But, doesn't shame come in the form of not wanting to lose face (especially for your family), therefore the disincentive to do anything wrong.
I get the feeling "face" doesn't work like that. "Face" is the nearest equivalent English word, but it's really not correct.
In many cultures, shame (or the fear of shame) is essentially a positive thing. It acts as a personal restraint, making sure bad things don't happen, or happen less often. Or, if after the fact, shame can lead to reconciliation.
There are two big differences in Taiwan. Firstly, shame is considered an
entirely negative emotion. To cause someone to feel shame (ie., to "lose face") is a terrible insult to that person, regardless of whether he
should feel shame, because the connection between shame and social (or personal) improvement does not exist. In other words, if you are made to feel shame, there is no way to relieve yourself of it; no 'redemption', if you like. So the shamed person lashes out, because they perceive that they are being hurt for no purpose. I sometimes wonder if this reaction stems from the 'self-criticisms' which were forced upon people during the Cultural Revolution. Secondly, doing something wrong does not make you lose face, because while shame is personal, losing face is an external thing; it's something that's
done to you, rather than something that happens inside your head. So only
getting caught makes you lose face. Obviously, that isn't an exclusively Chinese phenomenon, but I think the culture here does something to encourage it.
Just my daily dose of pop psychology. Could all be bollocks, of course. I'm just trying to describe my personal understanding of what's meant by 'face' and '丟臉'.