International government and corporate corruption is increasingly under siege. Although various groups of researchers have quantified and documented world-wide corruption, apparently no one has validated the measures. This study finds a very strong significant correlation of three measures of corruption with each other, thereby indicating validity. One measure was of Black Market activity, another was of overabundance of regulation or unnecessary restriction of business activity. The third measure was an index based on interview perceptions of corruption (Corruption Perceptions Index or (...) CPI) in that nation. Validity of the three measures was further established by finding a highly significant correlation with real gross domestic product per capita (RGDP/Cap). The CPI had by far the strongest correlation with RGDP/Cap, explaining over three fourths of the variance.Corruption is increasingly argued to be a barrier to development and economic growth. Business students often do not see ethics courses as being as relevant as other value-free disciplines or core courses. The data in this study suggests otherwise. Sustainable economic development appears very dependent on a constant, virtuous cycle that includes corruption fighting, and the maintenance of trust and innovation, all reinforcing each other. (shrink)

As more and more firms operate globally, an understanding of the effects of cultural differences on ethical decision making becomes increasingly important for avoiding potential business pitfalls and for designing effective international marketing management programs. Although several articles have addressed this area in general, differences along specific, cultural dimensions have not been directly examined. Hence, the purpose of this study was to examine differences in ethical decision making within Hofstede's cultural framework. The results confirm the utility of Hofstede's cultural dimensions (...) and place ethical decision making within an overall theoretical framework. Sales agents from a high power distance, uncertainty avoidant, Confucian, collectivist culture (i.e., Taiwan) placed more value on company and fellow employee interests (vis-à-vis self interests) than did managers from a masculine, individualistic culture (i.e., the United States). American and Taiwanese managers did not differ in their deontological norms or on the importance that they placed on customer interests. The theoretical and managerial importance of these findings are also discussed. (shrink)

Globalization has increased the need for managers (and future managers) to predict the potential for country corruption. This study examines the relationship between Hofstede''s cultural dimensions and how country corruption is perceived. Power distance, individualism and masculinity were found to explain a significant portion of the variance in perceived corruption. A significant portion of country''s risk, trade flow with U.S.A., foreign investment, and per capita income was explained by perceived corruption.

In an increasingly global environment, managers face a dilemma when selecting and applying moral values to decisions in cross-cultural settings. While moral values may be similar across cultures (either in different countries or among people within a single country), their application (or ethics) to specific situations may vary. Ethics is the systematic application of moral principles to concrete problems.This paper addresses the cross-cultural ethical dilemma, proposes a tentative model for conceptualizing cross-cultural ethics, and suggests some ways in which the model (...) may be tested and operationalized. (shrink)

The goal of this study was to introduce a model explaining how managers' attitudes, subjective norms, attributions, and the individualism-collectivism cultural dimension affect the way managers' deal with employee bribery in organizations. Twenty-six internal and external attributions related to bribery were identified through a series of structured interviews with 65 subject matter experts. These attributions, together with the other variables in the model, were evaluated by 354 Ecuadorian managers. Hierarchical regression analyses indicated that attitudes and external attributions significantly predicted managers' (...) intentions to discipline employees who accepted a bribe. In addition, external attributions mediated the relationship between individualism-collectivism and intent to discipline corrupt employees. Implications for the management of bribery in Latin American organizations are discussed. (shrink)