...Business ethics relating to Corruption Chapter 1 Introduction: What Corruption is and Why it Matters? People everywhere are more concerned than they ever have been about corruption and business ethics. This represents social changes that are occurring everywhere, though to different degrees. Partly this may be due to the pioneering efforts of the organization transparency International, which has not only spearheaded the fight against corruption, but has made it possible to gauge and compare corruption across countries. Partly, it may be due to the plethora of scandals and company collapses that was experienced at the end of the 1990s and in the early 2000s. it may also be due to changes in the demographics of investors. Today the worker is also the capitalist, and the largest investors, institutional investors, are protecting the common person’s pension savings, insurance funds, etc. it may also be due to globalization. Globalization has expanded communication and the flow of information among ever widening circles of people, some of whose interests conflict with those of the private sector, and those adversely affected have organized themselves in a variety of ways to express their discontent. Globalization has forced like-minded western capitalists to interact with their counterparts in lower-income countries, where interpretations of trust, reciprocity, honesty, and social engagement may differ. Finally, Globalization has created visible, open...
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...and local culture. First, According to the Chinese law, giving gifts of any kind to the government officials with intent of taking advantage of their position and power to conduct illegal action is bribery. This action of giving money to government officials may therefore be regarded as bribery; as a result involved parties may be penalized or even end up in jail. The Stakeholders may also decide to withdraw investing in such a corrupt environment. Secondly, it is undeniably true that local culture plays a tremendous role in a local business environment, therefore we must also argue with regards to culture. As far as Chinese culture is concerned, the need of maintaining networks or relationships (locally known as “關係Guan Xi”) in business environment is tremendously important and it is deeply rooted in the Chinese people’s DNA and other Asian countries that are also influenced by the Teachings of Confucius. According to the teachings of Confucius, relationships or networks(關係), and Face (mian zi), were among other things that were highly emphasized and helped to build up the Chinese culture which can be evidenced by the findings of Geert Hofstede in his theory of culture dimension that most Asian culture with no exception of the Chinese culture scored high in the dimension of collectivism. According to Chen for example, she argues that gifts are offered to establish relationship with government officials so that they get motivated to handle their application legally but without delay...
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...important as the words used. 2) Describe the differences among the dimensions of Hofstede’s framework. The seven factors of the dimension approach are: power distance, individualism, collectivism, masculinity, femininity, uncertainty avoidance, and long-term orientation; which are also the five dimensions of culture. Power distance extent to which less powerful members within a country expect and accept that power is distributed unequally. Individualism perspective is that the identity fo an individual is fundamentally her or his own. Collectivism is the idea that identify of an individual is primarily based on the identify of her or his collective group. Masculinity is the sex-role differentiation for males. Femininity is sex-role differentiation for females. Uncertainty avoidance is the extent to which members in different cultures accept ambiguous situations and tolerate uncertainty. Long-term orientation emphasizes perseverance and savings for future betterment. This approach has endeavored to overcome limitations such as the context only representing one dimension and cluster approach as relatively little to offer regarding differences among countries with one cluster. 3) How would you define corruption? Corruption is the abuse of public power for private benefits usually in the form of bribery. 4) Using Peng Atlas Map 5, identify and describe the four major religions in the world and where they are distributed geographically. The four major religions in the world would...
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...appropriate choice of communication channels (Lengel 1983). However, Bieber and Harris are utilising the inappropriate channels, such as E-mails and SMS for unsuitable occasions, thus communication is undermined. Next, the report discusses the significance of nonverbal communication. Bieber and Harris have displayed various nonverbal cues, either consciously or unconsciously, to suggest their authority towards their colleagues. Furthermore, the report examines the problems during intercultural communication, with a particular focus on Hirokawa and Harris. Hirokawa is from a Japanese background, whilst Harris is from an African American background; therefore they belong to the different cultural dimensions of collectivism and individualism respectively. Additionally, the bribery actions of Bieber in the Chinese market can lead him to become an unethical communicator. Finally, the report concludes with recommendations made for the three employees. Bieber is...
