Engaging values in international business practice

Managerial decisions and behaviors in the international business arena have ethical implications across cultures and countries. The need for ethics and core values in business practice has been heightened by continued business scandals and ethical managerial lapses that have violated public trust. Global businesses can offer practical guidance and set ethical examples for others to follow by establishing corporate values beyond written business codes. Four key work values (Honesty, Fairness, Concern of Others, and Achievement) known to be present in businesses across cultures, are put forth as a baseline start for multinational corporation leaders. Offered is a process for making the core values unique to an organization, and for adopting and training managers in the use of core values. Presented is evidence of managerial implementation of the core work values, and managers’ alignment of work values with organizational strategies. By addressing the values and principles of their workplaces, international businesses can achieve cross-cultural ethical practices, managerial alignment, and global social responsibility.     

How Ethical Behavior of Firms is Influenced by the Legal and Political Environments: A Bayesian Causal Map Analysis Based on Stages of Development

Even though potential impacts of political and legal environments of business on ethical behavior of firms (EBOF) have been conceptually recognized, not much evidence (i.e., empirical work) has been produced to clarify their role. In this paper, using Bayesian causal maps (BCMs) methodology, relationships between legal and political environments of business and EBOF are investigated. The unique design of our study allows us to analyze these relationships based on the stages of development in 92 countries around the world. The EBOF models structured through BCMs are used to explain how EBOF in a given country group are shaped by how managers perceive political, legislative, and protective environments of business in these countries. The results suggest that irregular payments and bribes are the most influential factors affecting managers’ perceptions of business ethics in relatively more advanced economies, whereas intellectual property protection is the most influential factor affecting managers’ perceptions of business ethics in less-advanced economies. The results also suggest that regardless of where the business is conducted in the world, judicial independence is the driving force behind managers’ perceptions of business ethics. In addition, the results of this study provide further support for scholars who argue that business ethics is likely to vary among countries based on their socio-economic factors. In addition to its managerial implications, the study provides directions for policy makers to improve the ethical conduct of businesses in their respective countries.     

Managerial competency appraisal: A cross-cultural study of American and East Asian managers

This paper reports on the use of managerial commpetency assessment method to appraise 1436 managers from four East Asian countries and 3193 managers from the United States. The results of this research suggest that the assessed competencies of managers from the different nationalities are subject to cultural factors that shape personality and behavioural choices. Outcomes of assessed managerial competencies are likely to be influenced by perceptions of status, the need for consultation and the degree of openness of communication between managers and their subordinates. The study also points to the need for organisations to distinguish the more stable technical skills from the culturally-sensitive people skills when assessing and developing managers of different nationalities and cultures.     

“Society is Out There,Organisation is in Here”: On the Perceptions of Corporate Social Responsibility Held by Different Managerial Groups

Corporate social responsibility (CSR) has become an increasingly significant managerial concept, yet the manager as an agent of corporate bureaucracy has been substantially missing from both the analytical and conceptual literature dealing with CSR. This article, which is both interpretative in nature and specific in reference to the U.K. cultural context, represents an attempt at addressing this lacuna by utilising qualitative data to explore the perceptions of managers working in corporations with developed CSR programmes. Exploring managerial perceptions of motives for CSR initiatives, methods of stakeholder engagement, organisational integration of CSR and its impact on managerial work, this study concludes that an instrumental approach dominates, which indicates an external–internal organisational paradox in the design and execution of CSR initiatives.     

An empirical investigation of international marketing ethics: Problems encountered by Australian firms

This study identifies and categorises ethical problems in terms of frequency of occurrence and importance to a sample of Australian international business managers. The study determined that the most frequently cited ethical problem is gifts/favours/entertainment and that this problem may be related to the culture where the international business is being conducted. The most important ethical problem is large-scale bribery. When the frequency of occurrence and importance means are compared in a scatter plot, cultural differences, pricing practices and questionable commissions were catagorised in the high frequency/high importance quadrant. The Australian general managers stated that managerial action will be taken to control unethical behavior among their international marketing managers. It was conjectured that managers were not as firm in their attitudes concerning the necessity to compromise one's ethics to succeed in international business.Dr. Robert Armstrong is a Senior Lecturer in Marketing at Murdoch University. He has concentrated his research activities toward international and service marketing. He has published several papers in both subject areas. Currently, he is studying: International Marketing Ethics in the Asia-Pacific region. The long-range study seeks to make cross-cultural comparisons of Southeast Asian and Australian business executives perceptions of the international marketing environments. He is also doing research for an international marketing text for Australia and Southeast Asia.I would like to thank Jane Seman for her assistance in the collection of data and references for this study. I would also like to thank the reviewer(s) for insightful recommendations and suggestions on the draft of the article.     

