Business in China

Cultural competence is quickly becoming the competence necessary for teachers to function effectively in educational settlements. Change of a demography calls for this competence. By 2050, racial/ethnic groups will have made 48% of the full American population. Consciousness is one of three vital components in the development of cultural competence. This acknowledgement helps people to separate ways of thinking, beliefs and behaviour.

Cultural competence is defined as the ability of people and systems to work or correspond effectively to cultures on a way which recognizes and respects culture of the person or the served organisation. Culturally competent workers who monitor youth development know and respect values, beliefs, traditions, customs and styles of education of a trained audience.

There are three needed parts for evolving or achieving cultural competence. They are:

  • Self-knowledge/knowledge about others,
  • Practice and experience concerning a separate culture, and
  • Positive variation for successful cooperation with the identified culture.

These significant components not only are dominant for an individual’s cultural competence, but also for cultural competence of an organisation.

Self-understanding is admitted by certain scientists to be the most important element of development of effective cooperation with culturally diverse youth, families and communities. Cultural acknowledgement is the bridge to acquisition of knowledge of other cultures. It is not possible to sympathise with one culture while not sympathising with one’s own culture. The impression of the professional of functioning style of a family can be under the influence of his / her own, sometimes not investigated, assumptions. Assumptions are those things which we consider self-evident or we accept as true without the proof.

The most densely populated country in the world, People's Republic of China, appears today as one of the most important countries in the world economy. China is known as the country of etiquette and ceremonies. An outstanding characteristic of China is that its people are truly devoted and proud of their ancient history and culture. Comprehension of the main Chinese cultural and business values is the main thing for any organisation, willing to run business in today's quickly progressing China.

Guanxi is a central concept of the Chinese culture and means 'relations' or 'communications'. Guanxi is a network of relations and cooperation elaborated with trust and advance, and during many centuries it has carried out daily tasks. Establishment of sincere, favourable relations based on mutual respect, is a fundamental aspect of the Chinese culture. In the business world, guanxi is extremely important for providing minimisation of difficulties and frustration, which are often encountered.

Mianzi, which means ‘face’, is an important issue that needs to be considered in any business interaction with the Chinese. A mark of personal pride also forms the basis for the reputation of a person and his/her social status. In the Chinese business culture, ‘reputation rescue’, ‘losing a face’ and ‘giving a face’ are vital for successful business. Instigation of someone to lose a face in front of other people, insult or inappropriate distribution of respect for people in the company can deeply harm business discussions. On the other hand, to praise someone in front of their colleagues is a form of ‘granting a face’, and can achieve esteem, loyalty and help negotiations.

Keqi is a concept based on the combination of two Chinese words, ‘ke’, which means ‘value of guest', and ‘qi’, ‘important behaviour'. Thus, this cultural concept approves thoughtful, courteous and advanced behaviour. In business terms, it is important to show humility and modesty as the exaggerated abilities are considered with suspicion and will probably be studied.

Since China for the first time opened its doors to foreign investments and trade in 1978, the country has undergone a huge political and economic change. Today, after its entrance to the World Trade Organization in 2001, China presents an enormous potential market for investments and trade with its main industry concentrated on steel, coal, textiles and oil production. Those organisations, risking to do business with China, however, will have to consider also aspects of the Chinese culture of business and etiquette to completely achieve the success.

Creating an Ethical Corporate Culture

The main values of business can help the companies to carry out ethical judgment and to think of how to work ethically in foreign cultures, but they are not rather certain for managers to work through the actual ethical dilemmas. For example, discussion about the Chinese peculiarities, such as Keqi or Guanxi, and conducting the business makes us sure that China has a great individual culture and ethics. This ethics should be taken into consideration not only by actually the Chinese, but also by foreign partners. Business traditions of the UK or the U.S. are very different from Chinese ones, that is why making a deal with China for the first time can be kind of a problem. So, the companies create codes of behaviour or guidelines to help people with culture conflicts or misunderstandings.

Recommendations for Ethical Leadership

Learning to define unallowable methods and to carry out a fair judgement when the ethical conflicts arise, demands practice. Creation of culture of the company, which rewards ethical behaviour, is important. The following recommendations to develop a global ethical prospect among managers can help. Thus, there could be represented a list of rules helping not only with international communication but also with internal ethical issues.

So, the first directive can be such as, consider corporate values and formal standards of behaviour as absolute concepts. No matter what ethical standards the company chooses, it cannot depart from the principles of the host country or abroad.

The second, conditions of development and implementation of obligations for suppliers and clients. Many companies have developed a policy not the conclusions of the contract of production to the companies, which use prison work or encroach on the rights of workers to health and safety.

The third is, allow foreign divisions to help to formulate ethical standards and to interpret ethical problems. The French pharmaceutical company Rhone - Poulenc Rohrs allowed foreign branches to increase lists of corporate ethical principles with their own offers. Texas Instruments paid special attention to problems of ethics of the international business, creating Global Council for Practice of business relations which is made of managers from the countries in which the company works. With comprehensive intention to create a global strategy of ethics, in local scale developed, the mandate of council has to provide formation of ethics and create local processes that will help managers with foreign divisions of the company to solve the ethical conflicts.

The fourth is, in the countries organisers, efforts on support to reduce the established corruption. Certain managers will not be able to wipe corruption in the country organiser irrespective of how many bribes they reject. When the system of the taxation of the country organiser import both export procedures and methods of acquisition approve unethical players, the companies have to take measures.

About the author

Kate Fox is an entrepreneur, blogger, and speechwriter at exclusive papers net . She is passionate about socializing and dealing with people. She adores participating in webinars and enhancing my knowledge about sociology and psychology.

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