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NES China: Business Ethics - Essay Example

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This essay describes the NES China case study illustrates a core issue of major differences between Western and Chinese business ethical values. In most Western countries, it is very common for government officials as well as business organizations to closely follow or adhere to business rules…
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NES China: Business Ethics
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NES China: Business Ethics
Chen was told by her former colleague, Zhu, to give RMB 3000 (US $360) to each of the two government officials. What would be the consequences of doing so for the involved parties and other relevant stakeholders?
The NES China case study illustrates a core issue of major differences between Western and Chinese business ethical values. In most Western countries, it is very common for government officials as well as business organizations to closely follow or adhere to business rules and regulations that are by the books as well as straightforward. In such nations, there is absolutely no room to work around business rules and regulations.
Working around any business rules and regulations, for instance, giving RMB 3000 (US $360) to each of the two government officials, is highly likely to risk a company’s reputation as well as the ultimate career of the manager responsible for the crime. On the other hand, Western cultures implement internal audits to ensure that the existing rules are not violated. Additionally, dinner parties are very common regarding business practices, however, giving expensive gifts in rarely used in business settings.
However, in China a business practice such as expensive gift giving are highly encouraged as it helps in building strong relationships as well as trust. Therefore, giving RMB 3000 (US $360) to each of the two government officials would greatly help in building a relationship that is key for business performance. This will increase the market share and sales volume that maximizes value to other stakeholders. This is because gift giving shows a sign of reciprocity between parties involved for Chinese. Giving, RMB 3000 (US $360) to each of the two government officials will help in building a strong relationship with the Chinese officials thereby creating a conducive business environment for the company.
As Chen, what would you suggest to Mueller? Why?
As Chen, I would suggest the creation of a different or separate business code of conduct particularly for the China region to avoid conflicts of ethical values. I would suggest that NES cease making decisions on the basis of the Western values since the Chinese have their own set of distinct and unique cultural values and business norms that should not be interfered with. NES, therefore, needs to change and implement a new plan in case they would like to be successful in their business dealings or activities in China. Read More
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