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Running Head: Culture, Values, and Ethics Between the U.S. and Brazil 1

Culture, Values, and Ethics Between the U.S. and Brazil

Cezar de Paula

Lori Lee

Shelby McCoy

Running Head: Culture, Values, and Ethics Between the U.S. and Brazil 2

ABSTRACT

This research paper examines the informal institutions between two countries,

the United States and Brazil. These informal institutions consist of the culture, values,

and ethics of a country, and the combination of these principles are unique to each

individual country. This paper investigates the differences in the informal institutions

between the United States, a highly developed country, and Brazil, one of the leading

countries among the emerging economies. By primarily using Hofstede’s Cultural

Dimensions Theory, we were able to examine that although there are some great

cultural differences, Brazil is starting to resemble the United States on a few of these

aspects. In addition, the cultural dimensions of the two countries influence their ethics

and values, so the Hofstede model is extremely valuable to this paper.

INTRODUCTION

The Hofstede Cultural Dimensions Theory has been a dominant measure of

culture between countries for the past couple decades (Donthu, N., Lenartowicz, T.,

Yoo, B., 2011). The model covers major conceptualizations of culture, and it provides

useful information for cross-culture studies. It utilizes six dimensions to differentiate

among cultures, and these dimensions include individualism, masculinity, uncertainty

avoidance, power distance, indulgence, and pragmatism.

Running Head: Culture, Values, and Ethics Between the U.S. and Brazil 3When examining the differences between the unique cultures of the United

States and Brazil, we will focus on how these differences impact the values and ethics

of these countries as well. Although the United States and Brazil are two very culturally

diverse countries, they share many similarities. We will determine whether these

similarities are a factor of the increasing globalization of Brazil.

CULTURE

Dimension U.S. Brazil Difference

Power Distance 40 69 (29)

Uncertainty Avoidance 46 76 (30)

Individualism 91 38 53

Masculinity 62 49 13

Pragmatism 26 44 (18)

Indulgence 68 59 9

Individualism

Individualism refers to whether a society will value the individual or the whole.

Brazil has a low score of 38, meaning that people will be very dependent on each other.

People living in Brazil tend to view themselves as a collectivist community, where

people put the demands and goals of the group before those of the individual members

Running Head: Culture, Values, and Ethics Between the U.S. and Brazil 4(Beekum, R., Stedham, Y., Yamamura, H., 2003). In contrast, the United States scores

at the other end of the spectrum at 91. The United States tends to have an

individualistic view in their culture, which promotes uniqueness, entrepreneurship, and

independence (Forsyth, D., McDaniel, M., O’Boyle, E., 2008).

Pearson and Stephan suggest that individualistic cultures are rather

confrontational while handling conflict situations. On the other hand, individuals in

collectivistic cultures commonly choose more passive strategies. Thus, collectivistic

cultures tend to avoid conflicts (1998, p. 68). When comparing Brazilians and the

Americans, the latter tend to be more aggressive when handling interpersonal conflicts

than the former. Communicating directly is the norm in both American society and

corporate culture (Pearson, 1998, p. 79). Assertive competitiveness between friends is

commonly accepted in the United States; oppositely, in higher collective cultures, like

Brazil, this type of competitiveness is embraced among peers (Pearson, 1998, p. 67).

These cultural norms do not suggest that Brazilians avoid confrontations all together or

that they lack the capacity to be competitive, but Brazilians are more selective about

with whom they compete with and enter into conflicts with. Brazilians are more likely to

be engaging in conflicts when confronting strangers, rather than members of the same

group (Pearson, Stephan, 1998, p79). That means, in a corporate environment,

Brazilians might avoid confrontation with members of the same company even if they

are expatriates living in Brazil, as far as they are accepted as part of their group. In

contrast with the informal culture of jeitinho that can be settled with strangers, personal

loyalty relationships are important for Brazilians and influence their business culture (S.

