GEPPS Research Project

American and Chinese economies

In America and China, many global, ethical, political, physical, and societal indicators highlight how both nations operate. Both nations are not allies, mainly because there is no overriding security interest. There are also no values regarding political aspects because of the concepts about this context. Beijing looks forward to a multipolar post-American world while Washington is trying to implement power wanes and preserve its liberal order. The scope of both nations is different in terms of ethics, legal aspects, and societal context (Dittmer, L., & Liu, G. 2006). The steady market reforms of China have shown that state-directed stimulus is related to mixed economy aspects, and it works for the low return investment, whereas this is not larger than the market economy.

The US has a strong and largest economy in the world for over 140 years. The GDP of the country is 22% of global GDP, but China is overtaking this ratio in terms of economic strength (Hong, Y. 2017). The GDP of China is based on purchasing power parity that highlights how economies can be stronger at absolute levels. In China, consumer goods are not expensive, so economists highlight that purchasing power is related to the money amount. Money is spent on similar goods and services when a country experiences low prices than others, and it provides an evaluation of income on the price differences. For example, the role of purchasing power party is central in evaluating price difference, if earning in New York is $50,000 per year, it is different from Beijing which is $50,000 per year, both will operate in different conditions, but the observations will provide a different data (Langfitt, F. 2014).

The United States of America is ranked number one economic power in the 21 of the 34 surveyed countries, while China is believed to be a top economic power by other 12, where there is a tie for top economy between China and USA in Lebanon. Usually, many non-European nations consider the USA as the top economy of the world, whereas many European countries like to see China at the top(Tauhman, B. 2007). For instance, in the survey of the countries in Asia-Pacific, around 46% state that USA is the top economy, whereas china has been suggested by 25%. In most of these countries, also, there is an ambiguity about the dominance of the USA and China, with such difference among the share about which country select the China and which country select the USA as the top economic power. Similarly, more think the USA is the top economy as compare to China in the sub-Saharan surveyed countries, but the people have different opinion. In South Africa and Nigeria, the trend to select the USA is a departure as of last year, where many from both of the countries term China as the top economy of the world.

To develop an understanding regarding the basic differences in American and Chinese ethics and culture, a visional image of Chinese and American ethical philosophies is pretty helpful.  The researchers describe that the foundation of ethics can be found in the larger level ethical environment and in the personal-level beliefs, both of these are made on ethical philosophies. Economic national norms and ideology are the most primary factors in the international set-up(Brockman, J., Pinker, S., Vinge, V., Rees, Sterling, B. 2014).

In the United States, business agreements describe the nature and the particulars of a business connection together with the commitments of all involved parties. It is a culture that these obligations are privileged to the letter mad the spirit of the agreement. People must be bound to such contracts once entered. It is both ethical and legal obligation by all the parties and shows the basic faith in truth. Agents of business will try to work in deals which are very valuable to the business parties they are working with. The signing of agreement is generally taken as the final part of the business association (Hong, Y. 2017).

Business ethics in China are influence by many factors. They trust that all the things must be in harmony, getting the things analyzed for longer terms. If the changes will be significant and disrupting, the Chinese must prefer not to involve in any kind of action. This sentiment is rooted in Taoism and Confucianism. Harmony is underlined to keep public order and peace and noticeably shows the way Chinese behave and think. Agreements and negotiations connect people by strengthen the human relationships more as compare to the legal binding. Managers in China take agreements as the initial step to a stronger business association with the partners.

Financial crisis in USA resulted in the assumption among the ordinary citizen of America is that the China has developed itself as the strongest economic power in the world(Brockman, J., Pinker, S., Vinge, V., Rees, Sterling, B. 2014). This perspective flourished in the toughest financial crises of 2009 and has continued even then the crises impact has started to decrease. United States media have regularly communicated the same thought. But it was deliberately illogical.The basic cause for Americans’ disappointment is the job opportunities. USA joblessness falls to 9 percent in the last two years. It became more when a number of Americans stopped searching for jobs. In comparison, Beijing disclosed less than 4.5 percent figure of its unemployment, but the included only such people who were reported officially(Tauhman, B. 2007).

The size and growth of the economies of China and Us have a relationship between capitalism and democracy. A look at the Chinese capitalist system and democracy clears the situation. From 1958- 1962, in China, 45 million people death occurred due to the largest social experiment. This experiment was Great Leap Forward, yet known as a disaster for China. It is a leading nation for export and is ahead of the United States. Scott, B. R. (2011) discussed the history of china did not allow to escape from poverty, but World Bank figures show poverty in China was 88.3% in 1981and in 2015; it was 0.7%. A third way was deployed as a success factor for the political and economic model that was grounded as socialism and capitalism. China is successful because the power of capitalism is exercised (Bergsten, C. F. 2007). Mao has an omnipotent grip on the economy of China, so the past few decades progressively held the concept of the free-market economy by reducing powerful impact and introduced private ownership (Hong, Y. 2017). Political capitalism forces are contributing to economic success because it is contributing to economic development.

Most of the reform reminded leaders in China are behind the success of capitalism because these methods stimulated economic growth. The economic reforms legalized private enterprises to move towards shareholders, partners, and individuals. Large scales of business and opening of stock markets allowed the setting of prices and wage rates, so supply and demands in the free markets established. The red hats reforms in this way allowed the Chinese to become red capitalists. The capitalist reforms brought many growing pains for economies. In rural provinces, families lost jobs, and the investment rate declined due to state-owned enterprises. Democratic reforms in China since 1976 allowed the communist party to do monopoly as decisions were only made by few elites. Due to democracy, people faced a free environment by discussing their public matters. In this situation, the government worked hard on individuals to bring social stability (Brockman, J., Pinker, S., Vinge, V., Rees, Sterling, B. 2014). The democratic or capitalistic economy in China allowed industries, farms, and enterprises to enter into profit-making frameworks. Free market demand and supply set price level, wage rate, and production.

Capitalism and democracy in the US are not related to each other but are two ideological pillars that can bring unprecedented freedom and prosperity. In Europe, corporate restructuring has changed the role of social welfare and job security. Democracy required adherence to social and informal regulations that can bring flaws in the constitution design. These rules also protect the threat of power about charismatic leaders. Democratic norms in the wake of the rule of law allow maintaining policy battles to secure the interest and freedom of policy. Social democratic policymakers foresee some symptoms about federal and state policies that work to levy a tax on the wealthy. There are two opinions about democracy’s impact on the US; one is in favor of capitalism, and the second is against it. Liberal intelligence activists try to save democracy and enhance involvement in political activities. It is also observed that democracy is beneficial to social trust and encouraging voter participation as well as civic engagement (Capitalism, C. 2018).

Trump’s involvement in development activities is seen under democratic reforms.

The impact of the Internet on the two national economies, China and America, is significant, with the change in time, this impact is becoming stronger, in the form of societal, global, ethical and way of socializing. Enormous sizes of business and opening of securities exchanges permitted the setting of costs and compensation rates, so supply and requests in the free markets set up. The red caps changes thusly permitted the Chinese to become red industrialists.The method of sharing information, ideas, and organizing flow of concepts is facing transformation. Increased connectivity through the internet has evolved all the economies in terms of social, economic, and technological aspects. These stages of transformation are also impacting on industrial factors. These technological factors are transforming the agricultural and health sectors (Scott, B. R. 2011). In the US and China, technological innovations are creating opportunities for economic development. The access to infrastructure, better facilities, and the internet ecosystem have paved the way for development. In addition, it has also built a system of competition where every company is competing, and entrepreneurs are trying to thrive.

