Beyond the Image of Foreign Direct Investment in China: Where ethics meets public relations

Jeremy B. Fox, Joan M. Donohue, Jinpei Wu

Journal of Business Ethics · 2005 · Volume 56 · Issue 4

Abstract

While there had still been an increasing flow of foreign direct investment (FDI) into China during the 2002 downturn in FDI globally, such investments have historically been only sporadically successful. Much writing has detailed and discussed problems associated with China FDI but several costs remain dangerously overlooked. One such cost is that of micro-monitoring plants for work conditions and employee treatment in violation of local Chinese laws and possible home country ethics. Further, a more personal cost is presented – the personal cost associated with maintaining an investment in a facility that violates standards of ethical employee treatment. Background information related to these issues is presented, along with a general overview of FDI in China.

Keywords

China, ethical issues, ethics, FDI, foreign direct investment, monitoring, public relations

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