Biggeman, K.-S. Fam, 2011, p6). The reason why Brazilians avoid those conflicts in

Running Head: Culture, Values, and Ethics Between the U.S. and Brazil 5between peers is because they put friendship above the conflict. So, the conflict

avoidance should not be perceived as lack of aggressiveness, but only as a

demonstration of respect for relationships. Due to collectivism, Brazilians see

aggressive competitiveness in a friendship as demining loyalty for both parts.

Americans tend to use a more aggressive business strategy. While “Brazilians try to

avoid direct confrontation and emphasize relationships” (Virginia Person, Walter G.

Stephan, 1998, p69).

Masculinity

Brazil’s historical legacy is one of male driven paternalism due to its colonization

by the Portuguese. While progress has witnessed more roles for women in society,

including a female president, Brazil’s masculine, paternal legacy still permeates

throughout society, including its managerial culture. During the early colonization

period, the Portuguese kingdom was concerned with protecting Brazil from neighboring

Spanish conquistadors that claiming bordering territories throughout South America. To

ensure sovereign control and protection of its colony, the Portuguese Crown assigned

large swaths of land to male, Portuguese elites to manage and control. This meant that

a handful of males held the most power in the Brazil and ultimately influenced the

culture in many intrinsic ways which are still present throughout society. The colonial

fazendas structure shaped the Brazilian family hierarchy. The fazendeiro (land owner)

had had power over his family, workers, and slaves. Due to the size of their property,

that meant power over an entire city or state. So, the paternalistic families structures

persisted until today and directly influenced Brazilian managerial culture (Alexandre

Running Head: Culture, Values, and Ethics Between the U.S. and Brazil 6Ardichvili, Douglas Jondle, Brenda Kowske, Edgar Cornachione, Jessica Li, Thomas

Thakadipuram, 2011, p417).

The Portuguese Crown’s portioning of Brazil is noteworthy because it suggests

that masculine influence, in particular, did not spread directly from Portuguese culture

but was instead the advent of circumstances necessary to secure land under the

mercantilist system. Despite changing political and economic systems throughout Brazil

during the 19th and 20th century, this legacy still persists. According to the Hofstede

Center, masculinity in Portuguese culture is lower than it was in Brazil currently.

Comparatively, the United States has a higher level of masculinity despite of the

changes that occurred on the labor force after WWII.

Uncertainty Avoidance

Uncertainty avoidance is the extent to which the people in a country will handle

dealing with the unknown. Brazil’s score of a 76 shows that they will put in place strong

and elaborate regulations to ensure safety. Creating this safety will in return ensure their

ability to relax and enjoy life. The United States has a much lower score at 46, implying

that many people living in the country have more of a short term orientation. An

example of this in the United States would be the lack of saving money for retirement.

Many Americans tend to spend all of their paychecks on luxury items without a concern

for the future, and this attitude reflects the low uncertainty avoidance score of the United

States.

Power Distance

Running Head: Culture, Values, and Ethics Between the U.S. and Brazil 7Power distance is the extent to which a country’s elite differs in power compared

to those in poverty. The past history of Brazil has impacted the current power distance

dimension. After the colonial characterized by patriarchal landowners, the period and

the odd institution of the Temporary Brazilian monarchy that preceded the French

Revolution, Brazil had a short lived Republic created by the Prince of Portugal as its

president (not elected). Later the institution of a Military dictatorship carried on a legacy

of hierarchical power that only served to feed the power distance in between the poor

and the reminiscent descendants of the royal family and the landowners. Another

important fact is the massive numbers of slaves that Portugal traded to Brazil. The

African American slave population was the largest in the world during colonial times.

That slave population and the interactions with the indigenous Brazilian tribes created

the basis of a rich ethnic and cultural diversity we see in the modern Brazil. However, as

those populations were extremely poor and not engaged by the government until very

late in history, a sudden late industrial revolution created massive social disparities.

Therefore, those historic facts influenced the high power distances in Brazil.

