A Study on the Chinese Ethical Evolution and Its Effects on SMB in China Today

As a result of economic reform commencing in 1978 in China, ethical behavior of the Chinese businesses is changing. The influence of Confucianism, Taoism, Sunzi Bingfa, and belief in a Heavenly God is reviewed based on data gathered from small and medium sized business during the Summer of 2006. Most Chinese businesses are small and family-owned, and in part, the emphasis on family ownership comes from the Confucianism beliefs of the importance of family. Taoism and Sunzi Bingfa are traditional Chinese beliefs that influence business decisions to varying degrees. Information was also gathered on the frequency of use of Guanxi and the importance of Face. Guanxi is a term meaning “connections ” and has been a very important aspect of doing business in China and may be increasing in recent years. “Face ” is a term used to show respect to both subordinates and superiors and has been very important through the ages, but it may be losing some relevance. These aspects of culture are reviewed in consideration of the change from a planned economy to a market based economy