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Culture and ethics
• Cooperation is easier and conflicts are limited when people share convictions. • Standards and values are an integral part of any culture; hence, culture is the bedrock supporting every development. • Cultural dimensions impact on management • The corporate culture and its norms override the national culture's norms. • However, this universal view of a corporate culture does not erase cultural influences.
staff participates in the decision making process. assumed to know nothing. high power distance: respect for authority. work very important. • American : doing one thing at a time. assumed to know many things through relations network. will bypass authority . • French : • human relationship oriented. hierarchical organization. low power distance : democratic organization. low content : need lots of information. and mergers & acquisitions. decision-making.Culture and ethics • Cultural differences in organizations dealing internationally have their greatest impact mainly in motivation. teamwork. doing many things at the same time. high content : in need of little information. negotiations.
Cross-cultural set up .
. – When doing business abroad. be sure to understand culture.Ethical Standards and Culture • Corporate Gift Giving – In Japan. government officials are not allowed to accept gifts (and many corporations have policies against this). – In United States. lavish gifts are a part of business.
there may be a lack of buy-in and the project will fail . Japanese and Arab cultures) rely more heavily on subtext. For example. If new information or ideas are suddenly imposed on employees accustomed to a more collaborative work culture.Cross-cultural set up • Ignoring culture can lead to problems and disruptions. some business cultures may thrive in an exchange and dialogue-based communication system while other cultures (for example.
less initiative taken. . • Staff expects to be directed more. when trying to develop a strategy in managing staff . • Those with a 'high' power distance tend to respect hierarchy and accept authority. • For example.Cross-cultural set up • In observing cultures several dimensions have become accepted categories in which to analyze them. In cultures with 'low' power distance they tend to be more democratic and staff expects to have a more active part in decision making. • the relationship to authority is viewed differently from diverse cultures.
etc). • It creates the basis for stereotype formulation. • This collective identity takes on the form of an idealization which is characterized and exemplified in the arts and media (through advertisements see Nike : Michael Jordan . perfume commercials portraying the desirable woman.Cross-cultural set up • Culture seems to be the glue that keeps the individual stuck to the collective identity image. Culture provides language and thought to its members. .
Ethical Issues in International Business Religion. and global diversity • The world has many different ethical systems – mostly derived from different religions • Different systems can lead to different opinions about what is ethical . ethics.
Ethical Issues in International Business • Many ethical issues and dilemmas are rooted in differences in political systems. what standards should be applied? • How much divergence is acceptable? . and culture • Some key ethical issues in international business … • Employment Practices – When work conditions in a host nation are clearly inferior to those in a multinational’s home nation. economic development. law.
freedom of speech .freedom of association .Ethical Issues in International Business Human Rights Basic rights are not respected in many nations .freedom of assembly .The water in Mekong River .freedom from political repression ‘What is the responsibility of a foreign firm in a country where human rights are trampled?’ Environmental Pollution Environmental regulations (or enforcement) in host nations may be inferior to those at home Multinationals can produce more pollution than at home The tragedy of the commons occurs .
• Corruption Ethical Issues in International Business • Social responsibility – International businesses can. and have. gained economic advantages by making payments to government officials – US passed the Foreign Corrupt Practices Act – Organization for Economic Cooperation and Development (OECD) adopted the Convention on Combating Bribery of Foreign Public Officials in International Business Transactions – Multinational firms have power. wealth from control over resources and ability to move production – Moral philosophers argue that with power comes the responsibility to give something back to the societies that enable them to prosper • Advocates argue that businesses need to recognize their noblesse oblige (benevolent behavior that is the responsibility of successful people and enterprises) .
Attitude Attitude .a psychological tendency expressed by evaluating an entity with some degree of favor or disfavor Direct Experience Social Learning Should poor performance be blamed on “bad attitude”? .
Work Attitudes: Job Satisfaction Job Satisfaction .a pleasurable or positive emotional state resulting from the appraisal of one’s job or job experience Organizational Citizenship Behavior – Behavior that is above and beyond duty – Related to job satisfaction .
values that represent the goals to be achieved.Values/Beliefs Values .enduring beliefs that a specific mode of conduct or end state of existence is personally or socially preferable to an opposite or converse mode of conduct or end state of existence Instrumental .values that represent the acceptable behaviors to be used in achieving some end state Terminal . or the end states of existence .
the boss is the boss.e." Playing by the rules requires a sense of respect for something greater than ourselves. securities laws. Failing to take ethical rules seriously shows a kind of arrogance that says. we must agree that ethical principles laid down by our employer supersedes whatever interpretation or personal exception we dream up. use of company resources. By nature of the position. After all. etc. To accept this.• • • • • Ego sense of importance and a A person with an inflated ego has an exaggerated feeling of superiority over others. employment policies. • • • . email etiquette. Power can corrupt. There is a fine line between a healthy ego and egocentrism. Many of the guidelines and rules at work are not up for interpretation (i. A leader with an ego blames others for mistakes to protect him or herself at all costs. "What I think is right is most important. a supervisor is especially prone to ego dilemmas. Ego and Others: A person's ego can be a hazard to those both in authority and under authority. They are a legend in their own mind and garner only superficial respect (at best) from subordinates. and treats others poorly or with partiality. He or she makes up his or her own rules.).
