Fraud and white‐collar crime: a Chinese perspective

Abstract

PurposeThis paper sets out to discuss white‐collar crime and fraud in China and to draw implications for Western businesses wishing to enter the Chinese market.Design/methodology/approachThe paper provides examples of recent frauds committed in China and also provides a brief review of the literature. It traces the development of China's economy, describing China's modern‐day economy, and also looks at cultural issues and differences between Western and Chinese attitudes.FindingsWestern businesses planning to enter the Chinese market need to do their due diligence before committing resources. What works in Western society may not work in another culture, like China's. However, gaining an understanding of the culture and general way of life will go a long way towards laying the groundwork for success.Research limitations/implicationsAdditional focus should be placed on examining how cultural differences affect judgments and behaviors.Originality/valueFrom a practical standpoint, the paper provides insights into possible areas of disagreement between employees from different cultures that can result from their divergent opinions about individuals' responsibility for fraudulent acts.