The nurturing of human capital is maximized due to internet globalization and interaction between global economies. The Internet is making a strong contribution towards economic growth. In both nations, the maturity of the internet is at peak, and it is increasing living standards because it is similar to the advancement in increasing per capita income, so magnitude is a positive impact, since it enhancing internet-related growth. Business transformation is increasing due to community involvement in the value chain. Manufacturing has been revolutionized because products and services are technically improving, so a dynamic framework for business is operating (Capitalism, C. 2018). In different countries, fast-growing ecosystems are growing the use of the internet so better access and infrastructure are increased. Large economies are focusing on better manufacturing options with integrated developments under diversified supply chain. The performance improvement is seen under technical organizations because web-savvy SMEs are continually bringing development context into consideration (Dittmer, L., & Liu, G. 2006). Web knowledgeable small-medium enterprises are introducing more opportunities than other companies because internet involvement is significant in increasing exports.

US and China define capitalism in relation to national political policies as a compressive framework that can accelerate economic development. In China, capitalism is a part of all the systems such as political, social, and cultural control in all over the economy because it is linked with state-owned policies (Charles, F. 2013). The Chinese government is successfully implementing the policies of capitalism to bring growth and economic development as a part of national policies. For example, Chinese agricultural aspects are decollectivized, and certain reforms are introduced. China is now considered as an increasing hub of global economic growth due to its superpower aspects. However, some commercial conflicts prevail in this realm that is playing a key role in installing a successful system. Chinese authority, as a socialist country, assumes authoritative capitalism. China and capitalism are showing powerful relationship because social theories are building interrelated structures in society (Tauhman, B. 2007). Political private enterprise powers are adding to financial achievement since it is adding to monetary turn of events. A large portion of the change reminded pioneers in China are behind the achievement of free enterprise on the grounds that these strategies animated monetary development. The monetary changes sanctioned private endeavors to move towards investors, accomplices, and people.

US capitalism is enacting national policies under democratic regimes. US economic system has focused on Keynesian capitalism systems and ideas to support economic and monetary policies. Political economies are facing capitalism, private ownership structure, and legitimate means of transferring property are considered in the US under a policy framework. Keynes’s perception about macroeconomic forces that stand for the capitalist rules, and it needs government to act as under the business cycle framework. The business activities and political framework in relation to the economy activity. Socialism and capitalism are seen in different national policy to set up the planned economy. The impact of US capitalism framework on production activities is based on profit. US is a capitalism society where government is making national policies regarding taxation, regulation and subsidy. The democratic capitalism in America is making the ideology regarding tripartite system of market so a democratic polity prevails. In various nations, quickly developing biological systems are developing the utilization of the web so better access and framework are expanded. Enormous economies are concentrating on better assembling choices with coordinated improvements under broadened inventory network.

Economic growth and personal freedom are interlinked if viewed by the perspective of US and China. Growth is an essential factor in American where more opportunities are being generated for the people (Dittmer, L., & Liu, G. 2006). The economic freedom is to make the economy and autonomous one that can support the regulation process of the economy. The economic freedom in America is related to free trade, rule of law and property rights. This aspect is also linked to the constitutions of government and enable it to make a long last economic growth, prosperity and opportunity. The economic freedom allows prosperity and freedom creates a connection for economic segments. This relationship matters most for the economy of China. The economic freedom thrives societies and engage them in financial authority. The Chinese economy consider freedom a fundamental right for human being so the score of China is 59.5% that is making the economy get highest GDP growth. The personal freedom and economic growth is also seen under the political policies. The both entities are linked in terms of democratic policies and considered a basic right for community as it helps develop certain segments of the society (Cruxer, T. 2018).


Bergsten, C. F. (2007). The United States and the world economy: foreign economic policy for the next decade. Washington: Institute for International Economics.

Brockman, J., Pinker, S., Vinge, V., Rees, M. J., Dennett, D. C., Dyson, G., … Sterling, B. (2014). What should we be worried about?: real scenarios that keep scientists up at night. New York, NY: Harper Perennial.

Capitalism, C. (2018). Map of China. Capitalism Without Democracy, xviii-xviii. doi: 10.7591/9780801461897-004

Charles, F. (2013). Predator Nation Corporate Criminals, Political Corruption, and the Hijacking of America. Crown Pub.

Cruxer, T. (2018). China Matters: Chinas Economic Impact in Latin America. The SHAFR Guide Online. doi: 10.1163/2468-1733_shafr_sim190130006

Dittmer, L., & Liu, G. (2006). Chinas deep reform: Domestic politics in transition. Lanham, MD: Rowman & Littlefield Publishers, Inc.

Hong, Y. (2017). Driving Capitalism to Western China. University of Illinois Press. doi: 10.5406/illinois/9780252040917.003.0002

Langfitt, F. (2014, November 7). Capitalism Is Making China Richer, But Not Democratic. Retrieved from

Scott, B. R. (2011). The Transformation of US Capitalism and Democracy, 1830–1937. Capitalism, 427–514. doi: 10.1007/978-1-4614-1879-5_13

Tauhman, B. (2007). Economic Impact of Internet in China. Chinese Business Review06(01). doi: 10.17265/1537-1506/2007.01.004



Business Ethics: Case of Gucci

Executive summary

Project management in any company needs effective planning and execution. Gucci is managing rapid expansion in the global market under effective managerial techniques and business planning. The company is involved in key managerial processes and implemented a labor model under which employment and recruitment has become easy. Effective workplace requirements involve employees into better working conditions while focusing on mutual cooperation with stakeholders. Company is using responsible workers to accomplish its targets. For example, labor dispatch arrangement service is aligned on managing costs and contractual responsibilities by Gucci in Chinese city Shanghai. This research report focuses on key business considerations by Gucci in China. Company analysis explores its background, history, core values and ethical culture.

This report also includes major stakeholders of Gucci that are involved in project completion process. A stakeholder map is created to know about the action plan and engagement of employees. Gucci has economic, legal, ethical corporate social responsibilities. CSR serves the company in ethical way because it has a specific place to monitor corporate affairs. The report is divided into five main parts, first is about company analysis, its background and history. The second part is about stakeholders’ analysis that has shown stakeholders map. The third part discusses CSR analysis like responsibilities to shareholders. The fourth part is about issues and problems, for instance ethical problems in Gucci, causes and its symptoms, key stakeholders involved and consequences. In the last part, evaluation of company is carried out by specific actions that managers can take.

Part one-Company Analysis

1.1.Company History

Guccio Gucci was a fashion designer and businessman from Italy; he founded The Fashion House of Gucci in 1921. The House of Gucci, also known as Gucci is a luxury fashion and leather products brand in Italy, and as well as around the world, it is a branch of Gucci Group, Kerning, a French investment company, owns it. In 2008 Gucci generated revenue of 4.2 billion Euros worldwide. Also, Gucci was ranked at 41st position in the Top 100 Brands worldwide in 2009. Gucci is still the most significant fashion brand in Italy (Annual Report, M. 2019).

Gucci has presented high quality, leading designer goods to its consumers successfully, unlike several other brands in the market. Throughout these years, the brand has attained overwhelming success levels with each new product released. By 2005, it has started 207 outlets around the globe(Czerniachowicz, 2017). Further to this, Gucci derived 278 company-operated outlets by the end of 2009, with wholesale its merchandizes through large superstores and franchisees. Gucci was valued at 12.1 billion US dollars in 2013. In May 2015, Gucci was ranked 38th in the Most Valuable Brands list of the world by Forbes with a worth of 12.4 billion USD.

