Module 4 - Home LEGAL AND ETHICAL IMPLICATIONS OF CROSS-CULTURAL LEADERSHIP Modular Learning Outcomes Upon successful completion of this module, the student will be able to satisfy the following outcomes: Case Evaluate the cross-cultural experience on terms of developing cultural intelligence. SLP Assess your role as a leader in making ethical decisions. Discussion Debate ethical choices as depicted in popular films. Module Overview Questions of right action can become particularly difficult for leaders in cross-cultural or international situations. Questions of the morality of doing business or forming alliances with countries where political repression or violation of civil rights is common are troublesome. How should a leader deal with expectations of bribery? What if the other country violates U.S. environmental or health laws? Does one live by the home-country rules or adopt an attitude of “When in Rome…”? Without shared moral values or common laws, the choice of actions that should be taken constitute a real conundrum. How to resolve these matters? What tools exist to help the leader choose the ethical course? To date, leaders cannot rely on international law related to ethical conduct, but there are some guidelines. An organization's “company code” is the first place to start. These codes set guidelines for employees to operate across borders. They may expressly forbid the taking of bribes, for example, or entering into agreements or joint ventures that violate U.S. law. These codes have both proactive and reactive advantages: helping uncertain leaders respond to murky situations in a foreign environment—while at the same time attracting highly ethical leaders who want to be part of a socially responsible organization. There also exist international standards and codes of conduct such as the United Nations Global Compact and the Consumer Charter for Global Business. There are more targeted codes of conduct such as the ILO Conventions, and OECD Guidelines. These standards do not have the “teeth” that international law would have, but they can help leaders determine what the best course of action is. While business standards and codes can be helpful to leaders, they do not help to develop a fundamental understanding of what drives ethical dilemmas in a cross-cultural environment or how leaders should respond to them. Indeed, in a cross-cultural study of business managers, participants ranked the importance of factors that lead to unethical behavior. Surprisingly, social norms of morality and personal advantage or gain were not even ranked. Instead, the single most important factor was the attitudes and behaviors of their leaders. (Dolcheck & Dolcheck (1987). In this module, we will be looking at three major topics that will lead to a broad perspective on how attitudes and behaviors affect ethical leadership. Module 4 - Background LEGAL AND ETHICAL IMPLICATIONS OF CROSS-CULTURAL LEADERSHIP Universalism vs. Particularism In Ethics 5 ...

1. Module 4 - Home
LEGAL AND ETHICAL IMPLICATIONS OF CROSS-
CULTURAL LEADERSHIP
Modular Learning Outcomes
Upon successful completion of this module, the student will be
able to satisfy the following outcomes:
Case
Evaluate the cross-cultural experience on terms of developing
cultural intelligence.
SLP
Assess your role as a leader in making ethical decisions.
Discussion
Debate ethical choices as depicted in popular films.
Module Overview
Questions of right action can become particularly difficult for
leaders in cross-cultural or international situations. Questions of
the morality of doing business or forming alliances with
countries where political repression or violation of civil rights
is common are troublesome. How should a leader deal with
expectations of bribery? What if the other country violates U.S.
environmental or health laws? Does one live by the home-
country rules or adopt an attitude of “When in Rome…”?
Without shared moral values or common laws, the choice of
actions that should be taken constitute a real conundrum. How
to resolve these matters? What tools exist to help the leader
choose the ethical course?
To date, leaders cannot rely on international law related to
ethical conduct, but there are some guidelines. An
organization's “company code” is the first place to start. These
codes set guidelines for employees to operate across borders.
They may expressly forbid the taking of bribes, for example, or

2. entering into agreements or joint ventures that violate U.S. law.
These codes have both proactive and reactive advantages:
helping uncertain leaders respond to murky situations in a
foreign environment—while at the same time attracting highly
ethical leaders who want to be part of a socially responsible
organization.
There also exist international standards and codes of conduct
such as the United Nations Global Compact and the Consumer
Charter for Global Business. There are more targeted codes of
conduct such as the ILO Conventions, and OECD Guidelines.
These standards do not have the “teeth” that international law
would have, but they can help leaders determine what the best
course of action is.
While business standards and codes can be helpful to leaders,
they do not help to develop a fundamental understanding of
what drives ethical dilemmas in a cross-cultural environment or
how leaders should respond to them. Indeed, in a cross-cultural
study of business managers, participants ranked the importance
of factors that lead to unethical behavior. Surprisingly, social
norms of morality and personal advantage or gain were not even
ranked. Instead, the single most important factor was the
attitudes and behaviors of their leaders. (Dolcheck & Dolcheck
(1987). In this module, we will be looking at three major topics
that will lead to a broad perspective on how attitudes and
behaviors affect ethical leadership.
Module 4 - Background
LEGAL AND ETHICAL IMPLICATIONS OF CROSS-
CULTURAL LEADERSHIP
Universalism vs. Particularism
In Ethics 501, you learned several different approaches to
thinking about and analyzing ethical issues. The models you
were exposed to reflect, by and large, a Western approach to

