Identifying Ethical Differences in Culture Essay

Identifying Ethical Differences in Culture - Essay Example In regarding guanxi, it usually outstrips any rules and regulations that run contrary to it. In China guanxi obliges one to defer to a complex system of personal relationships and moral obligations, which may even date back generations, in all aspect of life. This certainly includes business as well. Guanxi places relationships above all other considerations and in business one may be forced to use their position to purchase products from an associate that may in fact be more expensive or of less quality than is available somewhere else. Actions like these, if detected by a company from one of its staff would usually be grounds for dismissal as well as legal action in many cases. This disparity between worlds is due to one of the major cultural differences between the U.S. and China. In the US business and even personal relationships are usually transactional, that is there is a give and take that is considered an equitable exchange between two parties. This usually holds for both bu siness entities as well as personal relationships. Chinese cultural is far more relationally oriented and is often guided by complex associations of family and friends over many generations. Based essentially upon honor and respect, it is far more important to maintain good relationships under the rules of guanxi than it is to do what is best for your company. This is of course considered treason in the U.S., while in China it is accepted and tolerated by most organizations. Although the law does limit it to some extent and the excessive.