Institutional Settings in Asia Relevant to Business Sustainability

This chapter presents Asian institutional settings relevant to business sustainability. It examines institutional settings in different Asian jurisdictions individually with respect to interrelated factors: political, cultural, legal, ownership, market environment, and level of economic development. Common factors together with differing factors are analyzed by grouping jurisdictions which are similar and those which are different. Firstly, Mainland China and Vietnam share a common ideology, communism, which they have shared throughout their respective histories. Secondly, both countries share the same cultural philosophy, Confucianism, which has a great impact on corporate social responsibility (CSR) and business sustainability. Thirdly, another two factors that have affected business sustainability are the level of economic development and market environments. Finally, one common factor that can be identified as a significant influencer in Asia is guanxi or relationships. Sustainability initiatives can be established at a corporate level or at a national level, often with the integration of both levels.