3. ethics. A more multicultural model can be found in considering
the difference between Universalist and Particularist approaches
to ethics. This typology was developed by Fons Trompenaars
and considers the ethical question, “What is more important—
rules or relationships?” Read the following synopsis of these
two perspectives. As you read, note how these approaches
mirror the qualities of individualism/collectivism, high/low
context, and monochromic/polychromic time orientations
discussed in Modules 2 and 3.
Universalism versus Particularism. (n.d.). Retrieved from
http://www.via-web.de/universalism-versus-particularism/
Differences in the Concept of Social Responsibility
At the very heart of any discussion of social responsibility is
the question of why the organization exists. Is it to maximize
the financial return to the owners, as many Western business
schools teach—or is it to promote the well-being of society, a
perspective reflected in the mission statements of many
Japanese companies?
In the following essay, Kidus Mehalu of Ethiopia considers the
role that leaders of multinational corporations might play in
balancing the profit motive with the need for addressing
worldwide social and economic problems.
Mehalu, K. G. (2011). Social responsibility and managerial
ethics: A focus on MNC’s, 3rd Global Drucker Forum, Vienna.
Retrieved from
http://essay.druckerchallenge.org/fileadmin/user_upload/essays_
pdf/kidusmehalu.pdf
Making Ethical Choices
Though any ethical dilemma can present a leader with difficult

4. choices, resolving cross-cultural ethical dilemmas can seem
downright impossible because the moral beliefs and values
concerning what is right and wrong may not be the same in both
cultures. The question then arises, do we take the position of
ethical relativism (deciding what is right or wrong depending on
the ethical norms and standards of the culture where the action
takes place) or risk being complicit in cultural imperialism
(imposing the ethical standards of one’s own society on another
which has made different judgments in accordance with the
morality of their own culture).
To understand more about the relative nature of moral practices
across and between cultures, read:
Velasquez, M., Andre, C., Shanks, S. J., & Myer, M. J. (2014).
Ethical relativism. Markkula Center for Applied Ethics.
Retrieved from
http://www.scu.edu/ethics/practicing/decision/ethicalrelativism.
html#sthash.FeFJwTIQ.dpbs
Are there any ethical standards that cut across all cultures and
help leaders make the right choice when societal moral codes
conflict? Marc Hauser, a Harvard psychologist, argues for the
existence of a moral code that is shared among all human
beings, regardless of nationality, political affiliation, religion,
race, age, or gender. This does not mean that all humans
respond to moral situations in the same way. They will respond
within the guidelines of their own social norms. But it does
suggest that we will respond to certain moral imperatives
following universal underlying principles—such as killing is
wrong—though the application of that principle may vary from
society to society (for example, laws about death penalties or
assisted suicides).
Let’s look at an example we are all familiar with—South Africa
under apartheid. Many international companies conducted
business in South Africa during the apartheid. Most were

5. headquartered in countries that did not tolerate racial
discrimination. It is interesting to compare the different
strategies employed by these companies when deciding how to
interact with a culture where the social discrimination would be
considered to be ethically wrong in their own countries.
Strategy Approach Examples of Companies
Individually refuse to abide by apartheid Refuse to follow rules
of apartheid (e.g., integrate factory washrooms) Polaroid,
GM
Collectively refuse to abide by apartheid Sign a promise to
adhere to the “Sullivan Principles”*
125
Fortune 500 Companies
Comply with apartheid Play by the rules Citibank
Forced withdrawal Economic sanctions 89 U.S. firms
including IBM, GM, P&G
Stand fast Protect investment in South Africa Multiple
European firms
Invest Buy up companies at bargain prices Asian firms
*Companies that signed the Sullivan Principles pledged to:
Express their support for universal human rights, especially for
their employees, the communities in which they operate and for
the parties with whom they do business.
Promote equal opportunity for their employees at all levels of
their company with respect to issues such as color, race, gender,
age, ethnicity, or religious beliefs. Also they would not operate
with worker treatment that exploits children, includes physical
punishment, abuses females, imposes involuntary servitude or
incorporates other forms of abuse.
Respect their employees’ voluntary freedom of association.
Compensate their employees enough to enable them to meet
their basic needs and provide the opportunity to improve their

