The interaction of people from different backgrounds in the business world.

1. CROSS-CULTURAL ETHICS IN
BUSINESS
Prepared by :
M.yaseen(aseer)

2. 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

3. Movement toward a multi-polar equilibrium:

4. 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 :

5. 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

6. BRANCHES OF ETHICS:
Ethics can be divided into various branches
Meta-ethics: Meta-ethics deals with the meaning of truth-values in
theory and refers to moral propositions.
Normative Ethics: Normative Ethics deals with the practicality of
actions & it examines standards for the rightness and wrongness
of actions.
Applied Ethics: Applied Ethics refers to moral and ethical outcomes
that can be achieved, in particular situations.
Moral Psychology: Moral Psychology deals with the development
and nature of moral capacity.
Descriptive Ethics: Descriptive Ethics are moral values that most
people follow and stand by.

7. 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.

8. 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.

9. 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

10. 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.

11. 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.

12. 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.

13. 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.

14. Making inroads into South America, Africa, Middle East:
• These countries are more comfortable with Chinese
relationship-based business style than Western rule-
based transparency.

15. 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.