Comparing the US society to Brazil, American power distance is half of the

Brazilian reality. This will create inequality amongst the two groups. Brazil’s score of a

69 entails that there is a high level of distinction between the two levels of wealth. Due

to the high level of power distance, respect has become a very important value in a

society like Brazil. Those seen as inferior will feel the need to address the elite in

specific manners to respect their roles in society. The high power distance and great

variety of formal titles in Brazil make it complex to just address somebody in a business

letter, especially within government and the legal industry. Given the example of

Running Head: Culture, Values, and Ethics Between the U.S. and Brazil 8Brazilians’ strong value of family, the children are expected to care for the parents and

elderly of their family. However in the US it is common for the elderly to live in

independent communities following retirement. The United States scored a 40 in the

power distance dimension, entailing high levels of social mobility and low power

distance in American culture. In corporate America, contrary to Brazil, an employee can

commonly call his or her boss by their first name, resulting in the individualistic and

equality values of America today.

Pragmatism

In this dimension it is normative for a country to be satisfied with the fact that not

all in life can be explained. This judges how well a country correlates to the fact that not

all can or will be explained. It is a philosophical idea that stresses determining meaning,

truth, and values in everyday life. A country with a high score has a desire to explain

everything that happens, whereas a low score indicates that it is impossible to fully

explain the complexities of life. Brazil has a score of 44, while the United States scored

much lower at 26. This is whether a culture needs to find explanations for the unknown.

Similar to uncertainty avoidance, it is easy to understand that a country with a higher

score will try to find reason for the unfamiliar and try to create ways to understand these

events.

Indulgence

Indulgence, according to Hoftede’s website, is the “extent to which people try to

control their desires and impulses”. Brazil and the United States are both considered

Running Head: Culture, Values, and Ethics Between the U.S. and Brazil 9relatively indulgent cultures, with respective scores of 59 and 68. This may be seen as

contradictory when compared to the masculinity scores of the Hofstede model, where

the United States scored high. However, the culture of the United States has a strong

tie to the idea of working hard to “play hard”, creating a “binge” relationship between

work and leisure. The Brazilian culture has a belief in daily leisure or relaxation, where

everything is done in moderation. The similar scores in indulgence have opposite

origins as well. The United States historically has been a more work-driven culture

that , in more recent times, the US has started to work less and enjoy “leisure time”

more often. Where Brazil has more recently in their history gone from a more leisurely

ocused society into a business and urban driven society. Suggesting that both

countries are now “meeting in the middle”. (Tansey,Hyman,Zinkhan,1990, pg. 33)

Religion

Both Brazil and the United States citizens enjoy the rights of freedom of faith. For

that matter, nobody is also forced to follow a certain religion belief if any at all. Even

knowing that many citizens in both countries do not recognize religion as part of their

culture, officially the United States and Brazil are mainly populated by followers of

Christianity. Brazil is considered the biggest catholic country in the world. However, its

protestant population that is growing faster pace if compared to the Catholic Church.

Majority of the American population is Protestant. However, America has a relative

heterogeneous Christian population (Giles Hilary, Kai Wai Hui, 2009, p459). The

authors of the mentioned study argue about the influence of religion on American

corporate culture. The argument supports that Protestants generally avoid risk.

Running Head: Culture, Values, and Ethics Between the U.S. and Brazil

10Although, it is also true that Brazilians are more likely to avoid uncertainty if compared

to Americans. That fact is supported by the lower levels of uncertainty avoidance in the

American culture if compared with Brazil.

Insular Versus Global Orientation

America is known as a leader on global trading a major force behind the most

current globalization of markets. The United States has not only broad experience

trading with markets all over the world, but also has great presence in other markets

with its Multinational Enterprises. Brazilian companies suffer from a lack of international

orientation and global vision due to its continental insulation from its neighbors by

extreme natural obstacles, what also isolated Brazil from global competition for decades

(Angela da Rocha, Renato Cotta de Mello, Henrique Pacheco and Isabel de Abreu

Farias, 2012,p246).

