The business‐government‐society relationship: a comparison between China and the US

Abstract

Purpose This paper aims to unveil the business‐government‐society relationship in China, as compared with that in the USA. Design/methodology/approach Three cases – the Chinese milk scandal, the beef recall, and the peanut butter scandal in the USA – are presented and contrasted. Findings The business‐society‐government relationship in China sets itself apart from that in the USA, largely due to its one‐party political system and the Confucian tradition. The relative lack of independent watchdogs and advocacy groups and the relative lack of independence of the media make it more difficult for irresponsible behavior by powerful corporations to be exposed in China. Further, paternal local governments can sometimes play an enabling role to companies engaged in irresponsible behavior under their protective wings. Research limitations/implications With little extant research in the area of corporate social responsibility in the Chinese context, future research can build on this research and further test the relationship with quantitative data. Practical implications The research provides insights into the context of business operations in China and thus has significant practical relevance. Originality/value The paper is the first to explore the business‐government‐society relationship in China.