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China’s Leading Companies Ethical Fitness Term Paper

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Updated: Jun 13th, 2020


Sinopec (China Petroleum & Chemical Corporation), SAIC (Shanghai Automotive Industry Corporation) Motor Corporation Limited, and CDB (China Development Bank) are very important companies in China. The leading organizations provide oil, gas, cars, and banking services to the people of China. They concentrate on different things, but most important is to focus on the employment of many Chinese citizens as the employment law of 1994 suggests in the country. Besides introducing the three companies, the paper provides a brief explanation of what they do a couple with ethical responsibilities from both the employees and the managers (employers). The paper also covers the drawbacks faced by the employees and managers in exercising competent, ethical principles, including the ways in which they overcome the challenges prior to making a conclusion.


The mention of corporate ethical responsibility in any part of China naturally draws attention to Adidas and Apple Inc. that had histories of child labor in the country. Few corporate level analysts think of the socio-economic welfare of the employees that make some of the world’s leading electronic products and shoe lines. Issue of a minimum wage, employee relations, motivation, environmental records, and philanthropy some up an ethical company. Both inherent and acquired ethics seek to serve a similar purpose, which is to earn companies goodwill in a competitive business environment.1 Deviating from the shoe and electronic company means that China has to focus on other areas of the corporate world that directly contribute to economic development.

The petroleum and gas companies, the banks, and vehicles manufacturing or assembly companies are the leading economy boosters in China that mostly escape public scrutiny when issues of ethical responsibility arise.2 The identified industries are responsible for an oil spill, car accidents, and internet banking, three of which are very important for economic development in the country. Sinopec (China Petroleum & Chemical Corporation), SAIC (Shanghai Automotive Industry Corporation) Motor Corporation Limited, and CDB (China Development Bank) form the basis of the discussion. They owe financial growth to different factors, but most important is their environmental protection record even though they operate in overly vulnerable industries.

Organizational Ethics and Moral Responsibility

At the organizational ethics, companies mostly operate using acquired ethics since inherent ones rarely apply. In essence, people have to adhere to a developed code of conduct that stipulates the type of behavior that people within the entity should display. China has a fast-growing GDP that escalated by over 9.2% after the Global Financial cession of 2009 to 2011. It means that economic stability is very important for a country whose population almost equals the geographic space in which the people live, most of which is water and islands.3 In China, foreign companies and real estate businesses must be capable of giving the citizens of the country the first priority.

The population of China is huge, and the educated middle-class individuals are extremely many. If companies begin employing expatriates, then the Chinese population will remain jobless. The employment of local Chinese graduates is the first show of ethical responsibility by following the employment codes that the ministry of labor employs.4 Studies indicate that the culture of China is very conventional, and most people are likely to follow set bureaucratic principles in order to remain loyal to leaders. The chances are that the atheist president and the government will consider reducing the austerity in most institutions that reduce the possibility of incorporating democratic capitalist principles of governance in institutions. It means that political and socio-economic factors have a direct impact on the way people receive ethical duties at work.


China Petroleum & Chemical Corporation deals in oil and gas, and mostly uses Sinopec for purposes of identity beyond China; it has investments in oil-producing countries in Africa while targeting markets beyond the region. Sinopec has share listings in Hong Kong, New York, and Shanghai establishing how much revenue it earns. Listed as the 9th most lucrative company in the world by Fortune 5000 magazine, the company takes pride in its first position as the world’s leading chemical manufacturer. In China, it is very difficult to find a privately owned company succeed as Sinopec of the Sinopec Group.

Its affiliation with the government explains the significance of communism to China. Besides the Fortune 500 2009 ratings, the company attracted the interest of the Forbes magazine and China 500 companies. Responsible business operations are crucial for companies to succeed beyond their territories and areas of inception.5 Few people take an interest in Chinese firms, except American multinationals that invest in China. Most people associate the Chinese with counterfeit products. They also stereotype Chinese foreign students as nerds, but it explains the limited presence of sports car manufacturers or developers of recreational products in the country. The success of companies like Sinopec definitely relies on years of hard work and maintenance of enviable ethical standards at work.


According to Sornarajah, Sinopec remains very categorical about absenteeism and lateness at work.6 The employees have the responsibility of reaching at work on time to avoid violating the set ethical principles. The code of ethics clearly stipulates that each employee has to put on an identity tag in order to make identification very easy. Of course, suspension of employees for such minute mistakes seems petty, but Sinopec establishes that it creates an easy time for the customers to identify the employee easily, and such violations could attract suspension from work. Workers have to realize that the way they treat customers determines consumer behavior.

