INTRODUCTION
Culture can be seen as a basis for understanding and assessment of human activities and areas of interest, and has been defined by many scholars in different aspects. However, they still have many similarities which often reflect the religious and historical. In the past fifty years, there have been dramatic growths in the economic and political communications across the country, and the immigrants result interleaving or collision across cultures (Tung, 2008). As a result, if the decision makers misunderstood or ignored cultural backgrounds of different nations, it might probably be a high risk of the collapse of the enterprise. In this period of international business, it is essential to comprehend and adapt to cross-cultural issues by the use of the Internet. In global markets, especially with organizations in another country, culture has become critical to the success of the corporation. It must be dealt with cohesion and wisdom. Therefore, the purpose of this literature review is to compare the three cross-cultural researches from a commercial perspective, to identify cultural differences affect the way of doing business internationally. The results of business ethics and cultural differences will be talked in the two sections of this article.
METHODOLODY
Quantitative research has been used in all of the three articles. They have largely been based on questionnaires and focus on group discussions. The data in the article from Rashid & Ibrahim (2008) were analyzed by descriptive statistics, such as standard deviation, Chi-square tests, t-test, one-way ANOVA & MANOVA. In addition, Chi-square tests have been also used by Ralston & Pearson (2010) during the research as well. Furthermore, there have been great differen...
... middle of paper ...
...ional Climate, and Leadership on Ethical Decision-Making', Journal of Business Ethics, 113, 2, pp. 317-331, Business Source Complete, EBSCOhost. Retrieved: 28th, March, 2014.
Ralston, D, & Pearson, A 2010, 'The Cross-Cultural Evolution of the Subordinate Influence Ethics Measure', Journal of Business Ethics, 96, 1, pp. 149-168, Business Source Complete, EBSCOhost. Retrieved: 31st, March, 2014.
Rashid, M, & Ibrahim, S 2008, 'the Effect of Culture and Religiosity on Business Ethics: A Cross-cultural Comparison', Journal of Business Ethics, 82, 4, pp. 907-917, Business Source Complete, EBSCOhost. Retrieved: 4th, April, 2014.
Tung, RL 2008, 'The cross-cultural research imperative: the need to balance cross-national and intra-national diversity', Journal Of International Business Studies, 39, 1, pp. 41-46, Business Source Complete, EBSCOhost. Retrieved: 11th, April, 2014.
Pitta, A. D., Fung H., Isberg S. (1999). Ethical Issues Across Cultures: managing the differing
Wild, J. J., Wild, K. L., & Han, J. C. (2008). (CH2)Cross-Cultural Business and (CH5)International Trade,. International business: the challenges of globalization (4th ed., pp. 48, 61-62, 132, 136, 147). Upper Saddle River, N.J.: Pearson Prentice Hall.
A mutual accord in the international business literature is that business has increasingly become more globalized. Nonetheless, it is not only businesses that have become more globalized but also people who have become more global, (Friedman & Liu, 2008). As a result of increased globalization, cultural diversity is a common phenomenon in organizations. The implication of such a phenomenon is that managers are increasingly supervising employees from different cultural backgrounds, beliefs and attitudes than themselves, (Steers, Nardon & Sanchez-Runde, 2013). Such is the case for Molson Coors. Molson Coors found itself in a challenging situation where its cultural values markedly differed with those of Starbev, a Czech Republic
In today’s global society, a Code of Ethics policy is used to label established, acceptable behaviors among that industry’s business associates, potential investors, and the corporation’s executive officers and employees, and most important, the consumer (Ethics Resource Center, 2003). In an attempt to promote an increased efficiency and productivity potential level, among employees and prospective clients, a corporation’s standard Code of Ethics should guide its members toward a more in-depth examination of their personal moral activity, and how these actions affect the people or acquaintances they encounter. A company should utilize this strategy as a model for the professional behaviors and responsibilities of its constituents, and proves the occupational advancement of that business. Ethics are important in every level of a corporation, but specifically in the day-to-day actions of its members, and the image the company broadcasts to its associates is fundamental in building a stable business foundation. These pledges are a vital communication tool used to covey the firm’s standards for business operations, and predominantly, its relationships with the surrounding communities (Ethics Resource Center, 2003).