VALUES

Values are any idea or feelings that contain high worth to a specific person or

people. Many factors go into the make of a person’s core values. These values will have

an indirect but strong connection to an individual’s behavior and actions in a trickledown

effect. Two of the Schwartz Value Survey’s ten motivational types for individuals show

the over-all values types when comparing the United States and Brazil. Conformity is

all about the survival and efficiency of the group, describing the Brazilian value

structure. Schwartz’s self direction describes American value sets, focusing on the


11becoming masters of a trade and independence. ( Doran, Littrell,2013, pg265-266)

Homer and Kahle’s cognitive hierarchy model, states that values will influence

behaviors through attitudes.(Milfont, Duckitt, Wagner, 2010 pg2791) Three core values

that influence employee attitudes and behaviors are altruism, empathy, self-effacement.

(Florea,Cheung,Herndon, 2013, pg 394)

Altruism is when a person is selfless and shows more concern for someone or

something else. In the workplace this can be defined as acting solely for the company

and not one’s own personal gain. This is very important when measuring loyalty of an

employee.The Brazilian focus on the group infers that as long as an employee feels

close to their “group” in the workplace, the immediate reactions and decisions of an

individual will focus on the betterment of that group. In one study, teamwork along with

professionalism, were considered the most important values for Brazilian employees.

(Wakamatsu, Arellano, de Castro Ribas Junior, 2013) However, the United States’

emphasis on the individual and equality could mean the opposite, where the individual

will be in a constant state of needing to feel equal to others and constantly working to

better oneself instead of having complete focus on furthering their company.

Empathy is the ability to recognize and understand the feelings of others. This s

important in the business world because of the need for intrapersonal and interpersonal

skills in all employees. In order to communicate properly, an individual must be able to

read signs and verbal expressions to respond correctly. Empathy is a very important

trait in all business but global business especially. Cultural differences and language


12barriers could create the absolute necessity for an individual to understand emotional,

verbal, and nonverbal cues. Between Brazil and the United States, the need for an

individual from the US to understand the importance of the relationship between an

employee and a manager is critical in a successful working environment.

Self-effacement or humility is for one to be humble and to know and understand

one’s worth. The American culture of being equal and unique tends to create more

individuals in the workplace who feel the need to voice their opinion. However, if there is

a visiting employee form the United States to Brazil, said employee will need to

understand the importance of knowing when and when not to speak. Consequently, the

adverse effect would happen to someone from Brazil working in the United States. The

American value on being number one along with the values of individualism could

create a seemingly hostile environment for the Brazilian, whose culture creates a value

on bettering the group and respecting those in positions above yours. Therefore, the

American employees would over-shadow the Brazilian employees.

ETHICS

Ethics can be defined as the principles, standards, and norms of conduct that

govern individual and firm behavior. The ethics of a society can vary greatly depending

upon geographic location. What may be considered ethical in one country may be

unethical in another. The United States and Brazil both have differing views on the

ethical standards of business, but their cultures play a large part into what they view as

ethical.


13Brazil is an emerging economy, and the increasing global business activity has

the country reevaluating their ethical standards. Brazil is a leading power in South

America, where the country is involved in the global marketplace by producing a full

range of products, ranging from coffee to commercial jets (Arruda, M., Debeljuh, P.,

Mele, D., 2006). The need to be competitive in the global marketplace has led to an

increased emphasis on globally accepted ethical standards, where foreign investors

look favorably among those companies with good ethics. Brazil’s ethics have slowly

started to resemble the United States over the years. For example, many of their

businesses have begun to adopt codes of conducts, the CPI of the country has gotten

better, and Brazil’s view on morals has begun to resemble more developed countries.

Although the cultures of Brazil and the United States are greatly different, their ethical

standards are starting to converge.

