Chapter Three

Differences in Culture

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What is Culture?

“That complex whole which includes

knowledge, belief, art, morals, law, custom, and

other capabilities acquired by man as a member of society.”

- Edward Tylor(19th century anthropologist)

“A system of values and norms that are shared

among a group of people and that when taken together constitute a design for living.”

- Hill(adapted from Hofstede, Namenwirth, and Weber)

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Components of Culture

• Values - cultural bedrock

• Norms - social rules that

govern interactions

• Society- a group that shares

common values and norms

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Folkways and Mores

Folkways • Routine conventions of

everyday life.- Social conventions such as

dress codes, social manners, and neighborly behavior

- Demonstrate social (or cross-cultural) competence

- Violations generally do not invite moral judgment (i.e. of good and evil)

Mores• Norms that are central to

the functioning of society and its social life

- Greater significance than folkways

- Actions may be either illegal (theft, adultery) or taboo (incest, cannibalism)

- Violators are considered evil; violations bring serious retribution

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Culture, Society, and the Nation State

• Distinctions- Culture: A system of values shared by a group- Society (ethnie): A group bound by a common culture- Nation: A self-defined cultural and social community (an

“imagined” community, Benedict Anderson)- State: A political association with effective sovereignty over a

geographic area

• Issues- Societies, nations and states do not always correspond- Subcultures (often hidden) are found in many nation-states

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The Determinants and Manifestations of Culture

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Social Structure

• Social structure refers to its basic social organization• Two dimensions that are particularly important

include:- The extent to which society is group or individually oriented- Degree of stratification into castes or classes

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Religious and Ethical Systems

• Religion: a system of shared beliefs and rituals that are concerned with the realm of the sacred

• Ethical systems: a set of moral principles, or values, that are used to guide and shape behavior

- Most of the world’s ethical systems are the product of religions

• Among the thousands of religions in the world today, four dominate in terms of numbers of adherents:

- Christianity with 1.7 billion adherents- Islam with 1 billion adherents- Hinduism with 750 million adherents- Buddhism with 350 million adherents

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Religious and Ethical Systems

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Language

• Spoken- Verbal cues- Language structures perception of world

• Unspoken- Body language- Personal space

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Education

• Formal education plays a key role in modern society- medium through which individuals learn indispensable

language, conceptual, and mathematical skills- supplements the family’s role in socializing the young into

the values and norms of a society - teaches basic facts about the social and political nature of

a society and the fundamental obligations of citizenship

• Cultural norms are also taught indirectly at school- Part of a “hidden curriculum”- Examples of cultural norms include: respect for others,

obedience to authority, honesty, neatness, being on time- The grading system socializes children to value of personal

achievement and competition

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Cultural Change

• Culture is not a constant; it evolves over time- Since 1960s American values toward the role of women

have changed- Japan moved toward greater individualism in the workplace

• Globalization will continue to have impacts on cultures around the world

- Is the world moving toward greater cultural convergence or divergence?

- Are the values of collectivistic culture incompatible with economic progress and development

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Cultural Change

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Managerial Implications

• Cross-cultural literacy- The danger of ethnocentrism

• Culture and competitive advantage- Value systems and norms influence the cost of doing

business in a country (transaction costs)• How determinative is culture for economic success?• How important is culture in shaping the foreign

investment decisions of MNCs?

• Culture and business ethics

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Looking Ahead to Chapter 4

• Ethics in International Business- Ethical Issues in International Business- Ethical Dilemmas- The Roots of Unethical Behavior- Philosophical Approaches to Ethics- Ethical Decision Making