi-structured interviews, consultant observations and archival data.

The findings reveal that a Confucian leader takes all stakeholders' interests into account while engaging in corporate management and displays humanistic behaviors toward the stakeholders that are in line with five Confucian virtues. The leader cultivates the employees as Confucian humanistic agents. These employees accordingly act as bridges to transmit the humanistic spirit to their customers and other industries in the same market. To initiate an industry change to achieve collective welfare, a Confucian leader must first influence his/her primary stakeholders. The primary stakeholders next collectively influence the secondary stakeholders (i.e. the industry). Consequently, the overall goal of the common good is ultimately sustained.

This study identifies valuable practical implications for humanistic practices in corporate management from a Confucian perspective. In addition, this study takes a significant academic step forward by illuminating the humanistic paradigm.

The purpose of this study is to examine the impact of Confucianism on auditor changes by highlighting the role of the cultural embeddedness mechanism in audit contracts from the perspective of credit governance.

Using a unique sample of Chinese A-share listed firms from 2008 to 2018, this study uses logit regression as the baseline methodology while controlling for macro-level factors and firm-level characteristics, as well as industry and year fixed effects. This study also conducts different mediation/channel analyses, endogeneity tests (using two-stage least squares and difference-in-differences techniques) and robustness checks.

The findings show that the embeddedness of Confucianism in a corporation reduces auditor changes. Furthermore, the channel analyses (using moral self-discipline, social trust, professional ethics and the quality of accounting information as four potential channels) reveal that Confucianism can improve moral credit and consolidate the cultural foundation of credit governance. Specifically, the stronger the embeddedness of Confucianism, the more stable the auditing contract. Finally, Confucianism in formal and informal systems can be mutually substituted.

There is limited research on how culture affects auditing contracts. This study offers new contributions and extends the literature on the connection between cultural embeddedness and contract stability. Confucianism has the potential to strengthen the efficiency of credit governance and maintain the stability of contracts. This study offers a thoughtful orientation toward duly using Confucianism vis-à-vis credit governance.

This article aims to present a historical overview of the evolution of business ethics in China and highlights the ways in which its ethical structure lags behind its rapid economic expansion. Understanding Guanxi, the Chinese social network of reciprocal business relations common in Confucian cultures, has long been recognized as one of the major success factors when doing business in China (Hwang et al., 2009). Recognizing the significant impact of Guanxi and its influence on everyday dealings in China is, thus, crucial for Western firms. Whereas considerable research has dealt with the growth of Chinese industries in recent years, the key relationship between changes in its economy and shifts in Chinese business ethics has been neglected although it impacts the ways Westerners, in particular, both clinch deals and judge Chinese firms. The implications of this disparity for global business are discussed.

The discussion draws on the academic literature and the researchers’ experience in how business and business ethics are conducted between Western and Chinese firms. This paper presents a content analysis of theoretical articles and compares them to conceptual and empirical approaches, with an emphasis on a pragmatic approach to fostering a better understanding of the evolution of Chinese business ethics and its implications on business practices.

Maps the evolution of business ethics in China and need to adapt to an ever changing business environment.

This study offers a new insight to the evolution of Chinese business ethics and highlights its importance in business interactions. It illustrates the co-evolution of business ethics in parallel with the advancement of the Chinese economy. This paper is the first paper that addresses the issue of the evolution and formation of Chinese business ethics and links it to economic progress and opening up to the West.

This study examines whether Confucian culture can promote enterprise total factor productivity (TFP), and it also studies how transmission mechanism works on enterprise TFP.

Based on the data of A-share listed companies on Shanghai and Shenzhen stock markets from 2008 to 2019, this study measures the influence of Confucian culture on enterprise TFP by the number of Confucian academies and Confucian temples within three radius ranges of a company's registered address.

The empirical results show that Confucian culture has a positive effect on the enterprise TFP. The transmission mechanism test shows that Confucian culture can promote the TFP of Chinese enterprises through reducing agency cost, improving agency efficiency and enhancing innovation.

The findings in this study provide implications for policymakers, scholars and enterprises. The results show that Confucian culture can enhance the TFP of Chinese enterprises. Especially in emerging markets including China, the Confucian culture, as an informal institution, can effectively complement formal institutions, promoting enterprise TFP.

This study expands the literature on Confucian culture in two aspects: the influence of Confucian culture on TFP and its transmission mechanism. To the authors' knowledge, this is the first study to identify a link between Confucian culture and enterprise TFP.

This paper sets out to examine the formal regulatory framework of controlling soft issues in six Confucian societies: China, Hong Kong, Taiwan, Singapore, South Korea and Japan. It aims to investigate whether these societies adopt a similar approach to soft issues.

The approach takes the form of historical analysis and textual analysis.

Japan stands out among Confucian societies in regulating soft issues. The other five societies share considerable similarities, though each society's approach ultimately reflects the entanglement and interaction between various economic, political, cultural and historical factors in the local context.

For international advertisers, the ideological facet of advertising regulation in some Confucian societies spells unpredictable traps and troubles.

Only a very few works have systematically examined soft issues in advertising, and few have focused on East Asia. The paper contributes to the literature by comparing how societies with similar cultural traditions regulate soft issues.

The purpose of this paper is to demonstrate how Confucianism can be applied in the areas that are now governed by company law in the common law system and how it can play a role in improving corporate governance. A gentleman in the context of Confucianism tends to be inclusive and broad-minded in embracing the interest of different stakeholders. In fact, he will balance the interests of shareholders and other stakeholders if there is any inherent conflict and try to achieve a win-win situation. Ultimately, he will run the company not just for profit-making but for social justice and commitment.

The authors examine the leading cases in Hong Kong and the United Kingdom about the law of fiduciary duty and the duty of care and its relationship with Confucianism. In this respect, we review the teachings of the traditional Confucian texts and use Confucianism to fill in the gap where common law rules cannot reach. In addition, we adopt a comparative study approach in examining the law of directors’ duties in Hong Kong, China and the United Kingdom.

It can be seen that the concept of fiduciary duty and duty of care is quite complicated and evolving and always subject to the interpretations of the court from time to time. For fiduciary duty, the term itself is quite conceptual and not immediately available to the general public. But loyalty in the context of Confucianism is a very lively and down-to-earth moral principle. Besides, fiduciary duty is imposed from outside, where directors had no choice but to accept. But loyalty in the context of Confucianism is something inherent and something from within. It is a moral principle that if you deeply understand the meaning of it, you will automatically accept it as a good virtue and your conduct will naturally be guided by such a principle. Confucianism can thereby be used to fill the gap where rules and regulations cannot reach. Confucian business ethics and common law rule should be complementary to each other in the development of a Chinese corporate governance system.

This paper is the first of its kind in discussing the relationship between the law of directors’ duties and Confucianism. It argues that Confucianism plays a crucial role in guiding the behavior of the directors and can supplement the abstract principles of directors’ duties in the context of a Chinese corporate governance system.