A Study On Conflicts Between TNCs' Managerial Behavior And Ethics In China

As the Economic Globalization moves forward, and the step of Chinese Reform and Opening-up continues to accelerate, TNCs (Transnational Corporations) invested and set up factories in China, which has become an increasingly common economic phenomenon. In recent years, the investment scale of TNCs in developing countries has shown a steady growth trend. According to the report form the World Bank, the amount of transnational direct investment accepted by China in2012jumped to second place in the world, which was up to US$111.7billion, only behind the United States. As a powerful driving force, the Economic Globalization takes the TNCs as carrier, and promotes the development of national economies effectively through the world-wide proliferation of advanced science and technology, management concept and capital flows. Because of the traditional cultural and ethical differences from TNCs and host countries, the ethical conflicts between the host countries and TNCs have become an increasingly common economic phenomenon. However, the ethical conflicts between the host countries and TNCs have caused a series of serious consequences to both the host countries and TNCs.This is mainly reflected in three aspects:First, the international business environment has been deteriorated sharply. Second, some countries and regions oppose to Economic Globalization due to transnational ethical conflicts. Third, the global environment is getting polluted and ecological environment is getting deteriorated. As the Economic Globalization moves forward, TNCs ethical issues draw more and more attention from the international community. Being the carrier of Economic Globalization, in the pursuit of maximizing their own interests, TNCs can make a profound impact on economics, politics and society, environment in the world at the same time. TNCs must be aware of the importance of business ethics, when they consider the interests of themselves and their own countries; they must assume ethical responsibilities in host countries at the same time.In this dissertation, theoretical research, case studies and mathematical derivation methods are taken to prove synthetically. By collecting a large number of literature, information and data, a study on the ethics of TNCs' managerial behavior in the background of Economic Globalization has been collected, and ethical conflicts among TNCs'managerial behavior and the Chinese government, consumers, competitive enterprises, employees and the public have been summarized. The performance types of ethical conflicts have been described when TNCs operate in China, as well as the impact and consequences of ethical conflicts to TNCs and stakeholders within the jurisdiction of the Chinese government. Finally, an ethics conflicts game model on TNCs and Chinese government has been constructed, which can help us analyze the principle and factors of ethical conflicts between TNCs and Chinese government.The study of this dissertation can help us better understand conflicts'essence, and provide ideas to avoid the ethical conflicts from occurring when TNCs operate in China. It also can promote the smooth operation of TNCs and healthy development of Chinese economy as well as policy recommendations for the government and relevant departments.