Moral Judgment and Ethical Leadership in Chinese Management - Research Paper Example

?Moral Judgment and Ethical Leadership in Chinese Management-The Role of Confucianism and Collectivism Moral judgment and ethical leadership are considered as two of the most important aspects in modern businesses in China. In this context the role of Confucianism and Collectivism are highly significant in terms of increasing the path of development of Chinese society, culture, and economy (Chan, 2007, p. 350). This paper is aimed at describing the role of moral judgment and ethical leadership in Chinese Management. The main focus here is on the role of Confucianism and Collectivism in Chinese Management. The research describes the nature of Confucianism and describes the proposition that Confucianism leads to a strong perception in Chinese cultural context. The research also describes the role of Collectivism in Chinese Management and develops the proposition that Collectivism leads to a strong perception of Chinese management. By describing the role of Moral Judgment the paper also develops the proposition that Confucianism and collectivism are positively related to Chinese management’s moral judgment. Finally, the study develops the proposition that Confucianism and collectivism are positively related to ethical leadership in Chinese management by describing the role of Ethical Leadership in Chinese Management. Moral judgment and ethical aspects are two of the most important aspects used in management leadership. Moral judgment and ethical decision making abilities are the most important in recent management practices compared to the past. Management leaders need to take decisions in regard to greater moral judgments and ethical perspectives. Moral judgment and ethical decision making abilities are important in management leadership in order to develop the organizational science. Moral judgment and ethical leadership management help organizations to reduce the uncertainties in management issues related to interests of multiple stakeholders and management values. In Chinese management system theses concepts are highly important in creating greater effective management leadership practices (Trevino, 1996, p. 602). Confucianism is the most important ethical as well as philosophical system which was developed by the renowned Chinese philosopher Confucius. This ethical and philosophical aspect is also applied in management leadership practices. The notion of collectivism deals with the any political, social, economic, and religious aspect which emphasizes on the interdependence of each and every human being and the concept is very much important in Chinese leadership management for increasing the level of collected interests in management practices. The political structure of the country is the most important inspiration for promoting the collectivism approach in the country and Confucianism acts as the moral guiding support for management leaders across the country to apply moral judgment and ethical aspects in business management practices (Cheng, 2011, pp. 657-658). Literature Review and propositions Development: A) The Nature of Confucianism: Confucianism plays an important role in the process of development of strong cultural perception in Chinese social, cultural, economic, and business management perspectives and also it plays the most crucial role in the process of development in the culture of the country. Confucianism leads to greater and stronger perceptions in the cultural context of the country. The core idea of Confucianism is humanism which is the guiding force for developing the stronger perspective in the cultural context of the country. The ethical and sociopolitical teaching of the notion of Confucianism and the humanism approach of the performing social, cultural, economic, and political practices and acts are helping the development of all cultural contexts of the country to become stronger with the passage of time (Husted and Alan, 2008, pp. 297-299). This property of Confucianism of dealing with humanism helps the culture of the country through developments of people living in the country and thus improving their contribution to the cultural developmental process of the country. Humanism argues that human beings can be taught to improve their activities with greater perfections and these improvements can be made by themselves through personal as well as communal endeavors (Ip, 2009, pp. 469-471). These endeavors are largely consisted of human developmental activities like self-cultivation as well as self-creation. Through greater cultivation of virtue and ethics, Confucianism helps in the process of development of virtue and maintenance of ethical aspects in every sphere of human lives. With the help of these practices Confucianism is helping the country’s cultural development in a stronger way. In this development process of the culture of the country, Confucianism helps in the development of well-being as well as development of social capital. These developments play an important role in the process of development of cultural aspects of the country. With the help of developments in social capital and well-being of Citizens of the country, Confucianism is actually helping the in preserving all cultural aspects of the country and also making a bridge between the old cultural aspects and new or modern cultural aspects prevailing in the country. These social developments are also creating stronger cultural aspects within the country by making this linkage between the new and old cultural aspects of the country (Zhao and Roper, 2011, pp. 746-747). Also in the process of development of business and academic leadership the notion of Confucianism is helping the country to make a strong cultural context in the country. The humanism ideology of Confucianism is helping the country to develop well-being of citizens of the country by increasing their level of income and also their perception about maintaining their cultural aspects in the society (Xu, 2011, pp. 648-649). Another important role of Confucianism that is played in order to create a Chinese society where each and every people are given equal importance