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...Concept of political environment The political scenario in a country is the outcome of the interacting influence of various interest groups such as individual households, firms, politicians, bureaucrats and many others. The stronger a particular interest group the more prominent its ideology will manifest in the overall political scenario. In a country with federal character, where different interest groups are prominent at different levels, different ideologies exist side by side at the same juncture. The political scenario in different states may be different. Even at the centre, the political scenario may change with changes in the dominant interest group. As opposed to diverse political environments in a particular country, a particular political ideology may be found in more than one country. It is because the ethnic background, language, religion and so on bring many countries within the fold of one common political ideology. For example, it was the ethnic considerations that brought Serbs of the neighbouring regions into one political umbrella known as Greater Serbia. Thus political environment is marked by both diversity and uniformity. The political scenario often varies between the two extremes democracy on the one hand and totalitarianism on the other. The purest form of democracy represents direct involvement of citizens in policy making. But with growing time and distance barriers over time, it did not remain feasible for all citizens to participate in the political...
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...values, and expectations from participants. Understanding these differences and how they influence international organizational behavior is aided by examination of key social, legal, ethical, political, and economic conditions. • Social Conditions In many countries the social condition is poorly developed, there are major shortages of managerial personnel, scientists and technicians and these deficiencies limit the ability to employ local labor. Needed skills must be imported from other countries while the local workers will be prepared. • Legal and ethical conditions In judicial system, some countries practice rapid disposition of cases, in other countries cases may drag on for years. Some countries condone the practice of bribery as way of obtaining and retaining businesses others strictly prohibit it. Managers need to be aware of the possible differences in both laws and ethical values that define acceptable and unacceptable behaviors in foreign countries. The managers in foreign countries need to become familiar with local customs and practices. Applying their own personal and organizational value systems, they must then decide which behaviors are compatible with both parties’ expectations and which are not. Finally, they need to recognize that the resolution of ethical issues is not always clear-cut. • Political conditions Political conditions that have a significant effect on organizational behavior include instability of...
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...Ethical Challenges in Latin American Cultures A Study of the Impacts of Culture in the Business Environment Warrington Thomas Edison State College International Management 372 Professor: Baker 06/16/2013 Elements Influencing Social Culture Culture is defined as a system of values and norms shared among a group of people and when taken together represent a system of living. Culture is not static but always evolving and it is important to take various factors into consideration when attempting to conduct business in international countries. Valuing cultural diversity in the workplace can boost morale and productivity. An effective employee who feels discriminated against because of cultural differences might get disconnected and leave the company. Values are the things that people believe to be right, good and desirable. Values are often reflected in the political and economic system of a country and includes society’s attitude towards things such as individual freedom, democracy, truth, honesty and loyalty among many other things. Ethics include the standards of moral behavior that are acceptable by a society as right or wrong. It includes basic moral values such as integrity, respect for human life, self-control, honesty, courage, cheating, cruelty and the list continues. Latin Americans are very proud of their culture individuals attempting to do business in this part of the world should be aware of the social conventions. ...
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...country manager, Tom Chong, who was responsible for Neighbourhood Markets in Malaysia. Jextra Stores was a Hong Kong based company that operated retail stores in China, Hong Kong, Philippines, Malaysia, Thailand, Singapore, and Vietnam. In 2005, the company successfully entered Malaysia, operating supermarkets under the name of Neighborhood Markets (Inkpen, 2010). Jextra identified a promising site in Klang, near the capital of Kuala Lumpur, to open a new supermarket (Inkpen, 2010). Mr. Chong needs to evaluate a proposal made by the Mayor of Kang, which might be considered bribery. In this case, Mr. Chong faces social and ethical challenges that may affect the company’s operations, performance, and competitiveness in the region as well as Mr. Chong’s career. The major social issues include those related to law, culture, and ethics. The report also analyzes anti-bribery corruption enacted by the U.K Bribery Act and the U.S. Foreign Corrupt Practices Act (FCPA). The report concludes with recommendations to Jextra such as seeking proper legal advice, implementing an effective business code of conduct, providing inter-cultural and ethics training to managers, using a geocentrism approach and conducting an internal investigation for the Malaysian category manager. Analysis Social, Ethical, or Legal Challenges International firms operating abroad often face social challenges because they operate in markets with different legal and political systems (Daniels, Radebaugh, & Sullivan...