Ethical perceptions of Hong Kong Chinese business managers

This paper investigates ethical perceptions among Hong Kong Chinese managers of themselves and peers according to age, location of education and employment (local vs. multinational), based upon responses to thirteen potentially unethical situations.The major conclusions of the study are: (1) there is little consistency among perceptions of ethical situations; (2) Hong Kong managers perceive their peers as more unethical than themselves; (3) ethical perceptions in some situations are affected by age and to a lesser extent, place of education; and (4) significant interactions were found between age and the nature of employer, as well as between the place of education and the nature of employer.To conclude, the management implications of these findings are discussed.Miss McDonald has for the past five years been Assistant Professor of Marketing and Human Resource Management on the South East Asian postgraduate business programmes of the University of East Asia, Macau. Her commercial experience is in the fields of Advertising, Personnel Consultancy, and Industrial Relations.Dr. Zepp teaches Statistics and Operations Research at the University of East Asia. He was a lecturer at the Ohio State University (USA), where he received his doctorate. He spent 8 years in Africa, teaching at the University of Maiduguri (Nigeria), and the National University of Lesotho. He was an American Fulbright Professor at the Universite d'Abidjan (Ivory Coast), and a statistical consultant to the government of Haiti.     

Age negotiation at the Asian corporate subsidiary: challenges of managerial ‘youth’ in Thai-based subsidiaries of Western multinationals

This study explores how individuals construed as ‘young’ for their managerial positions seek to mitigate their youth in order to gain and maintain legitimacy in an Asian socio-cultural context which (traditionally) privileges age seniority. Drawing on the narratives of local and expatriate managers at the Thai-based subsidiaries of Western multinational companies, we show how individuals experience ‘youth discrimination’ seeking to negotiate their age using alternative identity attributes with differing stakeholder groups. Findings expand our understanding of how and why attitudes towards managers viewed as ‘young’ affect perceptions of role legitimacy and performance. Implications for corporate HRM – specifically managerial selection – in Asia, as well as notions of discrimination ‘intersectionality’ are then progressed.     

Business Ethics in Turkey: An Empirical Investigation with Special Emphasis on Gender

In today's complex business world, the question of business ethics is increasingly gaining importance as managers and employees face numerous ethical dilemmas in their jobs. The ethical climate in the Turkish business environment is also at a critical stage, and the business community as a whole is troubled by ethical problems. This study attempts to determine the effect of individual, managerial and organizational factors on the ethical judgments of Turkish managers, and to evaluate the ethical perceptions of these managers. The findings of this study reveal that the ethics score, the measure of ethical judgment, of Turkish managers differs significantly only with respect to gender and that female managers have higher ethics score than male managers. Other individual, managerial and organizational factors considered in this study do not have any significant effect on the ethical judgments of the managers. A comparative analysis between female and male managers in terms of their ranking of the eleven ethical business scenarios, ranking of the sixteen unethical acts, ranking of the factors influencing managers to engage in unethical practices, and ranking of the various parties to whom a company is socially responsible enables the researchers to enlighten the subject of business ethics in Turkey.     

Ethical Decision-Making Differences Between American and Moroccan Managers

Our research’s aim is to assess the effect of cultural factors on business ethical decision-making process in a Western cultural context and in a non-Western cultural context. Specifically, this study investigates ethical perceptions, religiosity, personal moral philosophies, corporate ethical values, gender, and ethical intentions of U.S. and Moroccan business managers. The findings demonstrate that significant differences do exist between the two countries in idealism and relativism. Moroccan managers tend to be more idealistic than the U.S. managers. There is a strong positive relationship between religiosity and idealism. There were mixed findings in examining the correlates of religiosity and various components of ethical intentions. Moroccan managers were more homogenous in their corporate ethical values than were the U.S. managers. The results demonstrate that (in general) idealism is a good predictor of ethical intentions and behaviors. Additionally, managers from the two countries differed in the degree of relationship between perceptions and intentions in three of the four scenarios. This study’s results confirm other research findings that, in general, female business managers have higher ethical sensitivity in terms of their ethical judgment than their male counterparts. Managerial implications are also discussed.     

Managerial Attitudes Toward Stakeholder Salience Within Selected Western Pacific-Rim Economies

ABSTRACT

This study empirically examines the attitudes of managers and managerial students in Australia, China and Indonesia, toward the perceived prominence of selected organisational stakeholders. A development model is used to argue that Australian respondents will perceive greater equality in prominence between the selected organisational stakeholders than their Chinese and Indonesian counterparts. Results indicated that Chinese respondents attributed greater prominence toward Government as an organisational stakeholder, and contrary to expectations, perceived greater equality (less variance) in prominence between stakeholders. The study provides a basis on which further work on the perceptions of stakeholder prominence can be undertaken in different contexts.     

