Introduction

Business Ethics or the corporate ethic is a form of professional ethics to examine ethical principles
and problems that arise in business environment. It is applicable to all aspects of business conduct
and also relevant to the conduct of individuals (employees) and organizations. Business success
requires efforts, wise strategies, risk assumptions. There are many factors that are implied in
gaining business success such as employees, strategies, management along with strong connection
between ethics and business success. Code of ethics and professional conduct are pillars for
business success for any organization.

Ethic Theory

Ethics involves systemizing and recommending concepts of ring and wrong conduct. Ethics refers
to the standards of right or wrong the individuals or organizations ought to do and it also refers to
the study and development of one’s ethical standards.

(Parikh, 2015)

The continous effort of studying and improving our moral beliefs and conduct will ensure us to
strive, shape and live upto standards that are reasonable.

Ethics can be categorized into

 Meta Ethics – moral propositions and their truth values.

 Normative Ethics; moral course of action.
 Applied Ethics: individual obligated to do in specific situation.

Business ethics is part pf Applied Ethics along with other ethical practices like business, relational,
political etc.
Ethical Business Challenges

In today’s world of globalization almost every organization faces a host of ethical challenges.
These challenges compel the organizations to vary their way of doing business to maximize their
profits by following unethical practices. India and China have become the breeding ground of the
biggest business scams.

India

India has low input costs, easy labor and a huge consumer base but lacks ethical standards along
with rigid bureaucracy and weaker enforcements mechanisms. The sufferer are the government,
corporates and the individuals.

Challenges

(Rani, 2017)

Bigger is better: the standard business practices in bigger firms is not true in terms of ethics.
Bigger the size raises allegations over poor business ethics as in case of Amazon, Walmart trapped
in lawsuits accused of predatory pricing, low pricing to dominate in the business and gain
monopoly.

Political Corruption: political and administrative corruptions are extreme in India and huge
money is paid to the ministers for the favors done as well as officers for doing the things at rapid
and first place.

Improvisation Culture: The culture of find a way around to get the things done for quick and
profitable outcome fuels and supports corrupt business practices.

Corrupt System: it has settled in mindset of every Indians that government officials are corrupt,
ineffective legal system and bribing and getting favors are the only way to get the things done.

Unethical Industry: Most the business executives considers companies bad policies, bad
competitor practices, unethical industry environment, corruption in government are the major
obstacles to ethical behavior adaption.
China

China has different attitude and behavior of doing business because of its Confucian history.
It contributes positively to business ethics and importance to hierarchical relationship and roles
based behavior.
(Rothlin, 2011)
No Transparency: In current situation of economic crisis in order to inspire trust business
transparency is required. Business ethics must be integrated into business life to overcome the
challenges after crisis

Working Conditions: Individual of this era no more want to accept Poor working conditions and
forced labor, which have resulted in higher rates of suicides.

Whistleblowing: is seen as unfavorable in China or sometimes termed as act of disloyalty. This

kind of perception has to be changed in order to get positive outcomes in business.

Discrimination: gender discrimination, migrant workers discrimination, harassment is still

prevalent .Discrimination in any form should be avoided to get positive outcomes.

Media Influence: media has powerful influence and is responsible for awakening civil society
and generate consumer awareness around the business ethics. Media should work responsibly and
avoid promoting unethical business ethics and culture.
Corruption: not only India China is also severely affected by corruption. While in India with the
new government corruption levels has been improved whereas in china risen.

Impact of Globalization

(Arno Neveling, 2014)

Globalization spread cosmopolitan values, enhances employment and improves living standard of
individuals. The tendency to control poor countries by developed countries has led to exploitation.
Cultural ethics in China has greater influence on the society but business ethics are still on weaker
side. Economic reforms in China has helped China to emerge in business ethics and ethical
decision making. Business in China is mostly driven by economic reforms, Chinese traditional
ethics, Marxist philosophy and business ethics of foreign countries.
Globalization is hailed as a way to spread cosmopolitan values, as well as to enhance employment
conditions and standards of living. However, it is also seen as a new wave of colonialism imposed
by developed countries and multinational companies on poor countries, synonymous with
exploitation and impoverishment of both people and nature Globalization leads to growth, more
markets, customers and increased profits as well as increased job opportunities. But on the other
hand Globalization have adverse effects too. In India child labor and illegal waste disposal of
harmful chemical from industries is a threat and will have serious consequences in near future. All
the Multinational companies should take this issue seriously and should involve themselves for
the welfare of society which will help them to attract more customers and increased profits.

Sustainable Development

(Liang, 2016)

In 2015 at United Nation Development Summit 17 Sustainable development goals were put
forward to all countries for transforming the world. The key feature of health goal aims at ensuring
healthy lives and well-being for all age’s individuals along with poverty, gender equality,
education, food security, urbanization, water sanitation etc. (Mint, 2017) For India to progress in
sustainable development in health five recommendations were proposed: to promote health and
well-being, health top priority on national agenda, get rid of tropical diseases, eliminating malaria,
and improving surveillance to detect and respond to diseases effectively. Both the countries need
to develop strong and robust system monitoring, evaluation, revising strategies and accountability
in order to improve quality of service. (Leng, 2019) Geography has been deeply integrated to
sustainable development providing real time solutions by combining big data and AI (artificial
intelligence).
Comparative Approach China and India
(Diego Quer, n.d.)
Political and Legislative Framework
The economic boom in both the countries was preceded by the political changes with Narendra
Modi elected as PM in 2015 and Xi Jinping in 2013.Both countries have become more open (ease
of doing business), lesser authoritarian, privatization as well as decentralized and improved
governance. But both the countries has huge difference in political system on one side China as
single Communist party and on the other side India as Democratic party. As India gives greater
property rights China is just opposite known for piracy of intellectual property and bussiness runs
on relationships and connections. Although both countries have reduced tarrifs, eased restrictions
on retail trade and huge insvestment in modernization sector.Indian government has invested in
higher education, legal reforms liberising the country economy and thereby favoring the IT sector
to flourish. On the other hand China has done minor or negligible development.

Economic Development Model

Indian economy is is much smaller than the chinese and has smaller impact on the global
economy.In terms of exports chinese products exports are eight times greater than India. Also the
Foreign direct insvestment is four times greater than India. India due to its democratic political
system finds it difficylt to take bold steps like China.

Conclusion

As per the discussion in the topic many questions will arise:

How much far these countries can develop?

Will they be able to maintain growth rate?

Two economic powers leading the world economy

Both countries have medium and long term advantages China is known for its high level
integration in economy, physical infrastructures, development model for driving economy and
generating job opportunities. On the other hand India outstands in ICT services and booming
private sector.
References
Arno Neveling, D. M. &. A. Y., 2014. Globalisation and its influence. African Journal of Business Ethics,
8(1), pp. 55-77.

Diego Quer, E. C. a. L. R., n.d. Doing business in China and India: A comparative approach. [Online]
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Leng, H. L. S., 2019. China’s road towards sustainable development. Research Article.

Liang, 2016. Sustainable Development. [Online]

Available at: https://search.proquest.com/docview/1804885655?accountid=8155
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Mint, 2017. Transforming health in India. [Online]

Available at: https://search.proquest.com/docview/1937563908?accountid=8155
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Parikh, N., 2015. Business Ethics. s.l.:s.n.

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