The Challenge of Developing a Business Ethics in China - Research Paper Example

Literature Critique: The Challenge of Developing a Business Ethics in China Synopsis China’s human development index has significantly climbed in the last couple of years. However, social development in china has hugely lagged behind this economic development. The stagnation of the social development in China has resulted in various issues like environmental and labour concerns. Keung (2009) wanted to explore the why the corporate social responsibility in China was lagging behind the country’s economic development. It was found that various unethical business practices have led to the lack of corporate social responsibility. Keung (2009) also proposes possible solutions to this problem. Introduction Keung (2009) takes a look at the state of Corporate Social Responsibility in China in the wake of the various ethical challenges facing the business community in China. The arguments of Keung (2009) are based on the surveys that had been recently done in China in order to explore China’s corporate social responsibility issue. Keung (2009) further articulates a notion of business ethics that embraces a model that is in use in Europe and which is becoming popular in China. Aim of the Report This report aims to review Keung (2009) that explores the challenges that have hindered the progression of corporate social responsibility in China’s business community critically by assessing the research questions, the research methodology and design, the limitations of the study in context to literature that is available that addresses this same topic. Keung (2009) fits into the chosen area of research because it explores corporate social responsibility with respect to the Chinese business community. This is in line with the chosen project area that deals with the study of the impact of social responsibility implementation to Chinese manufacturers. Summary of the Article The article being critiqued aims to unravel the various challenges that face Corporate Social Responsibility in China and development of business ethics in China. The article begins by looking at the moral doldrums that have affected the business and environment in China. It explores issues such as the environmental crisis in Chian that has been caused by the increased use of cola as a source of energy. Labour right issues and product safety issues are also discussed. Product issues like substandard goods, fake products are critically analysed. The first section ends with a look at the culture of profit and the aftermath that it had in China .Keung goes ahead to review the various corporate activities that have been witnessed in China and the factors that have influenced the development of corporate social responsibility as well as the cultural and ideological legacy of right and wrongs. In the final sections of the paper, Keung analyses and proposes profile of prospective ethics in business that can be used in China. Research Questions The hypotheses that was explored in this study by Keung is based on the need to unearth the challenges that face the development of Corporate Social Responsibility in China in the wake of the various scandals and issues that is facing the China business community such as infringement of property rights, product duplication and substandard commodities. Therefore, the paper’s main research question is: What are the challenges that are affecting progress of social business ethics in China. The paper reviews the history of the Chinese business community and the journey of China towards being a developed country and a force to recon with in the world. The theoretical framework is based on two Corporate Social Responsibility surveys that were conducted in China on the perception of Chinese entrepreneurs on CRS with the result being published in ‘Survey Chinese Enterprise Operator, Growth and Development 2007 (Halme, & Lovio, 2004) Basis of the Paper The Broad Research Methodology Keung (2009) approached the issue of challenges that are facing the development of Corporate Social Responsibility in China from a historical perspective. Keung (2009) analyses the historical issues that have resulted in the lack of corporate social responsibility in China. Current factors that may also hinder the development of corporate social responsibility in China are not taken into consideration in this approach. According to Whitcomb, Erdener & Li et al (2004) social responsibility is affected by current issues in as much as historically issues. The current values of a society and technological changes greatly influence Corporate Social Responsibility. Problem Formulation Keung (2009) addresses the problem of lack of development of social corporate responsibility in China. Corporate social responsibility is a vital aspect of business as it impacts greatly on the welfare of the society and the performance of a business or organisation (Mayton, Ball-Rokeach, & Loges, 2005). Due to this, it is important that all the stakeholders and policy makers to understand the why there has be minimal development of corporate social responsibility in China. In addition, the policy makers also need to know the origin of the challenges facing corporate social responsibility in China so that they can know how to tackle it (Schwartz, Bilsky, 2004). Data Gathering Techniques This paper uses secondary research as the basis of its work. The author of the paper relies on secondary sources of data to get data and facts that are used in achieving the objective of the study which is to unearth the challenges that are facing the development of Corporate Social Responsibility in China. The use of secondary sources of data has several advantages. Some of the advantages of use of secondary sources of data like in the case of this journal by Keung are cost effectiveness and ease of access (Russell, 2004). Further more the use of secondary data helps in fully answering the research question. In this paper, the author analyses secondary data to help answer the research question. In order to determine the various moral doldrums that are facing