Group Ethical Decision Making Process in Chinese Business: Analysis From Social Decision Scheme and Cultural Perspectives

Abstract

Literature concerning group ethical decision making in a business setting has traditionally focused on directly comparing group versus individual decisions and then investigating differences. Analysis of the interactive process of group ethical decision making appears sparse. This study addresses the gap by investigating group decision making from a social decision scheme (SDS) perspective in a Chinese cultural setting. A cohort of Chinese accountancy students evaluated ethical business scenarios individually and then in a group context. Group responses could be explained in terms of both the SDS and the Chinese cultural perspective (zhongyong). Specifically, groups did not select the most ethical choice but rather the most moderate of all choices advocated by the majority (zhongyong). These results show the application of SDS theory in a culturally specific (Chinese) environment and note the impact of culturally specific factors (zhongyong) on business decision making. The implications are significant for business. If ethical decisions are entrusted to groups, the impact of culturally specific factors must be fully appreciated in evaluating the final decision.