and respect in terms of allocation and distribution of resources. This property is helping the country to acquire greater amount of income through various economic activities and to distribute that equally among the citizens of the country. In this way cultural, societal, and economic bonding among citizens of the country are also increasing. Chinese culture was very much diverse in the past. In modern times this diverse nature of Chinese culture is modified to a great extent by Confucianism. The culture of the country is changed from being a centralist cultural context into an economic cultural development. Most of the societal, economic, and cultural decisions are now taken in respect to making more money in the country. Business organizations are now given more emphasis in regard to the fact that the culture of the country is changed into more money-making processes (Chan, 2007, pp. 349-351). However, Confucianism is also creating some obstacles in the development of the Chinese culture. The viewpoint of Confucian theory that the any one individual cannot possess any particular facility or right by excluding others is hampering the process of cultural development of the country. This skeptical view of the country is hampering the growth process of the country by directly affecting the process of cultural development and integration with cultures of other countries (Bailey, 2011, p. 663). Proposition 1: Confucianism leads to a strong perception in Chinese cultural context. B) Confucianism and Collectivism: The notion of Collectivism is related to the fact that the all individuals are supposed to enjoy equal rights and equal opportunities in the society. The concept of collectivism is related to the fact that all citizens of the country are required to enjoy each and every resource of the country in an equal manner. Collectivism has helped the country in the process of development of the management system of the country. With the help of greater interdependence of each and every human being living in the country the management developmental properties are appropriately represented in the country. In the country management characteristics and properties are largely dependent on features of Collectivism. All management strategies of various business organizations (both private and public) consider this collective approach of decision making (Ip, 2011, pp. 689-692). The most important property of these strategies is that these business strategies and decisions are taken in view of achieving goals which are required to benefit the entire group, not any one individual. The notion of collectivism is appropriately applied in the field of business management strategies and decisions which concentrates more on group activities rather than individual activities. Collectivism is one of the most important contributors in developing the management leadership concept in the country. By conceptualizing all cultural and leadership aspects of the country this notion has helped the country in making a stronger management system in the country. Chinese cultural characteristics and traditions are mostly based on collectivism approach. The political ideology of the country which is based on collectivism approach has helped the country to make a stronger management system in the country (Lee, 2009, pp. 510-512). The most important property of this newly created stronger management system is that the levels of decision making power of business organizations are now depend mostly on various interests of different groups, instead of individuals. Business management experts are now focus more on different strategies which are aimed at providing greater emphasis on achieving goals of the entire society rather than goals of any particular section of the Chinese society. Business organizations are now more concerned about making greater business goals which are provided to benefit citizens of the country. These business strategies are made in complete or partial collaboration with the government of the country (Jeffery et al, 2004, pp. 215-217). The role of the Chinese government in this context is to provide greater assistance to the business organizations in their decision making process and to suggest only those processes which are beneficial for the entire country. This aggregate evaluation of different business and management strategies of the country has helped the country to achieve aggregate goals in each and every sector of the economy, society, cultural developmental perspectives and also in regard to attracting all business organizations of the world to do business in the country. This is again helping the country to achieve further aggregate goals with more appropriate business and management strategies (Koch and Koch, 207, pp. 211-212). It is said that Confucianism leads to a stronger approach of collectivism in the country. One of the most important points of view of Confucianism is that individual goals and aims must be sacrificed for aggregate or collective goals for the sake of the betterment of the economy and society of the country. This is again the most important vision of collectivism. As Confucianism is the most important factor for the purpose of creating a stronger cultural and economic context in the country, therefore general people and management leaders are very much concerned about making collective decisions and satisfying collective objectives in the country (Leung et al., 2008, pp. 19-21). The Confucian view of achieving aggregate goals and aims suggest that it is social stability depends largely upon decisions and policies which are only aimed at achieving collective goals and objectives. These decisions therefore are interdependent with the entire family unit. Business organizations and management leaders are following aggregate goals and implementing only those policies which are aimed at achieving these collective goals. In order to maintain the influence of Confucianism in cultural, societal, political, and economic aspects of the country decisions are collectively. These collective decisions are reached through the consensus of satisfying aggregate goals which is the most of important notion