Gucci is an international organization with more than 270 company-operated outlets around the world, providing consumers of the best products, and making revenue of billions of dollars every year. It has even noble, luxury, and iconic brand figures in the china region, where its sales are boosted by 35% at the beginning of 2011. Gucci has shown its aim to speed up its process of establishing new outlets in China. Lately, though, the organization came under colossal criticism when five of its ex-employees from its Shenzhen store disclosed online information about the cruel working environment and mistreatment of labor in the organization(Zanda, 2016).

 1.2 Company Core values

The organization aims to turn into the leading brand in the luxury market at the global level. Gucci expresses their company as responsible and cool, and signify them on their fashion and styles. All of these concepts are inter-related; being responsible can also be cool. For Gucci, social responsibly is an integral part of their international strategy. They do business with a comprehensive, yet sensible approach. It is their fundamental responsibility to maintain their position of a luxury brand to promote and pioneer sustainability(Czerniachowicz, 2017).

The Gucci standards are profoundly rooted within moral values, and literally, the organization started to effort on sustainability policy in 2004. Quality should be the supreme priority; also, sustainability for the environment and the society developed as a part of quality policy. Gucci’s stakeholders support the sustainability policy for the betterment of the company.

Gucci introduced 100% eco-friendly packaging in June 2010. And within a short time, Gucci launched a collection of environment-friendly goggles which were made by recycled metal and biodegradable plastic. They also used biodegradable material in their shoe collection with new designs and eco-friendly packaging(Annual Report, M. 2019).

Gucci is focusing on improved performance in the quality on which most demanding consumers put the most significance. The performance compares to the situation where Gucci needs to look for superior quality and needs to continue giving such designs that are worthy to customers with sound knowledge as this brands’ consumers, including film stars and elite families from Europe. It further focuses on the smartest consumers, who are happy to pay for the supreme quality in the most important markets. This relates to the situation where Gucci’s target buyers, including the wealthy European new-born and the developing U. S. rich people(Księżak, 2017).

1.3 Company ethical culture

Good sustainability and behavior are the basis for a business group to work. Trust is an essential element of business sustainability. And the capability to express the everyday commitment to a responsible organization administration is an integral part of such trust (Demir, M. A., &Sepli, A. 2017). Since 1996, when the Gucci developed its first ethics rules and regulations, it made a significant improvement in persistently reinforcing the ethical promise of Gucci management. Landmark including printing Code of Ethics and circulation to every employee of the group in 2005 and then again in 2009, and establishment of Sustainability Department(Księżak, 2017).

Each time the business operates, the Ethics code presents the chance to reaffirm the faith, and the ethical rules and regulations should be precedent. Designed by the categories of stakeholders, the ethics code provides the reference points that can guide every person’s actions. The laws include respect for workers, gender equality in all the professional life aspects, dealing with all kinds of fraud and corruption. Also fighting child labor, compliance of the basic rules and regulations of the International Labour Organization, the safety of the environment, understanding to all stakeholders, and organizing the employees with other societies.

Following the ethical behavior guarantees permanence in business under any circumstances. Sustainable and prosperous progress in the global market depends on the level of trust of the buyers, workers, stakeholders, and social and commercial partners. But, these variations can be designed by some powerful but straightforward shared principles, which should guide our work in the spirit of common sense and responsibility(Yasin, Chan, Reidpath&Allotey, 2012). The ethics code provided to all employees includes performing with trust and integrity, compliance of the applicable regulations and law, respecting the rights and dignity of every person, work with care for the environment, using the organization’s resources and goods with the concern of the business and its stakeholders (Lee, H., Leeminyoung, & Bae, E.-K. 2019).

Part Two- Stakeholders Analysis

2.1 Company stakeholders

Gucci has four main stakeholders. Freeman discussed that stakeholders are the particular group or individuals who can affect by the firm’s achievement of objectives. This provides that it is important to find out the groups that are affected by any abuses etc.key stakeholders of Gucci are individuals who stake its expansion plans in China, employees, no matter if they are resigned or not, and existing employees(Annual Report, M. 2019). Chinese government is also stakeholder of Gucci and it is the responsibility of government to ensure that rights of workers are enforced in its territory. Fourth stakeholder is a foreign government that is likely to be headquartered in the similar territory. Foreign governments have stake and they can also take actions to reduce labor abuse in China because laws are formulated regarding abuse and anti-bribery treaties.

Stakeholders of a company are very significant for its performance and completion of objectives. The stakeholders can either positively or negatively influence the project performance. The stakeholders are involved in project scope statement, plan development and identify constraints that can hinder the development process. They also approve changes or modifications in projects under change control board(O’Kane & Cunningham, 2014). The identification of requirements is carried out by stakeholders and they participate to manage risk. It is also possible that stakeholders can become risk response owners.

  • Stakeholders for company Gucci can manage abusive practices as employees because they can harm the objective of company.
  • China’s capitalism is increasing so human resource management can involve institutional arrangements regarding this abusive act in company.
  • Employees can vice the grievances of victim so get more attention and investigate issues. They can also express the opinions to help enhance bargaining power through employers.
  • Chinese government as the stakeholder can revise its approach to monitor the labor force. In China, workers are under-protected due to organizational work, while trade unions are working to stand up for the rights of employees (Mclaughlin, S. 2018).

2.2. Stakeholders Map

The stakeholders map is created below to describe relationships with the organization. The first step in this regard is the engagement of strategy. This process will set a vision and ambition to engage in future direction(Borodai, 2017). The second step is about stakeholders mapping and it works defining a criteria that can identify and prioritize stakeholders for the better mechanisms of stakeholders. In the third step, a focus on long term goals will be made which is called preparation that will determine the logistics according to rules(Annual Report, M. 2019). The fourth step is engagement that ensures stakeholders and contributors to mitigate any kind of tension and then set the priorities for solution(Yasin, Chan, Reidpath&Allotey, 2012). The last step is action plan. In this figure it can be seen that under action plan the opportunities are identified that can determine goals, actions and strategies that will help in follow up process and enhance engagement for future.

Figure 1 Stakeholders Map

The current process presents a structure of stakeholder mapping. It is a unique approach to settle down the key issues and conflicts. With this process, any central relationships or immediate processing can be considered in the organization. The stakeholder map is a key approach to devise an action plan that will work in the future(O’Kane & Cunningham, 2014). For Gucci, this action plan will determine what Gucci is trying to achieve and how in different stakeholders, it is working to acquire competency (Parker, J. 2017). The stakeholders are also significant to infecund the interest of company but they will work in collaboration because all the objective of company are also linked with these stakeholders. The creation of a map is considerable to learn new dimension of workplace projects.

Part Three- Gucci’s Corporate Social Responsibility (CSR) Analysis

            Corporate social responsibility (CSR) is a self-adjusting business in which an organization is responsible for social accountability. All stakeholders are also involved in this accountability. CSR business follows all traditions and moralities of the society and implements such methods that are beneficial for social rules. CSR is also named Corporate Citizenship. This type of company has to follow all social, economic, and environmental solutions. The primary purpose of CSR is to construct such methods that support the ethical, philanthropy, economic, and lawful aspects of society(Yasin, Chan, Reidpath&Allotey, 2012).

  • CSR is a comprehensive thought which can be adapted to different companies and organizations in various ways as the CSR business is beneficial for society as it is essential for social aspects.
  • As the CSR progress increases gradually, and the world-famous brand whose name is Gucci is becoming more accountable because of its unethical behavior which it conducted towards its employees.
  • CSR policy is a bit difficult to meet Gucci because it enjoys a secure social value, and the bulk of tags, in this condition difficult for Gucci to fulfill all requirements of CSR.
  • Gucci sub-brands present CSR practices in front of its domestic and international stakeholders.

