Business Ethics As the Basis of Business Strength

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In the past three decades of China’s social and economic development, businesses have benefited enormously from the country’s opening up and its economic reforms. At the same time, they have contributed significantly to improving livelihoods and welfare.

As China continues to develop, the private sector has a crucial role to play in helping to create a harmonious society that addresses the imbalance of wealth, environmental disruption, and the challenges of transforming from agriculture and heavy industry to high-tech-driven and environmentally friendly sectors.

Corporate social responsibility (CSR) is becoming an expectation for companies doing business in China, whether they are multinationals or Chinese enterprises. Following the law, and acting responsibly and ethically are the foundations for business strength, and enable businesses to contribute to society.

Companies must ask what is right and wrong before defining their strategy and pursuing commercial success. Deciding what is right and wrong is, in fact, very simple. It requires companies to look at whether or not its actions bring harm to other people, the environment or future generations. Of course, putting this into practice can be hard, but by working together companies can learn from each other and from international best practices.

The China Entrepreneurs Club brings together entrepreneurs, economists and NGOs in China to advance this vision of corporate responsibility. Our members are leading a wider effort by many Chinese enterprises in developing their own practices.

Avoiding doing harm to people and the environment does not have to constrain the viability and ingenuity of business. In fact, we have found that meeting these expectations can be a driver for creativity.

GE is recognized as setting a benchmark of high ethical standards in its operations in China. But it is also admired because it is demonstrating how social and environmental challenges can become an internal driving force for innovation.

I wish more leading enterprises asked what is right and wrong, and strengthened their competitiveness within a framework of business ethics. If this was the case, the future of humankind would look even more promising.