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Chapter 3Emphasizing Informal Institutions Cultures, Ethics.docx
- 1. Chapter 3 Emphasizing Informal Institutions: Cultures, Ethics, and Norms © 2017 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 1 LEARNING OBJECTIVES After studying this chapter, you should be able to: 3-1 define culture and articulate its four main manifestations: language, religion, social structure, and education. 3-2 discuss how cultures systematically differ from each other. 3-3 understand the importance of ethics and ways to combat corruption. 3-4 identify norms associated with strategic responses when firms deal with ethical challenges. 3-5 participate in three leading debates concerning cultures, ethics, and norms. 3-6 draw implications for action. © 2017 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole
- 2. or in part. 2 INFORMAL INSTITUTIONS informal institution – institution represented by cultures, ethics, and norms ethnocentrism – a self-centered mentality by a group of people who perceive their own culture, ethics, and norms as natural, rational, and morally right © 2017 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. CULTURE culture – the collective programming of the mind that distinguishes the members of one group or category of people from another ? How is your culture unique?
- 3. © 2017 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. COMPONENTS OF CULTURE Language Religion Social Structure Education © 2017 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 5 LANGUAGE lingua franca – a global business language English-speaking countries contribute the largest share of global output Recent globalization has called for the use of one common language © 2017 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole
- 4. or in part. 6 RELIGION Religion is a major manifestation of culture Knowledge about religions is crucial, even for non-religious managers © 2017 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 7 RELIGION (cont’d) © 2017 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.Largest ReligionsChristianity1.7 billionIslam1.6 billionHinduism1 billionBuddhism500 million
- 5. 8 SOCIAL STRUCTURE social structure – the way a society broadly organizes its members social stratification – the hierarchical arrangement of individuals into social categories (strata) such as classes, castes, or divisions within a society social mobility – the degree to which members from a lower social category can rise to a higher status © 2017 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 9 EDUCATION Education is an important component of culture Education can be used to maintain social stratification or to break down social barriers © 2017 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
- 6. 10 CULTURAL DIFFERENCES Three ways to understand cultural differences Contact Cluster Dimensions © 2017 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 11 THE CONTEXT APPROACH context – the underlying background upon which social interaction takes place low-context culture – a culture in which communication is usually taken at face value without much reliance on unspoken context high-context culture – a culture in which communication relies a lot on the underlying unspoken context, which is as important as the words used
- 7. © 2017 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 12 Figure 3.1 High-Context versus Low-Context Cultures © 2017 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 13 THE CLUSTER APPROACH cluster – countries that share similar cultures civilization – the highest cultural grouping of people and the broadest level of cultural identity people have © 2017 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
- 8. 14 Table 3.1 Cultural Clusters © 2017 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 15 Figure 3.2 Hofstede Dimensions of Culture © 2017 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
- 9. 16 THE DIMENSION APPROACH power distance – the extent to which less powerful members within a country expect and accept that power is distributed unequally © 2017 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 17 THE DIMENSION APPROACH (cont’d) individualism – the idea that an individual’s identity is fundamentally his or her own collectivism – the idea that an individual’s identity is fundamentally tied to the identity of his or her collective group © 2017 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
- 10. 18 THE DIMENSION APPROACH (cont’d) masculinity – a relatively strong form of societal-level sex role differentiation whereby men tend to have occupations that reward assertiveness and women tend to work in caring professions femininity – a relatively weak form of societal-level sex role differentiation whereby more women occupy positions that reward assertiveness and more men work in caring professions © 2017 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 19 THE DIMENSION APPROACH (cont’d) uncertainty avoidance – the extent to which members in a culture accept or avoid ambiguous situations and uncertainty © 2017 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
- 11. 20 THE DIMENSION APPROACH (cont’d) long-term orientation – dimension of how much emphasis is placed on perseverance and savings for future betterment © 2017 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 21 CRITICISMS OF HOFSTEDE’S DIMENSIONS Cultural boundaries are not the same as national boundaries Hofstede’s own cultural biases Responses could be unique to the industry or the company The original data is now 40+ years old © 2017 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
- 12. Table 3.2 Some Cross-Cultural Blunders © 2017 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. ETHICS ethics – the principles, standards, and norms of conduct that govern individual and firm behavior code of conduct – a set of guidelines for making ethical decision ? Can you think of a recent example in which a firm engaged in unethical behavior? What happened? © 2017 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 24
- 13. MANAGING ETHICS OVERSEAS ethical relativism – a perspective that suggests that all ethical standards are relative ethical imperialism – a perspective that suggests that “there is one set of Ethics (with the capital E), and we have it.” © 2017 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 25 Table 3.3 Managing Ethics Overseas: Three “Middle-of-the-Road” Approaches © 2017 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 26 Table 3.4
- 14. Texas Instruments (TI) Guidelines on Gifts in China © 2017 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. ETHICS AND CORRUPTION corruption – the abuse of public power for private benefits, usually in the form of bribery Foreign Corrupt Practices Act (FCPA) – a US law enacted in 1977 that bans bribery of foreign officials © 2017 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 28 Table 3.5 Strategic Responses to Ethical Challenges © 2017 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
- 15. 29 DRIVERS OF ECONOMIC DEVELOPMENT: WESTERN VALUES VERSUS EASTERN VALUES Western values: Protestant work ethic Challenged by Eastern values: Islam and Asian (Confucianism) © 2017 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. OPPORTUNISM VERSUS INDIVIDUALISM/COLLECTIVISM Opportunism is a major source of uncertainty Opportunists are a minority in any population © 2017 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
- 16. 31 OPPORTUNISM VERSUS INDIVIDUALISM/COLLECTIVISM (cont’d) in-group – individuals and firms regarded as a part of “us” out-group – individuals and firms not regarded as a part of “us” © 2017 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 32 OPPORTUNISM VERSUS INDIVIDUALISM/COLLECTIVISM (cont’d) Individualists may be more opportunistic when dealing with in- group members Collectivists may be more opportunistic when dealing with out- group members © 2017 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
- 17. 33 CULTURAL INTELLIGENCE cultural intelligence – an individual’s ability to understand and adjust to new cultures Three phases of cultural intelligence Awareness Knowledge Skills © 2017 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 34 Table 3.6 Implications for Action: Six Rules of Thumb When Venturing Overseas © 2017 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
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