Business relations rely on shared perceptions of what is acceptable/expected norms of behavior. Immense expansion in transnational business made rudimentary consensus on acceptable business practices across cultural boundaries particularly important. Nonetheless, as more and more nations with different cultural and historical experiences interact in the global economy, the potential for misunderstandings based on different expectations is magnified. Such misunderstandings emerge in a growing literature on "improper" business practices – articulated from a narrow cultural perspective. This paper reports an ongoing research (...) on the cultural and contextual aspects of business ethics. The objective is to investigate how the perception/attitudes of business students towards the ethical dimension of doing business varies in different countries; Whether there are socio-cultural factors that influence the perception of ethicality in business practices. Research findings among business students in six countries: China, Egypt, Finland, Korea, Russia, and the U.S.A. are reported. While all groups had basic agreement on what constitutes ethical business practices, differences are found in the respondents'' tolerance to damage resulting from "unethical" behavior. Without underestimating the role of national culture, variations in research results also point to the importance of current socio-political developments in the relevant countries. Implications for business teaching and management development are discussed. (shrink)

The ethical tendencies of university business students from the USA, Denmark, and New Zealand were examined by analyzing their reactions to ethical dilemmas presented in a set of ethical problem situations. These dilemmas dealt with coercion and control, conflict of interest, physical environment, paternalism and personal integrity. Findings indicate that students' reactions tended to be similar regardless of their country. A comparison of these findings to practicing managers indicated that students and practicing managers exhibit a similar degree of sensitivity to (...) ethical dimensions of business decision-making. Implications are drawn for business education and further research. (shrink)

This study investigates the differences in he way bribery and extortion is perceived by two different cultures — American and Greek. Two hundred and forty American business students and two hundred and four Greek business students were presented with three scenarios describing a businessman offering a bribe to a government official and three scenarios describing a businessman being forced to pay a bribe to an official in order to do business. The Reidenbach-Robin instrument was used to measure the ethical reactions (...) of the two samples to these scenarios. Results indicate that ethical reactions to bribery and extortion vary by (a) the nationality of the person offering the bribe, and (b) the country where the bribe is offered. In addition, Greeks perceived some of the scenarios as being less unethical than did Americans. (shrink)

The authors investigate the differences in ethical perceptions of Australian and Hong Kong international managers. Ethical perceptions are measured with respect to different industry types, cultures and modes of entry into international markets. Mode of entry refers to how firms select to enter foreign markets. Modes of entry include: exporting (indirect or direct), contractual methods (licensing and franchising) and via direct foreign investment (joint ventures and wholly-owned subsidiaries). It was determined that culture and mode of entry have a significant effect (...) on the perception of ethical problems. (shrink)

Recognizing the growing interdependence of the European Union and the importance of codes of conduct in companies’ operations, this research examines the effect of a country’s culture on the implementation of a code of conduct in a European context. We examine whether the perceptions of an activity’s ethicality relates to elements found in company codes of conduct vary by country or according to Hofstede’s (1980, Culture’s Consequences (Sage Publications, Beverly Hills, CA)) cultural constructs of: Uncertainty Avoidance, Masculinity/Femininity, Individualism, and Power (...) Distance. The 294 individuals, who participated in our study, were from 8 Western European countries. Their responses to our 13 scenarios indicate that differences in the perceptions of ethicality associate primarily with the participants’ country as opposed to their employer (i.e., accounting firm), employment level, or gender. The evidence also indicates that these country differences associate with Hofstede constructs of Individualism and Masculinity. (shrink)

This study investigates the differences in the way bribery and extortion is perceived by two different cultures — American and Nigerian. Two hundred and forty American business students and one hundred and eighty Nigerian business students were presented with three scenarios describing a businessman offering a bribe to a government official and three scenarios describing a businessman being forced to pay a bribe to an official in order to do business. The Reidenbach-Robin instrument was used to measure the ethical reactions (...) of the two samples to these scenarios. Results indicate that ethical reactions to bribery and extortion vary by (a) the nationality of the person offering the bribe, and (b) the country where the bribe is offered. In addition, Nigerians perceived some of the scenarios as being less unethical than did Americans. (shrink)

This study draws on Kohlberg''s Cognitive Moral Development Theory and Hofstede''s Culture Theory to examine whether cultural differences are associated with variations in ethical reasoning. Ethical reasoning levels for auditors from Australia and China are expected to be different since auditors from China and Australia are also different in terms of the cultural dimensions of long term orientation, power distance, uncertainty avoidance and individualism. The Defining Issues Tests measuring ethical reasoning P scores were distributed to auditors from Australia and China (...) including Hong Kong and The Chinese Mainland. Results show that auditors from Australia have higher ethical reasoning scores than those from China, consistent with Hofstede''s Culture Theory predictions. (shrink)

Leaders and managers of today's multinational corporations face a plethora of problems and issues directly attributable to the fact that they are operating in an international context. With work-sites, plants and/or customers based in another country, or even several countries, representing a vast spectrum of cultural differences, international trade and offshore operations, coupled with increased globalisation in respect to political, social and economic realities, contribute to new dilemmas that these leaders must deal with. Not the least of these being a (...) Code of Ethics and ethical decision making.This paper examines the differences in culture between a group of managers from the United States and similar group from Croatia using Hofstede's theory of International Cultures. The study explores how these cultural dimensions may help in our understanding of the differences in reported whistleblowing. The authors then postulate four hypotheses regarding various aspects of whistleblowing. These Hypotheses were than tested using a survey administered to a sample of U.S.A. and Croatian managers. Finally, the paper discusses the findings and practical implications for contemporary managers in the international arena. (shrink)