Ethical Conflicts for Firms in China (Case Study Sample)

Ethical Conflicts for Firms in China [Author Name(s), First M. Last, Omit Titles and Degrees] [Institutional Affiliation(s)] Author Note [Include any grant/funding information and a complete correspondence address.] Ethical Conflicts for Firms in China The 13th January, 2010 article, Ethical Conflicts for Firms in China, in the Wall Street Journal reveals how firms suffer different ethical issues from different cultures as a result of globalization. The article mainly talks about Google Inc. Its shows its struggle to survive the heavily regulated Chinese information industry. In the end, Google Inc. threatens to bow out of the Chinese market due to what it regards as heavy breach of its mission, goals and objectives, which is provision of information to its customers CITATION Dea10 \l 1033 (Dean, 2010). This paper shows the cultural differences between the US and China and how they made Google Inc. adapt in trying to operate in China. Harmony The Chinese population is a harmonious population. They believe things being done in an orderly manner. Majority consider change as disruptive and especially when it occurs suddenly and substantially. This mode of thinking was inculcated into the Chinese people by Tao and Confucius. Harmony is also promoted by the various leaders, philosophers and scholars of China. This is because China is a heavily populated country. In order to avoid conflicts between, many people living in close proximity, people have to live in harmony. Additionally, Buddhism and Taoism, the most dominant religions in China promote peace and order amongst the Chinese people. This explains why the government of China censures most websites that they deem could destabilize the country's harmony. They aim at preserving harmony of a very large society CITATION Hei10 \l 1033 (Heineman Jr, 2010). However, effectiveness and efficiency are highly cherished by Americans. America promotes critical thinking and logics amongst its population through provision of facts about a particular issue to its population. This is the reason why various American companies in the information industry such as Google Inc. find it difficult to operate in the Chinese market where information supply is greatly stifled CITATION Sch06 \l 1033 (Schulman, 2006). Relationships The Chinese people live in an interdependent society. Individuals depend on friends, relatives, school mates, work mates and many more. Human feelings are highly cherished in China. Special importance is given to human relationship. This is due to the agrarian Chinese society where communities existed that were small and closed and formed normal social structures. This structure of society makes the Chinese social beings, who believe in group work as the only means of achieving common goal. The Americans differ from the Chinese. The American society promotes individualism. The US constitution, the foundation of US law promotes individualism through the rights it guarantees an individual. This difference in the societal structure makes it difficult for foreign firms to operate in china. The value of human relationship and the communal nature of the Chinese society makes it difficult for firms to compete in the Chinese market. Businesses tend to look at each other as more of brothers rather than competitors in an industry CITATION Fel14 \l 1033 (Feldman, 2014). The Chinese value "the rule of man" over the "rule of law”. The Americans value "the rule of law”. The Chinese view that laws can be twisted by those in power to suit their own purpose. This is why it is important to value "the rule of man" over "the rule of law”. Due to preference of man over law in China, business can only operate, compete and survive through tapping into contacts of influential people across China. This way of doing things breeds and promotes corruption as it makes it difficult for business to compete on fair grounds. Those businesses with highly influential contacts survive while those with less or no influential contacts die. Additionally, these contacts have to be bribed heavily which promotes corruption, and in one way limits fair competition, which is injurious to the Chinese economy. Western firms find it difficult to operate in such unprofessional environments which require actions that are illegal in their mother countries CITATION KeJ13 \l 1033 (Ke & Wang, 2013). Physical Contact Touching is very common in the western culture. Same sex individuals in the west touch each other's arms, hands or shoulders to express polite affection between acquaintances and friends. The Chinese are not fans of touching one another. Furthermore, direct eye contact is avoided by the Chinese since they believe it is an intrusion into another person's privacy. Stranger are usually maintain significant distance between themselves to avoid physical contact. One realizes that the Chinese have a lot of respect for the human body and its privacy. They believe the body belongs to one alone, who is the owner. Only one has the right to touch it and know its appearance in details. The Information industry is widely criticized by the conservative nations of both Asia and Africa as exposing minors and even adults to contents that are regarded as obscene and degrading to human dignity. This is a reason why Google Inc. and other firms in the information industry might find it difficult to operate in China. Most web pages, even purely academic pages, may contain adverts of persons regarded as nude in these societies. Therefore, through censorship and strict regulation, majority of this companies loose revenues on advertising through various websites CITATION Dea10 \l 1033 (Dean, 2010). Resolution strategy One realizes that the various differences between the Chinese and the Americans way of life is greatly displayed between Google Inc. and the government of China. There existed ethical conflict between Google Inc. and the Chinese government from the time Google Inc. entered the Chinese market. Below is a discussion of the various ways Google Inc. tried to maneuver through the conflict. Avoidance At the time of entry into the Chinese market, Google Inc. employed avoidance strategy. Google Inc. agreed to comply with all the requirements of the Chinese government on...