This website uses cookies to ensure you have the best experience. Learn more

Issues In Doing Business In China

2264 words - 10 pages

Business Culture:The business culture existing in the host country plays a key role in doing business successfully across borders. The Chinese culture of business practice, 'guanxi', based on reciprocal exchanges of favors (Christopher, 2007), has contributed immensely towards the country's economic growth over the years but also had a share of doubts of its practice being ethical . However, because of widespread importance and practice of guanxi, Australian, North American and European firms operating in China often face a tough task in adapting to the norms of Chinese business culture at the same time continuing to honor company policy (Orfield, 2008).It's not enough to have a good ...view middle of the document...

However, from an international business perspective, one of the biggest issues or challenges faced by these companies is defining and enforcing appropriate ethical standards and operating in a socially responsible manner (Christopher, 2007).Violation of labor rights has been a widespread phenomenon mostly evident in rapidly growing countries offering low cost production and low cost labor for MNC's. Issues regarding child labor, forced labor, health and safe working conditions of the workers, wages, control over bodily functions and physical mistreatment, violence by police and security guards etc still demand a stringent action by the law and government (Chan, 1997, Shah, 1998). Big American giants for instance such as, Coca-Cola has been accused for working against environment and health of consumers and violation of human rights; Nike being alleged with real evidence of child labor abuses, unsafe working conditions, violations of local regulations (Christopher, 2007). Mc Donald's, Kentucky Fried Chicken (KFC), General Countrywide (GE), Wal-Mart being the recent biggies accused of violating labor rights in China (Qiang, 2008, Levinson, 2008). Also, there have been safety and quality issues about Chinese products. Cheap substitutes for raw materials are a common practice by suppliers in China in order to cut down cost. As a matter of fact, Chinese suppliers or dealers do everything possible to cut down their costs. The main underlying reason for this is lack of compliance and enforcement of laws by the local government. As a result, companies are trying urgently to figure out how to do business here, without risking their reputation, consumer trust, or customers' lives.Mattel's business relationship with China goes way back before it was cool. Bearing the knowledge of protecting its brand and trademark, Mattel invested, adapted and learned to make good business by building large factories and owning them.Despite all the hurdles, Mattel shows how successfully a mammoth toy making firm can deal with cross-cultural ethical issues of offshore manufacturing and efficiently fulfills its responsibility towards its economic agents and stakeholders. The case also throws light on the firm's ethical organization culture and practices which are discussed later. A land of opportunities where all big MNCs faced problems setting ethical standards and behavior, Mattel just seems to have found some answers to it.MANAGING CROSS-CULTURAL ETHICAL BEHAVIOR AND TREATMENT TOWARDS ITS EMPLOYEES:The role and fundamental reason for the existence of business has been to create value (usually in terms of profits) by making use of the available resources and engaging into activities that increase profits or reduce expenses for an individual or for the business in whole (Christopher, 2007). Multi-national Corporations (MNCs) have been subjected to intense public criticism because, in seeking new markets, they have ignored the oppressive working conditions and abuse of...

Other Essays On ISSUES IN DOING BUSINESS IN CHINA

Foreign Direct Investment In China And Worldwide

3902 words - 16 pages legality of doing business, the less attractive the conditions for FDI.As compensation, the Chinese government has undertaken many policies aimed at encouraging FDI directly, in the form of tax exemptions, land use and other financial rebates. Cheung and Kwan (2000: 384) note that "export-oriented FDI is more responsive to preferential tax treatment, but FDI that is aimed at the local market is more responsive to policies that affect domestic demand

Article Review: Fuel Oil Demand In China

860 words - 4 pages greater than ever. However, in order to increase profits and survival and growth in the future, it will be important for Japanese energy companies to consider the possibility to develop energy business in China by making effective utilization of the infrastructures and supply facilities already existing in Japan's energy enterprises, and of the fields in which Japanese companies hold relatively high technological levels and comparative

Marketing In Business

983 words - 4 pages public. Branding is a unique of doing it, making a logo for the business gives the business customers an easy way they can identify the products they make.1.14In this task I will make a report on how marketing techniques are used to sell products to the public, I will also describe how marketing techniques are used to market products in two organisations and then I will compare the two products on how they are relationship products with a

Chevron Communication In Business

2374 words - 10 pages COMMUNICATIONS IN BUSINESS 100Name: Anonymous 2Student Number: 12345678Email: anonym2@mail.auCompany: Chevron CorporationTitle: Corporate Social Responsibility: An Analysis of ChevronOther Details: Semester 1 2014, Bentley Campus(Word Count: 1568)IntroductionMultinational Energy Companies, like Chevron Corporation, have a broad and significant social, economic and environmental impact on the globe and as such are in a position to influence the

