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Problem Statement: The study focused on the determination of the impact of the use guanxi concept in the Chinese organizational managements and the effects on the ethical standards and judgement of the organization.
Approach: The research has been a secondary source based research and obtained its materials and understanding from the earlier researches conducted on the concerned topic.
Results: It has been obtained from the study that the concept of guanxi has an extreme significance in the management of organizations, particularly with respect to the Chinese organizations.
Conclusion: Although there are certain negative aspects of following the concept of guanxi, yet from the study it has been concluded that the concept is an essential factor for the Chinese organizations that have records of success stories from using the guanxi concept and maintaining enhanced interpersonal relationships.
Discussion: The study reflected that if the misuse of the concept can be controlled, then the concept would prove to be an efficient and successful one not only for the Chinese organizations but for every other organization.
If the world of business is considered, it can be realized that different decisions are taken within the managements that involve the relations that are prevailing among the organizational members. By Guanxi, it is referred to a unique form of relationship that involves reliance, favour, dependence and adjustment between the individuals thus enabling efficient decision making processes that are based on internal relationships. Theorists have speculated and mentioned that this could be used as an instrument for marketing as well since it is involves decisions related to the performance of marketing and the business as a whole. However, there are other theorists who focused on different views and reflected that guanxi if followed at a personal level might lead to unethical behaviour (Chan, Cheng & Szeto, 2002, p.327). Guanxi believed to be capable of leading organizational members to unethical practices; there are severe concerns for the ethical considerations for the business practices in the Western countries. However, when China is considered for research, it has been observed that the Chinese organizations consider guanxi as an ethical practice (Chan, Cheng & Szeto, 2002, pp.327-328). Guanxi in China is recognized as a major activity in its world of business as well as the society. Guanxi had been realized and introduced in the management policies of Chinese organizations intending to cope with the ever-changing business environment. Although the concept of guanxi has not been clear with respect to China, yet, the process is considered as a realistic way of bringing accord between the different organizational members (Wong, Wong & Wong, 2010, pp.2142-2143). The current research focuses on the practice of guanxi and its relation to ethical judgement in the context of Chinese management behaviour. Literature Review and Propositions Development: Several studies have been conducted on the business ethics practice in Chinese organizations and the use of guanxi in the management policies among the Chinese organizational members. Other researchers who had conducted studies on the business ethics in China focused on how the practice of ethics developed in the country. Earlier the concept of ethics did not have any practical implication. However, their studies imply that ethical practice has now developed to a great extent and it is a part of the organizational management in the Chinese business world. Al-Khatib, Vollmers and Liu however mentioned that there has been a huge decline in the moral standards of the
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