Business ethics across cultures: A social cognitive model Summary
The article Stajkovic, A., &Luthans, F. (1997).Business ethics across cultures: A social cognitive model. Journal Of World Business, 32(1), 17-34. strives to explain the factors that have a significant impact on business ethical standards and conduct in diverse cultures. It explains that due to globalization, multinationals are finding it hard to adapt to diverse cultures as they conduct their business. The article advocates that organizations require paying attention to culture, as mistakes of culture in an organization are costly in most cases. The tricky part in many organizations is determining what people of a certain culture consider as being ethical. Multinational organizations need to generate ethical business practices that indicate sensitivity to differences that may arise due to culture.
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The article puts into perspective the five Hofstede cultural dimensions and explains how each of them affects culture and business ethics. It article asserts that personal factors have an impact on the business ethics diversity across cultures. Ethics legislation is an institutional factor that affects the business ethics across cultures. The lack or, availability of legislation on ethics affects conduct of business and ethical practices across cultures. Organizational factors also have a say in the business ethics across cultures. An example given in the article is the code of ethics.The codes of ethics in corporations across the globe has an impact on the business ethics. The article recognizes that managers of multinational corporations should be keen in management as they can influence ethics across culture or culture can have an influence on their ethics.
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Significance
Comprehending the impact of culture in business ethics is one of the most critical aspects of success of any multinational organization. The rationale is that culture is diverse across the globe. The culture of people in one country is not the same in another country. Culture influences business ethics in that a practice that is people consider as being ethically wrong in a country is ethically right in another culture. In addition, the managers must realize the value of incorporating culture in their business organizations. Culture will determine the business ethical practices that the organization will adapt in an effort to make the organization a success in the foreign nation. An organization may use various ways to examine the culture of a particular target group before it can choose to venture in the culture. The research on culture will encompass personal and organizational factors that affect business ethics and their applicability in the foreign market. The organization may also need to adjust and conduct a research in order to form business ethical standards that conform to the cultures of the new markets.
Business ethics forms the backbone of every organization. However, culture dictates on acceptability or otherwise of some business activities. The study of business ethics is paramount to all managers when they seek to understand their targets markets. The moral judgment of the people who control the business entity has a direct relationship with the culture of the individuals. Business ethics works in assisting an organization in attracting customers to try the products of the firm and boosts the sales and profits of the organization. When the company comprehends the culture of individuals, the business ethical standards put in place help in attracting clients. Moreover, an important aspect of any organization is the employees. Business ethics also influences the length that employees will stay in the organization. An organization that appreciates the culture of all the employees and accepts the diversity has employees who love their work. These employees tend to stay longer in the organization thus increasing the productivity. It is, therefore, a prerequisite that any organization researches on the culture of the target market with a view of formulating business ethical practices that will not be detrimental to it or the market.
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