Business culture- China vs US

Presentation Outline

• Foundation of US ethics- basic discussion

• Comparison of Business culture-China vs
US
• Strategies and Managerial Implications
 Cultural Foundation of American
Ethics
• Foundation based on Judeo-Christian and Western
socio-theological principles
• intrinsic underlying truth
• a sovereign moral authority--God
• God declines “right or wrong”
• Natural law -- “inalienable rights”
• life, liberty and pursuit of happiness
• Equality implies no prior claims against the rights
American ethics (continued)
• Limits on individual freedom are either
(1) voluntary
(2) lawfully imposed
• Results -- individualism and contract
• Individual’s right to choice is consistent with
market economy
• The functioning of a free market economy can be
described as “nexus of contracts”
• A business contract - spells out details of
relationships and is enforced by law if violated
 Comparison of Business Culture:
China vs US
• Business culture - time-tested and
conventional practices
• China and US have a different business
culture -- result of different history and
practices
 Notion of Harmony
China US
• Everything is in • Efficiency and
harmony effectiveness
• Change is viewed as • End result
disruptive • logical reasoning on
• Reason -- too many facts
people • change to get desired
results
 Importance of Relationship
• China • US
• 4 important social • constitutions
groups: relatives, guarantee the rights
schoolmates, personal • a short history to
friends, and the inherit traditions
indirect relationship • stress on individualism
from the 3 for personal
• Importance of achievement
“guanxi” (connection)
 Relationship (continued)
• Agricultural state • Relatively few norms
(small community • melting pot
mentality) • Increased tolerance on
• privacy is not highly diversity
valued • separate personal and
• individualism is not business relationship
singled out • friendship can be
• “rule of man” over formed and dissolved
“rule of law” quickly
 Subtlety and Explicitness
China • US
• Build on subtlety • Frank and open
• Language based on
abstraction of ideas
• Reduce confrontation
• Outspoken --not norm
(read the tea leaves--
observe body, words,
tone)
 Subtlety and Explicitness
(continued)
• Courtesy
(righteousness, ethics
and honor)-virtues
• Saving face
• Do not say “no” easily
• Hint to get help
• Self-control makes
people appear “shy”
 Communication Style
China US
• Silence for reflection • uncomfortable with
• Not to exaggerate gaps of silence
(implications on • Some American feel
marketing a product) ok to exaggerate
• fluency and gift of
gab--admirable
 Communication-continued
• Non-linear thinking • Linear thinking
• pragmatic thinking • pragmatic and look for
• rare physical contact innovation
• no eye contact • normal touching
• “Yes” means “I am • eye contact is
listening” (not I important (implying I
accept) have no harm)
• Hi- means friendly
 Negotiation
• China US
• contract is the end in
itself
• Americans think
Chinese use banquet as
the way to get upper
hand
• discuss openly costs
and benefits
 Rule of Banquet
China US
• Much attention to • using club members
eating and drinking
• Private rooms in
restaurant
• round table with
chopsticks
• Seats assigned
• Do not stretch arm for
food
 Taboos
• China US
• Concerns with • Hard work
numbers (symbol for
luck)
• Success factors:
fate, luck, feng-
shui,good deeds and
knowledge
 Strategies of Resolving Conflict
• Avoiding
• Forcing
• Education and persuasion
• Infiltration
• Accommodation
• Negotiation and compromise
• Collaboration and problem solving