Ethics_TOPIC 5: THE IMPACT OF CULTURE AND TIME ON BUSINESS ETHICS

three kinds of beliefs

identifies the purpose of business itself. defines the organization's mission process of enculturation.

personal space

Another aspect of international business relationships is the question of personal space. In some cultures, touch is important in establishing connection, whereas in others it may be frowned upon (e.g. shaking hands with another person).

Business Ethics over Time

Another major influence in the development of business ethics is the passage of time. Ethical standards do not remain fixed; they transform in response to evolving situations. Over time, people change, technology advances, and cultural mores (i.e., acquired culture and manners) shift.

Age of Mercantilism

Exploration of newly opened markets and trade routes happened during this era. European powers extracted raw commodities like cotton, silk, diamonds, tea, and tobacco from their colonies in Africa, Asia, and South America and brought them home for production.

A Matter of Time

Governmental regulation and legal interpretations have not been the only avenues of change over the past century. growing influence of consumers has been another driving force in recent attempts by businesses to self-regulate and voluntarily comply with global ethical standards that ensure basic human rights and working conditions.

The Industrial Revolution and The Post-industrial Era

In this era, businesses focused on the pursuit of wealth, the expansion of overseas markets, and the accumulation of capital. goal was to earn as high a profit as possible for shareholders, with little concern for outside stakeholders. Although these periods witnessed extraordinary developments in science, medicine, engineering, and technology, the state of business ethics was perhaps best described by critics across the globe.

Information Age and The Age of Economic Globalization (Internet Age)

In this period, a code of professional conduct was develop for the purpose of achieving goals through strategic planning. Emphasis is placed more on each person at a firm embracing ethical standards and following those dictates to arrive at the appropriate behavior, whether at work or when off the clock. creation of human resources departments is one achievement of this age, because it reflects a view that humans have a unique value that ought not be reduced simply to the notion that they are instruments to be manipulated for the purposes of the organization.

Two major conditions affect the relationship between business and culture

The first is that business is not culturally neutral. The second condition reflects an evolving view of business in which the purpose is not solely generating wealth but also balancing profitability and responsibility to the public interest and the planet

Consumerism

a lifestyle characterized by the acquisition of goods and services. meant that people have become defined as "consumers" as opposed to citizens or human beings.

Mercantilism

believes that global wealth is static and, therefore, prosperity depends on extracting wealth or accumulating it from others.

Bias

built into the human psyche and expressed through our social structures. we should avoid making snap judgments about past eras based on today's standards. The challenge is to know which values are situational—that is, although many values and ethics are relative and subjective, others are objectively true, at least to most people.

organizational and societal levels

laws, regulations, and oversight can go a long way toward curtailing illegal activity. Business ethics motivates managers to (1) meet legal and industry governing and reporting requirements and (2) shape corporate culture so that corrupt practices such as bribery, embezzlement, and fraud have no place in the organization.

Localization

process of adapting a product for non-native environments and languages, especially other nations and cultures.

Acculturation

refers specifically to the cultural transmission and socialization process that stems from cultural exchange. known as blending of cultures appear in both the native (original) culture and the host (adopted) culture.

Enculturation

refers to the process by which humans learn the rules, customs, skills, and values to participate in a society. In this concept, no one is born with culture; all humans, regardless of their origin, have to learn what is considered appropriate behavior in their surrounding cultures.

concept of time

varies widely in different cultures. All cultures share the resource of time, but they measure and use that resource very differently. These differences might significantly affect the foundation of any business relationships you may want to establish around the world.

Religion and Ethics

were nearly inseparable. Many believed that people could not be persuaded to do the right thing without the threat of eternal damnation. Religions are neither uniform nor monolithic, of course, nor are they unchanging over time.

individual level

when corruption takes place, it is a matter of conscience. Corruption can be defeated only by individuals acting in accordance with their conscience and being supported by systems and corporate culture that encourage such action. Transparency, whistle-blower programs, ethics training, and modeling of appropriate behavior by upper management can create the conditions for employees to act ethically, but conscience is a personal phenomenon.

Noncontact cultures

where eye contact and touching are less frequent, and there is less physical proximity during interactions - are in northern Europe, the Far East, and the United States.

"Contact" cultures

where people stand closer together when interacting, touch more often, and have more frequent direct eye contact - are found in South America, the Middle East, and southern Europe.