of Confucianism. Hence, it can easy be said that Confucianism is leading to the process of making a stronger collectivism in the country (Lin, 2008, pp. 308-309). Proposition 2: Confucianism leads to a strong perception of Collectivism in China. C) Collectivism in Chinese Management: It is said by many management experts and business leaders that collectivism leads to a strong perception in Chinese management. The concept of collectivism is helping business organizations and management of these business organizations to develop various economic and business decisions for the betterment of these business organizations and also for the betterment of the all societal, cultural, and economic aspects of the country. The collectivism approach of making management decisions and executing business ethics and moral judgmental issues are helping the country to a great extent to develop its economy, culture, and society. The collectivism approach is helping the management decisions to implement policies which are aimed at achieving aggregate goals or meeting aggregate desires (Parker et al., 2011, pp. 131-134). These are indeed helping citizens of the country to put significant efforts into important management decisions in order to achieve aggregate goals. In the face of Corporate Social Responsibility the concept of collectivism is helping management leaders and business organizations to achieve aggregate goals by securing interest of all stakeholders of business organizations across the country. Collectivism and Corporate Social Responsibility together is helping the country to achieve business organizations of the country to get resource advantage in production processes of various goods and services. The most significant resource advantage is acquired by business organizations which are in the retail industry of the country. The notion of Corporate Social Responsibility is related to the institutional collectivism which is describes as the ‘the degree to which organizational and societal institutional practices encourage and reward collective distribution of resources and collective action’. Greater integration with the theory of Corporate Social Responsibility and collectivism is helping management leaders to make a stronger management in business organizations of the country. This is made possible with the help of incorporating decisions and direct interests of all stakeholders of these business organizations into the management as well as into management decisions. Management leaders now believe that the Corporate Social Responsibilities are most important in order to take effective and proper business decisions and hence, the role of managers and business leaders are increasingly rising to incorporate interests of all stakeholders of the business organization. Corporate Social Responsibilities are indeed creating smoother paths for achieving aggregate goals in the management practices of business organizations of various kinds in the country (Hu and Wang, 2008, pp. 1-3). There is actually a two-way relationship between collectivism and development of stronger management in the country. On one hand business practices and decisions which are aimed at achieving collective goals are more relevant in the field of existing social, cultural, political, and economic contexts of the country. This is indeed helping management leaders to make better decisions in the field of business in the country. On the other hand, these effective management practices are decisions are helping business organizations and management leaders to achieve collective goals in the society (Thompson, 2011, pp. 718-720). Both the notions of vertical as well as horizontal collectivism are helping the country to make a stronger management. Under vertical collectivism the most important factor is the notion that group decisions are made based on the cultural aspects of the country along all the vertical hierarchies of the business organization. In case of horizontal collectivism the most important focus is given on those management decisions which are based on group consensus as well as group equality in relation to prevailing cultural aspects of the country. These vertical and horizontal collectivism practices are making a stronger management in the country by incorporating all social, cultural, political, and economic aspects in their decisions and management practices. For instance, management leaders of multinational business enterprises receives greater amounts of resource base and supports from the Chinese government if they pay more attention on implementing business polices and practicing those management decisions which are aimed at achieving collective goals rather than individual goals (Sheng et al., 1994, pp. 891-896). These practices of collective actions and management strategies are also consistent with the nature of the culture and societal or economic structure of the country. Chinese societal, cultural, political, and economic aspects are largely dependent upon Confucianism. Confucian theories and points of views are the most dominating ethical and moral supports for each and every Chinese people. The greater emphasis of Confucianism on the collective actions and achievement of collective goals are represented by management decisions taken by business organizations in the country. Since, Confucianism is the most important factor for creating the notion of collectivism in every sphere of lives of Chinese citizens therefore the notion is most important for making collective decisions. In this context the concept of collectivism is the most important contributor in the process of developing business and management decisions and ethics within the business organizations in the country (Tumasjan et al., 2010, pp. 617-619). Proposition 3: Collectivism leads to a strong perception of Chinese management. D) Moral Judgment: Moral judgment is one of the most important factors in developing the management system of the country more effective and efficient. Moral judgment and ethical behaviors are considered as most important aspects in global business in modern times. These two concepts are regarded as highly influential in the process of