Discussed and worked with international leaders on addressing cross-cultural ethical issues at the International Leadership Association annual conference. Thank you for the opportunity!

1. Ethics: Practical Solutions
to Cross-Cultural Issues
Dr. Yao Maria Chen
ILA 19th Annual Global Conference
Brussels, Belgium
Oct. 14, 2017
mchen@ymc-consulting.com www.ymc-consulting.com

2. About your presenter
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25 years combined experience in manufacturing, chemical, and
pharmaceutical industries
 Led regional merger, acquisition, and integrations
 Headed corporate internal audit
 7+ years advising/consulting
 Organizational change, cross cultural leadership……
 2+ years higher education teaching
 MBA Leadership, Ethics, Organizational Behavior, and
Financial Management in U.S. and Vietnam
 DBA, Leadership, Capella Univ. Minnesota, U.S.A.
 MS, Accounting, Long Island Univ., New York, U.S.A.
 BA, Accounting (Economics), Capital Univ. of Economics & Trade,
Beijing, China
mchen@ymc-consulting.com www.ymc-consulting.com

3. Agenda
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•What are the current issues in ethical practice?
• What are the impacts of these issues?
• How were the issues addressed in the past?
• How can the issues be better addressed in the
future?
• The implication of the proposed practices?
mchen@ymc-consulting.com www.ymc-consulting.com

4. Current Issues in Ethical Practice
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 interpretations vary from country to
country
 the right or wrong practice has been
judged differently from one culture to
another
 inconsistent leadership practices
within the same organization
mchen@ymc-consulting.com www.ymc-consulting.com

5. Different Ethical Leadership Priorities
Category China Germany U.S.
Accountability Secondary Secondary Top
Consideration and respect for others Top Top Top
Fairness and non-discriminatory Top Secondary Secondary
Character Top Secondary Top
Organizational and social orientation Secondary Top Secondary
Openness and flexibility Secondary Secondary Secondary
Resick, C. J., Martin, G. S., Keating, M. A., Dickson, M. W., Kwan, H. W., & Peng, C. (2011).

6. Different Ethical Leadership Priorities
Individual Organization
1 Ability (Due care) Objectivity
2 Confidentiality/Filial Piety Confidentiality
3 Responsibility Responsibility
4 Autonomy/Honesty Trustworthiness
5 Independence/Wittiness Prudence
In class survey of 60 graduate in Vietnam and undergraduate students in China

7. The Impacts of the Issues
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1. Confusion
2. Conflicts
3. Low morale
4. Less cooperation
5. Reduced productivity
6. Ineffective leadership
7. Mergers and Acquisition Failures
8. Slowing down organizational
development
mchen@ymc-consulting.com www.ymc-consulting.com

8. The BBQ Sauce Case
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Super salesman works for a global firm that operates in Asia,
Americas, and Europe. Last Thursday, his family (his wife
and two teenager kids) treated two employees of a potential
customer an authentic BBQ at their Texas home. Considering
the cost would be similar if he treated those two at a
restaurant, super salesman gathered Thursday’s shopping
list for reimbursement.
The accountant at the company’s Houston office noticed a
bottle of BBQ sauce was among all the items. Should the
super salesman be reimbursed for the BBQ sauce?
mchen@ymc-consulting.com www.ymc-consulting.com

9. The Old Way to Address Ethical Issues
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 Focus on individual country
 Ethical decision based on country
oriented practice
 Decisions may be contradiction among
countries
 Corporate value may be overlooked
 ……
mchen@ymc-consulting.com www.ymc-consulting.com

10. The New Way to Address Ethical Issues
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 Focus on corporate value and mission
 Establish corporate ethical practice
guidelines
 Focus on the issue rather than the
country difference
 Collaborate with cross country team
members
 Collaborate with cross function team
members
 Corporate cultural first, national cultural
second
mchen@ymc-consulting.com www.ymc-consulting.com

11. The Implication of Ethical Practices
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More mindful when selecting a globalization
strategy.
Organizations may want to first focus on their
mission and values before localization.
Localized practices should conform to the ethical
values in the local country as well as those that are
set in the parent company’s country of origin.
Regular communication and training should also
take place to bring awareness to the global impact
of corporate initiatives.
mchen@ymc-consulting.com www.ymc-consulting.com

12. 12
Questions?
Further contact:
mchen@ymc-consulting.com
01 201-486-5218
mchen@ymc-consulting.com www.ymc-consulting.com