Culture and Whistleblowing An Empirical Study of Croatian and United States Managers Utilizing Hofstede's Cultural Dimensions

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.     

A Multicultural Examination of Business Ethics Perceptions

This study provides an evaluation of ethical business perception of busIness students from three countries: Australia, Taiwan and the United States. Although statistically significant differences do exist there is significant agreement with the way students perceive ethical/unethical practices in business. The findings of this paper indicate a universality of business ethical perceptions.     

Ethical Theory and Business Practices: The Case of Discourse Ethics

By focusing on the reasoned debate in the discourse-ethical approach to business ethics, this paper discusses the possibilities and limitations of moral reasoning as well as applied economic and business ethics. Business ethics, it is contended, can be looked at from the standpoint of two criteria: justification and application. These criteria are used to compare three approaches: the Integrative Business Ethics, developed by Swiss philosopher Peter Ulrich, the Cultural Business Ethics of the Nuremberg School in German business ethics, and the concept of “Good Conservation” by Frederick Bird. It is argued that discourse-ethical approaches can be called upon for justifying moral principles. Improving the chances of their application, however, necessitates a good understanding of lifeworlds and culturally developed institutional settings. Bearing this in mind, further research perspectives stressing a linkage between discourse-ethical and critical approaches in social sciences are suggested.Dr. Thomas Beschorner is head of the research group “Social Learning and Sustainability” at University of Oldenburg, Germany and currently Visiting-Professor at McGill University, Montreal, Canada     

Situational Ethics Across Borders: A Multicultural Examination

Managers throughout the world regularly face ethical dilemmas that have important, and perhaps complex, professional and personal implications. Further, societal consequences of decisions made can be far-reaching. In this study, 210 financial services managers from Australia, Chile, Ecuador and the United States were queried about their ethical beliefs when faced with four diverse dilemmas. In addition, the situational context was altered so the respondent viewed each dilemma from a top management position and from a position of economic hardship. Results suggest a complex interaction of situation, culture and issue when individuals make ethical judgments. Specifically, Chileans were found to have different beliefs about sex discrimination and child labor dilemmas when compared to their colleagues from the other three nations. Chileans and Australians also disagreed on the bribery dilemma. Anglo managers were more likely than Latin American managers to change their ethical responses when the situation was altered. For multinational firms interested in maintaining healthy ethical climates, the findings suggest that culturally contingent ethical guidelines, or policies adapted to the local customs, must be considered. Further, managers must remain aware of issues related to specific situations, both internal and external, that would cause subordinates to alter their moral judgment.     

Teaching Business Ethics: A Case Study Of An Ethics Across The Curriculum Policy

The faculty within the undergraduate businessdepartment at Nova Southeastern University hasinstituted an Ethics Across The Curriculum Policy. This paper shares the steps the faculty followed inthe development and adoption of this policy. It isour hope that sharing our experiences concerning thispolicy implementation will help others consider asimilar policy. Recommendations are provided forpolicy development.     

The Ethics of the US Business Executive: A Study of Perceptions

Gallup Polls have reported on the perceived ethics of various professions in the US since 1976. Clergymen and pharmacists were consistently identified as two of the most ethical professionals in the 1980's and 1990's. Business executives have not fared well in these polls and have not been rated among the top ten most ethical professions in any of the years the poll was taken. Ethical codes have not done much to belay the perception that the US business executive is not very ethical. Whether the Sarbanes-Oxley Act will impact the ethical behavior of business executives remains to be seen.     

Evaluating Risk in Business Ethics Case Studies

Business management often involves decisionsabout risks to human health and such cases tendto be central to business ethics courses. Overthe last two decades much development has takenplace in the science of risk analysis andlessons have emerged from this work which willmake a useful addition to the ethicalevaluation of case study material in a businessethics courses.In particular, students need to be familiarisedwith and made cautious of the notion ofacceptable risk.     

The Effect of National Culture on Whistle-Blowing Perceptions

Society continues to be concerned about the impact of ethics on decision making. While many researchers have focused on this issue, the increased globalization of today's business suggests that more emphasis should be given to the potential impact of culture on ethical decisions. The current study is based, in part, on the work of Hofstede (1980, 1991) who identified multiple dimensions on which countries differ in terms of culture. As such, it gives consideration to the impact of national culture on ethical decision making. The study focuses on ethical decisions made by U.S. and Taiwanese accounting students and examines cross-cultural differences in business-related ethical perceptions. Results indicated significant differences between the ethical perspectives and judgments of U.S. and Taiwanese accounting students in a whistle-blowing scenario, particularly with respect to Hofstede's individualism dimension. These findings enhance our understanding of cross-cultural ethical differences. The implications of these results are discussed and suggested areas for future research are proposed.     

