Introduction:

By far, little has been written about teaching business ethics in a transitional economy. Sexty1 suggests a number of guidelines that Western instructors should consider when becoming involved with ethical training in a transitional economy. His suggestions focus more on improving the flexibility of teaching business ethics in a transitional economy than increasing the relevancy of the subject. Due to the unique characteristics in a transitional economy, the traditional business ethics teaching approach that focuses solely on ethical awareness, ethical knowledge and ethical judgment skills can neither satisfy the students’ needs nor meet the society’s expectations, and let alone make a positive influence on the society in the period of economic transition. This paper discusses the unique characteristics of the transitional economy in China, analyzes the challenges for the traditional business ethics approach, and suggests a practical approach based on three types of ethics-related issues.