development of an effective management system in the countries all over the world. The notion of moral judgment or moral development is based on several stages as pointed out by Kohlberg in 1976. These stages are: pre-conventional stages, conventional stages and post-conventional stages. These stages are classified as distinctive properties and are consisted of two further stages (Tynan et al., 2010, pp. 1121-1123). These stages reveal the fact that the cultural development of any country depends upon the development of cultural factors which are prevailing in the country. These stages of moral judgment are also dependent upon the extent to which ‘the theory of moral development is applicable to other cultures’. According to Chow and Ding (2002), “Chinese culture seems to be more self-consciously moral than many other do and to have long and rich traditions of morality” (Chow and Ding, 2002, p.666). This moral structure of all societal, cultural, political, and economic aspects of the country are indeed helping the country to gain greater amount of benefits, including both monetary benefits and non-monetary benefits. Monetary benefits incorporate those benefits which are acquired by economic agents of the country through various economic activities, like production and trade of goods and services etc. On the contrary, non-monetary benefits include those benefits which are acquired by the country, in general, and by the citizens of the country, in particular, are related to the development of cultural as well as societal aspects (Chow and Ding, 2002, 666-667). One of the most important features of the Chinese culture is that it pays more attention on showing respects to a person who has a good as well as proper moral reputation. This is known as face or “lian”. This property acts as the great support for those people who belong to the same respected group. This property also acts the most important function of “both a social sanction for enforcing moral standards and an internalized sanction” of moral judgment and values (Warner, 2010, p. 2072). The Chinese system of assessing moral judgment depends largely upon the Oriental cultural or the same culture. Under this cultural ethics moral judgment works by avoiding to be criticized by others in regard to any offence or unmoral acts or practices. This same culture relies more on cultural and social aspects where external sanctions are given for bad behaviors. These features of issues related to moral judgment are helping the country to achieve greater success in almost every sphere of their lives by increasing the value of moral judgment and ethics of citizens of the country (Weber, 2009, p. 537). According to Chow and Ding (2002), “in Chinese society, the person is less inner-directed, more controlled by the need to maintain face” ((Chow and Ding, 2002, p. 667). The person who does not possess any face is not integrated into the Chinese society which, according to Chow and Ding (2002) “is the most insulting thing that can happen to the individual and his family” (Chow and Ding, 2002, p. 669). In these contexts it is also important to mention that another very important aspect related to moral judgment in the Chinese society and culture is related to achievement of collective goals and objectives. As in the country issues related to moral judgment are related to various interactive and respectable approach of communication, therefore achieving aggregate goals and aims are very much common in management and business practices in the country (Wei and Li, 2011, p. 759). Business organizations, management leaders, and general people of the country are judged by cultural and social aspects of the country according to their behaviors with others. Again these cultural and social moral judgmental issues are influenced by the notions like Confucianism as well as collectivism. These two notions are improving various strategies and decisions taken by business organizations, management leaders, as well as by general people of the country to a great extent. These decisions and strategies are again guided by various ethical and moral values of Confucianism as well as collectivism (Chow and Ding, 2002, pp. 671-672). Confucianism is one of the main contributors in developing the bureaucratic culture in the society which is the most important that is causing greater development of Chinese society, economy, and culture. These cultural, social, and economic developments are again dependent on issues related moral judgment. The nature of Chinese people and management leaders (both possessing Chinese origin or are working there) to put more emphasis on showing respects for others which is the most important moral value in the country’s cultural and social aspects. Therefore it can easily be said that issues related moral judgment are positively related with notions like Confucianism and collectivism (Frederickson, 2012, pp. 611-612). Proposition 4: Confucianism and collectivism are positively related to Chinese management’s moral judgment. E) Ethical Leadership: Ethical leadership is regarded as one of the most important concepts of modern businesses and management practices. It deals with the fact that the management and business leaders are required to take decisions in regard to the betterment of the business organization, in general, and for the betterment of each and every person related to the business organization holding the fact these decisions are ethical (Wood and Lamond, 2011, p. 681). These management and business decisions must be supported by the ethical perspective of the nature of culture and society of the country under consideration. These decisions and management strategies are required to be made in regard to various ethical codes which are strictly followed by various cultural and societal aspects of the particular country. In China, corporate ethical leadership is regarded as one of the most important factors in the process of rapid economic development of the country (Resick, 2011, pp. 447-449). According to Zheng, Wang, and Li (2011), “leaders’ ethical values have the potential to lead to favorable long-term economic outcomes and competitive advantage”. Chinese