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Chinese Guanxi and Business Ethics

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Handbook of the Philosophical Foundations of Business Ethics

Abstract

Business life around the world is embedded in social relationships, and yet personal relationships (guanxi) among Chinese people stand out because of their idiosyncratic features and unrivaled pervasiveness. No ethical legitimation may be derived from the sole fact that personal relationships are a dominating force behind Chinese business practices, however. Building upon a precise conceptualization of guanxi as a social system, this chapter therefore presents an ethical assessment of the utilization of guanxi in a business context. Acknowledging the existence of cultural differences in moral perceptions, its author examines the compliance of such practices with two predominant schools of Chinese and Western thought: Confucian (virtue) ethics and utilitarian ethics. It is found that guanxi complies with classic Confucian values, but cannot be justified in terms of utilitarian ethics, which establish morality based upon the creation of social welfare. Evidently, Western firms operating in China, and Chinese firms operating abroad, are confronted with the challenging task of defining their own moral stance. This chapter provides decision-makers with the theoretical foundations needed to master this challenge.

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Author information

Authors and Affiliations

  1. School of Economics & Management, Tongji University, Room 2114, Zonghe Building, 1239 Siping Lu, Yangpu District, Shanghai, 200092, People’s Republic of China

    Dr. Eike A. Langenberg

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  1. Dr. Eike A. Langenberg
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Correspondence to Eike A. Langenberg .

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Editors and Affiliations

  1. Peter Löscher-Stiftungslehrstuhl für Wirtschaftsethik, Technische Universität München, München, Germany

    Christoph Luetge

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Langenberg, E.A. (2013). Chinese Guanxi and Business Ethics. In: Luetge, C. (eds) Handbook of the Philosophical Foundations of Business Ethics. Springer, Dordrecht. https://doi.org/10.1007/978-94-007-1494-6_10

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  • DOI: https://doi.org/10.1007/978-94-007-1494-6_10

  • Publisher Name: Springer, Dordrecht

  • Print ISBN: 978-94-007-1493-9

  • Online ISBN: 978-94-007-1494-6

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