The ‘layering’ of management in post-war Britain: The case of the Office Management Association

The mid-twentieth century saw the creation of layers of managerial jobs in Britain. The increasing numbers of managers and a persistent degree of social closure at the top of organisational hierarchies led groups of managers to try to define specialist management functions as justification for holding organisational power. The Office Management Association was one such group. It promoted office managers’ expertise in the efficient running of the administrative side ofenterprises as a specialist managerial function worthy of a high place in managerial hierarchies. But specialisation was also fragmentation that would weaken the entire occupational group of all managers.     

The Political Economy of Trade Integration in South Asia: The Role of India

The South Asian regional trade integration process to date has generated only limited enthusiasm. It suffers from significant shortcomings, primarily on account of a very cautious approach adopted to achieve the ultimate objective of ‘free trade’ within the region. In turn, this has led to a fragmentation of the integration process, with some of the partners of the South Asian Association for Regional Cooperation (SAARC) bloc opting for a speedier and more liberal bilateral process with India. India’s engagement remains the critical feature as the single most important trading partner for almost all the other South Asian countries. However, the dynamics of Indian economic integration initiatives too have been changing rapidly, whereby it is looking increasingly to strengthen its economic relations with the wider Asian region. In this context, the question of India’s willingness to give leadership to carry the rest of South Asia as the bridge that connects the region to East Asia needs to be examined. The current evidence suggests that India has attempted to do so via a host of bilateral and regional arrangements, but that the divergences in strategic interests amongst SAARC countries has left Pakistan on the margins of an evolving scheme of overlapping trade initiatives in South Asia. Thus, while something approximating ‘free trade’ in South Asia appears to be taking shape, it is unlikely to take the form of an inclusive South Asian regional integration process envisaged by SAARC.     

The Question of Ethical Hypocrisy in Human Resource Management in the U.K. and Irish Charity Sectors

Whilst there is a growing volume of literature exploring the ethical implications of organisational change for HRM and the ethical aspects of certain HRM activities, there have been few published U.K. studies of how HR managers actually behave when faced with ethical dilemmas in their work. This paper seeks to enhance the foundations of such knowledge through an examination of the influence of organisational values on the ethical behaviour of Human Resource Managers within a sample of charities in the U.K. and the Republic of Ireland. A qualitative research design is adopted utilising semi-structured interviews. Findings highlight ethical inconsistency in people management in the charity sector arising from the clear application of strong and explicit organisational values to external client groups but their limited influence on people management strategies and practices within the organisation. Many of the ethical issues faced by HRM professionals in both countries arise from this inconsistency. In their handling of ethical dilemmas, the HRM professionals exhibit a combination of a care ethic and a concern for justice but it is also clear that in situations of management intransigence, a desire to be conscience driven often gives way to a contingent approach. Whilst respondents considered it inappropriate for the HRM function to be the conscience of the organisation, it is seen to have a key role in providing management with advice on ethical action. However, the ability of HRM to influence ethical behaviour is highly dependent on the status of the function within the organisation.     

Does the Ethical Culture of Organisations Promote Managers’ Occupational Well-Being? Investigating Indirect Links via Ethical Strain

The present study had two major aims: first, to examine the construct validity of the Finnish 58-item Corporate Ethical Virtues scale (CEV; Kaptein in J Org Behav 29:923–947, 2008) and second, to examine whether the associations between managers’ perceptions of ethical organisational culture and their occupational well-being (emotional exhaustion and work engagement) are indirectly linked by ethical strain, i.e. the tension which arises from the difference in the ethical values of the individual and the organisation he or she works for. The sample consisted of 902 managers from different organisations, in middle and upper management levels, aged 25–68 years. The results of the confirmatory factor analysis (CFA) provided support to the hypothesised eight-factor structure of the CEV scale; i.e. the scale contained the factors of clarity, congruency of supervisors, congruency of senior management, feasibility, supportability, transparency, discussability and sanctionability. In addition, it emerged from the CFAs that the high intercorrelations of these factors can be explained by the second-order factor of ethical culture. The managers’ perceptions of the ethical culture prevailing in their organisations were associated with their occupational well-being both directly (high-work engagement) and indirectly via a low level of ethical strain (low-emotional exhaustion). Thus, the findings indicated that the ethical culture of organisations plays a major role in managers’ occupational well-being.     