Sinopec encourages the use of ethical languages in referring the different people or things in order to avoid offending people of different genders, people from minority communities, and people with disabilities.7 Strict Confucian principles stipulate that equal treatment of people is very important as a humanitarian action; not entirely based on the forceful nature of the code of ethics.


The supervisors have a different role to play in the organization and the environment at large. The company managers have to ensure that they pay employees nothing less than the minimum wage that the government recommends. Equal Employment and Opportunities Code establishes that the unbiased treatment of employees often increases productivity and team building, as Sinopec mentions.8 However, equal employment does not apply when female applicants apply for jobs that society associates with their male counterparts. The social norms with emphasis on religion establish that a woman will always remain subordinate to a man.

As such, women should carry out light duties even when they have the intellectual capability to handle heavy duties. Another area of focus in terms of ethics is the provision of technology to assist in reducing workload for employees. The oil and gas sector has many concerns, including the possibility of oil spills and the importance of protecting marine life. Currently, the company has no history of oil spills explaining its good record in world-renowned business magazines.9 However, an oil explosion in one of the Chinese cities killed at least 62 people in 2013, affecting the company’s reputation. Sinopec has high prospects of developing links with Alberta Tar Sands in Canada, a source of oil for the greater European region. The BP oil spill about a decade ago had links to the Alberta tar sands. Sinopec has to be very careful in developing the oil pipeline with Alberta to avoid environmental crisis, an ethical duty it strives to accomplish through its wildlife protection programs in China.


People identify with the Chinese and Japanese auto industries easily. China is also a business hub for electronic products even though it receives criticism for the manufacture of cheap counterfeit options for the lower class populations globally. SAIC Motor Corporation Limited, like Sinopec, is a public company owned by the government. One reason why Chinese companies rarely get publicity in the world is that today the world is capitalist in nature, and it becomes very difficult to associate with communist states. The good thing about communism is that deviation from ethical principles is very difficult.

In terms of employment and management of SAIC among other government-owned companies, communist Confucianism is the only recognized system of governance.10 From an ethical perspective; the government seems dictatorial by always striving to influence decision-making ion the companies under its umbrella.11 In fact, few privately-owned companies in China are likely to succeed unless they are foreign like Apple and Adidas. SAIC enjoys a multinational presence, and it produces the highest volume of vehicles in China today as of 2014. The chances are that people in need of luxury vehicles cannot find what they need at SAIC, but business-oriented people will always find something. The company strives to maintain a good ethical record in order to capitalize on joint ventures with stylized auto organizations in the private sector, including Volkswagen. Of course, no company would wish to sabotage its reputation at the expense of creating a merger with another corporation.


In the car manufacturing industry, companies give unique selling propositions that they cannot translate into actual consumer benefits. SAIC discourages its sales team from deceiving consumers in order to increase the sale of its variant vehicles. Deception is a violation of ethical conduct, which builds up into a bad image for the product manufacturer in the future. Fair treatment of customers also applies, as in the case of Sinopec. SAIC emphasizes the presence of experts when a customer carries out a test drive in order to determine the fitness of the vehicles for road-related trips.12 Employees have to understand that the safety of the customers is very important, which means that they have to take extra precautions during the manufacture of auto parts and the assembling process. Finally, the employees have the responsibility of reducing workplace disputes by working together and solving organizational differences amicably. Discrimination based on race, gender, and disability is an ethical offense punishable that the organizational and legal levels.


Mr. Fu Chengyu, the CEO of SAIC, establishes that companies and people can buy many things, but they cannot purchase reputations. Reputation is important for an organization that focuses on mergers and acquisitions for expansion purposes. SAIC believes in the provision of a safe and friendly work environment. It does not employ the Occupational Safety and Health Administration principles, but it takes into consideration work-related injuries. Besides compensation, the company offers insurance worth US$ 55,555 per year for each worker to cater for family members not exceeding spouses and two children.13 The production facilities at Shanghai and Chongqing, among others, offer protective gear, especially for the manufacturers and vehicle assembly engineers, in order to reduce the chances of inhaling toxins. According to the company CEO, an employee will never display high levels of productivity unless the company realizes his or her value at work. Chengyu does not create an assurance that the company will begin involving women in leadership positions in the company, but his greatest mandate is to transform the company into the best employment facility.14 Finally, the company empowers employees by enabling them to have access to education and car loans in order to reduce the stress associated with the acquisition of different things in life.


