International BusinessThe business world has always relied heavily on contractual agreements when conducting business. These contracts, although written in ink, are set in stone. Once your business partner signs their name on the dotted line, the deal is done and there's no need to say anything else. But what happens when you remove the physical element of the contract and everything is agreed on word of mouth? The world of business ethics is an ancient discipline in most of the world, and in most cases, it is applied to the everyday world of business. But in the case of China, the land of exaggerated numbers and inflated profit margins, business ethics have yet to be fully assimilated into Chinese business culture. Business ethics is a multifaceted approach to honesty, integrity and openness in the corporate world. This article, however, addresses two major business ethics topics raised by Dr. Rothlin in his book, Becoming a World-Class Player: 18 Rules of International Business Ethics. We will discuss rules 14 and 15 below. Rule 14 is about ensuring your public reputation by striving for quality and excellence. Rule 15 mainly deals with corruption and its negative impact on day-to-day business activities. While Rules 14 and 15 both fall under the umbrella of business ethics, they are very different in nature and we have therefore decided to give each a separate section. The first section we will look at is Rule 14, followed by Rule 15. Rule 14 states: “Your public relations strategy will only secure your reputation if it demonstrates your drive for quality and excellence.” At first glance, this seems like a pretty simple and obvious principle…middle of the paper…middle of the two extremes that would be optimal. The GMC case study is a compelling argument that reliable services build prestige. By eliminating offending companies from its contact list, GMC has earned a reputation for honesty and loyalty. Such a reputation rewards a company with future financial profits and business morality. With Enron in the rearview mirror, companies must learn that simply appearing as an ethical company is not enough. There must be physical evidence of commercial morality. This can only be achieved slowly, through many business decisions and years of relationships. As China continues its rise towards modernization and commercialization, its companies are relying on pure business ethics to build a solid foundation for the future. If these ethical procedures are not put into practice, the rapidly growing giant that is China could be stuck in the mud.
tags