The Financing Of TVEs (Small And Medium Enterprises) In China

2263 words - 10 pages discrepancy between the dynamism of the TVEs and its limited use of intermediated financing suggests that if TVEs want to sustain its current rate of growth ,they must to increase its access to financing.1.0 Chinese TVEs Financing patternsGenerally, smaller firms are expected to have less debt, according to the statistics data produced by association of TVEs in china in 2000, it revealed that about 78 percent considered their lack of access to finance

Ethical Issues With Drug Use In The Sports World

3109 words - 13 pages Ethical Issues in Contemporary Sport: Major PaperDrug Testing should be abolished for athletes in SportAustralian distance runner Ron Clarke argues that there are no drug screening tests available that can catch all those athletes that use performance enhancing drugs. This he concludes, means that the International Olympic Committee should get rid of all testing. This is an option, however, it is not one that is best suited as the solution. It

The Issues Involved In The End Of The American Frontier

1868 words - 8 pages be the best thing to help the U.S. Survive on itsown.The Thesis of this paper is suggested in a sentence at the end of the chapter " Andnow, four centuries from the discovery of America, at the end of a hundred years of lifeunder the Construtction, the frontier has gone, and with its going has closed the firstperiod of American History." This truly epitomizes the heart of his case. How thefrontier has ended and the impact it had on present-day America; how it shaped our wayof life for today. Every one of the issues discussed in this paper was and still is acontroversial issue of today's society.

Internal Problems Leading To Teh Collapse Of The Manchu Dynasty In China

507 words - 3 pages inevitable demise.There were many internal problems in China leading up to and after the Boxer Rebellion in 1899. After Emperess Hsien Fengs death in 1861,his primary wife Coxi seized power as their son was only 5. Cixi had many poisoned and killed who opposed her. She led a sheltered and materialistic life in the palace and was unphased by the state of her country. However Chinese internal problems started in the 1800's when China's society became

Cultural Differences In Business Between Asia And The United States

286 words - 2 pages I have read a lot about the cultural differences between Asia and the United States. I have talked to some of my Asian acquaintances here in Okinawa. There are quite a few cultural differences in the business worlds in Hong Kong and the States.In the states, employees have stronger feelings about and opinions of the intrinsic contracts of a business. The employees' inner images come into play with these feelings because they feel that if they

Assess The Impact Of Social, Political And Economic Issues In Early Twentieth Century Russia In The Downfall Of The Romanov Dynasty

1212 words - 5 pages Untitled "Assess the impact of social, political and economic issues in early twentieth century Russia in the downfall of the Romanov Dynasty." The downfall of the Romanov dynasty was due to the impacts of bearing internal factors on Russia such as the social, political and economic issues present in early twentieth century Russia. These issues were largely manufactured by previous generations of Tsars but ultimately set

An Examination Of How Naivety Is Created To Convey Innocence And Explore Complex Issues In The Boy And In Striped Pyjamas

1028 words - 5 pages The Boy In The Striped Pyjamas is an entirely unique book. It follows its main character, Bruno, as he undergoes a big change in his personality and understanding of his environment. In the beginning when he moves to Out-With, he starts off an innocent 9 year old boy, completely oblivious to all the horrors going on just behind his back. Upon seeing the Jews and the huts on the other side of the fence, he concludes that it’s an ordinary

Similar Papers

Operating Business In China Essay

8213 words - 33 pages complication to doing business in China is that "the South is not the same as the North," he said. "The way you do business in Beijing or Shanghai or Shenzhen is all different." So, "the McDonald's theory does not work." The theory holds a company can sell the same thing across the entire country and expect success overnight. "Companies that source from China make more money than companies that try to sell into China," he added."A developing economy with

Ethical Issues In Global Business Essay

3066 words - 13 pages political and economic system to another; and solutions that range from bureaucratic reforms to waiting for economic development to solve the problem without special efforts.Ethical issues in business have become more complicated because of the global and diversified nature of many large corporations and because of the complexity of government regulations that define the limits of criminal behavior. For example, multinational corporations operate in

Sociological Issues In Sport Essay

2229 words - 9 pages Governments perspective is not sufficiently discriminatory, it overlooks certain problems such as age and gender issues that do not support the equilibrium in society.A functionalist approach leads to exaggerated statements about positive effects of sport, believing that anything that lasts is good (is functional) and it fails to consider that sport could distort values. Functionalist theory is based on the assumption that the needs of the

Report Of Mannings In China

5039 words - 21 pages , with 14 stores in China only. It is also an obscure brand to Chinese consumers compared with the two other brands. Cosmed is lack of variety in products and has a smaller scale in operation.SWOT AnalysisFor the internal business, strengths and weaknesses can help to analysis current situation of Mannings China.Mannings China should maintain its strengths. First, Mannings China has good reputation as it is under the Dairy Farm Group, which is