Codes of Conduct

A code of conduct is a set of guidelines for making ethical decisions. Businesses

that incorporate a code of conduct into their company tend to be viewed by the public as

more ethical and trustworthy. Currently, the majority of the top 100 largest companies in

Brazil have some form of formal ethical policies (Beekum, R., Stedham, Y., Yamamura,

H., 2003). Developing a corporate code of conduct is becoming increasing popular in

Brazil, particularly since foreign investors look favorably upon those businesses that

have one. However, more than 50% of Brazilian companies do not have a formal code

of ethics. Although there is a growing trend for larger companies to develop a code of

conduct, it is still common to see a medium-sized or smaller sized company without


14one. The trend towards having a code of conduct in businesses in Brazil is evidence

that Brazil is valuing their ethical standards much higher than ever before.

In contrast, codes of conduct in the United States are typically expected in a

company. In a large company, it would be very rare to not find a code of conduct

(Goodpaster, K., Maines, T., Weimerskirch, A., 2004). This has become common

practice to adopt because businesses in America realize the importance of integrating a

whole business together by a code of conduct to keep the vision steady and clear.

Although it is common to find a code of conduct in a United States business, the country

still exhibits unethical behaviors from businesses. Therefore, a code of conduct is only

effective if the company itself is fully committed to maintaining a high regard towards

ethical standards.

Corruption

The Corruption Perception Index (CPI) measures the extent to which corruption

is present in government and public officials, and countries are ranked on a scale of 0 to

10, where a ranking of 10 is the least corrupt. Countries are then ranked in descending

order to compare the level of corruptness between countries. In 2012, United States

was ranked 19 out of 274 countries, whereas Brazil was ranked 63 (Beekum, R.,

Stedham, Y., Yamamura, H., 2003). Brazil has gradually increased their CPI over the

past decade, but within the past couple years, their index has decreased. On the other

hand, the United States’ CPI has steadily declined.

In Brazil, there is a lot of anti-corruption infrastructure in place. The country

remains one of the best in South America in terms of anti-corruptness (Sampaio, D.,


15Sobral, F., 2013). However, the laws against corruption are not being enforced to their

full extent, leading to corrupt practices still occurring in the country within businesses.

Corruption has been increasing in Brazil in recent years, as shown in the CPI reports

over the last decade.

In the United States, there has been a gradual increase in corruption. Ever since

the 1970’s, business executives and public officials have been seen as less trustworthy

in the eyes of the public. With scandals such as Watergate, Enron, and WorldCom, the

awareness of the need for ethical business conduct has heightened. However, even

with acts put into effect such as Sarbanes-Oxley, which is an act meant to protect

investors from the possibility of fraudulent activity, there is still a high amount of distrust

(Stevens, 2012). However, the United States is still viewed as a relatively well-off

country in terms of corrupt-ness compared to others.

The Brazilian Jeitinho

Many Latin American countries still struggle with high rates of Corruption.

Despite many governmental and popular efforts within Brazil, corruption is still rampant.

Much of the corruption infused into Brazilian culture was originated out of necessity.

Historically, Brazil went from being a colony, to a kingdom, a republic, a period of

totalitarian regime, then back to be a republic again. The many changes in types of

governments throughout the centuries have left a cumbersome system of laws and

rules. To dodge such a complex bureaucracy web created by these changes, Brazilians

became very flexible. That flexibility is well known in Portuguese as jeitinho. The

verbatim interpretation of jeitinho (jay-tcheen-yoo) is “little way” (Maria Cristina Ferreira,


16Ronald Fischer, Juliana Barreiros Porto, Ronaldo Pilati, Taciano L. Milfont, 2012, p

331). Ferreira et al. compares jeitinho to the Chinese guanxi; although, some argue

that are different types of jeitinho, it is commonly understood to mean an informal way of

fixing a minor issue (p. 333). Other interpretations of Jeitinho differ. It can be an

agreement settled between strangers that may only benefit one party, or it can be a

survivalist way of settling a business matter in a society controlled by oligarchies (p.

