Join in or opt out? A normative–ethical analysis of affective ties and networks in South Korea
Horak, S. (2018). Join in or opt out? A normative–ethical analysis of affective
ties and networks in South Korea. Journal of Business Ethics, 149(1), 207-220.
DOI: 10.1007/s10551-016-3125-7
Link: https://doi.org/10.1007/s10551-016-3125-7
Abstract
So far overlooked by the international business ethics literature, we introduce,
characterize and normatively analyze the use of affective ties and networks in
South Korea from an ethical point of view. Whereas the ethics of using Guanxi in
China has been comprehensively discussed, Korean informal networks remain
difficult to manage for firms in South Korea due to the absence of existing
academic debate and research in this field. In this study, we concentrate mainly
on the question of whether foreign firms will and can use affective ties in
Korea. The informal social network forms are classified and contrasted with the
conventional ethical approaches used in international business ethics
(relativism, universalism, social contract theory) to assess which categories
can be regarded as ethical or unethical. Finally, foreign firms are advised how
to cope with and use different affective network types. Though the nature of
affective ties and networks in Korea differs from that found for instance in
China (Guanxi), consistent with the conclusion of prior research, we recommend
particularistic analysis and decision making regarding the circumstances in
which to conclude affective ties and networks and when to opt out. We conclude
that foreign firms in Korea should invest in establishing Inmaek, refrain from
engaging in Yonjul and support host country nationals’ Yongo ties. Moreover, it
is suggested that foreign firms should find ways to monitor and manage informal
ties effectively.
Keywords
Affective ties, business ethics, Guanxi, informal networks, normative, South
Korea, Yongo