Case Studies of Ethics Scandals: Effects on Ethical Perceptions of Finance Students

Ethics instructors often use cases to help students understand ethics within a corporate context, but we need to know more about the impact a case-based pedagogy has on students’ ability to make ethical decisions. We used a pre- and post-test methodology to assess the effect of using cases to teach ethics in a finance course. We also wanted to determine whether recent corporate ethics scandals might have impacted students’ perceptions of the importance and prevalence of ethics in business, so we used in-depth case studies of several of the major scandals (e.g., Enron, Tyco, Adelphia). Our results are somewhat surprising since studying ethics scandals positively impacts students’ ethical decision making and their perceptions of the ethics of businesspeople.     

A Case Example: Integrating Ethics into the Academic Business Curriculum

This paper combines a review of existing literature in the field of business ethics education and a case study relating to the integration of ethics into an undergraduate degree. Prior to any discussion relating to the integration of ethics into the business curriculum, we need to be cognisant of, and prepared for, the arguments raised by sceptics in both the business and academic environments, in regard to the teaching of ethics. Having laid this foundation, the paper moves to practical questions such as who should teach ethics, and when and how can ethics be taught. The paper presents alternative models for the teaching of ethics in the curriculum of undergraduate and postgraduate business programmes. An integrative model is elaborated on in more detail with a case example describing the six-stage process undertaken in the move from a single entry course to an integrated approach. The case study details not only the planning and initial implementation of ethical education in the context of an undergraduate business degree programme, but also the means by which a change in the way that ethics is taught was achieved in a business faculty in a tertiary institution.     

Islamic Ethics and the Implications for Business

As global business operations expand, managers need more knowledge of foreign cultures, in particular, information on the ethics of doing business across borders. The purpose of this paper is twofold: (1) to share the Islamic perspective on business ethics, little known in the west, which may stimulate further thinking and debate on the relationships between ethics and business, and (2) to provide some knowledge of Islamic philosophy in order to help managers do business in Muslim cultures. The case of Egypt illustrates some divergence between Islamic philosophy and practice in economic life. The paper concludes with managerial implications and suggestions for further research.     

Across-the-border Contamination,The Andorra Power Plant (Teruel): A Business Ethics Case

The purpose of this article is to present a business ethics case from the viewpoint of discursive ethics. Dialogue and subsequent agreement constitute two key ideas of European identity and are two basic concepts of discursive ethics thinking. Our choice for this type of approach was determined by several reasons, of which there are three that should be pointed out, as they can be considered an heritage of the European way of thinking:1) the need for a rational dialogue, in which all those affected -- or, failing that, the people acting in their name -- are represented, as a way to find solutions to conflicts;2) the importance of respecting a set of conditions ensuring equal opportunities and total symmetry among the participants; and3) obliged respect for the universalization principle, which establishes that a decision is morally correct when it can or could be accepted by all those whom it affects, present or future.In order to present this case, the following steps are taken. Firstly, a brief summary of the case will be provided, defining the different ways of approaching the problem and the resulting map of interests. Secondly, the different interests and values, which came into play, are analysed. Finally, we go over the different approaches that were made to reach a solution before considering dialogue, which turned out to be the most decisive.     

An Ethics of Care or an Ethics of Justice

A conflict within the community of those investigating business ethics is whether decision makers are motivated by an ethics of justice or an ethics of caring. The proposition put forward in this paper is that ethical orientations are strongly related to cultural backgrounds. Specifically, Hofstede's cultural stereotyping using his masculine-feminine dimension may well match a culture's reliance on justice or caring when decisions are made. A study of college graduates from six countries showed that Hofstede's dimension was remarkably accurate in predicating a justice or caring orientation for decision makers from five of the six countries.     

International Bribery: Does a Written Code of Ethics Make a Difference in Perceptions of Business Professionals

This article analyzes the attitudes of United States business professionals toward the issue of international bribery, and in particular, whether or not having a written code of ethics has an effect on these attitudes. A vignette relating to international bribery from a widely used survey instrument was employed in a nationwide survey of business professionals to gather information on ethical attitudes of respondents. Data were also collected on gender of respondents, whether or not respondents were self-employed, whether or not the respondents’ firms had a written code of ethics, and to what extent the respondents’ firms generated revenues from international operations. Attitudes concerning whether or not international bribery is ever acceptable exhibited wide dispersion. Respondents from firms that have a written code of ethics were significantly less likely to find international bribery acceptable. Firms that generate revenues from international operations were significantly more likely to have a written code of ethics than were firms which did not generate revenues from international operations. Implications of the findings for business policy are discussed. Joseph A. McKinney is Ben H. Williams Professor of International Economics at Baylor University. He was previously on the faculty of the University of Virginia, and has served as visiting professor to universities in Japan, France, the United Kingdom and Canada. His research interests include business ethics, international trade policy, and regional economic integration. Carlos W. Moore is the Edwin W. Streetman Professor of Marketing at Baylor University, where he has been on the faculty for more than 30 years. His research interests include business ethics, marketing and advertising evaluation, and small business strategies. He has done consulting on bank marketing and new product development.     