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...Table of Contents 1. Introduction 1 2. Cultural Dimensions of Pakistan 2 2.1 Hofstede’s Study 2 2.2 Trompenaar’s Dimensions 5 2.3 GLOBE Study 6 3. Communicating Cross Culturally 7 3.1 Proper Greetings 7 3.2 Introductions 7 3.3 Touch Behaviour 8 3.4 Taboos 9 3.5 Entertaining 9 4. Management Issues in Pakistan 9 4.1 Leading 9 4.2 Motivation 12 5. Negotiating in Pakistan 13 6. Expatriates in Pakistan 15 7. Managing Social and Ethical Issues in Pakistan 18 7.1 Conflict of Development 18 7.2 Conflict of Tradition 18 7.3 Conflict of Interest 19 8. Conclusion 21 References 22 Appendix 1 – Map of Pakistan 23 Appendix 2 – GLOBE Study 24 Appendix 3 - Supplementary Information 26 Appendix 4 - Important Contact Information 28 1. Introduction Pakistan was one of the two original successor states to British India, which was partitioned along religious lines in 1947. For almost 25 years following independence, it consisted of two separate regions, East and West Pakistan, but now is made up only of the western sector. Both India and Pakistan have laid claim to the Kashmir region, and this territorial dispute led to war in 1949, and again in 1965, 1971, and 1999, and remains unresolved today. Pakistan is situated in the western part of the Indian subcontinent, with Afghanistan and Iran on the west, India on the east, and the Arabian Sea on the south. The name Pakistan is derived from the Urdu words Pak (meaning pure) and...
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...country manager, Tom Chong, who was responsible for Neighbourhood Markets in Malaysia. Jextra Stores was a Hong Kong based company that operated retail stores in China, Hong Kong, Philippines, Malaysia, Thailand, Singapore, and Vietnam. In 2005, the company successfully entered Malaysia, operating supermarkets under the name of Neighborhood Markets (Inkpen, 2010). Jextra identified a promising site in Klang, near the capital of Kuala Lumpur, to open a new supermarket (Inkpen, 2010). Mr. Chong needs to evaluate a proposal made by the Mayor of Kang, which might be considered bribery. In this case, Mr. Chong faces social and ethical challenges that may affect the company’s operations, performance, and competitiveness in the region as well as Mr. Chong’s career. The major social issues include those related to law, culture, and ethics. The report also analyzes anti-bribery corruption enacted by the U.K Bribery Act and the U.S. Foreign Corrupt Practices Act (FCPA). The report concludes with recommendations to Jextra such as seeking proper legal advice, implementing an effective business code of conduct, providing inter-cultural and ethics training to managers, using a geocentrism approach and conducting an internal investigation for the Malaysian category manager. Analysis Social, Ethical, or Legal Challenges International firms operating abroad often face social challenges because they operate in markets with different legal and political systems (Daniels, Radebaugh, &...
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...Chapter 02 National Differences in Political Economy True / False Questions 1. A country's political economy and culture are independent of each other. True False 2. It is not possible to have democratic societies that emphasize a mix of collectivism and individualism. True False 3. The communists believed that socialism could be achieved by democratic means, and turned their backs on violent revolution and dictatorship. True False 4. In an individualist society, the welfare of society is best served by letting people pursue their own economic self-interest. True False 5. The central message of collectivism is that individual economic and political freedoms are the ground rules on which a society should be based. True False 6. There is a global trend of societies shifting from individualism toward collectivism. True False 7. It is possible to have a democratic state where collective values predominate. True False 8. It is possible to have a totalitarian state that is hostile to collectivism and where some degree of individualism is encouraged. True False 9. The most practical form of democracy is direct democracy. True False 10. Most modern democratic states practice representative democracy. True False 11. In a market economy, if demand for a product exceeds supply, prices will rise, signaling to producers to produce more. True False ...
