Institutions and the Global Marketplace
Institutions are the parameters placed and enforced on a society to define acceptable behavior and interaction, also known as rules of the game (North, 1991). Institutional frameworks have two facets one formal the other informal. Formal rules are those imposed on a society by the state or ruling body, which has the authority to administer the rules. Informal institutions are the constraints placed on a society that are found in their “norms, culture, and ethics” (Peng M. , 2014, p. 94). Peng (2014) further states that three pillars “regulatory, normative, and cognitive” (94) support these institutions. Because the state has the authority to enforce its rules, regulatory pillar is its main support for formal institutions. Normative (how practices, principles, and ethics of others in a society affect the behavior of the individual) and cognitive (the individuals intrinsic understanding of what is right and wrong) pillars support informal institutions. While most societies have formal institutions, all societies have some informal institutions.
In the context of global business strategy, institutions play the role of regulating commerce and thereby reducing the cost of transaction. The nature of institutions varies from one country (or even region within a country) to the next. Even among developed western nations, differences in rule of law exist. For example in the United States, a company is free to insert any truth in publication, advertising, or products no matter how tasteless or offensive, it may not be wise business but it is legal. In the United Kingdom, that same article, ad, or product may be banned or result in a fine (Waters, 2008; Quinn, 2012; Cohen, 2011). In emergin...
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...19(2), 251-267. Retrieved from http://search.proquest.com/docview/228369404?accountid=38569
Peng, M. (2014). Global Strategy (3rd ed.). Mason, OH: Cengage Learning.
Quinn, B. (2012, November 11). Kent man arrested after picture of burning poppy posted on internet. Retrieved from The Guardian: http://www.theguardian.com/uk/2012/nov/12/kent-man-arrested-burning-poppy
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Institutions force individuals to bend and mold the standard and give up freedom and individuality. Some individuals are unable to conform when their will to remain creative and self-reliant is too strong; they fight against the current that society and its institutions create. Beating the system is another thing; those who attempt to beat the system are often referred to as romantics because they do not focus on the reality of situations. The system cannot be beat. If one official of an intuition is taken down there will be a many more waiting i... ...
In the world we live in today, deviance happens to play an integral role in within the societies that scatter our globe, whether we like it or not. Deviance describes actions or behaviors that violate the social norms of our society. These behaviors can violate formally enacted rules, such as laws that are put into place by government, as well as the informal type of “guidelines” that various cultures have informally established and shaped for themselves. As one may come to understand, norms are essentially expectations that are standard to a certain culture. These norms gently guide people in a society in “what to do,” and “what not to do,” in compliance with their societies' norms. With this said, it is important to keep in mind that social norms differ from culture to culture. One act that may be considered deviant in a particular society, may be generally accepted in another. Three main sociological theories of deviance include the cultural transmission theory (also known as the differential association theory), the labeling theory, and the control theory.
The Oxford Dictionary defines institution as “a society or organization founded for a religious, educational, social, or similar purpose”. On the contrary, an individual is defined as “a single human being as distinct from a group, class, or family”. Institutions are organizations created by groups of individuals in order to provide social order and guidelines for a community. Although institutions are intended for common good, they can ignore, manipulate or even enslave individuals. In corrupt institutions, authoritative figures maintain power by oppressing and persecuting those who threaten their authority and are even willing to exterminate individuals to protect the institutions. There are two types of individuals whom institutions typically persecute: those who cannot be molded into the ideal citizen; and those who speak out against the institution. Throughout history, authoritative figures and controlling institutions have taken extreme measures to stifle the individuals, threatening their power. For example, the German Nazi regime sought to
Chesseman, Henry R. Legal Environment of Business: Online Commerce, Business Ethics, and Global Issues. 8th ed. N.p.: Pearson Education, Inc. , 2016. Print.
Social norms are the implicit or explicit rules a group has for the acceptable behaviors, values, and beliefs of its members. Implicit social norms are introduced to us at a very early age, and exert a powerful influence on our behavior into adulthood. Our culture is ruled by social norms. In many situations, people 's perception of these norms have a big influence on their behavior. Implicit social norms are not openly stated, but found out when disobeyed. Implicit rules are rules we conform to as a society, and generally these rules make living together more comfortable. Social norms are important because they define the nature of a group, clarify relationships among members, and express values. They are also important because they create cohesion within the society, and members of that society are very aware when such norms are violated. Social norms are often strictly enforced and offenders are often disliked for their conduct. Also, some norms are more strictly held to in certain situations than in
Society and its institutions are the basis of development within organized groups of people. They provide rules and regulations that help guide and encourage this development. They provide many resources and connecting relationships among other organized groups. Society in general can set standards for behavior among people within that society.
