most employees move frequently from one factory to another.
Although providing these benefits to employees increased the manage-
ment cost, the CEO believed that it was his responsibility to do so.
A few executives believed that the success of a firm is not only
reflected in the amount of profit it earns but also indicated by whether
it reciprocates the contributions of its employees and society by
returning part of the profit to them. The notion of social responsibility
is not only targeted at employees in companies but can be extended to
the local community. An entrepreneur from a private company said,
‘‘I do not consider my firm as a money-making machine but as a carrier
which can push the society forward.’’ His enterprise made profits of
60,000 Chinese yuan (about $7500) in the first year, and he donated
20,000 yuan (about $2500) to his village for building a public road.
In the second year, he again donated 100,000 yuan (about $12,500)
to support the village’s infrastructure construction. He believed that
an enterprise should be responsible for its people and the society who
have supported and bred the enterprise directly or indirectly.
Another interviewed leader cited an example to illustrate his
emphasis on social responsibility. He acquired a state-owned hotel.
According to the contract signed by both parties, he could dismiss
30 percent of the employees and managers in the hotel. By doing so, he
could not only make more profits, but also greatly improve the service
quality by recruiting some qualified employees and managers. How-
ever, without dismissing a single employee, he instead provided them
training to improve their skills and knowledge and allocated all
employees to proper posts. He believed it was his responsibility not
to increase the burden on society when conducting business: ‘‘one or
two million may not be a big deal for me and the company, but it
makes a great difference for a family.’’
Harmony is precious (he wei gui)
Harmony is preciousmeans that top management must keep harmony
internally or externally in order to keep the company running
smoothly and making profits. This notion was expressed by the
interviewed leaders as follows: ‘‘keeping harmonious interpersonal
relationships’’; ‘‘being kind to others’’; ‘‘harmony brings wealth’’;
and ‘‘smooth cooperation with others,’’ etc. Thirteen participants
(37 percent) reported that they held this philosophy in their manage-
ment practices.
Chinese traditions and Western theories 247