Ethical Analysis and Challenges of Two International Firms in China

Abstract

This ethical analysis compares two mid-size Asian-based multinational corporations (Japanese and Taiwanese) that have established extensive operations in China. We describe and analyze ethically relevant dimensions of each corporation’s culture and practices, including their corporate cultures and the ethical issues they face. We argue that these companies add value to China’s social and economic transformation in several important ways, including their development of human capital – the enhanced skill sets, work experiences, and values acquired by their workers. We conclude by highlighting three ethical challenges that seem most critical for these two firms: (a) creating mutual benefit for the corporation and the host country; (b) localization and management of the cultural gap between expats and local workers; and (c) dealing effectively with the power and roles of a large, pervasive government in a non-democratic society. The experiences of these two international firms can provide insights into how international firms might construct effective management strategies for doing business in countries such as China.