6. skill and capability in order to raise their social and economic
opportunities.
Provide a safe and healthy workplace, protect human health and
the environment and promote sustainable development.
Promote fair competition including respect for intellectual and
other property rights and not offer, pay, or accept bribes.
Work with governments and the communities in which the
company does business to improve the quality of life in those
communities, including their educational, cultural, economic
and social well-being. They would also seek to provide training
and opportunities for workers from disadvantaged backgrounds.
Promote the application of the Principles by those with whom
the company does business.
As this case illustrates, arriving at a common approach to
dealing with cross-cultural ethical problems is hard to achieve.
Stages of Moral Development
There are four common rationalizations leaders use to justify
unethical behavior.
It is not really immoral/illegal.
I am acting in the best interests of the individual or
organization.
It will never be discovered or publicized.
My actions help the organization and therefore the ends justify
the means.
These rationalizations stem from Kohlberg’s “Stages of Moral
Development.” Kohlberg theorized that individuals progress
through various stages of moral development ranging from an
immature basis for deciding what is the right thing to do out of
a fear of punishment to a fully self-actualized code of ethics
based on internalized principles of justice. There is a link to an
article on Kohlberg’s model under “Optional Reading” if you
care to know more about this model.

7. Some scholars argue that organizations can be characterized by
a similar stage model and they make ethical decisions according
to the stage of development they have achieved. Read the
following article that explains these stages and gives examples
of real organizational responses to ethical dilemmas.
Reidenbach, R. E., & Robin, D. P. (1991). A conceptual model
of corporate moral development. Journal of Business Ethics,
10(4), 273.
In order for leaders to set the proper guidelines for making
ethical decisions within their organizations, leaders must
engage their subordinates in open discussion, without fear of
punishment or reprisal. These discussions should be informed
by the levels of moral development described in the article
above, with the goal of making decisions at the highest level of
moral reasoning possible.
As stated by INSEAD professor Henri-Claude de Bettignies:
The purpose of these discussions and debates is not to impose
values or give solutions, but to enhance awareness, to provide
frames of reference, to give analytical tools to explore in-depth
tradeoffs among short and long-term alternative decisions, to
involve individual managers in assessing their own values and
paradigms in order to be more lucid and responsible in their
own choices.
Application: Ethics and Negotiation
An effective way to initiate a discussion at this level is to
consider an application of the ethical frameworks we have been
considering to a practical activity like negotiation. For an in-
depth study of how cross-cultural differences can effect ethical
action in negotiations, read the following research article. When
reading this article, focus on the Introduction and Conceptual
Framework, skim the Research Methods and Results, and focus

8. again on the Discussion and Conclusion.
Ma, Z. (2010). The SINS in Business Negotiations: Explore the
Cross-Cultural Differences in Business Ethics Between Canada
and China. Journal Of Business Ethics, 91, 123–135.
Conclusion
There may be certain ethical principles that are universal, as
some experts claim. These could include such principles as
honesty, integrity, and protection of society. Others are
decidedly culture-specific, such as whistle-blowing, bribery and
kickbacks, profiteering, social welfare, patent protection, etc.
The challenge is to recognize similarities and differences and
identify the underlying rationalization (protection of group or
protection of the individual). The leader needs to help his or her
followers look for ways to resolve the differences through a
shared sense of common human values.
In the end, the resolution of ethical dilemmas is likely to be
culturally determined. Individualist cultures will evaluate moral
decisions based on a personal ability to live with the
consequences; collectivist cultures will look at whether or not
the group can live with them. Low-context cultures will seek to
codify legal rules—or at least written ones; high-context
cultures will adopt tacit standards shared by members of the
society. And universalist cultures will expect ethical standards
to apply equally to all; particularist cultures will apply
standards depending on who or what is involved.
And so we find ourselves coming full circle, wondering if it is
ever possible to find a set of ethical principles that will apply to
cross-cultural situations where each party operates under
different values and assumptions about what is right and what is
wrong.

