Business culture- China vs US

Presentation Outline

Foundation of US ethics- basic discussion
Comparison of Business culture-China vs
US
Strategies and Managerial Implications
Cultural Foundation of American
Ethics
Foundation based on Judeo-Christian and Western
socio-theological principles
intrinsic underlying truth
a sovereign moral authority--God
God declines right or wrong
Natural law -- inalienable rights
life, liberty and pursuit of happiness
Equality implies no prior claims against the rights
American ethics (continued)
Limits on individual freedom are either
(1) voluntary
(2) lawfully imposed
Results -- individualism and contract
Individuals right to choice is consistent with
market economy
The functioning of a free market economy can be
described as nexus of contracts
A business contract - spells out details of
relationships and is enforced by law if violated
Comparison of Business Culture:
China vs US
Business culture - time-tested and
conventional practices
China and US have a different business
culture -- result of different history and
practices
Notion of Harmony
China
Everything is in
harmony
Change is viewed as
disruptive
Reason -- too many
people
US
Efficiency and
effectiveness
End result
logical reasoning on
facts
change to get desired
results
Importance of Relationship
China
4 important social
groups: relatives,
schoolmates, personal
friends, and the
indirect relationship
from the 3
Importance of
guanxi (connection)
US
constitutions guarantee
the rights
a short history to
inherit traditions
stress on individualism
for personal
achievement
Relationship (continued)
Agricultural state
(small community
mentality)
privacy is not highly
valued
individualism is not
singled out
rule of man over
rule of law
Relatively few norms
melting pot
Increased tolerance on
diversity
separate personal and
business relationship
friendship can be
formed and dissolved
quickly
Subtlety and Explicitness
US
Frank and open

China
Build on subtlety
Language based on
abstraction of ideas
Reduce confrontation
Outspoken --not norm
(read the tea leaves--
observe body, words,
tone)
Subtlety and Explicitness
(continued)


Courtesy
(righteousness, ethics
and honor)-virtues
Saving face
Do not say no easily
Hint to get help
Self-control makes
people appear shy
Communication Style
China
Silence for reflection
Not to exaggerate
(implications on
marketing a product)




US
uncomfortable with
gaps of silence
Some American feel
ok to exaggerate
fluency and gift of
gab--admirable
Communication-continued
Non-linear thinking
pragmatic thinking
rare physical contact
no eye contact
Yes means I am
listening (not I
accept)
Linear thinking
pragmatic and look for
innovation
normal touching
eye contact is
important (implying I
have no harm)
Hi- means friendly
Negotiation
China

US
contract is the end in
itself
Americans think
Chinese use banquet
as the way to get
upper hand
discuss openly costs
and benefits
Rule of Banquet
China
Much attention to
eating and drinking
Private rooms in
restaurant
round table with
chopsticks
Seats assigned
Do not stretch arm for
food
US
using club members

Taboos
China
Concerns with
numbers (symbol for
luck)
Success factors:
fate, luck, feng-
shui,good deeds and
knowledge
US
Hard work
Strategies of Resolving Conflict
Avoiding
Forcing
Education and persuasion
Infiltration
Accommodation
Negotiation and compromise
Collaboration and problem solving