Business_Ethics

Business Ethics Across Cultures: Australia & China Deborah Cotter XMGT216 October 2, 2011 George Camposano Business Ethics Across Cultures: Australia & China The United States is not the only country that practices strong, sound business ethics-for the most part, anyway. Australia, which some people may consider a “second America,” also strives for business ethics that uphold the country’s moral values and principles. China, on the other hand, is struggling in their corporate offices. Many of the younger generations are frustrated with the corruption often seen in business influences (Schulman, 2010). Business ethics in Australia may appear similar to those often used in the United States. According to "Australian Business Ethics" (1999-2011), “Ethical business behavior revolves around being upfront, presenting yourself honestly and judging someone based on actions and skill, not on title or rank (para. 1).” Businesses in Australia do not allow upper management to have a higher authority than employees at a lower level. Because the corporate model allows lower-level employees the opportunity to voice their opinion on important matters, these employees are valued and respected. However, one must realize that just because an employee’s opinion is voiced and heard does not necessarily mean the opinion will be acted upon. Nonetheless, lower-level employees are not left out of the loop when decisions are made. Their belief is that all employees can have important insight and valuable input into the decision-making process. Glass ceilings do not exist in Australia. Women are respected for the work they have achieved and often hold positions of high authority. Female employees are just as likely to hold a high-ranking position as male employees. The respect professional women receive is imperative in the business world. This can be problematic for visitors to this country whose own country may not allow such advances and privileges for women. Concerning negotiations, Australians place company policy before feelings; focusing on facts, evidence, and company rules ("Australian Business Ethics," 1999-2011). Australians steer clear of bragging rights to their professional and academic credentials and accomplishments. This is not to say that Australians are not proud of what they have achieved in academics and professionally; they just do not spend time bragging about their credentials. To Australians, how a person works is a better monitor for his or her competence than what he or she has achieved. Personal and professional lives are kept separate in Australian business, with the exception of small talk centering on neutral topics before a business meeting. It is taboo to ask personal questions or talk about what may be considered controversial topics, such as politics and religion in the workplace. These topics are best left at home or in a social setting. Unfortunately, not all countries share the same respect and desire for a strong, ethical business practice. One such country is China; however, change for more practical and moral business practices is on the rise. Many businesses in China have the desire to change the culture in how business ethics are handled. Chinese businessmen want to be global players and realize that in order to do so, they must eliminate corrupt business practices (Schulman, 2010). Failure to do so can prevent possible new contracts with other countries, thus limiting the amount of import income into the country. According to Schulman, M. (2010), " Many students at the Beijing University of International Business and Economics, where CIBE (Center for International Business Ethics) is based, are pursuing an MBA because they are frustrated by the corruption they witness” (para 2). In an effort to begin to make the necessary changes in business ethics, the Chinese will have to put aside some of the traditions that favor advocating wrong-doings in family matters and cronies; that it is acceptable for a father to steal a sheep, and the family is not to turn him into the authorities for the theft. Stephan Rothlin, general secretary of the CIBE, states that while some Chinese businesses want to change, it is important for countries with strong ethics to steer clear of imposing their own ethical boundaries (Schulman, 2010). Rothlin is adamant in this, stating that the Chinese will accept the offer of needed changes only to discard those changes once the country has left the office. The importance lies in that the Chinese need to adopt ethical business practices that will benefit them the most; unfortunately, that does not include ethical guidelines presented by the Western world (Schulman, 2010). While the Chinese may seem to welcome the help of the Western world in establishing ethics in the business, they prefer, and need, to adopt codes of ethics that will be of benefit to them. Rothlin has published a book in Chinese, “Becoming a Top-Notch-Player: 18 Rules of International Business Ethics” (Beijing: Renmin University Press, 2004) to help Chinese business adopt more a more ethical code of conduct. The articles presented by Shulman (2010) and Australian Business Ethics helps to some shed light on the ethical practices of each country (Australia and China). It is helpful to note that the information obtained from Australian Business Ethics is simple, yet straightforward, allowing individuals the opportunity to obtain a glance into what to expect when visiting this country. Individuals who come from countries not as friendly in the workplace, allowing women to work, much less hold a position of authority and allowing lower-ranking employees a voice in important business matter may be shocked with what they find. On the other hand, business visitors to China may be surprised that many businesses do desire to make the necessary changes ethically to become global partners in the business world. The problem that many Chinese businesses face is the lack of knowledge and “know how” to incorporate the necessary code of ethics, along with their history of philosophical traditions. However, these disadvantages should not be seen as a deterrent, but as the driving force to change. The business ethics in Australia seem to mirror those found in the United States. Many companies and businesses exist who integrate the same principles and ideas that can be found in Australia. Time and effort have proven that women in the workplace can hold the same high regard as many men, sometimes with women advancing quicker and higher than men. An area that seems lacking in the American workforce is the distinction between privacy and relationships in the workplace. Perhaps it is because Americans are such social individuals that they desire to share their personal lives and relationships in the workplace. To a certain extent, most employers do not discourage such behavior, until the behavior becomes problematic. Still, the guidelines set forth in Australian businesses regarding the clear line between personal lives and relationships can be something Americans can strive for, if only for the short term. On the other hand, business ethics in China could model those of many corporations in America. This is not to say that all American businesses are model businesses. There have been several over the years that have made America blush with shame with the way that businesses have folded and gone bankrupt. The temptation to override any type of code of ethics in the workplace has been immense; the goal more money at any cost has proved detrimental, costing businesses, employees, and stockholders income and retirement benefits. Thankfully, these corporations are not the norm and, the individuals responsible for the demise of monetary destruction to many have been reprimanded. Ethics in business is more than “doing the right thing” when confronted with an ethical issue or behavior; it is how individuals handle themselves when times are tough. When tough, hazy problems arise, how a corporation responds to the issues will show those who are in close contact and the world what type of corporation they indeed are. If handled appropriately, unethical situations can increase the reputation of a company, and therefore, its employees. Countries like the United States and Australia can serve as an example to countries struggling with adopting ethical behavior in businesses and corporations. These two countries have proven what is successful and what is considered poor ethical behavior. Countries such as China can model their ethical business practices after such countries as the United States and Australia, building upon statutes that have been proven to be successful. Codes of ethics are not hard to produce. The difficulty lies within the ability to enforce, especially in grey areas and situations. This should not pose as a deterrent, however. Difficult ethical issues can indeed make a corporation stronger. The premise lies in how the ethical issue is handled. References: Australian Business Ethics. (1999-2011). Retrieved from http://www.ehow.com/info_7829297_australian-business-ethics.html Schulman, M. (2010). Business Ethics in China. Retrieved from http://www.scu.edu/ethics/publications/ethicalperspectives/business-china.html