Incorporating ethics into everyday decisions in the business world can greatly reduce the scandalous behavior that has as of late has run ramped. Obviously, we have seen the results and consequences of business conducted absent any moral or ethical boundaries. When decisions are made without the consultation of ethics there is no direction from the moral compass and surely consequences will follow. Choices contemplated by managers may often seem difficult, but assessing the options against ethics can assist the manager in making the best decision.
Every individual has certain values and ethics that he/she stands by. Values give us a sense of what is important while ethics gives us a sense of what is right and wrong. Together, these qualities help guide us through our everyday life: what actions to take and what decision to make. Sticking to ethical standards allows you to stay clear of trouble; therefore, strengthening people’s trust in you. In return, this leads to gaining people’s respect and cooperation, which may result in leadership responsibilities. Therefore, we believe that personal values and ethics will affect a person’s career success. However, there are times where individuals will make unethical choices--some situations might question your resolve. This can be caused by
Understand and heed cultural differences - cultural variables in transacting international business. (1991, January 28). Business America. FindArticles.com., Retrieved March 20, 2009, from http://findarticles.com/p/articles/mi_m1052/is_n2_v112/ai_10412261/pg_4?tag=content;col1
The following sections explore the cultural differences encountered by all businesses desiring to expand their organizations internationally. There are many elements which comprise a country’s culture. Unfortunately, many of these elements are not obvious and are all too often overlooked. For most, international culture is typically associated with visible and/or audible elements such as language, food, music and fashion. In 1976 Edward T. Hall developed “The “Iceberg Model of Culture” (Figure 1) which provides a good visual aid to broaden one’s understanding of the plethora of cultural elements which businesses should understand and consider. The “Iceberg Model” illustrates both visible (surface)
Ethical cultures in large business organizations in Brazil, Russia, India, and China. Journal of Business Ethics, 105, 415-428.
different cultures, which is a huge part of the business world today (Friedman, 2005). The
In the article, Cultural constraints in management theories, Geert Hofstede examines business management around the globe from a cultural perspective. He explains how he believes there are no universal practices when it comes to management and offers examples from the US, Germany, France, Japan, Holland, China and Russia. He demonstrates how business management theories and practices are very much subject to cultural norms and values and by understanding these differences, it can give managers an advantage in global business practices.
It is not uncommon that leaders encounter situations where they are faced with making choices that have the potential to impact others for better or worse. It is important that good leaders choose a direction that will have the least negative impact while having a positive outcome if possible. If the actions cannot be considered ethical, a different approach or action should be considered. The choices made in problematic situations will ultimately identify the true character of the leader. It is ideal that a good leader do what is right in all situations as their actions are constantly observed by others and subjected to scrutinization. Leaders who display ethical qualities will be most effective at gaining or maintaining a leader and follower relationship. Additionally, if a leader models ethical decisions and behaviors, followers can be expected to take after them. Ethical behaviors in leaders are found to be reflected by a reduction of unethical behaviors in followers ( Mayer et al., 2009; Mayer et al., 2012). Ethical leaders create environments and structures that influence followers to behave more ethically (Schaubroeck et al.,
Working well with others, especially those in a position of authority is a sought after characteristic for employers. However, disrupting the stagnant norm for good reason is essential for community and business growth, particularly when it concerns ethics. Leaders are created by the hard decisions they make that develops influence over others, regardless of the delegation of power.
Ciulla J.B. (2003) Ciulla, J. B. “Ethics and leadership effectiveness.” Retrieved on 04.02.2014 from, http://www.ila-net.org/Members/Directory/DownloadS/Antonakis-Ciulla-13.pdf
Sonderberg, A-M & N Holden. (2002), Rethinking cross cultural management in a globalizing business world' International Journal of Cross Culture Management 2(1): 103-121