A Cultural Study On Business Ethics Of Western Multinational Corporations In China

As an important component of the economy in China, Multinational Corporations (MNCs)have created huge economic interests and introduced advanced technology. However, theyare also criticized for some questionable behaviors. A lot of business briberies of thewell-known MNCs are exposed to the public, such as Carrefour, Wal-Mart, Lucent,Siemens, IBM, etc. According to Anbound Group, MNCs are engaged in60%percent ofthe business briberies over the past ten years in China. And the briberies of MNCs areincreasing gradually. It seems that the MNCs behave much ungovernable in Chinesemarket than in their local country.The thesis conducts a study on the ethical problems the MNCs encountered when operatingin China from two aspects: cultural differences between China and Western countries, andbusiness ethics. First of all, the thesis compares the core values between Chinese andWestern cultures based on the influential culture theories. The thesis also compares theorganizational cultures of different countries, especially China, France, America, and theUnited Kingdom. Then, based on different views of business ethics introduced, the thesissummarizes the major ethical principles towards the organizations. By applying theseprinciples to analyzes the unethical behaviors of Western MNCs which have been reported,the thesis summarizes the major ethical problems of Western MNCs in China as: BusinessBribery and Corruption, Unfair Competition, and Absence of Corporate SocialResponsibilities. To analyze the cultural and ethical influence of these problems, threecases are illustrated: Carrefour’s Local Management Corruption and Bribery; Unilever’sPrice Hike; ConocoPhillips’ Oil Spill in China. Finally, two suggestions are offered to theWestern MNCs about how to make correct decisions when facing ethical dilemmas whenoperating in China.