Gucci was facing the scandal of unethical practices that prove a setback for its reputation after that Gucci assigned some business driving methods by following the rules and regulations of CSR and laid a foundation of its company on true and fair dealing toward its employees in which it promises to provide a legal working environment, by giving promotion resources, protection of human rights mentioned and strictly implemented into the company running affairs through its managers and stakeholders. Gucci also made a promise to provide the facility of promotion, proving working rights to workers, and make a trade union contract by following the safeguard rules of the workers into the administrative system of Gucci. Gucci denies on the conduction of child labor. All employees will get equal career development opportunities and similar treatment facilities. Gucci strictly develops a health and safety standard by preventing epidemics and some industrial disease. Gucci also takes the initiative to promote the growth of craftsmanship and steps for the development of regional, federal, and other global communities. Philanthropic acts are also being introduced in these efforts. Non-profitable initiatives conducted by adopting this policy(Yasin, Chan, Reidpath&Allotey, 2012).

This company also committed to reducing environmental pollution and protecting the ecosystem and made the promise on the prevention of waste materials of the company. The organization introduces a communicative method between workers and managers and other stakeholders. True and transportation dealings with the stakeholders in which any decision conducted on the collaboration of all partners and stakeholders, all dealing with public and other organization’s being enforced by the agreement of the stakeholders(Wymeersch, 2003). Gucci also put steps to monitor economic growth by creating an economically viable supply chain. Gucci legalizes all promotion elements, which are helpful in the growth of the workers and assure the workers every possible cooperative deal for their betterment and development. These above steps prove helpful for economic growth and company progress. Gucci has its contribution to the growth of China’s economy. The basic purpose of CSR is not to create luxury consumers, whereas its priority to increase consumers in the future. CSR policies impact the company’s reputation to obtain the capital. The world’s reputed MNC also follows the CSR policy. To contribute its part to economic growth.

After the ethical scandal, Gucci’s has a fluctuating reputation. It is unethical to behave under discussion in the business world. The company has lost its trust; at this time, the stakeholders and managers were making different variations in the company policy. The company decided to follow the CSR policy to stand its repute against the ethical standard. The CSR protects the workers and provides them rights.

Management is responsible for the enforcement of Corporate Sustainability Responsibilities and has a right to apply on all sub-branches of the parent company. Gucci directly running different stores were also inhuman activities are taking practices after that company enforced different policies under CSR strategy to protect the workers from the salivary behavior of the owner and manager. The managers should enforce these methods in such a manner that they are involved in the internal and external managerial functions and other corporation committees. The managers should integrate this policy into the strategic ambitions of the company. The CSR strategy will be implemented in all sectors of Gucci, whether they belong to leather or jewelry or concern with different other products of the company. Special training conducted to the managers, stakeholders to follow the rules of CSR. In 2007 the implementation responsibility pushed to the HR department, at the start one person is performing all CSR functions and reporting to the HR department, after that when management realize about the comprehensive involvement of CSR into the managerial functions then the company establishes a bench who will perform CSR activities and make decisions according to it. Gucci hired CSR managers; this condition proves a cause of the unwillingness of the stakeholders because they are used to unethical behavior, and that is totally against their habits; after that, they accept it only on this condition that the company establishes its worth around the global environment. Gucci establishes a training program for middle management. This remarkable change causes change to internal managerial functions, employee’s behavior, and external suppliers(Wymeersch, 2003). The CSR policy proved helpful to maintain the Gucci standard; the reputation of the Gucci had become worse due to the unethical Sandal and inhuman behavior to the workers when the company followed the rules of CSR the organization became successful in regaining its level. Now the workers are starting to show their interest, and in purchasing their products, workers are the real asset of any company without workers it is not possible to manufacture the goods and appreciatively run of the company. Initially, the managers and stakeholders go against the CSR strategy, but afterward, when the company meets its priority goals, the trust of stakeholders satisfies the managers.


Part Four- Problems/issues Analysis

4.1 Gucci ethical issues toward its employees

Gucci Shenzhen in China is a multicultural organization around the world. This organization serves its customers by contributing to elite products. This company operates 270 stores to whom the company is running directly. This company forms billions of dollars in revenue in a year. Its superior brand created its unbeatable image, which caused a 35.6% increment in its revenue; thus, it takes intent to increase the process of stores opening into the land of China(Rakhmanov, 2019). Currently, this company suffers a loss due to fire mishaps which occurred in its most familiar store. The company has to face too much damage. This incident occurred due to the miss of treating the employees. This company was practicing unethical behave to its workers by implementing some strict instructions(Borodai, 2017). All instructions are performed for the workforce; pregnant women cannot be applied for management. If any product is missing or stolen by anyone who has to pay the employees, even these products are protected by insurance.

Gucci constituted a bill on 8 October 2011 from the top management team(Yasin, Chan, Reidpath&Allotey, 2012). According to this letter, if any employee conducted any epidemic disease, it will not be tolerated during working hours. The lunch timing and in the situation of thirst and toilet timing entirely restricted, working hours, which was usually mentioned incorrectly, and forcefully conducted overtime which is unpaid after that. Gucci introduced a system of working that full day of working and the next day off officially. By the rules, workers can perform the duty of 10 hours in a day, after complaining to the workers, the company manufactured a false electronic record that counts the working hours in a less quantity. These rules are against humanity and called ethical problems.

Gucci specified such persons who mostly spend their time on the internet during working hours and consider all of them a sweatshop for the company besides this, and some MCN, s owners who failed to meet the organizational tasks they all fired. Later, Gucci’s headquarter, situated in China, and stated that Gucci would not tolerate such persons on conducting any negligence and carelessness(Wymeersch, 2003). The company will be carried on inquiry and replacement of store managers and assistant store managers.

Gucci also introduced a labor dispatch system for the newly appointed employees. Different rules and regulations have been represented. In this method, the leasing company made a contract with the workforce, and these leasing organizations send the workers to different other companies to work. According to this system, this contract exits the leasing company and dispatched workers. However, the agreement is conducted between the workers and the companies where they have to perform the work(Setiyaningrum, A. 2015).

Whatever company is hiring this workforce will pay their wages, whereas the social protection allowances and dismissals compensation bill will handle by the leasing company.

  • On account of this policy, the workers will get payments that are mentioned in the agreement, and this employment method is included in China’s cultural system.
  • The Gucci stores assume this method and around three leasing companies established in Shanghai are involved in an unethical issue.
  • According to law, the dispatch method creates a temporary situation for the workers.
  • Gucci arranges this system for longer than two years.
  • Pregnant females will enjoy the labor protections, and the exhaustive physical work not allowed to such ladies under the Labor Contract Law and rest sessions also will be provided(Borodai, 2017).

This ethical issue was entirely based on the destruction of the worker’s rights and constrained work without payment, inhuman confinements, and other unbearable policies that were part of this strategy. Gucci is not the first MNC who occupied workforce rights; Nike is also involved in such practices in Indonesia.

Local employee most involves factors in ethical issues in respect of factory workers.

Unethical problems are mentioned in the Gucci labor abuses policies like excessive work without payment, unlawful organizational methods around the local companies. This trend of working flourishing day by day in China, when other multinational companies and different foreign brands precede to China, this cultural environment emphasizes them to establish a business in such a condition(Christensen, Kent & Stewart, 2010). But these international firms provide some means to cut down this unethical behavior towards the workers and excuse for this abusive behavior. The fundamental reason behind this unethical practice is the abundance of multinational companies is working in China and does not pay attention to the worker’s rights. In an unfair situation, the company only focuses on earning the economic interest; the rights of workers are killed by management to get the organizational goals. Most miscarriages occur in this abusive environment where the pregnant female mistreated along this has to follow long duty hours into the entirely restricted atmosphere. There were unbearable restrictions exist only to make money under the human’s honor. In western economies, human virtues are included at the priority. Marable laws enforced to save the rights of workers. NGO’s are organized for the wellbeing of the workforce.

