Culture and Ethics

Question 1

Culture

Answer 1

• learned behaviour patterns from society, values, ideas, behaviour, symbols etc
• it is relative (no absolute culture)
• culture is about groups, not individuals, and is socially derived

Question 2

Cultural intelligene

Answer 2

capability to function effectively with cultural diversity

Question 3

Ethnocentric/polycentric/geocentric orientation

Answer 3

1. use home country as standard for judging other cultures (home-country mindset)
2. don’t judge, but try to gain understanding for unique culture/society (host-country mindset)
3. global mindset, understand business/market cross country boundaries, openness to and awareness of diversity

Question 4

Key dimensions of culture

Answer 4

Values and attitudes, perception of time and space, symbols, language, technology, manners and customs, religion etc.

Question 5

Elements in culture

Answer 5

languages, education, social interactions, religions, value systems

Question 6

Polychronic/monochronic

Answer 6

1. relationships, flexible, long-term perspective, multiple tasks at once
2. schedules, punctual, short time, time is money

Question 7

1. Low context culture vs 2. high context culture

Answer 7

1. Deal oriented culture, verbal messages is important, straightforward, direct, efficient, down to business
2. Relationship oriented culture, non verbal communication is important, sensitive to body language, harmonious, care, respect, social trust, goodwill is valued, hard to say no

Question 8

Managerial guidelines to become culturally effective

Answer 8

• knowledge about culture
• try to speak language
• cross-cultural skills
• tolerance, flexible and adaptable

Question 9

Why does culture matter in international business?

Answer 9

• culture matters in IB because of cross-cultural risk.
• if not managed appropriately, it can hurt you brand and, and reversely it can make profits.
• first step is being culturally sensitive, to understand key dimension of culture, and appreciate it

Question 10

Corruption

Answer 10

• abuse of power in order to achieve illegitimate personal/business gain
• corruption perceptions index measure level of corruption in public sectors

Question 11

Ethics

Answer 11

• what is good and right, moral, value, behaviour and following the law, important for managers to have a high standard
• not required by law, vary around the world
• consider larger society, well-being of others, respect, environment

Question 12

Global sourcing

Answer 12

• product/services from suppliers abroad, raises public debate about protecting environment and human rights

Question 13

Relativism vs normativism

Answer 13

Relativism=  ethical truths are not absolute, they differ
Normativism= ethics are universal, firms should seek to uphold them around the world

Question 14

CSR

Answer 14

• manner of operating business that meets(exceeds) ethical, legal, commercial and public expectations of stakeholders (customers, shareholders, employees and communities)
• environmentally friendly policies are important for CSR programs
• high CSR= high quality company, good reputation, motivate employers
• give back to society

Question 15

Sustainability

Answer 15

• meeting humanity’s needs without harming future generations
• pursue three interests:
• economic impact (create jobs, local wages, invest in disadvantaged areas)
• social impact (work conditions and diversity in hiring)
• environmental interests (natural resources, recycling, reducing pollution)

Question 16

Framework for ethical decisions

Answer 16

1. recognize ethical problems
2. get the facts
3. evaluate alternative courses of action
4. implement and evaluate your decision
   = more appropriate solutions

Question 17

Explain the iceberg metaphor about culture

Answer 17

• high (visible, aware, litterature), - folk (aware, religion, humor etc)
• deep culture (unaware, gender roles, decision making, family relationships, nonverbal communication)