traditions and great Chinese ethical followers act as greatest motivator for business organizations, in general, and for management and business leaders, in particular, to greater emphasis on various ethical business and management practices in process of doing business the country (Xu, 2011, p. 651). These ethical management and business practices are consisted of various ethical practices, such as practicing ethical communication with others, providing complete and accurate information to others, maintaining social and cultural norms and regulations etc. (McDoland, 2011, pp. 641-642). Ethical business and management leadership practices are also related to concepts like providing greater satisfaction to customers, business partners, and stakeholders. These ethical leadership activities are also need to be related with development of social capital in the country. According to Zheng, Wang, and Li (2011), “with the support of the people surrounding him, a leader could easily achieve success; similarly, social networks would positively influence customer relationship, which is essential for the success of business” (Zheng, Wang, and Li, 2011, p. 671). The notion of ethical leadership is also related to the concept of giving respect as well as admiration to all the employees of the business organization and also to other business organizations that are main competitors of this business house (Zheng, Wang, and Li, 2011, pp. 671-673). The notion of ethical leadership in Chinese leadership management practices are greatly influenced by various cultural and social aspects of the country. These cultural and social aspects are again dependent on various ethical as well as moral judgments. Ethical leadership management practices in the country are not biased against any societal, cultural, political, or economic group or community of the country (Zhang et al., 2011, pp. 487-488). These are solely based on making of an effective, moral, and ethical Chinese society where the role of the government and other social, cultural, political, and economic agents of the country is to augment the rate of growth of that society. Confucianism and collectivism are greatly responsible for the creation of various social, cultural, and economic developments in the country. These developments are again augmented by various ethical issues related to the prevailing structure and features of culture and society of the country. Confucianism and collectivism are helping the country to a great extent to build up various suitable cultural and social aspects which are more consistent with various issues related to moral judgment. These issues are not only securing the future of the country, but at the same time are improving the moral justification of the people of the country to incorporate various policies and structural developments which are consistent with these policies and developments. For instance, one of the most important notions of both Confucianism and collectivism in regard to the criteria of providing equal as well as right opportunities to each and every people of the country are increasing the base of social capital, physical capital, as well as the base of human capital in the country. This increase in the capital base is indeed helping the country to achieve greater economic, social, and cultural developments (Zhao and Roper, 2011, pp. 749-752). The notion of ethical leadership management practices are also related to these concepts of Confucianism and collectivism. Under ethical leadership management practices the notion which is given the most importance is related to the achievement of collective goals and objectives. This is because ethical perspectives argue that business organizations and management leaders need to implement only those polices which are consistent with achievement of goals of one individual without sacrificing the ability of another individual to meet his or her own goals. Therefore, it is worth of mentioning that business and management practices which are based on various ethical aspects of the Chinese society are positively dependent upon Confucianism and collectivism. Hence, it can easily be said that the Confucianism and collectivism are positively related to ethical leadership in Chinese management (Zheng, Wang, and Li, 2011, pp. 671-672). Proposition 5: Confucianism and collectivism are positively related to ethical leadership in Chinese management. Conclusion: It is most important to note that moral judgment and ethical leadership practices are very much important for the growth and development of various cultural, societal, political, as well as various economic aspects in the country. Issues related to moral judgment and ethical practices are very much important in management and business domains and these concepts are particularly important in the face of an effective and efficient business and management sector in the country. These concepts are highly important in the face of the rapid economic growth as well as cultural development in the country. These cultural developments are mainly guided by various historical contexts like Confucianism and collectivism. These two notions are acting as the main guiding force behind the growth and development of the Chinese society and culture. While the concept of Confucianism is helping the country to build an effective and strong cultural context in the country, collectivism is constantly helping the country to develop various management and leadership practices within the country’s business domain. Again Confucianism is also helping the country to create a stronger perception of collectivism in the country. Again, Confucianism and collectivism are together helping the country to a great extent to create a stronger society and culture by establishing a positive relationship with various issues related to moral judgment in the Chinese management system. Furthermore, these concepts are also related to a great extent to various aspects related to the ethical leadership in the country’s management system and business ethics of various domestic as well as international business organizations. 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