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Week 9

BUSI7280 Cultural and Ethical Environments

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Three factors have changed international trade – but policy responses are slow

Mass migration is a new international reality – governments need to adjust to this.

Tradeable services and digital revolution have already changed face of international trade – but policies are lagging.

Populist reactions against globalization require proactive response.

This week’s work

How does culture impact on international management?

Why do managers need to be able to deal with cultural difference?

What should international managers do about cultural difference?

1. Impact of culture on international management

This week’s work

Why are ethical considerations important for managers?

How do ethical considerations change in international contexts?

What do international managers need to do about ethical conduct?

2. Impact of ethics on international management

KISS – what’s wrong with the simple solution?

Drucker: for every complex problem there is a simple solution which is wrong

https ://www.youtube.com/watch?v= rJ4IbhXrqnc

Small group discussion – what’s wrong with the 3Rs?

How do you personally define culture?

Small group exercise

What culture do you most identify with?

Upon what is this identification based?

What is culture?

Hofstede: the collective programming of the mind which distinguishes the members of one group or category of people from another

Shine: the learned response of the group to problems

Hess: ideas and things members of an identifiable group take for granted

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Critical thinking about ‘culture’

Culture is about group behaviour – but what is the group?

In any nation/community/organization - there will be a dominant culture and sub-cultures

Role of sub-cultures as modes of resistance to dominant

Culture can be manipulated to control behaviour

Is it really that simple?

National culture

Norms of ‘home’ culture can impede organizations’ ability to internationalize.

How much does a regulatory regime assume shared values?

Will a ‘new’ market require adjustments in how products are presented?

Impacts on organisation, regulation, market

Dimensions of culture

Power distance

Individualism vs collectivism

Masculinity vs femininity

Uncertainty avoidance

Long-term vs short-term orientation

Indulgence vs restraint

Hofstede Centre (2016) Dimensions of National Cultures, http://geert-hofstede.com

According to Geert Hofstede

Typology of National Culture

Universalism –v- particularism

Individualism –v- communitarianism

Specific –v- diffuse

Neutral –v- emotional

Achievement –v- ascription

Sequential time –v- synchronous time

Internal direction –v- outer direction

Trompenaars’

dimensions of national culture

How does culture matter?

Specific tasks requires specific forms of communication

Do specific cultural contexts also call for specific forms of communication?

Should we leave inter-cultural communication to intuition?

communication

How does culture matter?

Notions of time

How the individual fits into society

Beliefs about human nature

Rules about relationships

Importance of work

Motivations for achievement

Role of adults and children within the family

Tip of the iceberg

How does culture matter?

Tolerance for change

Expectation of macho behavior

Importance of face, harmony

Preference for leadership systems

Communication styles

Attitudes about men’s/women’s roles

Preference for thinking style – linear or systemic

Tip of the iceberg

Determinants of culture

Political philosophy

Economic philosophy

Religion

Education

Language

Social structure

What influences cultural norms and value systems?

Understanding the effects of culture

on organizational behaviour

on strategic thinking

on assumptions of meaning and understanding

for international management

Developing cultural intelligence

Knowledge about cultures

Awareness of yourself and others

Behavioural skills

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Your cultural characteristics

What do you see as the cultural characteristics impacting on your behaviour/understanding?

Where do these characteristics come from?

To what extent do you think they are shared with folk from different backgrounds?

5 minutes to note your answers.

Pair up with someone from a different background – compare notes.

What about ethics?

Ethics is the accepted principles of right or wrong that govern the conduct of a person, profession or organization

Ethical dilemmas are situations in which none of the available alternatives seems ethically acceptable

In what senses do businesses/organisations need to be ethical?

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Ethics, sustainability and management

Remember the GFC – collapse of financial systems

Caused by clever people acting unethically

Is climate change THE current challenge to global markets?

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Businesses don’t need ethics

The law embodies many of a country’s moral principles

The law provides a clearly defined set of rules

The law contains enforceable rules that apply to everyone

The law reflects careful and wide-ranging discussions

The law is obejctive and independent

They just need to obey the law because

But the law is also limited

Some things that are unethical are not illegal

Laws are slow to develop in emerging areas of concern

Laws may be based on imprecisely defined moral concepts

The law often needs to undergo scrutiny by the courts

The law is not very efficient and may be biased

Areas of organizational life in which ethical issues arise

regulatory compliance

employment practices

human rights

environmental pollution

corruption

the moral obligation of multinational companies

Debate: the purpose of business is profit NOT ethical behaviour

Random groups

Debate – for and against proposition

Each group decides

Class discussion

Examples of unethical behaviour

What have you seen in your career that you’d classify as unethical?

Why do you think it was unethical?

What could have been done about it?

5 minutes to make notes.

15 minutes in small groups to share stories.

Report back on the most interesting example

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