Cultural Values, Ethics and Business: Tale of Two Countries Essay

This essay examines the ethical considerations for Western companies doing business in China and India, focusing on the cultural values that influence business practices, particularly gift-giving. The essay explores the differences in business behaviors between India and China and highlights that while gift-giving is a common practice, it can be viewed as bribery if used to influence decisions or bypass regulations. The essay emphasizes the importance of developing cross-cultural literacy and establishing clear ethical guidelines to avoid legal penalties and maintain trust in business relationships. It concludes that businesses must develop codes of conduct and policies based on ethical principles to ensure transparency and avoid ethical dilemmas when navigating international markets. Furthermore, the essay stresses the importance of ethical principles like honesty, integrity, fairness, and loyalty, which are crucial when giving gifts to avoid corruption.

Tale of Two Countries

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
CONCLUSION................................................................................................................................2
REFERENCES................................................................................................................................3
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INTRODUCTION
To internationalise the business, western countries mostly attract towards two main Asian
Nations that are – India and China, via offshore or export production and services (Atadja, 2016).
The reason behind this is fastest growing economic reforms of both countries. Hereby, India is
famous for its IT related services while China is for low-cost manufacturing capabilities. But
before establishment of business, it is essential for Western companies to develop effective
cross-cultural literacy, for understanding the business behaviour of both countries (Remer, 2017).
The present essay is going to discuss about cultural values that considered as prime factors for
motivating Western Companies to craft a deal with Chinese businesses, in a negotiation. In such
conditions, considering the ethical principals, a critical evaluation is done to analyse if giving
gifts or gift monies to potential business partners or buyers is same as bribery.
MAIN BODY
In Asian Market, India and China are considered as one of the fastest growing countries,
that have undergone with major economics reforms (Handa, 2016). GDP growth of India in 2006
was recorded as 9.2%, while China was on 10.7% in 2005. To set up business in these markets,
assist Western organisations to have a look on business behaviour of both countries. In India, it
will take about 89 days for international companies to start business, while in China, 41 days are
enough for the same (Jordan, 2016). Government interventions of both countries are different,
with dissimilarity in religious belief as well. In India, majority of population belongs from Hindu
Communist, so, it is hard to miss this practice for cross-countries while setting up business over
here. On the other hand, Chinese practice Confucianism in conjunction with Buddhism or local
beliefs. So, these aspects reflect difference in cultural values, that guide or motivate
group/individual behaviours of business. Chinese companies are mostly offer 'gifts or gifts
money' for negotiation with potential business partners or existing buyers (Lord and Levi, 2017).
In this regard, considering this cultural value, Western organisations adopting the same value as
prime factor for motivating Chinese companies to operate business in partnership. This factor
also helps in influencing potential local buyers also that helps in earning high profitability.
Corporate gifts are usually termed as powerful source, for promoting new business
ventures and developing the existing partnership (Graycar and Jancsics, 2017). In this regard, to
capture new market, mostly international countries seek to offer gifts or gifts monies to local
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firms, that helps in reaching towards targeted audience as well (Jordan, 2016). Therefore,
corporate gifting also taken as a tool for development and growth of business. It helps companies
of cross-countries to build strong and long-term relationship. Corporate gifting is also important
in attracting new clients, building brand image, increasing sales and revenue, impressing existing
buyers and more. But if these gifts are given for personal motive i.e. to make contract with local
businesses to avoid government interventions, free transporting, without transparency, then it
may taken as bribe (Handa, 2016). In context of making contract with local government, a
‘bribe’ refers to offer, give or receive, solicit something and more, that value for the purpose of
being influenced the actions of an official, respect with discharge of public or legal duties. So, it
may considered as ethical dilemma, for which two parties can be charged with legal penalties
(Remer, 2017). Gifting etiquette in corporation varies around the world, where in India it is
considered as corruption. While, in China, gifts monies is expected when doing business in
partnership with local partners or buyers. Bribes in corporation, is considered as making
investment to win contracts that sounds like corruption (Lord and Levi, 2017). This may change
organisational behaviour and decreases the positive relationship between two firms. In Chinese
market, gifts play an important role in culture which demonstrates respect to elders and superiors
and shows commitment and enthusiasm of a person to maintain close relationships with family
and friends (Handa, 2016). Following are the etiquettes that are needed to be considered while
giving gifts in China : The value of gift must be in accordance with the level of relationship with
the recipient of gift; The gift should be properly wrapped with paper, ribbons, bows especially in
red colour; Do not write the name the name of a Chinese person in red ink; Offering the gift by
using both hands as a sign of showing respect towards the recipient; and Wait before the
recipient responds towards the gift.
Culture hereby, is clearly reflects as third main aspect of gift giving. Therefore, it is
crucial for both local and international organisations to establish clear boundaries as well as
protocols, so that gifts not offer to influence others for an action, it can be truly received as gifts
only (Atadja, 2016). Giving gifts in exchange of something or personal interests, is taken as
ethical dilemma, because such procedure of influencing business partners or local buyers,
without transparency, lead to undermine the trust in business relationship. Therefore, it becomes
essential for Chinese companies to develop a code of conduct and policy on gifts as per ethical
principals, to avoid such dilemma (Graycar and Jancsics, 2017).
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Ethical principles governs the behaviour of the individual and the groups. In China, the
lack of human rights is a growing concern (Remer, 2017). While giving gift to the anybody the
ethical principles which should be followed are honesty, integrity, fairness, loyalty etc. as the
intention of giving gifts must be ethical. On the grounds of the gifts humans rights must be
exploited and this can be governed by various ethical theories applicable in China. The important
things which need to be considered while gifting is the intention as a gift can be bribe which
leads to corruption and it has negative impact on the society. System development ethical
theories must be adopted in businesses in China while accepting gifts so that a work culture
supportive of ethical conduct where ethical actions are performed in a business can be developed
so that the gifts do not lie under the category of bribe (Atadja, 2016). Corruption in the
companies can be reduced with this system and the employees will become more ethically
responsible so as to not accept any form of gifts that comes under the category of bribe. Business
ethics play an important role in the Chinese companies that help them in growing and developing
in the market and keeps them away from any legal actions from the government or the
management system of the company.
CONCLUSION
As per this essay, it has been summarised that for operating business in a new country,
international companies have to follow ethical principals first. In general, they offer gifts to local
companies to gain their support in establishment of business. But such gifts that offer for
intentional purpose, are considered as bribe, that may be termed as corruption. This may arise
ethical dilemma in business, that put legal penalties also. Therefore, before offering gift, it is
essential for corporations to develop policies and code of conduct as per ethical principals. This
would help in launching business successfully in international market, ethically.
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REFERENCES
Books and Journals
Graycar, A. and Jancsics, D., 2017. Gift giving and corruption. International journal of public
administration. 40(12). pp.1013-1023.
Lord, N. and Levi, M., 2017. Organizing the finances for and the finances from transnational
corporate bribery. European Journal of Criminology, 14(3), pp.365-389.
Jordan, J., 2016. World tours and the summer Olympics: Recent pitfalls under the foreign corrupt
practices act in the areas of gifts, entertainment, and travel. Fordham J. Corp. & Fin.
L.. 21. p.295.
Handa, I., 2016. Fallacies in the current methods of prosecuting international commercial
bribery. Cardozo L. Rev.. 38. p.725.
Remer, J. S., 2017. Bribery and Its Ethical Implications for Aid Workers in the Developing
World. Science and engineering ethics. 23(1). pp.227-241.
Atadja, F., 2016. The Effects of Bribery and Corruption on Multinational Corporations.
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