9. Optional Reading
An example of a typical analytical tool used to facilitate ethical
decision making is described in the following article:
Bagley, C. E. (2003). The ethical leader’s decision tree.
Harvard Business Review 81(2), 18.
Dolcheck, M. M & Dolcheck, C. C. (1987). Business ethics: A
comparison of attitudes of managers in Hong Kong and the
United States, The Hong Kong Manager. (April–May) 28–43.
McLeod, S. A. (2011). Kohlberg. Retrieved from
http://www.simplypsychology.org/kohlberg.html
Stewart, J. B. (2011). Amandla! The Sullivan principles and the
battle to end apartheid in South Africa, 1975–1987. Journal Of
African American History, 96(1), 62–89.
Module 4 - Case
LEGAL AND ETHICAL IMPLICATIONS OF CROSS-
CULTURAL LEADERSHIP
Case Assignment
In this module, you will be completing a post-experience write-
up. This paper should be about 6 pages long. The purpose of
this write-up is to reflect on the experience as specifically
related to the concepts in this course: CQ, the components of
CQ, and CQ development. It is important to fully describe both
your successes and failures at building CQ capacity. The ability
to recognize failure can provide valuable insights and growth. If
developing one component of CQ is more difficult for you than
others, it is not unusual. For example, you may understand
cultural differences (cognitive) and be highly motivated to learn
to lead in cross-cultural environments (motivation), but find
yourself unable to change your leadership style to fit the
cultural circumstances (action). Perfection is not the goal of this
course—that can take years of practice. What is a more realistic

10. goal is to become more aware of your strengths and weaknesses
and make progress toward becoming more culturally competent
by building on your strengths and shoring up your weaknesses.
Assignment Expectations
Your post-experience write-up should include the following:
Assess the quality of the cultural experience as related to the
assignment expectations (see Module 2)
Provide a rich qualitative description of the cultural experience.
Clearly and accurately relate your experience to the key
concepts of the course:
Cognitive (CQ Knowledge): awareness, self-awareness,
knowledge
Motivation (CQ Drive): perseverance related to cultural
interaction
Metacognitive (CQ Strategy): active control over thinking and
using cultural knowledge (e.g., questioning assumptions and/or
stereotypes)
Action (CQ Action): ability to adjust or adapt behavior
Assess your effectiveness in personally applying CQ concepts
(honest and critical analysis of your strengths and weaknesses,
successes and difficulties).
Describe how what you learned through this exercise can
improve your performance as a leader.
Use professional-quality writing.
Module 4 - SLP
LEGAL AND ETHICAL IMPLICATIONS OF CROSS-
CULTURAL LEADERSHIP
The SLP for this module involves a self-assessment on ethics.
Begin by completing What's Your Ethics IQ? Then, in your
weekly journal, reflect on the following questions:
What was your score on this assessment?
What did the feedback following the assessment reveal about
your patterns of ethical decision making?

11. How is this instrument “culture bound”? How would the
answers be different in a particularist culture?
What other insights have you gained about your role as a leader
in making ethical decisions in a cross-cultural situation?
SLP Assignment Expectations
The journal is a cumulative document—you turn in all previous
entries with each module.
Include the results from the assessment in your journal.
Each module should add 2–3 pages to the journal.
The journal should be thoughtful and insightful, integrating
learnings from the assessment with other activities in the
module and course.
The format for the journal is less formal than academic papers
(e.g., you can use the first person), but you should use headings
to organize your thoughts and guide the reader and cite any
sources where you are using information, data, or text from an
outside source.
Any references should be prepared in APA format in a
combined reference list at the end of the journal.
Your journal should be edited and error-free.
Submit your finished paper to TLC by the assignment due date.
Discussion:
Discussion: Ethical Issues in International Situations
Several recent American films have dealt with ethical issues in
international situations and raise thorny questions for students
of leadership ethics. One such film is Zero Dark Thirty. If you
have not seen the film, you will probably want to watch it, but
you can also get a synopsis of the plot on IMDb if you don’t
mind spoilers. http://www.imdb.com/
There is only one thread for both weeks in this discussion, but
be sure you participate at least twice, once to post your own
thoughts and once to respond to other students. Of course, if
someone engages with you, you should also post a return