This unethical behavior affected the Gucci reputation badly. At this time, all stakeholders trying to control this abusive behavior, stakeholders not only managed these practices, but different variations required in often groups of the company because of the inhuman act also proves a hurdle to develop the expansion of Gucci in China. The management included stakeholders who adopted a justifying and apologize for behavior in front of current and resigned workers. The administration agreed to compensate by providing a systematic administrative system that will improve the working environment, and proves the government of China is also responsible for the rights of the workforce.

Mostly abusive behavior is used in MNCs manufacturing sites and almost not reported in developed countries. Gucci labor dispatch system which is against the Chinese characteristics. MCN can manage ethical problems conveniently. Comprehensive explanations are critically viewed as labor rights. China’s culture also prefers labor rights. The Chinese government, and foreign governments, all MNCs and its stakeholders are responsible for securing the rights of its workforce. Soon, different implementations and steps are making progress in the sense of labor abusive practices(Christensen, Kent & Stewart, 2010).

Part Five-Evaluation of company

Gucci is a multinational company and making progress gradually. The essential priority to maximize profit and minimize the cost of labor. In the maximizing process, it establishes a bill which grasps all the basic rules of the workers. According to this bill, the organization introduces a new working trend for the workers. The workers who caught some epidemic disease will not be spared from work, pregnant women will also not spare they have to perform duty like other followers the rest session also not provided to females at the time of delivery along with this the pregnant females cannot apply for managerial positions, no allowances provided to the workforce, and they are enforced to work without payment. In the form of loss conducting the workers have to compensate for this loss. The law allows the workers for 10 hours working in a day, and Gucci introduced a full working day, and the follower day remains off in which no work and time limitations are mentioned. The admin and managers found themselves involved in these unethical issues because they are crushing the employees by underlying those stricken and inhuman rules. In other words, Gucci and its managers introduced a slavery system for the workers.

Workers dispatch system also introduced by Gucci management in which the workers are forcefully pushed to another company to work. A leasing company is performing the role of a middle man. The contract is created between the leasing company and workers. But the hiring company is responsible for paying this workforce. This system provides a low-cost working environment.

Moreover, the managers of this organization and its Human Resources department kill the worker’s rights by using different means and constituting different policies for the followers and in the promotion of profit of the company. When foreign companies and other familiar brands come to China and object to these unethical issues and introduce some human rights laws which are not pushing back human dignity and provide protection to the workers on its rights, in this situation, Gucci feels the standard of reputation is decreasing day by day on account of its unethical practices which it is conducting to its managers. Then the managers and some store holders adopted apologies for behavior to maintain its progress because, without the workforce, they are helpless to manufacture the products.

At this time, all current workers and newly hired make assurance from the managers to save the rights by providing reasonable wages, fixed working hours, medical and different allowances, facilitate the pregnant females by providing them a sustainable working environment and rest period after their delivery. Gucci and its management try hard to get the release from this scandal. They got a bit of success in this matter, but this organization makes its popularity on slavery behave to its workforce. The worldwide workers’ rights and different NGOs are trying to lawsuits different laws to protect the rights of the workforce and taking steps ahead MNC and other brands find in consuming the fundamental rights of workers through its strict and abusive instructions(Christensen, Kent & Stewart, 2010).

When the Gucci reputation decreased due to the ethical scandal, then Gucci and its management established some policies which are enforced in the whole world to save the rights of workers and fulfill the entire requirement of worker’s laws. The administration decides to implement these sets of laws into all branches and stores may it in developed or developing countries. These ethical rules strongly performed in the Gucci industries. Numerous efforts were made to provide the improving standard to the workers(Czerniachowicz, 2017). These rules will be enforced to all branches and stores, and all laws strictly installed into the management systems. If the workforce belongs to any local area or has a concern for foreign labor will enjoy these rules equally. A written employment contract conducted for the workforce and workers dispatches the system prohibited. Unpaid work also discouraged by the managers, working hours mentioned, wages also term not be minimized, which will work against the law. The managers assure the workers to provide a safe and respective working environment that will be free from harassment, discrimination, and abusive practices.

The addition of some codes is not adequate to get freedom from these slavery scandals. Thus Gucci headquarters in Italy also constitutes some necessary methods to protect labor rights. Entire Gucci’s host countries, especially China, emphasize meeting the world’s ethical standards. The Chinese nation has a reliable power of tolerance. That’s why the Chinese workers were bearing this inhuman treated behavior even near to get harm in different ways. The workforce has less awareness of their rights. At this time, the economic power of China is becoming stronger gradually, although the workers’ dispatch system is becoming complicated to run. It is an important task to provide awareness to the Chinese workers on account of their rights.

  • Gucci made some analytical and administrative assumptions; the first is to control all ethical issues which are practicing in China.
  • Second, to implement this ethical culture into China needs to provide institutional strength, legalization, and a network to enforce who has the authority to protect the worker’s rights.
  • Companies that can communicate as a self-governing trade union put some steps in this matter.
  • Gucci and its managers made different practical steps regarding these abusive practices, the managers should provide lawful working hours, and overtime work must be payable, not enforced work conducted from the workers, medical care must be provided to them (Czerniachowicz, 2017).

The national and provincial governments in People Republic China (PRC) should contribute to the implementation of these rules. Foreign brands and companies should support these ethical issues to give more protection to the slavery environment of China.Competition environment should be created from the managers and granted them equal opportunities to be successful, promotions facilities should be provided to the workers, and the effective, cooperative and communicative system should be provided to the workers. Gucci and its managers should implement rules and codes that contain a safeguard environment for the followers. It must be strictly enforced as Gucci applied the salivary trend into China’s nation to make its reputation around the world.

Part Six- Conclusion

Gucci as a luxury brand holds all the necessary managerial practices as well as corporate social responsibility framework that help it acquire obligatory business performance. The association plans of Gucci are to transform into the main brand in the extravagance showcase at the worldwide level. Gucci communicates their organization as dependable and proactive, and imply them on their design and styles. These ideas are inter-related; being capable can likewise be sophisticated to acquire long term growth. For Gucci, social mindfully is a fundamental piece of their global technique. They work with a far reaching, yet reasonable methodology. It is their crucial obligation to keep up their situation of an extravagance brand to advance and pioneer supportability. The report presents a comprehensive structure of leadership and values, yet a need to focus on ethical grounds is clear.


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Managing Corporate Social Responsibility

Debate on Corporate Social Responsibility Summary

Innovative management approach towards improvement of employees’ performance at work




After 30 years of societal reform and opening-up policy, China has made tremendous achievements in economic growth and education expansion. In the meantime, China has made nine-year compulsory education virtually universal, and the average years of schooling (AYS) has a sharply increased from 6.794 years in 1996 to 8.28 years in 2008. (Yang, Huang, Liu 2014) China now has the largest primary school system in the world, with an enrollment of 135 million primary school students and 5.9 million teachers in about 582,000 primary schools in 1999. (World Bank, 2002) In the secondary school level, China now has various types of education such as general secondary schools, specialized schools, and adult secondary schools etc. Meanwhile, scale of higher education has also expanded. In 2000, there exist 1770 higher education institutions, with 5.56 million students enrolled. (Minster of Education, China, 2001) Although policies promoting education have led to remarkable progress in educational attainment, also effectively decreasing educational inequality, yet inequalities in educational still remain. In this literature review, I will focus on presenting related articles documented the current situation and essential factors cause inequalities in education such as unbalanced development of regions, rural–urban divide in the household registration system, uneven allocation of high-quality universities and social stratification division. And meanwhile I will propose some plausible solutions to solve inequalities in the police perspective. 