How Desirable is the South Asian Free Trade Area? A Quantitative Economic Assessment

The proliferation of preferential trading agreements (PTAs) in different regions of the world has been a significant development over the last two decades. South Asian countries have been slowly moving towards a South Asia Free Trade Area (SAFTA) in recent years. The desirability of SAFTA has been questioned by some observers recently. Will SAFTA create gains for its members or not? Is it better for South Asian countries to promote non‐discriminatory trade liberalisation rather than SAFTA? The main objective of this paper is to address the above questions, especially the desirability of SAFTA, using a global computable general equilibrium (CGE) model. From the existing empirical and theoretical studies, we have identified three viewpoints on the desirability (or viability) of SAFTA: pessimistic, optimistic, and moderate. The results from two policy scenarios (unilateral liberalisation and SAFTA) confirm the pessimistic view by showing that unilateral liberalisation would benefit South Asian countries much more than preferential liberalisation (SAFTA). In fact, under preferential liberalisation, small countries in the region would gain little or even lose. The present political climate in South Asia also seems to support the pessimistic view.     

Global managers’ perceptions of cultural competence

To work effectively in the global business arena, managers need a strong set of intercultural management skills. When dealing with clients, co-workers, and other stakeholders at home or abroad, managers with cross-cultural competence have a distinct competitive advantage in the multicultural marketplace. Although generally accepted as a valuable asset for doing business, cross-cultural competence defies easy definition. This study attempts to conceptualize the complex term from the practitioner's point of view. What does cross-cultural competence mean to global managers? From their perspective, which aspects of culture do business people need to understand? From the universe of cultural beliefs, values, attitudes, and country-specific information, what should an executive, with limited time, focus on to develop a basic level of cultural competence? This study asked Mexican managers what they needed to know about culture to do business with the U.S. In the process, they consistently identified certain basic components of cultural competence. Responses were surprisingly similar among the managers, indicating they had a clear picture of which cultural essentials were most important for global executives to learn. The results of the study reveal a working definition of cultural competence for global managers. This research also provides trainers and business educators a content framework for a short-term training program, based on the global managers’ perceptions of cross-cultural competence.     

Ethical orientations of managers in Malaysia

In view of the heightened societal attention to the ethical aspects of business behaviour, there has been, in recent years, a great deal of discussion regarding individual and organisational factors influencing managerial decision making. The main focus of this paper is on understanding the attitudes of managers toward ethical dimension of their choices and judgments, as also the forces that pressurise, provide them with opportunities, or contribute to shaping their intentions, for ethical or unethical actions. Findings reported here are based on a questionnaire-survey of 381 managers from 41 commercial organisations in Malaysia.Dr. J. L. Gupta is Professor at National Institute of Bank Management (NIBM), Pune, India. He has authored two books on management and has published several research articles on the subject of Leadership and Ethics. His teaching and research interests lie in the areas of Organisational Behaviour and Human Resource Development.Mohamed Sulaiman is Professor of Management at University of Science Malaysia (USM), Penang. He has authored several research monographs and published articles in reputed business journals. His teaching and research interests lie in the areas of Corporate Policy and Strategic Management, Organisation Design and Marketing. Dr Mohamed Sulaiman is currently the Dean of School of Management, USM.     

The Link Between Ethical Climates and Managerial Success: A Study in a Polish Context

This study examines perceptions of ethical climate and ethical practices in a sample of Polish organizations and the relationship between ethical climate and behaviors believed to be associated with successful managers. A survey of Polish managerial employees (N = 200) indicated that “efficiency” was the most reported, and “professionalism” was the least reported ethical climate type. A majority of the respondents (61.5 %) perceived successful managers as being ethical, and in particular, those that believed that their organization had a “professionalism” and “independence” climate perceived a strong positive link between success and ethical behavior. Implications of these findings are then discussed.     

Teaching Managers to Respond Ethically to Organizational Crises: an inquiry into the case method

Many managers now routinely receive training in business ethics using the case method. However the efficacy of this training has not been studied. Organizational crises, in the form of cases which present managers with ethical dilemmas, are commonly used to illustrate principles in business ethics courses. As illustrated in the classroom, these organizational ethical crises often result in severe financial consequences for the organization involved such as litigation or bankruptcy. The present study assessed the potential of the case method for teaching managers to respond ethically to organizational crisis. The author also assessed the role of organizational and ideographic factors in determining which managers would choose to act. Managers who had received classroom training in ethical case analysis were compared to those who had not. The majority in both groups of managers chose to take action when confronted with ethical dilemmas. However, managers who had received ethical training were more likely to act in some ethical situations than managers who had not. The ethical culture of an organization and the gender of the managers was also found to influence managerial action in response to ethical dilemmas.     

Values congruence and differences between the interplay of personal and organizational value systems

Following the research of Liedtka (1989), this paper examines the impact of her “values congruence” model on managers' work attitudes and perceptions of ethical practices within their firms. A nationwide cross-section of managers (N=1,059) provides the sample for the study. Consonance or clarity about both personal value systems and organizational value systems were found to be more important and, in the absence of one or the other, clarity of personal values were shown to have a more positive impact than organizational value clarity.