CROSS-CULTURAL ETHICS IN

BUSINESS

Prepared by :

M.yaseen(aseer)

CONTENT :

1) multi-polar equilibrium

2) Introduction to cross cultural ethics in business

3) Cultural ethics

4) Branches of ethics

5) Cross cultural issues

6) Effects of culture on business ethics

7) new economic order in business ethics

Movement toward a multi-polar equilibrium:

The interaction of people from different

backgrounds in the business world. Cross culture

is a vital issue in international business, as the

success of international trade depends upon the

smooth interaction of employees from different

cultures and regions.

Introduction :

CULTURAL ETHICS :

. Cultural ethics, as the name suggests deals with the

morality, integrity, principles and values of a culture, and in

some case, even religion.

It usually differs from culture to culture. In spite of that, certain values remain the same simply because they are ethically and

morally justifiable.

Cultural ethics reflect the values and morals of a society and therefore, it plays a vital role in the governance of that

society.

Culture is an integral part of ethics and vice versa. The

culture of a community impacts it progress, development, laws, principles and to some extent,

its policies

Cultural Ethics

BRANCHES OF ETHICS:

Ethics can be divided into various branches

Meta-ethics: Meta-ethics deals with the meaning of truth-values intheory and refers to moral propositions.

Normative Ethics: Normative Ethics deals with the practicality ofactions & it examines standards for the rightness and wrongnessof actions.

Applied Ethics: Applied Ethics refers to moral and ethical outcomesthat can be achieved, in particular situations.

Moral Psychology: Moral Psychology deals with the developmentand nature of moral capacity.

Descriptive Ethics: Descriptive Ethics are moral values that mostpeople follow and stand by.

EFFECTS OF CULTURE:

• Determines how people communicate and Interact .

• Determines how people relate to one another.

• Guides day-to-day working relationships.

• Determines what is appropriate behavior.

• Determines how power and status are allocated.

CROSS-CULTURAL ISSUES

21 Century propelled by globalization and multiculturalism.

Implications for international marketing .

Cultural diversity and cross-cultural issues present different challenges to all marketers.

Some cultures view certain ethical practices with different levels of condemnation

The more serious problem concerns two different ethical standards meeting in a business transaction.

Different cultures have different rules of conduct.

Based on comparative cultural advantage :

Much more than “outsourcing.” Many countries have

cheap labor. Only a few have become economic

powerhouses.

Such as…

• Japanese quality.

• Korean manufacturing.

• Indian information technology.

• Chinese entrepreneurship.

• Rule-based cultures

A new economic order

Japanese quality

Continuous improvement :

• Group-oriented, rather than requiring individual reward.

• Long time horizon.

• No need for cause-and-effect manipulation.

• Maintain group harmony by honoring everyone’s ideas.

• Nemawashi.

Superior operations management :

• Just-in-time inventory management

• Kanban systems minimize rework, maximize flexibility.

• Lean manufacturing, reduced setup times.

Korean Manufacturing :

Cozy relationship between leading industrial families and the government

• Allowed Korea to build major private corporations in a relationship-based culture.

Loyalty to the boss :

• Paternal relationship.

Highly disciplined, hierarchical groups:

• Organized by age.

Highly competitive, masculine culture:

• Strong national solidarity.

Focus on loyalty to boss :

• Bottom line and short-term profitability are secondary.

Indian IT :

Pantheism vs. secularism :

• No need to maintain & manipulate nature. • Other coping mechanisms .

Inner discipline :

• Get control of one’s mind rather than the environment.

• Modern form: intellectual discipline, academic competition.

Networking:

• Efficient way to absorb technical knowledge.

Indians see themselves as Westernizing :

• There is a common reliance on rationality.

• But Indians are leveraging their own cultural traits.

Chinese entrepreneurship

A cultural trait of coastal Chinese:

• Particularly, speakers of Yuè (Cantonese), Mĭn

(Fujianese), and Wú (Shanghaiese) dialects.

Uncertainty tolerant culture:

Self esteem tied to wealth and status:

• “To be rich is glorious” (Deng Xiaoping).

Masculine culture, competitive.

Relationship-based business:

• Guānxì is a time-tested mechanism. • World’s

largest economy for 8 of last 10 centuries,

soon to be again.

Making inroads into South America, Africa, Middle East:

• These countries are more comfortable with Chinese

relationship-based business style than Western rule-

based transparency.

Rule-based cultures

Autonomous, rational individuals must have equal status:

• Ethic of justice, equality, human rights.

• Grounded in rationality (e.g., Kant). …and equal authority.

• Allegiance is to rules rather than persons.

• The rules must be self-evident and therefore universal.