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In this short essay, I will start out by outlining problems of corruption in contemporary China. Then, I will explore to what extent Guanxi may contribute to what many perceive as a crisis of rampant corruption in the country.
China has in the recent past been an object of scathing criticisms from both the local and international players over its apparent tolerance to corruption. Gong (2011) portrays the perception of China by Westerners who associate business culture in China with Guanxi. Regardless of the favour or job one wants in China, all that matters most is the ability to give gifts or bribery. Guanxi illustrates the complex form of corruption where relationship with bigwigs and those in powers motivate most of the decisions. In addition to enhancing business prospects for the corrupt in China, Guanxi has further led to the formations of monopolies pegged on capitalistic endeavours. This practise in fact threatened the survival of China as communist country. To further illustrate the problem of corruption in China, a survey one conducted on 100 people who were prosecuted for bribe-giving. The result indicated that 94.2% of them asserted that “they would “warm up the relationship” first before they would bribe with money” (Ling Li 7). Corruption through Guanxi has harmed Chinese image on both the local and international spheres. Illegal businesses that fail to adhere to human rights have been allowed to operate without legal charges. Also, the level of property rights violations and manufacture of counterfeit products without concomitant legal actions has left many questioning the willingness of China to fight corruption (Zhang).
The Chinese judicial system is one of the areas significantly affected by cases corruption. “Guanxi” is evidently a factor into a judicial or arbitral decision. However, worth noting is the fact that this corruption does not necessarily assume the traditional form of bribe,
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The concept of guanxi being a developing concept and used in the Chinese organizational management has been a topic of concern and interest as well for several authors to experiment on. The current study has thus considered the issue and focused on the impacts of the concept in the modern organizations.
It is regarded as being both important and problematic in this context. This study starts therefore with a brief history of Chinese culture as it applies to business and selected definitions of guanxi from its ancient origins in peasant society to its current forms in the modern world.
Intention is an important factor. Thus, the “gift culture” cannot be an excuse for someone who practice or engaged into corrupt practices. I believe that corruption exists in all kinds of societies and does not leave out the traditional ones. Deflem (1995) viewed traditional practices in non-industrialized societies as practices that cannot be labelled corrupt because these might be justified in the traditional life world.
Causes Disparity of income between the rich and the poor The factor that has served as the biggest hindrance in the bridging of the gap between the rich and the poor in China is the speed with which the rich are becoming richer. In the period between 1985 and 2009, the richest 10 per cent of China’s urban residents saw a total of 37-fold rise in their income whereas the increase for the middle 20 per cent of the population was only 21-fold (“Rich getting richer”).
Guanxi in China 1. Definition of Guanxi Guanxi is a Chinese term that refers to the approach of generating networks or relations, so as to get personal favors. It builds a complex extensive affiliate network which is vigorously, carefully, and creatively nurtured by the Chinese people.
The questions then that the proposed dissertation seeks to address are:
Guanxi is becoming popular in the West as a management concept because of its way of taking advantage of personal connections to edge out the competition. This is especially useful in the construction industry where the contractors need to interact with a multitude of players to get things moving and have anything done at all.
nature of Chinese construction industry and guanxi are the factors that create the condition for the perpetuation of bribery and corruption in the Chinese construction industry. A literature search, quantitative and qualitative data are gathered to get hold of primary data