Business Ethics Training: Face-to-face and at a Distance

An 11-week hybrid distance learning/personal contact ethics training program, customized for a leading information technology firm, is described in the format of a sequential process. The process is grounded on discourse ethics and the ethics training guidelines premised by the Hastings Institute. Indications from the firm and from the program’s participants are that the training has been beneficial. Warren French is the Cousins Professor of Business Ethics at the Terry College of Business, University of Georgia. He also serves as a visiting faculty member at the Universite Jean Moulin Lyon III where he teaches business ethics. His research area is conflict resolution through discourse ethics.     

Organizational Ethics: Perceptions of Employees by Gender

As more women enter the work force and assume management positions in corporations, increasing attention is being given to employment diversity. In addition, studies suggest that females have more propensity for ethics than males. However, these results may be debatable and limited data are available to substantiate these claims or assess gender differences among employees. Ethics codes can aid in supporting policies and enhancing corporate diversity. To assist one company in the development of an ethics code, a survey of 4005 employees in one U.S. corporation was conducted to ascertain their opinions of the ethical environment of the company. The survey used the Ethics Environment Questionnaire (EEQ), consisting of twenty items on a 5-point Likert-type scale; reliability on Cronbach's alpha was 0.94. Response rate was 50%, with the sample paralleling the population in proportion of males and females. Respondents reported a profile of 3.18 out of the high of 5.0, but with several significant differences between the male and female employees, including differences on education and position. Males were more in agreement than females that the firm had an ethical environment. On some items, however, males and females were in strong agreement. Comparisons to prior studies were drawn, including suggestions for ways corporations could use an ethics survey to tailor in-service training, enhance diversity in the work force, and support the development of an ethics code.     

Weak Spots in Business Ethics: A Psycho-Analytic Study of Competition and Memory in Death of a Salesman

The field of business ethics has shown little attention to the dynamics of memory in maintaining moral character. Yet memory is a complex process that involves the repression of some experiences in order to protect the moral integrity of the personality. Without the capacity to repress what one's moral conscience would not accept, the mind can be overtaken by neurotic ambivalence and moral confusion. In the context of business competition, where the pressures for potential gains and losses can be immense, long repressed desires can receive renewed strength resulting in a weakening of moral constraint.In this essay, I use the psycho-analytic theory of repression to investigate the complex, psychological vicissitudes of human memory. The theory of repression is a particularly powerful tool to investigate the moral implications of memory because memories which are repressed – i.e., forbidden consciousness – are done so at the behest of the individual's moral ideals. Experiences that offend these ideals or threaten the integrity of the ego can be repressed. Repression, then, is an infallible index of moral judgement.I will apply the theory of repression to the characters in and story line of Arthur Miller's play Death of a Salesman to elucidate the relationship between memory and ethics in business. Death of a Salesman is well suited for this purpose because the memories of the main characters are central to the play and are inextricably linked to the moral challenge competition in business poses.     

Re-evaluating the Realist Conception of War as a Business Metaphor

The state of war is a popular metaphor employed by many business writers seeking to explain the imperatives of strategic decision-making. It is a metaphor which draws on a realist characterisation of war as a Hobbesian state of nature devoid of a moral dimension. However, the work of Walzer (1977) has demonstrated that rules of war, established over generations and across cultural divides, play a significant role in the conduct of warfare. Through identifying and analysing rules of war in parallel with ethical dilemmas in business life, such as whistleblowing, it is possible to develop a more sophisticated understanding of the war metaphor in place of simplified, state of nature realism. This alternative version of the war metaphor is a useful means of introducing students to Aristotlean virtues as well as challenging their preconceptions about the nature of business activity.     

Ethics Programs in Global Businesses: Culture's Role in Managing Ethics

Even if there were widespread cross-cultural agreement on the normative issues of business ethics, corporate ethics management initiatives (e.g., codes of conduct, ethics telephone lines, ethics offices) which are appropriate in one cultural setting still could fail to mesh with the management practices and cultural characteristics of a different setting. By uncritically adopting widely promoted American practices for managing corporate ethics, multinational businesses risk failure in pursuing the ostensible goals of corporate ethics initiatives. Pursuing shared ethical goals by means of culturally inappropriate management practices, in short, can undermine the effectiveness of ethics management efforts. This article explicates how several important dimensions of culture can influence the effectiveness of common ethics initiatives, and recommends the development and application of a culture-structure contingency analysis in the task of encouraging ethical behavior in global businesses.     

The International Business Ethics Index: European Union

The present study expands the systematic measurement of consumers’ sentiments towards business ethical practices to the international arena. Data for the Business Ethics Index (BEI) were gathered in three countries of the European Union (UK, Germany, Spain). The Germans were the most pessimistic while the British were the most optimistic about the future ethical behaviour of businesses. John Tsalikis is an Associate Professor of Marketing at Florida International University. His articles have appeared in the Journal of the Academy of Marketing Science, Journal of Business Ethics, and Psychology in Marketing. Bruce Seaton is an Associate Professor of Marketing at Florida International University. His research interests include the role of national stereotyping in consumer choice and the application of experimental methods to investigate models of business ethics. His articles have appeared in the Journal of Advertising, Journal of Business Research, and Journal of Global Marketing.