Literature Review

Main factors

  1. Regional disparity

Recently, there are more and more literatures trying to explain the factors cause education inequalities. Hannum (1999) summarized the political change in China and drew a comparison between urban and rural areas from 1949 to 1990; the main finding was children in rural area are lack of education compared to those in urban area. Similarly, Qian and Smyth (2005) used Gini coefficient decomposition to study the educational gaps between rural and urban areas, and the coastal and inland regions of China. The result suggests that the major cause of education inequalities are disparities in access to education between rural and urban areas. As a result of unbalanced development between areas, developed areas have more educational funds and higher educational development. Meanwhile, owing to the disparity in resource allocation between urban and rural, over a long period of time, the urban area achieves greater social and economic development than the rural area. In fact, the largest part of educational investment is present in cities so that teachers with higher degrees and modern equipment for teaching are common in cites, while rare in rural areas. (Fu and Ren, 2010) 

Uneven development of education among regions and regional disparities under current admission played important roles in widening education inequality in China. After China central government conducted the decentralized funding policy, the amount of funding a university can generate is closely related to the economic development of the region it is located in. In general terms, governments, social organizations and individuals in the prosperous coastal areas are much more generous in funding universities than their inland counterparts. With 41.4% of the whole population, the coastal region received 55.8% of the education budget and raised 67.2% of the non-government education income of the whole nation in 2004 (Mok and Lo, 2007)

It has been observed that education for urban students is better than that for rural students in terms of quality and opportunity for further studies (Bao, 2006). First of all, the governments provided less funding for education in rural regions than in urban cities. This directly resulted in lower education quality in rural schools. In 2006, public funding for secondary schools in rural areas was 69.5 billion yuan (USD 9.2 billion), which was only half of the total expenditure on urban secondary schools (126.7 billion yuan, or USD 18.1 billion), but the population in rural areas was 1.3 times larger than that in urban regions in the same reporting year (NBSC, 2008). The underdevelopment of school education in rural areas seriously undermines successful progress from school to university and therefore challenges the equal access to higher education for rural students.

In addition, Bao (2006) states that the tremendous gap between the urban and rural areas exists not only in the unbalanced distribution of compulsory education funds but also in teachers’ levels. He further mentions the supply of academic-qualified and ability-qualified professional teachers of science, mathematics, English, and arts, a must for rural compulsory education, is very small, which then becomes a “bottleneck” that prevents the rural schools from implementing quality-oriented education and improving educational quality. Meanwhile, the problem of the aging of rural teachers is also very serious, such as in Anhui. In 2001, its rural primary teachers under the age of 35 accounted for 31% of the rural teachers, while it is up to 50% in urban primary schools (not including counties and towns), 19% more than that in rural primary schools. In Shandong Province, this proportion is larger: the teachers under the age of 35 in urban primary schools accounts for 55% of the total, and only 28% in rural primary schools, about a half of the former. (Bao, 2006)

Moreover, there is a huge gap in the higher education admission rates between urban and rural students. The higher education enrollment rate for rural students in 2002 was 2.37%, contrasting with 19.89% for urban students. Moreover, in the decade from 1990 to 1999, HE admission rates in rural areas increased by 4.33%, whereas the figure soared by 147.13% in urban areas. (Guo, 2005) Students in rural areas have been experiencing apparent disadvantages in competing with their urban counterparts. It would appear that the urban–rural disparity is evident that passive exclusion exists in China’s education. 


  1. Rural–urban divide and hukou system

Another driven factor leads to educational inequality is the unique Hukou system in China. The Hukou system, which registers urban and rural households separately, leads people to seek education where one’s residence is registered. Consequently, rural students are disadvantaged regarding educational attainment, especially with regards to good quality education which benefits the achievement of a higher degree. (Fu and Ren, 2010) Due to the rural–urban divide in the household registration system, students from rural areas cannot move to cities to acquire good-quality education, despite the fact that most of their parents are doing business and seeking jobs in cities. Moreover, unequal distribution and scarcity of good quality education cause those students who want to get a high-quality education but are not qualified for the exam to pay extra expense when selecting schools. According to Yang, Huang and Liu (2014), such fees are approximately 35,000 RMB, while annual per capital disposable income of urban household and annual per capital net income of rural households are only 15,781 yuan and 4761 yuan respectively. In fact, expenses for selecting a school place a heavy burden on a normal household. Scholars believed that the hukou system greatly influenced people’s social mobility, educational attainments, employment opportunities, and labor-market return. And more specifically, a person’s hukou status is a long-lasting label that represents his or her duty and rights to the state, and is determined by his or her place of birth and parental hukou status, rather than by his or her location or occupation (Cheng and Selden, 1994; Mallee, 2006). Consequently, the hukou system promotes inequality by favoring one individual with a certain status (nonagricultural hukou) over another with a different status. (agricultural hukou) (Fu and Ren, 2010)


  1. Gaokao issue and uneven allocation of high-quality universities

In addition to unevenly regional education development, inequality is simultaneously and deliberately widened by the highly differentiated policy on university admission. As we all know, most Chinese high school students need to take NCEE (National College Entrance Exam), which also named “Gaokao”, to enter universities, but the requirement for admission of each university varies from province to province. For instance, in 2009, the “yibenxian” (minimum requirements for admission into key universities in China) for examinees on the area of science in Shanghai was 455, while in Shandong and Hebei it was 586 and 569, respectively. (Li Wang, 2011) In order to solve this situation, government reforms the NCEE in 2002. However, this policy has not eliminated this issue fundamentally since it does not touch on the key factor leading to the different requirements – the uneven allocation of universities. (Zhou, 2006) Individual institutions develop their own admission plan and decide how many students they would recruit from different provinces. For example, Peking University and Tsinghua University, two prestigious universities in China, recruited 286 and 270 students in Beijing in 2009. These numbers were approximately 5 times the number in Henan province, whereas the population in Henan was 6 times as large as that in Beijing. Similarly, Fudan University, a top university in Shanghai, recruited 1259 students from the city, while only 57 students from Shandong were enrolled by the university in 2004. Consequently, due to the large number of high-quality universities located in the cities, students from other areas will face much higher admission standards than students in Beijing or Shanghai. (Zhou, 2006). 

Given the situation that most universities are located in developed regions such as the eastern costal area and top universities are concentrated in big cities such as Beijing and Shanghai, the disproportionate allocation system of university is severely criticized by people from disadvantaged regions. Additionally, the Hukou system in China has made the situation even worse. Controlled by the rigid Hukou system, people in China are not allowed to move freely among regions. Students are only allowed to apply universities in the province where their Hukou is registered (which is usually where they are born). Thus, for a vast majority of students, they are born with unequal opportunity to access quality higher education institutions. Disparity in higher education resource allocation has reinforced regional inequality in education. Therefore, in this case of active deprivation, the vulnerable group are students in provinces with less higher education resources, where resources are defined not just as HEIs but also high quality HEIs, and the direct cause for exclusion is the quota allocation mechanism. (Li Wang 2011)


  1. Social stratification division and income inequality 

As mentioned before, China has made compulsory nine years education universally, which has decreased the educational attainment gap both in urban and rural areas. The rising income inequality, however, may reduce the positive effect from education expansion, even leading to more education inequality (Yang et al., 2009). Moreover, owing to the scarcity of high-quality educational resources, such income inequalities enable advantaged groups to receive a disproportionate amount of the available high-quality education compared to the poor students. This kind of education inequality originating from severely uneven income is becoming a new rising factor, which causes inequality in the process of urbanization and industrialization. For instance, Yang, Huang, and Liu(2014) conducted an investigation of a respondents’ father’s work unit in each income level, and they found that people whose father worked as a peasant comprises the majority of the lowest 20% income group (first quintile), while offspring from the state-owned sector takes at least 40% of the fifth quintile group. The results demonstrated a tendency that if one’s father works in a state-owned sector, he would have more opportunity to enter the high-income group, which is always accompanied by higher educational attainment. Actually, the father’s work unit represents the inequality of educational opportunity and resources, and such gaps come from family background and social power which not only denominates one’s educational achievement but also affects one’s work and income in the long term. 