China the author uses Economics (2004), Forey (2004), French (2006) and CLB (2004) to show the various doldrums. This goes ahead in helping Keung answer the research questions of the paper. Limitations of the sources of Data The secondary sources of data that is used in this paper however have several advantages that may compromise the validity, credibility and reliability of the paper (Russell, 2004). One shortcoming of this method is the fact that it does not allow for the use of first hand information. In this paper, the author relies on the research by other entities such as World Bank and State Environmental Protection Agency in some sections of the paper. The second disadvantage is that the use of secondary data requires critical evaluation of the validity and reliability of data and information contained in that particular source (Russell, 2004). For example the data that is used in the paper to show the number food and drug safety scandals in China require evaluation to determine the credibility and validity of the figures (Ho, 2001) Literature Review Keung (2009) uses secondary sources of information to provide answers to the research question being handled. An example is Kahn (2006), an article in the New York Times that has been used in Keung (2009) to give information on labour issues in ChinaThe paper uses New York Times article on challenges face by immigrant workers in China and the author of the article, Kahn (2006) is acknowledged. The literature review is done in an organized manner and there is flow of information from the various historical issues that has led to the challenges that are currently facing the business community in China such as substandard good, infringement of property right and fake commodities. The author of the paper also uses credible sources of information in the paper. The paper is based on surveys published on ‘‘Survey on Chinese Enterprise Operators’ Growth and Development 2007’’.This is a reputable source that has published various business research findings in China (Lu & Hongmei, 2009). Research Objective Corporate social responsibility in has been lagging behind the economic development in China. The impact of this has been the environmental degradation, substandard product and labour issues in China. Keung (2009) clearly states how lack of development of corporate social development has led to the above stated issues. This helps in clearly articulating the objective of the research which is to explore the challenges facing corporate social development in China. Overall research design Keung (2009) elaborates about the issues like environmental degradation, labour issues and product issues that are facing China business community. It clearly articulates and explains the origin of these issues .After talking of these issues, the paper goes ahead to explain culture of profit in China. The culture of profit led to businesses using whatever means within their disposal to make profit ended up in business ethics issues like substandard goods and infringement of property rights in China. This planning of the work in a flowing and easy understand manner gives Keung (2009) good research design. Significance and Limitations of Keung (2009) Keung (2009) is structured and designed in a way that after the discussion of these CFR concerns in China like labour, environmental and quality issues, it goes ahead to explain the various CSR activities like organization of International forum on CSR &CSR cases and the Publication of Social Responsibility Guidelines for Listed Companies in China by the Shenzhen Stock Exchange that have been witnessed in China. This helps in understanding the state of CSR in China hence making the paper comprehensive. However, the paper does not give the impact that these CSR activities had on the country’s social business ethics. Failing to show the effects of the above stated activities makes the effect that they have had in China such as increased social responsibility awareness not to be appreciated (Karin, 2005). Conclusion Keung (2009) demonstrates that secondary research can be used to carry out research on a particular issue. Though the use of secondary data is associated with risks and disadvantages that have been discussed earlier in this critique, it has been fully and intelligently used in this journal to help determine the factors that have affected CSR in China. The journal is generally done in a good way with the research question being well answered are recommendations made. Reference Anusorn S, Kiran, K., Rao, Scott, J. (2007). How important are ethics and social responsibility? A multinational study of marketing professionals, European Journal of Marketing, (35:1), 133-153 (2001) Campbell, J. (2007). Why would corporations behave in socially responsible ways? An Institutional theory of corporate social responsibility, Academy of Management Review, (32), 946-967. Fukukawa, K., Shafer, W. & Lee G. (2007) Values and attitudes toward social and environmental accountability: A study of MBA students. Journal of Business Ethics, 71(4), 381-394. Ho, S. (2001). Growing consumer power in China: Some lessons for managers, Journal of International Marketing, Vol. 9, No. 1, pp. 64-83 Karin B. (2005). Corporate social responsibility in China: Current issues and their relevance for implementation of law. The Copenhagen Journal of Asian Studies Vol 22 pp 10-16 Lu, T & Hongmei L. (2009). Corporate social responsibility communication of Chinese and global corporations in China, Public Relations Review 35 (2009), p. 200 Mayton, M., Ball-Rokeach, J. & Loges, E. (2005). Human values and social issues: An introduction. Journal of Social Issues, 50(4), 9-18. Russell, M. (2004).The effective use of secondary data. Learning and Motivation 33, 32–45 Schwartz, H. & Bilsky, W. (2004). Toward a theory of the universal content and structure of values: Extensions and cross cultural replications. Journal of Personality and Social Psychology, 58, 878-891. Whitcomb, L., Erdener, B., & Li. C.(2004).Business ethical values in China and the U.S, Journal of Business Ethics, 17(8), 839-852.         . Read More