In this essay, I will be discussing how the formal theory of the rule of law is an erroneous means of establishing laws within a state. A central theme to addressing this essay is the distinction between formal and substantive theories of the rule of law. In order to reach the conclusion of the formal theory being proven to be insufficient, one must first appreciate the significant advantages which the substantive theory obtains. However, before doing so, I will briefly mention the importance of the rule of law in society and the requirements it needs to fulfil. Most people would dispute that the significance of law in society is to obtain justice, however justice is simply a term which is determined subjectively, it relates to an individuals moral viewpoint.
Norms are a part of everyday life. Without norms the world would be in total chaos. Norms by definition are rules of behavior shared by members of a society and rooted in the value system. ( ) Norms are held at a high standard in a society and are valued by its members. Norms vary from society to society. What is considered normal in one society may not be acceptable in another society. Norms are a societies way of living if a member of society breaks that norm they may be looked at as strange or even penalized depending on what kind of norm is broken. Norms are broken into three categories which are folkways, mores, and laws. Folkways are customs or desirable behaviors that are not strictly enforced. Violating a folkway is not criminal, but violating a folkway may have you looked at as weird. Mores are the strongest form of norms they have great moral significance in a society. Violating a more is considered immoral or borderline criminal. The strongest form of mores are taboos which are unthinkable action within a society. Laws are the third category of norms that a...
In old times, the traditional societies relied mostly on customs, as a source of rules and regulations. They used to resolve their disputes through mediation and conciliation by experienced elders or by taking a common moral of divine authority. But with changing times, the societies are becoming more complex. People are only focused on personal interests rather than striving towards common goals. This in return has resulted in increase in conflicts and disputes in the society.
In order for society to meet the basic social needs of its members, social institutions, which are not buildings, or an organization or even people, but a system whose of social norms, mores and folkways that help make people feel important. Social institutions, according to our textbook, is defined as a fundamental component of this organization in which individuals, occupying defined statues, are “regulated by social norms, public opinion, law and religion” (Amato 2004, p.961). Social institutions are meant to meet people’s basic needs and enable the society to survive. Because social institutions prescribe socially accepted beliefs, values, attitudes and behaviors, they exert considerable social control over individuals.
In conclusion, companies that seek to integrate into global markets usually encounter several problems because of the effect of globalization on business practices. The challenges originating from such integration is attributed to the differences in cultures in various societies across the globe. As evident in Google’s dilemma in China, there is no single set of universal ethics that are applicable to all settings and societies across the globe. Companies such as Google need to develop varying ethical standards that are relevant and appropriate to various nations and cultures in the world. This would enable the companies that are integrating into global markets to avoid ethical issues while maintaining effective business practices.
Globalisation has been one of the most significant developments of the last half century, and issues such as trade and international commerce have become increasingly important. In consequence, problems such as poverty, unfair wages and poor working conditions in third world countries have been drawn to the attention of consumers (Hayes and Moore, 2007). This is a growing global issue which cannot be ignored by anyone concerned about the problems in developing countries. Free trade and Fair Trade have both been offered as solutions to these issues.
Norms can also be broken but violating these norms would be considered rude of disrespectful. Along with these norms there are also laws. Laws are the “binding rule created through custom or official enactment that defines correct behavior and the punishment for misbehavior” (Miller 2011: 175). The system of a law is more common among state type societies. State type societies such as Los Angeles, New York, Pittsburgh, just to name a
Norms are by definition general society guidelines and expectations of appropriate behavioral conduct in a particular environment or society. These guidelines could be formal and written such as laws that prohibit stealing or they could be implicit such as behavioral conduct or dress code. Every society has its own way of endorsing and enforcing certain norms and standards of proper behavior while renouncing and sanctioning improper behavior. In general, norms are of a significant importance because they guide our behavior and maintain order in society by providing conformity. Furthermore, norms render behavior predictable rather than random, thus allowing us to predict and understand other people’s actions and behaviors in different situations. On the other hand, divergence from norms is termed “deviance” and can lead to chaos and instability. It is noteworthy to mention, that the culture background and context play an important role as each culture processes its own norms, values, standards and expectations. For instance, in certain cultures shaking hands between opposite sexes is inappropriate, and this is the case in Yemen. Thus our perception of norms in different culture is critical: either we choose to understand an individual’s behavior according to his own culture context and set of norms (cultural relativity) or we choose to understand an individual’s behavior according to our own culture which we believe to be more superior (ethnocentrism). An example of ethnocentrism where norms and values of a certain culture have been imposed on another is the banning of the veil worn by muslim women in France. In contrast, cultural relativism appears in Lebanon where muslim women are perceived in terms of their own culture and are a...
Institutions play a key role in many of the things that are happening in society today. From financial institutions to the types of goods consumers can buy in a place of business. One of the biggest aspects of an institutions influence on society is the need for supply and demand and to control society so that it can adapt to the changes caused by individuals within it. All societies necessarily make economic choices. A society is a system of social relationship while institution is the organization of rules traditions and usages. Institutions are the forms of procedure which are recognized and accepted by society and they exist for the society and govern the relations between members of society. Society represents human aspect while an institution is a social condition of com and behavior.