Consider how culture is likely to impact on: effects management styles? Business customs within a country are an extension of the country’s culture. There are many similarities in how business is conducted from country to country but the differences, if not properly adjusted for, often cause enormous problems.
It is not necessary for a business person to forsake their ways and to change to conform to local customs but, rather, to be aware of differences and willing to accommodate those differences that can cause misunderstandings. Just as is the case with all cultural differences, a person’s SRC can cause problems when trying to operate under different business customs.
The literature is full of examples of misunderstandings between
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Differences in Communication Styles
ü Level of formality in addressing business clients by first name
ü Level of formality in addressing your boss by first name
ü Tempo or speed in getting “down to business”
ü Perception of time varies in many cultures
5. Differences in Negotiations Emphasis
• Differences with respect to the product, its price and terms, services associated with the product, and finally, friendship between vendors and customers
6. P-Time versus M-Time
ü M-time, or monochronic time, typifies most North Americans, Swiss, Germans, and Scandinavians
ü Most low-context cultures operate on M-time concentrating on one thing at a time
ü P-time, or polychronic time, is more dominant in high-context cultures
ü P-time is characterized by multi-tasking and by “a great involvement with people”
Gender Bias in International Business
ü The gender bias against women managers exists in some countries
ü Women are not accepted in upper level management roles in Asian, Middle Eastern, and Latin American
ü Gender bias poses significant challenges in cross-cultural negotiations
Business Ethics
· Business ethics is complex in the international marketplace because value judgments differ widely among culturally diverse groups
Business ethics and values have developed through time and crosswise over orders into a field, which is a standout amongst the most vital subjects in the field of business. For the authentic improvement of business morals, it is vital, to begin with, a meaning of business ethics and values in a worldwide setting (Savage, 2005). The study characterize business ethics and values from an administrative viewpoint as choices about what is correct or wrong (worthy or unsuitable) in the authoritative setting of arranging and actualizing business exercises in a worldwide business condition to profit (Child, 2015). The development
Ethics must be global, not local. In order to build a truly great global business the leaders need to bring forward a global standard of ethical practices.
Every country differs in culture which has been there for centuries. The international market is growing rapidly, with more and more multinational organisations entering new markets each day. In this assignment I will evaluate how the difference in cultures affects the performance of international businesses.
Every organization in the world, regardless of its varying location geographically all have one thing in common. It is the fact that the core of every decision made, every policy that is written, every company for which they choose to support and do business, and every product or service offered follows the guidelines and beliefs for which the companies’ ethics and culture are built upon. It is not to say, however, that these ethical practices and cultural beliefs are definitive and widely accepted. But what it does suggest is that each individual operating in a business setting runs in to the chance that the ethical practices and established culture may conflict with ones very own personal beliefs. Therefore, determining which dilemma, if any, can be overlooked to the point of tolerance versus that of which is completely prejudicial is a decision that only the impacted individual may conclude.
Business ethics is standard moral behaviors in a business situation, but it is the same as any of general ethnics on how we think and behave towards others and how we want others to feel the same. In any situation it can be addressed by what is happening and what should happen to this situation. In business ethic, the decision that is made has to be thought out more carefully because the business that is effected will affect the whole organization that normally consist stakeholders of all kind. Business ethics have changed over the years from centuries to decades ago. More cultural diversity I feel has been a major change in work environments. There has been more ethnic codes put in place, people (employees to customers) speak their opinion
We must change the focus of business ethics away from primary emphasis on Western ethics toward a deeper understanding of value systems that stem from different conceptions of human nature. We need to abandon the project of universalizing ethics along Western lines.
Ethical business behavior can be defined by business leadership. “Generally speaking, an action or choice can be considered ethically correct if it’s honest, fair, supports a beneficial outcome for both parties, and generally enables the overall corporate image and vision” (Definition of Ethics, 2002). In the following we will discuss how economic pressures on China, Jamaica, and America play a role in the ethical decision-making for financial, environmental, and cultural issues.
As a leader of a U.S. firm with operations in foreign countries, I would need to learn about the local cultures where my firm is operating. It is very important for my company to have a model code of ethics. With the company’s mission and vision in as the center, I will establish cores values that can be tailored for application in diverse workplace environment. Everyone in the company would need to comply with quarterly trainings and stay familiar with our company’s culture and values. I also know that geographic and cultural diversity management is not the same across the board. Ethical dilemma takes different implication and perception depending on the cultural environment. “When dealing with unethical behavior overseas, companies need to consider the ethical concept.” (The Role of Ethics and National Culture).
There are many cultural and ethical differences between countries and it is important for mutual trust and respect that no organization try to strong-arm another into their way of thinking or take a position that their culture is more valuable than the other. According to Pitta, Fung, and Isberg (1999), it is vital for success to have a basic understanding of the culture and the expectations within cultures as they affect all business transactions. Failing to understand and consider the cultural differences will likely result in failure.
Now that we have touched on culture let’s look at the same two countries and see how each culture affects management styles. Three notable differences of management in Asian countries compared to the US are: (Member, 2014)
Globally, the world of business has also led to an increase in ethical difficulty and dilemmas for managers of cross border firms. In the article titled, Okpara John O. (2014), “The effects of national culture on managers’ attitudes toward business ethics: implications for organizational change”, Okpara John O argues how the impact of globalization in the world of business evaluates the importance of incorporating cultural differences into ethics research. The article is integral part of the idea that cultural differences exist among managers from different continent. These differences in individuals can be highly contributed to perceptions of power management, readiness to cope with unforeseen circumstances, impact for material goods and quality of life among staff, open-minded to change, and group oriented-related within an organizational environment. These differences definitely affect the ethical attitudes and decision-making abilities of managers, especially those in multicultural environments. Recently, when multinational organizations that are spread across the boundaries of different countries displaying different cultures develop their organizational codes of conduct, they are now taking into account the cultural attributes of their local entities and the people who make those entities into consideration. Therefore, a code of conduct ethics that balances cross-cultural perceptions and values is likely to have a greater chance of acceptance among the managers who are expected to abide by it especially when such managers represent different cultures. Okpara John O.
Cultural differences between countries have strong effects on individual personality and behavior, as well as on organizational culture (Hofstede 2001). These differences can be a significant barrier for an international business leader. Failure to understand and adapt to these differences may
Personal values may conflict with ethical decision making if those personal values are different than the organizational norms of the business or institution. Constructing, and maintaining personal ethics in the workplace rests with the individual, and how willing he or she is in assimilating to the evolving cultural dynamic of the corporate world. Many times a person find their personal, cultural and/or organizational ethics conflicting and must reconcile a course of action that will mitigate cognitive dissonance. In order to be a productive member of society, in small groups and globally, one must reconcile these conflicts on a daily basis and continually move forward while maintaining personal integrity and
Culture will play a major part in the dynamics of the way we operated in international business circles. Managers today will need special skills in order to meet these challenges. Language differences, culture awareness, and management skills are necessary for success. These challenges often lead to a debate in which is better for a company, expatriate or foreign national workers. There are pros and cons to the use of each, but it will depend on several factors to which managers will be better suited for the challenge of
A great number of ethical dilemmas and issues in international business are mainly entrenched on the fact that laws, political systems, culture and economic development vary considerably