Yang, Huang and Liu (2014) stated that in China, although the government has taken some measures to reduce education inequality such as scholarship, financial aid, and transfer payments to less developed areas, education inequality based on family background has not yet been solved fundamentally. Households with social stratification advantages translate their social power and economic resources into better chances of education for their children. Nowadays in China, with the situation of deep income inequality and some employment discrimination based on family background, many students from disadvantaged groups abandon opportunities for higher educational achievement when considering opportunity cost. This kind of pattern seems not to build a barrier for disadvantaged groups, but forces disadvantaged groups to draw a ‘rational choice’ under huge pressures from economic or institutional factors. As a result, social stratification division has an important impact on one’s educational attainment, and the division between urban and rural makes such an effect deeper. (Yang, Huang, Liu 2014)


To sum up, we can conclude that even though Chinese government has achieved tremendous success in expanding education universally and improving the average year of schooling, yet there still exist inequalities caused by unbalanced regional development, increasing income inequality, Hukou system and unequal distribution of good quality education. Although most of the literatures have documented the inequalities exist in China education system, yet seldom of them specifically mention how to design effective solutions to address and improve this situation. Designing a scientific and reasonable mechanism is most needed and it should focus on the disadvantaged group’s educational desire and emphasize balanced development in education in all areas.

Some possible solutions

As proposed by Yang, Huang and Liu (2014), Chinese government should increase educational transfer payments to less developed provinces, especially for some poverty-stricken areas mainly located in the west. In addition, increasing the availability of higher education in central and western provinces will give students there a better chance to be enrolled in colleges. (Liu, 2015) Qian and Smyth (2005) suggested more financial aid should be offered to local governments in the form of direct subsidies from central government and inter-regional transfers from economically developed areas, which targeted at universalizing compulsory education in poor rural areas and assisting in equalizing access to education for children living in those areas. And government should establish national wide curriculum, teaching materials and textbooks in some subjects, standardize teacher qualifications and offer training programs for both teaching staff and administrators from rural areas. (Qian and Smyth, 2005)


The section explains how the research was carried out in accordance with the context of the study. The framework for research includes the various techniques used in the collection of information and the representation of the findings. As the study anchored on an extrapolated assessment of the inequalities and issues on the current educational system in china, a mixed method research was applied, since it incorporates mixed methods into data collection and describes data accessibly. A survey, document analysis by literature review and a sampling of the stakeholders ‘ population were considered as a qualitative method by creating a light to collect and interpret data.

Methodology is a way through which researcher conduct a study. The purpose of this research was to identify education inequalities issues in china. This chapter explains the type of research, population, sample size, tool of data collection, and procedure. 

Research questions 

  1. What are the educational inequalities prevail in higher education system in china? 
  2. Does the region of rural and urban affects the higher education system in china? 
  3. What kind of issues students and teachers has to face in higher education level of china?


H1:  There is a significant difference in education inequalities of male and female

H2: There is a significant difference in education inequalities of rural and urban higher education system

H3: There is a significant relationship between education inequalities and higher education system. 

Research method 

The research was performed using a mixed methodology. The researcher used both qualitative and quantitative methods. The data collection researcher used the survey process. After authorization data were collected from teachers in different institutions, the researcher visited educational institutes and got permission for data collection from the administration of institutes.

Type of research 

This is a descriptive type of research. It was carried out using the questionnaire through a survey. Gay L.R (1987) notes that the “description method is a system for collecting data to check or answer questions about the appropriate status of the subject of the research. A description of the process requires gathering data.


         Teachers of students of educational institutions were the population. Population refers to a group as a whole or to elements with common features.

Sampling technique 

         The data were collected through purposive sampling technique. 

 Sample size

        The sample size of this study was 50 teachers, consisting of 25 men and 25 women. Teachers working in various educational institutions provided requirements for the study. The teacher’s age range started at 25.  Nevertheless, higher school teachers were only selected. Teacher credentials differ between the matrics to M.Phil.

 Tool for data collection 

The researcher constructed a self-administered questioner under the supervision of the supervisor focused on a literature review. The questioner was developed and carried out in English. Only 25 questions were included, both close and open, finished as if yes or no. Many questions are structural, while others are split in two, the first is based on educational disparities that usually prevail in the higher education system. While others are based on issues of higher education policies. All these problems were classified at a 5-point scale Likert, and there was strongly disagreement between the choices.

3.11 Demographic description

















40 and above
















The sample of both  males and females are selected for this research. Through purposeful sampling technique, the investigator chose the sample. The sample  size included 50 participants, 25 men and 25 women. The sample was 25-45 years of age and older. The researcher selected teachers, whose qualifications vary from matric to m.phil. 

Sample description 

Graph 3.1:  Depicts the sample size and division according to gender. 

Graph 3.2: Depicts the sample size and division according to qualification. 


Graph 3.3:  Depicts the sample size and division according to age.

Test analysis 

The SPSS (Statistical Social sciences Package) version 24 was used for the quantitative analysis. Two independent t-tests and Pearson correlation were applied in order to analyze the hypothesis and to measure the differences. While the researcher used bar graphs in descriptive evaluation. The thematic analysis was used for the qualitative analysis research.


          First, the researcher created a self-administered questionnaire which the supervisor accepted in light of the literature review. Therefore, for data collection, the researchers visited various educational institutions. Eventually, at the specified point, the researcher reached the institutions. It was spread in Chinese rural and urban areas amongst teachers at private and public schools. The research aims at the respondents was clarified. The researcher assured the participants that their information would be used only for the purposes of the study and guaranteed privacy. The respondents answered questions.Using SPSS version 24 to analyze the data after data collection has been completed. And the researcher used thematic analysis for open-ended answers and identified three major themes.  


The chapter provides the basis for deliberation of the data obtained by means of the survey questionnaire and the sample population interviews. This is a description of the survey questionnaires. Since teachers collect the data, a description of the details given by the sampled population without affecting its validity is included in the analysis phase. Apart from the demographic factors and characteristics of the respondents, the approach ensures that a large number of the responses and input from the literature examined are incorporated into the overall result. As such, the chapter plays an important role in the way the knowledge gathered serves as an informative resource for recognized issues, which include help for the incorporation of students with special needs into contemporary education environments. 

Questionnaire findings 

The analysis consisted of a total of 50 questionnaires, distributed among teachers and returned the questionnaires by all teachers. The study was attended by all the teachers.

Qualitative analysis 

Table 4.1: Types of inequalities

Type of inequalities & Issues

Number of Students

Regional inequality 


Rural & urban differences 


Hukao system 


Gaoko issue 


Social stratification 


Income inequalities 


Lack of access to higher universities 



The table provides an overview of issues students has to face while getting higher education in china. Among the identified inequalities in the sample population,  teachers reported that students having major inequality is regional disparity, after rural and urban difference which could be in regional. Lack of access to higher rank universities, income inequalities, Gaoko & hukao system and social stratification in general. 

The researcher after analyzing all the data, three major themes/ factors were generated that if these issues would be resolved the inequality can be solved. Further survey would be require to check the extent, from students and teachers to which inequality prevails more and whats the reason behind. 

