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Executive Summary

The purpose of this study is to analyse and to provide the basis for the study "A Tale of Two Countries". The literature on why the Chinese business is engaging in the gift-giving activity is studied to understand the cultural context, where the main driving factors are building relationships, Tangible reciprocity, intangible reciprocity, non-reciprocity, group orientation, and face-saving. The concept of bribe in comparison to gift and gifting money is done, with an unclear literature it can be said that gifting money and gift-giving cannot be concluded as bribe if an influence attached to it is not obligatory and due to deep cultural rooted concept of gift-giving it is considered ethical and the principles which are to be considered are to understand the norms and culture of the Chinese society and not be influenced by this culture into making decisions on merit. 

Introduction

Gift giving is a primary social custom in China in every area of life: families and main partnerships (guanxi), public officials, social institutions and enterprises. For all of this, it is quite difficult from an ethical point of view to decide whether gifts or donations are to be offered and accepted, what kind of gifts are suitable or what public responsibilities gifts entail. You can spend several months learning how to behave just too quickly to still take huge wrong moves. The cultural and social logic of giving gifts is one of the most difficult lessons for foreigners to learn how to "do business right" in China. Not unexpectedly, most West people not aware of Chinese culture still easily identify gifts with bribery or claim that Chinese business activities are promiscuous. The Chinese know the differences very well. The Chinese media have not been so concerned about the issue and have sparked discussion in recent years as bribery and corruption.

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