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...Nuances in Bulgarian business culture in comparison with the United Kingdom’s Course work in Cross-cultural issues in the European Human Resource Management Prepare by: Dimitar Arnaudov, Faculty number: 1523078 Course: European business and Finances Sofia, 2015 1. Differences between national cultures. Authors, studies, etc. 2.1. Culture (def.); Culture differences. 1.1.1 Culture – def.; 1.1.2 Culture differences. 1.1 Authors and studies related to business culture. 1.2.1 Geert Hofstede; 1.2.2 Famous studies around the World. 2. Similarities and differences between the business cultures of Bulgaria and the United Kingdom. 2.1. Bulgarian business culture; 2.2. British business culture in comparison to Bulgaria’s . 3. References. Differences between national cultures. Authors, studies, etc. Culture (definition) and culture differences Culture illustrates the accepted norms and values and traditional behaviour of a group. One definition of culture by Deal and Kennedy is “the way a we do things around here”. However, culture also evolves over time. The culture of each country has its own beliefs, values and activities. In other words culture can be defined as an evolving set of collective beliefs, values and attitudes. Culture is a key component in business and has an impact on the strategic direction of business. Culture influences management...
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...A Comparative Study of Walmart Operations in Canada & Mexico Table of Contents 1. Executive Summary…………………………...………………………………...…...2 2. Introduction………………………………………………………………………….3 3. Walmart and the Canadian Marketplace……………………………..…………3 A. Country Competitiveness B. Cultural Environment C. Political and Legal Environment D. Entry Strategies 4. Walmart and the Mexican Marketplace……………………………..………….10 A. Country Competitiveness B. Cultural Environment C. Political and Legal Environment D. Entry Strategies 5. Summary Comparison of Canadian and Mexican Markets…………………….18 6. Recommendation…………………………………………………………………….19 7. References…………………………………………………………………………...21 1. Executive Summary This report closely examines the operations of the world's largest retailer, Walmart, in Canada and Mexico. Assessments of market conditions in both countries have been conducted in terms of country competitiveness, cultural, political and legal environments and the strategies used by Walmart upon entry. Tying into these international business factors, specific aspects of international economic integration, monetary systems, social responsibility and corruption have also been reviewed. While being part of one continent and a common trade bloc (NAFTA, the North American Free Trade Agreement), considerable differences between Canada and Mexico are apparent. These differences are individually analyzed on the following pages. Inevitably, they...
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...of market characteristics: market economies, command economies, and mixed economies. Legal systems are discussed in terms of the protections they offer for business: intellectual property, product safety, liability and contracts. The opening case explores the political and economic situation in Venezuela since Hugo Chavez was elected president in 1998. The closing case describes the challenges facing Indonesia, a vast country populated mainly by Muslims that stretches over 17,000 islands. Indonesia, after decades of corruption and a near dictatorship, now has a newly elected president. OUTLINE OF CHAPTER 2: NATIONAL DIFFERENCES IN POLITICAL ECONOMY Opening Case: Chavez’s Venezuela Introduction Political Systems Collectivism and Individualism Democracy and Totalitarianism Economic Systems Market Economy Command Economy Mixed Economy Legal...
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...Culture and its Impact on International Business Introduction As businesses have grown and expanded to the international level; certain aspects of business have become abundantly clear. One thing that has become the norm when doing business on the international level is dealing with different cultures. Culture, as defined by Geert Hofstede is “the collective programming of the human mind that distinguishes the members of one human group from those of another. Culture in this sense is a system of collectively held values.” The concept of a culture has been around for a very long time; in-fact, when people exist in the same place together they end up following a set of rules. These rules can be called a “social norm” or culture and can be made up of simple things like how to act in certain situations all the way to a very devout set of beliefs or values. This paper will focus on the role that culture plays on multinational businesses around the globe and the differences that culture plays from one area of the globe to the next. An in-depth look will be taken on the obstacles that may arise due to culture, adjustments that need to be made, and any ethical conundrums that may arise due to different cultures. Literature Review D. Elenkov and d. Kirova, state that “MNCs should not underestimate the importance of the cultural specificity of the host countries because different staffing, selecting, training, motivating and compensating practices should be applied in accordance...
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