Factor 1: Indicates a regional disparity ( a disparity of rural & urban, long distance). 

Factor 2: Hukao system 

Factor 3: Indicates the Gaoko system

Graph 4.1 Major themes 



Quantitative analysis 

This research has been carried out in order to access the issues and inequalities in Chinese education. For the data collection the researcher has selected 50 participants, 25 males and 25 females. T-test and correlation were employed to test the hypotheses by the analysis researcher. Descriptive statistics were used by the researchers in all questions.

Table: 4.2

H1:  There is a significant difference in education inequalities of male and female

Independent sample t-test was used for measuring the difference in education inequalities of male and female.











Education inequalities 








Independent sample t-test was used to test the education inequalities male and female has to face in access to higher education. Results revealed that there was a significant difference in male inequalities (M=27.6, S.D=2.82) as compared to female (M=28.3, S.D=1.37), t (48) =.000. The outcomes suggests that female have to face less issues. They are less prone towards issues and inequalities as compared to males. 

Table: 4.3

H2: There is a significant difference in education inequalities of rural and urban higher education system

Independent sample t-test was used for measuring difference in education inequalities of rural and urban higher education system.











Education inequalities 








            Independent sample t-test was used for measuring the difference in education inequalities of rural and urban higher. Results revealed that there was a significant difference in rural and urban education inequalities (M=1.08, S.D=.277) and urban(M=1.00, S.D=.000), t (48) =.003. The above results showed that there are more issues and inequalities prevails in rural areas as compared to urban higher education universities. 

Table 4.4

H3: There is a significant relationship between education inequalities and higher education system. 

Pearson correlation is used to measure the relationship between education inequalities and higher education system..


Education inequalities 

Higher education system 

Education inequalities 





Higher education system 




There is a no relationship between education inequalities and higher education system (r=.612, n=50, p<0.05) was found. It means that there is no issues exists in system of higher education rather than other factors contribute to inequalities in education like regional disparity. 


China’s urban / rural educational divide is very severe and has already become a huge barrier to achieving sustainable and equitable academic, economic and social growth, which has hindered people’s pursuit of equal education. The citizens in the disadvantaged groups are not only keen to reduce the gap between urban and rural areas, but needs a comprehensive and general change of government and social policies. It is also an unwavering responsibility of all citizens.

The quality of rural teachers is a key factor in reducing the educational gap between urban and rural areas. But the problem is double-sided by modern rural teachers. Rural schools criticize high-quality, vocationally educated young teachers on the one hand, while excellently young graduates are rarely employed for rural work on the other. This means that rural areas do not have enough teachers.

It is therefore recommended that some special funds be allocated to a national’ One million rural teaching jobs ‘ project by the central government, to send graduates who have qualifications for teachers and good teachers into urban elementary and secondary schools into rural schools through a certain procedure, while specifying their working time and the appropriate treatment they will be able to receive.

In addition, China’s rural ^ urban dividing relationship between hukou status and return to education. First, the effect of hukou status on income is best explained by specific labor market characteristics such as education and employment. Hukou status ‘ independent partial impact on income is trivial. Second, the status of hukou mainly affects income by returning to education, though employment affects more income determination. Second, the gap between people with different hukao status is in return for education. The gap is also increasing with reductions in school years, and this disparity in primary education is approaching its height. In general, a return to education in China is affected by an individual’s education, just like in the US where foreign educated Asian immigrants earn less than US educated Asian immigrants.  While difficulties such as downward social mobility, fewer years of education and employment in the informal sector are an adverse reality for farm hukou workers, this paper illustrates an additional source of disparity between education and the hukou system. Two competitive theories will generally help us understand the social exclusion of people with hukou status in agriculture. Psychologists say the urban population must find a scapegoat or a minor party, who is responsible for the problems of urban life. Researchers also claim that the status of hukou acts as a indication of the significance of an individual to society and therefore, because of their relatively low human capital, individuals whose agricultural huku status identifies are discriminated against. While our empirical results support the latter view of labor market return, both theories play a role. Results from this study show that disparity in education quality plays an important role in deciding the return of the labor market in rural China.

An ideal admission system should also take into account things other than the range of standardized tests, including intellectual capabilities, innovative potential and leadership. But for modern Chinese society it is not feasible. In the beginning the majority of reforms and changes, including the recommendation policy and the autonomous registration, have been suspended or cancelled because of their vulnerability to corruption and fraud. While Gaokao is perhaps the Chinese Government’s most effective and fair practice, it will never be perfect to safeguard equity in admission against the influence of maneuver. We therefore suggest the government establish a faculty-wide and other academic community in higher education, where everybody is responsible for their suggestions and any decisions on admissions.

In addition to the Gaokao system, many other social factors contribute to equal treatment of access to higher education. Substantially, the unbalanced level of development among different regions and regions of China reflects the unbalanced Gaokao system. Moreover, restrictions on the system of household registrations have linked people to their registrations, depriving people of the right of free domestic immigration and, by impeding social mobility, exacerbating regional inequality. The political conflict over different periods may be another aspect that might result in the current situation. In the first stage of the growth of high education, the Chinese government was eager to keep up with the western countries through its spending, especially in some of the leading universities like “985” “211.” Education authorities are now considering eliminating the distinction between the funding of “211” and “non-211.” The main concern is the insufficient access to higher education. Reforms of the system itself would therefore be too simplistic to address the real problems. Politicians should be more forward-thinking to change the Chinese higher education system’s cultural and social context. In order to ensure higher education accessible to students from all regions and socio economic context, we propose that the government put its focus on the bridging of the differences in the number of EIS and the regional quotas between the different provinces and communities.


The purpose of the analysis is to examine Chinese educational disparity situation and development process. The results show that in recent decades, the strategy of education reform has helped to significantly reduce educational disparity and to strengthen the university system. There is a universal law that stipulates that the higher the level, the lower the gap in education. Overall, there are still significant educational differences between regions.

The findings are that the educational difference between urban and rural areas is so substantial, as there is more potential for people in urban areas to get better education. While the educational gap of men and women has dropped dramatically, the differences between men and women remain unchanged and should be taken into account, especially in rural poor areas. Educational transfers to less developed provinces should develop as a central government, and a financial system should be established under the governance of a provincial institutions. It should be noted further that the intergroup aspect is most important to achieve total educational disparity when the social stratification division involves influences. In particular, the distinction between strata deepens academic disparities between groups with income inequality history. Ultimately, age differential findings show that rising young people’s academic accomplishments play a major role in reducing educational disparity.

In order to know which of the above factors contribute most to educational inequality. The results show that urban-rural split contributes most to education inequality, and social stratification, age, gender gap, and regional gaps are increasingly important. It should be noted that the hukou system has created a disparity in education and development opportunities between urban and rural regions. In addition, the division of social stratification will intensify this already detrimental impact with the backdrop of rising income inequality. A relatively dominant class enjoys greater educational opportunities and good educational resources by combining system discrimination and power, but those with disadvantages are excluded. In China, this is a growing increase in educational inequality. The Chinese government has unfortunately devoted minimal attention to such inequalities in education and has not taken certain possible remedial measures.

China is now experiencing rapid economic development, because during the process of urban development and industrialization the government is trying to eradicate urban-rural division. In the coming decades, increasing numbers of farmers and their descendants can predict swarm into cities. Inadequate investments in education and unequal distribution of quality education, however, could be a primary cause of migration, causing further education inequality over the long term. In addition, however, increased income inequality and deepening differentiation of strata will challenge education reform. The design of a scientific and reasonable mechanism should focus on the educational desire of the disadvantaged group and highlight balanced development in all areas of education.



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