333). Jeitinho may used to describe daily major or minor acts of corruption, but it is also

used to describe the positive attitude necessary to overcome adversity.

In Brazil tem sempre um jeitinho is a very popular expression that means “there

is always a way” of solving a problem. Parallel to this type of jeitinho, culturally,

Americans are positive and flexible (Denis Morgan, 2008, p34), but contrary to the

Brazilian version of solving problems, Americans do not view corruption as necessary

means to an end. The difference in American optimism in overcoming adversity and

being flexible in the workplace is attributed to historical reasons. Participation in major

armed conflicts such as the two world wars, major economic growth, and depressions

(including the most recent on in 2008) have influenced Americans to reinvent

themselves to handle many unexpected crisis. In other words, this the American

reliance on adaptability is survivalist. More specifically, the corporate culture of natural

selection depends on the individual sense of survival (Megan Brown, 2003, p 715)

Corporate Versus Family Businesses

When comparing the differences between the ethical values of businesses, it is

important to consider the diversity of the types of businesses. Large corporate


17businesses tend to have a different viewpoint towards values when compared to family

businesses.

United States family businesses have a higher occurrence of ethical values when

compared with corporate businesses in the country. Family businesses rank higher than

corporate businesses in quality, fairness, social responsibility, honesty, and trust (Ngozi,

2012). The public tends to view these family businesses as much more trustworthy and

ethical, and public may begin to demand these ethical values from corporate America.

In contrast, family businesses have different concerns. The public in Brazil tends to rank

family businesses in the country as having a higher concern in environmentalism and

social responsibility (Blodgett, M., Dumas, C., & Zanzi, A., 2011). There may be a trend

in corporate businesses in Brazil to adopt more concern for the environment and

sustainability.

Cultural Impact on Ethics

The culturally differences between the United States and Brazil highlight the

distinctions of ethical values. As discussed in the cultural analysis in this paper, the

United States tends to have an individualistic view in their culture, which promotes

uniqueness and independence (Forsyth, D., McDaniel, M., O’Boyle, E., 2008). It is

believed that people in the United States must be free to act and think in ways that they

prefer, rather than simply follow the demands of the rest of the group. This coincides

well with the United States, because there is an emphasis on individualism and

entrepreneurship in the country. A decision or action that can be seen as individualistic

is less likely to be viewed as unethical in the United States.


18In Brazil, however, there is a utilitarian view, which advocates that everyone

affected by the action or decision must be taken into account. People living in Brazil

tend to view themselves as a collectivist community, where people put the demands

and goals of the group before those of the individual members (Beekum, R., Stedham,

Y., Yamamura, H., 2003). This cultural idea stresses the importance of relationships in

society, and it is emphasized that the dignity and welfare of people should be the most

important concern in the country. For this reason, this type of view is not surprising.

Brazil is less likely to view a utilitarianism decision as unethical.

CONCLUSION

After analyzing the ways in which Brazil and the United States differentiate, it is

clear that there are many distinct similarities and differences between the two countries

in terms of their informal institutions. The diversity of these two cultures has made an

impact on their values and ethical standards, and in a few ways the two countries

converge on some of their issues. The major difference between the two countries is

that the United States has a highly individualistic, competitive type of culture, whereas

Brazil maintains a collectivist mentality in their culture.

The individualistic view that the United States has adopted has led to them

valuing uniqueness and being in competitive environments. As a result of their

individualistic culture, the United States has developed ethical standards in their

businesses. In Brazil, there is an emphasis on loyalty and cooperation, and their ethical

standards have reflected this view to where an action is seen as more ethical if it is


19meant to improve the company.

Based on the analysis of the values and ethics of both the United States and

Brazil, it is evident that the culture has made an impact on these aspects. Since there

are many culturally differences between Brazil and the United States, it is not surprising

to see that their values and ethical standards differ as well.


20

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