• Distinguishes moral perception from moral judgment. . • Whereas a person's judgment about what the moral course of action is the result of a conscious deliberation. or become aware of something through the senses. the basis for that process is the perception of aspects of one's situation. which is different for each person.Perception • The ability to see. • Moral perceptions are furthermore particular in nature. hear.
Life positions .
) and the personal goals of individuals.g. justifiable etc. wrong. Attitudes.ETHICS . stock-holders etc. Beliefs and Practices • Values are general terms referring to those things which people regard as good. industry leadership. right. bad. Managerial values are e. Values are potent sources of conflict as well as of cooperation. customers. superiors. organizational growth. social welfare etc.Value systems. groups within organizations ( like employees. organizational stability. • • • MKS .). organizational efficiency. co-workers.LECTURE 3 19 . Business is driven by values. importance of good in organizations ( like productivity. employee welfare. subordinates. desirable. profit maximization.
ETHICS . Attitudes. Beliefs and Practices • Values are classified under 4 aspects: •Criteria for accepting values 1.Criteria of universality 2.Piety (Quality of being pious) 8.Pursuit of pleasure 5.Truth 9.Compensation and charity 7.LECTURE 3 20 .Greatest good for the greatest number.Efficiency and work ethics 6. •Values required to be optimized (no maximum.Value systems.Controlled greed 4.Transparence and honesty MKS . no minimum): 3.
• Commitment implies: 1.Value systems.ETHICS . 2. Attitudes. A sense of duty Sincerity Character Integrity Loyalty MKS .LECTURE 3 21 . 4. 8. 5. Dependability Reliability Predictability Consistency Caring Empathy 7. 10. 6. 11. 9. 3. Beliefs and Practices • When our value system is clear it becomes a lot easier to make decisions and commitments.
2. The norm is not published.ETHICS . Each individual within a society has a set of norms. not requirements of that behaviour. Attitudes.LECTURE 3 22 . belief and values that together form the individuals moral standards. may not be obeyed and cannot be enforced – except by the sanction of small group whose members hold the similar norms and use such penalties as disapproval or exclusion MKS .Value systems. a major difference between a norm and a law. 3. Beliefs and Practices Norms : 1. Norms are expectations of proper behaviour.
Beliefs and Practices Beliefs • The belief in an ethical code are standards of thought. They are the ways an individual expects people to think about given concepts. MKS . no untoward behaviors with others. These are the ways that the senior executive in the organization want others to think. • Beliefs are different from norms.LECTURE 3 23 .ETHICS . since we do not find any action – only an abstract way of thinking. Attitudes.Value systems. • Belief are criteria of thought.
Attitudes. • Moral standards include the norms we have about the kinds of actions we believe are morally right or wrong as well as the values we place on the kinds of objects we believe are morally good and morally bad.ETHICS . Beliefs and Practices Moral standards. Beliefs and their role • Law is a dynamic entity since the rules prevalent now may change after some period. MKS .LECTURE 3 24 . There seems to be time lag between changes in moral standards and changes in legal requirements.Value systems.
ETHICS .Value systems. Moral standards are not established or changed by the decisions of particular authoritative bodies. Beliefs and Practices Moral standards Vs.LECTURE 3 25 . Moral standards to be preferred to other values including self interest. MKS . Attitudes. Standards • Characteristics that distinguish Moral standards with Standards: Moral standards are associated with special emotions and special vocabulary Moral standards deal with matters that we think can seriously injure or seriously benefit human beings. Moral standards are based on impartial considerations.
ETHICS .g.g. it is right to tell the truth and wrong to endanger the lives of others. Tata. dishonesty is bad. B – Weak C – Strong Need Corrections Hitler Strong Weak Strong – strong behaviour – character we find in M K Gandhi. • Ethico-moral actions pertain to set of actions engineered by the characters and expressed through behaviors. Attitudes. Gandhi. Character – Behaviour Matrix Strong B – Strong C – Weak Strategic Man B – Weak C = Weak Dogs (avoid and discard) Weak Character ( C ) MKS . integrity is good.LECTURE 3 Behaviour (B) B – strong C – strong Desired Mix e. J R D Tata who have certain set of qualities like : •Honesty •Truthfulness •Sincerity •Generosity •Transparency •Cooperation •Integrity •Strong will power etc.Value systems. good and evil. Beliefs and Practices • Morality is the standards that an individual or a group has about what is right and wrong. E. 26 .
people or events. Attitudes.Value systems. Individuals behave in a given manner.ETHICS . • Whatever we perceive. • Attitudes are formed right from our childhood experience.LECTURE 3 27 . but on what they ‘see’ or ‘believe’ it to be. Beliefs and Practices • Attitudes are predisposed. depends on our attitude to that object or happening at that point of time. our learning situations and are reinforced in adult life. Attitudes express about favorable or unfavorable feelings about something. evaluative feelings of people about objects. MKS . • On the other hand. our background. based not on the way their external environment actually is. perception is the process of becoming aware of situation and interpreting our sensory impressions in order to give meaning to our environment.
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