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Culture and ethics, cross-cultural set up, ethics in international scenario, attitude, perception, belief, ego states and

life positions

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.

Culture and ethics


Cultural differences in organizations dealing internationally have their greatest impact mainly in motivation, teamwork, negotiations, decision-making, and mergers & acquisitions. French : human relationship oriented, doing many things at the same time; high content : in need of little information, assumed to know many things through relations network; high power distance: respect for authority, hierarchical organization. American : doing one thing at a time, work very important; low content : need lots of information, assumed to know nothing; low power distance : democratic organization, staff participates in the decision making process, will bypass authority

Cross-cultural set up

Ethical Standards and Culture


Corporate Gift Giving
In Japan, lavish gifts are a part of business. In United States, government officials are not allowed to accept gifts (and many corporations have policies against this). When doing business abroad, be sure to understand culture.

Cross-cultural set up
Ignoring culture can lead to problems and disruptions. For example, some business cultures may thrive in an exchange and dialogue-based communication system while other cultures (for example, Japanese and Arab cultures) rely more heavily on subtext. If new information or ideas are suddenly imposed on employees accustomed to a more collaborative work culture, there may be a lack of buy-in and the project will fail

Cross-cultural set up
In observing cultures several dimensions have become accepted categories in which to analyze them. For example, when trying to develop a strategy in managing staff . the relationship to authority is viewed differently from diverse cultures. Those with a 'high' power distance tend to respect hierarchy and accept authority. Staff expects to be directed more, less initiative taken. In cultures with 'low' power distance they tend to be more democratic and staff expects to have a more active part in decision making.

Cross-cultural set up
Culture seems to be the glue that keeps the individual stuck to the collective identity image. 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, etc). It creates the basis for stereotype formulation. Culture provides language and thought to its members.

Ethical Issues in International Business Religion, ethics, 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

Ethical Issues in International Business Many ethical issues and dilemmas are rooted in differences in political systems, law, economic development, 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 multinationals home nation, what standards should be applied? How much divergence is acceptable?

Ethical Issues in International Business


Human Rights
Basic rights are not respected in many nations
- freedom of speech - freedom of association - freedom of assembly - 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 - The water in Mekong River

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 ones job or job experience Organizational Citizenship Behavior
Behavior that is above and beyond duty Related to job satisfaction

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 - values that represent the goals to be achieved, or the end states of existence

Ego sense of importance and a A person with an inflated ego has an exaggerated
feeling of superiority over others. There is a fine line between a healthy ego and egocentrism. Failing to take ethical rules seriously shows a kind of arrogance that says, "What I think is right is most important." Playing by the rules requires a sense of respect for something greater than ourselves. To accept this, we must agree that ethical principles laid down by our employer supersedes whatever interpretation or personal exception we dream up. Many of the guidelines and rules at work are not up for interpretation (i.e. securities laws, email etiquette, employment policies, use of company resources, etc.). Ego and Others: A person's ego can be a hazard to those both in authority and under authority. By nature of the position, a supervisor is especially prone to ego dilemmas. After all, the boss is the boss. Power can corrupt. A leader with an ego blames others for mistakes to protect him or herself at all costs. He or she makes up his or her own rules, and treats others poorly or with partiality. They are a legend in their own mind and garner only superficial respect (at best) from subordinates.

Perception
The ability to see, hear, or become aware of something through the senses. 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, the basis for that process is the perception of aspects of one's situation, which is different for each person. Moral perceptions are furthermore particular in nature.

Life positions

Value systems, Attitudes, Beliefs and Practices


Values are general terms referring to those things which people regard as good, bad, right, wrong, desirable, justifiable etc. Business is driven by values. Values are potent sources of conflict as well as of cooperation. Managerial values are e.g. importance of good in organizations ( like productivity, profit maximization, employee welfare, industry leadership, organizational stability, organizational efficiency, organizational growth, social welfare etc.), groups within organizations ( like employees, customers, co-workers, superiors, subordinates, stock-holders etc.) and the personal goals of individuals.

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Value systems, Attitudes, Beliefs and Practices


Values are classified under 4 aspects: Criteria for accepting values 1.Criteria of universality 2.Greatest good for the greatest number. Values required to be optimized (no maximum, no minimum): 3.Controlled greed 4.Pursuit of pleasure 5.Efficiency and work ethics 6.Compensation and charity 7.Piety (Quality of being pious) 8.Truth 9.Transparence and honesty
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Value systems, Attitudes, Beliefs and Practices


When our value system is clear it becomes a lot easier to make decisions and commitments. Commitment implies: 1. 2. 3. 4. 5. 6. Dependability Reliability Predictability Consistency Caring Empathy 7. 8. 9. 10. 11. A sense of duty Sincerity Character Integrity Loyalty

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Value systems, Attitudes, Beliefs and Practices


Norms : 1. Norms are expectations of proper behaviour, not requirements of that behaviour, a major difference between a norm and a law. 2. Each individual within a society has a set of norms, belief and values that together form the individuals moral standards. 3. The norm is not published, 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

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Value systems, Attitudes, Beliefs and Practices


Beliefs The belief in an ethical code are standards of thought. These are the ways that the senior executive in the organization want others to think. Belief are criteria of thought. They are the ways an individual expects people to think about given concepts. Beliefs are different from norms, since we do not find any action only an abstract way of thinking, no untoward behaviors with others.

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Value systems, Attitudes, Beliefs and Practices

Moral standards, Beliefs and their role Law is a dynamic entity since the rules prevalent now may change after some period. There seems to be time lag between changes in moral standards and changes in legal requirements. 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.

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Value systems, Attitudes, Beliefs and Practices


Moral standards Vs. 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 not established or changed by the decisions of particular authoritative bodies. Moral standards to be preferred to other values including self interest. Moral standards are based on impartial considerations.
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Value systems, Attitudes, Beliefs and Practices


Morality is the standards that an individual or a group has about what is right and wrong, good and evil. E.g. integrity is good, dishonesty is bad, it is right to tell the truth and wrong to endanger the lives of others. Ethico-moral actions pertain to set of actions engineered by the characters and expressed through behaviors.
Character Behaviour Matrix
Strong B Strong C Weak Strategic Man B Weak C = Weak Dogs (avoid and discard) Weak Character ( C )
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Behaviour (B)

B strong C strong Desired Mix e.g. Gandhi, Tata. B Weak C Strong Need Corrections Hitler Strong

Weak

Strong strong behaviour character we find in M K Gandhi, J R D Tata who have certain set of qualities like : Honesty Truthfulness Sincerity Generosity Transparency Cooperation Integrity Strong will power etc.
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Value systems, Attitudes, Beliefs and Practices


Attitudes are predisposed, evaluative feelings of people about objects, people or events. Attitudes express about favorable or unfavorable feelings about something. Attitudes are formed right from our childhood experience, our background, our learning situations and are reinforced in adult life. On the other hand, perception is the process of becoming aware of situation and interpreting our sensory impressions in order to give meaning to our environment. Whatever we perceive, depends on our attitude to that object or happening at that point of time. Individuals behave in a given manner, based not on the way their external environment actually is, but on what they see or believe it to be.

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