12. response. Remember that ethical issues can raise conflicting
points of view. It is fine to disagree with a post—we want to
generate discussion—but always be respectful.
Zero Dark Thirty
Zero Dark Thirty is a fictional account of the hunt for Osama
Bin Laden and presents us with important ethical questions
regarding the morality of torture (“enhanced interrogation
techniques”) and the responsibilities of filmmakers to represent
the truth.
Please post your thoughts on the ethical issues raised by this
film by responding to one or more of these questions:
Ethical Issues and Discussion Questions
1. Did Zero Dark Thirty change your perceptions about
"enhanced interrogation techniques"? If so, how did they
change?
2. Regardless of the semantic question of whether
waterboarding is a form of torture, the fact remains that its use
presents us with serious ethical dilemmas. Is it ever morally
acceptable to subject a prisoner to pain, duress, or humiliation?
If so, what circumstances call for such drastic means?
3. Moreover, if coercive modes of interrogation are ever
permissible, where should we draw the line between acceptable
and unacceptable interrogation methods, and what criteria
should we use to establish that line? Who should have final say?
4. Do filmmakers have a moral responsibility not to misinform
their audiences about important issues, or do their artistic
licenses trump such concerns?

13. 5. The film's conflict is resolved by the assassination of Osama
bin Laden. Should the U.S. government have done more to
capture him alive? If avoidable, was this killing—and indeed,
the creation of a "Kill List" of terrorists—ethical?
Source: Ethics on Film: Discussion of “Zero Dark Thirty."
(2013) Carnegie Council for Ethics in International Affairs.
http://www.carnegiecouncil.org/education/002/film/reviews/000
7.html
_____________________________________________________
________________
4-1 Discussion: Internal Controls Over Assets
Companies lose millions of dollars each year through employee
theft and fraud. To prevent this, internal controls are
implemented. We will examine the types of controls companies
use and discuss what happens when these controls are missing.
Consider this scenario: You own a small business with 25
employees. In your initial post, explain which internal controls
you would use to protect your assets and ensure that your
financial statements are accurate.
Undergraduate Discussion Rubric
Overview
Your active participation in the discussions is essential to your
overall success this term. Discussion questions will help you

14. make meaningful connections
between the course content and the larger concepts of the
course. These discussions give you a chance to express your
own thoughts, ask questions, and gain
insight from your peers and instructor.
Directions
For each discussion, you must create one initial post and follow
up with at least two response posts.
For your initial post, do the following:
11:59 p.m. Eastern.
Thursday at 11:59 p.m. of your local time zone.
appropriate. Use proper citation methods for your discipline
when referencing scholarly or
popular sources.
For your response posts, do the following:
post thread.
at 11:59 p.m. Eastern.

15. n Modules Two through Eight, complete your two response
posts by Sunday at 11:59 p.m. of your local time zone.
“I agree” or “You are wrong.” Guidance is provided for you in
the discussion prompt.
Rubric
Critical Elements Exemplary Proficient Needs Improvement
Not Evident Value
Comprehension Develops an initial post with an
organized, clear point of view or
idea using rich and significant detail
(100%)
Develops an initial post with a
point of view or idea using
adequate organization and
detail (85%)
Develops an initial post with a
point of view or idea but with
some gaps in organization and
detail (55%)
Does not develop an initial post
with an organized point of view
or idea (0%)
40
Timeliness N/A Submits initial post on time
(100%)

16. Submits initial post one day late
(55%)
Submits initial post two or more
days late (0%)
10
Engagement Provides relevant and meaningful
response posts with clarifying
explanation and detail (100%)
Provides relevant response
posts with some explanation
and detail (85%)
Provides somewhat relevant
response posts with some
explanation and detail (55%)
Provides response posts that
are generic with little
explanation or detail (0%)
30
Critical Elements Exemplary Proficient Needs Improvement
Not Evident Value
Writing
(Mechanics)

17. Writes posts that are easily
understood, clear, and concise
using proper citation methods
where applicable with no errors in
citations (100%)
Writes posts that are easily
understood using proper
citation methods where
applicable with few errors in
citations (85%)
Writes posts that are
understandable using proper
citation methods where
applicable with a number of
errors in citations (55%)
Writes posts that others are not
able to understand and does
not use proper citation
methods where applicable (0%)
20
Total 100%