American and Chinese Business Ethic Culture Essay

American and Chinese Business Ethic Culture - Essay Example The USA corporate receives numerous and strong incentives to promote adherence to the business ethics and corporate code of conduct from the government. Thus, the USA corporate has the high tendency of establishing ethic programs based on the existing government legal framework, thus making the American ethical culture excessively legalistic (Ardichvili, Jondle & Kowske, 2009). The overall effect of the excessively legalistic American ethical culture is that the American business environment is less flexible, thus creating little room for interpreting rules more loosely based on the situations and the relationships involved. In this respect, ethics does not play an important role in the American business environment, since it is simply geared towards legal compliance (Ardichvili, Jondle & Kowske, 2009). Nevertheless, the American business ethical culture benefits the wider population, due to the creation of a universally and equitable ground for establishing and running the business, by limiting the extent to which the unethical business conduct such as corruption can persist in this business environment. On the other hand, the Chinese business culture is defined by a stronger and dominant ethical dimension, as opposed to strict compliance with the law. The Chinese business culture is largely defined by the need to ‘preserve face’, which then means that many illegal business tendencies are overlooked for the sake of presenting the Chinese business environment as friendly and accommodative.