The China Development Bank largely serves the people of the Republic of China, considering its status as a state-owned facility like SAIC AND Sinopec. Like the central bank in any other country, the bank governor appointed by the head of state ensures that all the banks under CDB follow due procedures in banking. CDB has very many employees, but governance is easy because of different centers of power. From an ethical perspective, a good leadership structure provides room for the governed and the managers to contribute effectively to organizational growth. CDB is in the process of major transition in order to accommodate the needs of expatriates and investors that seek to invest in the country that has one of the fastest-growing economies in the world.

The employees of CDB have to adhere to the ethical policies under the Policy Banks Law established in 1994.15 Working in the institution requires that one present documents from the ethics and anti-corruption commission while backing such evidence with statuses on non-defaulter of loan payments. The level of strictness exercised during recruitment at CDB explains how the corporation would want the workers to deal with local banking institutions in China. China is a communist state, but its continued integration with the West and America will see the country embrace capitalism.16 It means that the country will be capable of addressing OSHA concerns, Affirmative Action at work, and EEOC principles as other countries across Europe and the larger west region.


CBD understands that customers have to work in appropriate business environments. Workers perform the duties of debt collectors while using information technology in data storage. The employees have to ensure high security and privacy levels for clients unless in a case of investigation in which such sensitive data is important. Employees have to go through the CDB code of ethics and understand the regulations of operations bind to the provisions of the ministry of finance in the country. As such, the Minister of Finance holds a special position at CDB, and he requires maximum respect. Discipline at work remains integral, as no employee should have a history of partaking in any illegal businesses, forgery, or deception. CDB deals in foreign exchange activities and the involvement of shrewd characters in the business might sabotage the relevance of CDB as a credible financial institution in China. As such, the employees have the responsibility of upholding the dignity of CDB because the financial institution is one of the reasons why China has to maintain good foreign relations through good policy.17


The employers in the scenario include the Ministry of Finance and the Republic of China. The bank has a clear chain of command, and in the hierarchy, the least vocal person is the assistant governor while the chairperson holds the greatest authority. Being a foreign exchange leading facility, other countries expect CDB to have female employees with respect to the EEOC standards. In the leadership positions, no woman exists because the legal under the guidance of Confucianism forbid women from taking such huge responsibilities when men can do the same.

China deals with the Challenge by developing a competent foreign policy that largely targets developing countries, the Middle East and Southeast Asia because they also have traditional approaches to governance and would understand China’s position perfectly.18 CDB is also a good employer even though finding a position in the company involves a lot of grilling with much emphasis on ethical standpoints. Unlike other employers that would focus on consequentialism and deontology as theoretical explanations for ethical behavior, the CDB among other public run corporations in China focuses on utilitarianism. Ethically, they believe in the promotion of the greatest happiness for all people instead of focusing on outcomes and action s. as such, stealing from the bank outrightly calls for suspicion and legal action because it affects the life of the customer or other receivers of CSR services from the facility.19


The challenges of exercising competitive ethical standards are very high. For instance, EEOC cannot apply across genders because the country rarely believes in the leadership of women. The developed culture backed by the most followed religion has to dominate different areas of the economy, including ethics in the identified sectors. Financial factors also count when dealing with ethics at the workplace. The three corporations belong to the public sector, and they face limited challenges in terms of going for team-building retreats, coming up with a code of ethics, and developing a functional ethical plan that will include different countries.20

However, financial constraints are likely to occur because the employees of SAIC, CDB, and Sinopec have to depend on tight budgetary allocations from the government. Finally, government control is a great issue that the companies should discuss. Some companies, especially SAIC and Sinopec, have to handle foreign customers that do not relate to the traditional ethical practices.21 The three Chinese firms understand that capitalist economies will always use freed trade for profit-making even when they have to incorporate CSR practices. SAIC and Sinopec have high accommodation standards, as evidenced by their ability to tolerate business associates that have good intentions for the public, the staff, and the business at large.


In summary, ethics, both inherent and acquired, are very important in the business environment because business activities affect people differently. Sinopec displays much interest in environmental protection while SAIC has interests in protecting employees while technologically supporting their careers. CDB has the interest of marinating high privacy and security standards for the different consumers. It means that the approach that a company takes to achieve an ethical objective becomes relevant in China when it supports the greatest happiness for people.


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