Ethics, values, and leadership beliefs and practices : An empirical study of US and Chinese business executives

Purpose – Ethics for many individuals is manifested daily through decisions and actions which display their commitment to personal values. Values permeate our lives, and influence our actions. Managers' decisions and actions should serve as a reflection of their ethics and a mirror for their personal values and beliefs. Therefore, the research question is: does ethics influence how a person performs at work and even where he or she works? If ethics affects where one works, would people with strong ethics gravitate to organizations that match through their policies and behaviors and their own personal, values and beliefs? Design/methodology/approach – The survey was developed through a literature review and multiple iterations among colleagues. It was pretested among faculty, staff, and students in the USA. The US version was administered at a southeastern non‐secular university. The survey was then sent to China for translation. It was administered to an MBA class in China affiliated with the same US non‐secular university. The data were analyzed in SPSS. Findings – A comparison of business executives ensconced in their communities and careers finds ethical behavior and positive values are sought and rewarded in both Chinese and American organizations. And, surprisingly, Chinese business executives believed more strongly than US business executives on all questions which linked economic benefit to organizational climate, productive workforce, and to the existence of strong and positive organizational values and beliefs. US business executives belief that positive ethical practices are rewarded in the short‐ and long‐term, while Chinese business executives believe only in long‐term rewards. Research limitations/implications – This survey was done at one non‐secular university. Practical implications – Shared values are critical in cementing lasting business relationships. Originality/value – The authors believe the study is the first to compare the ethics of American and Chinese managers, or business owners who are well ensconced in their careers and the community within a cross‐section of industries and levels. These successful, highly‐educated professionals represent people who are currently, or may become, top‐level executives. As such, they are an important sample: professionals whose ethics may be guiding their decisions, and because of their work experience, unlike new college graduates, they may have a greater effect on the ethical behavior of organizations through their experience. Recent business scandals prove that the actions of a few have dramatic impact on an organization.