Problem Of Business Reputation Failure In China And Its Solution

As a rule of ethics, principle of honesty, credibility is the first of all essential requirement of Chinese traditional ethics at all time. Also it has an important function to reconcile the relation of inter-person as a regal clause in modern civil law. Recent years, however, we are failure to construct the reasonable credibility system, which satisfy the basic requirement of modern market economy. The trouble of business reputaion in China enlarges the transaction cost and reduces the efficiency of market function. Further more, it destroys the fair competition spirit and market order directly. From this point of view, being honesty and credibility is not only the basic requirement for every person, but the key condition which relate to whether the socialism market economy can run efficiently and orderly.It seems that the poblem attributes to range of ethics, but its essence attributes to mechanism of credit. That is to say, the poblem is the result of the imperfect system. This problem includes either the same question which faced by western country during their modernization process or the special question owning to China such as property rights and government actions. Because economic man will alter his expection for future income along with the transition of the system and he will revise his action decision-making, system always can affect his final action. If the games occur repeatedly under some system, people will pay great attention to his own reputation for the long run. Therefore, it is important to research and explore the way how to construct the reasonable and efficient reputation system so that provide a system guarantee for our social. Also, it is the purpose of this article.Startting with the character of the problem, this article analyzes the present situation of businees reputation failure in China and its harm to socialism market economy and then indicates that it is imperative to construct and perfect the reputation system. Reputation is a non-economy problem. But here we discuss the condition from the point of Information Economics and Institution Economics when reputation mechanism that bring into play, and on this basis we further research the relation between property rights and reputation, government and government regulation relation with reputation. Thus what kind of system environment could solve business reputation failure problem is discovered from the point of Economics and the theoretical foundation is offered for us. Then, the countermeasure and suggestion of the social credit system of our country are brought out as follows through combing with the experience and lesson of American's social credit system construction.a. To improve the structure of company managementb. To accelerate the process of reformation about system of property rightsc. To restrain the government's behaviour through constructing government's credit mechanismd. To speed the development of credit intermediary industry and perfecting the system of information transmissione. To mend the system of personal creditf. To reinforce the credit legislation to promote the reputation mechanism to be set up and perfectg. To restrain personal discreditable behavior with he ethics power through moral educatio. Finally, index system of credit rating for enterprise and individual is studied throughanalyse and appraise every economic mainbody's credit behavior in the market, and a kind of more practical method about personal credit rating that is explained especially.