The Relationship Between Psychic and Cultural Distance and Business Ethicality Attitudinal Values of Future Business Leaders

ABSTRACT

Psychic distance and cultural distance between countries are phenomena that can affect a company's entry strategy into foreign markets, as can differences in levels of business ethicality. The author examines the use of three measures of psychic and/or cultural distance (Brewer, 2007; Ellis, 2008; Fletcher & Bohn, 1998) and assesses the extent to which they are related to business ethicality values. A two-stage sampling design was used to survey undergraduate business students in 23 countries regarding their business-related ethics attitudes. This study had 13 countries in common with the Brewer (2007) and Fletcher and Bohn (1998) studies and 12 countries in common with Ellis (2008). Comparisons were made between the index values of the countries and their average scores on a scale of business ethicality by correlation analysis. Correlations were not statistically significant. The results suggest that none of the measures of distance examined is a good indicator of business ethicality and vice versa. Thus, one cannot assume a priori that a country that is culturally or psychically close to one's own country will have similar business ethicality values.     

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.     

Cross-Cultural Perceptions of Business Ethics: Evidence from the United States and China

A number of empirical studies have examined business ethics across cultures, focusing primarily on differences in ethical profiles between cultures and groups. When managers consider whether or not to develop a business relationship with those from a different culture, their decision may be affected by actual differences in ethical profiles, but potentially even more so by their perceptions of ethicality in the counterpart culture. The latter issue has been largely ignored in extant empirical research regarding cross-cultural ethical profiles. In this study, we employ a design that allows for a more complete analysis of cross-cultural perspectives, examining both the manner in which selected cultures view themselves and the manner in which those same cultures perceive the ethical profiles of others. To this end, we surveyed master’s students in business fields at several universities in the United States and China—two countries/cultures that engage in a significant amount of business transactions—and examined differences in personal ethical profiles across cultures, differences in one group’s ethical profile and the way it is perceived by the other group, and differences in perceived ethical profiles across cultures; that is, differences in how groups view each other. Findings suggest meaningful discrepancies in the ethical perceptions formed toward the counterpart culture. Results support a role for ethical perceptions in future research, and further examination and inquiry into the development and adaptation of ethical perceptions in cross-cultural business dealings.     

A Three-Country Study of Unethical Sales Behaviors

A major challenge in global sales research is helping managers understand sales ethics across countries. Addressing this challenge, our research investigates whether a few demographic variables and psychographic variables reduce unethical sales behaviors (USBs) in Canada, Mexico, and the USA. Further, using literatures associated with business ethics, national culture, and customer orientation advocacy, we hypothesize why sales managers should expect similarities and differences in USBs between countries. We tested hypotheses using a sales contest scenario and six USBs, examining survey responses from 948 business-to-business salespeople of a multinational company??s sales force in Canada, Mexico, and the USA. The results reveal that several psychographic variables (such as commitment, relationship to sales manager, and achievement need) affect salespeople??s tendency to engage in USBs differently in each country. In addition, business ethics, individualism, and customer orientation advocacy associated with each country can be used to anticipate similarities and differences in USBs between countries. This research offers important theoretical contributions and implications for more effectively managing sales forces and reducing USBs across countries.     

Business Students' Perception of Ethics and Moral Judgment: A Cross-Cultural Study

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.     

A 30-Year Historical Examination of Ethical Concerns Regarding Business Ethics: Who’s Concerned?

Understanding the ethical attitudes and concerns of future business leaders has been the focus of increasing research attention. Largely, this is due to the influence of such perspectives, as it is these presently held ideologies that ultimately translate into the actions and behaviors of the forthcoming workforce. This research examines how such business-related ethicality perspectives have evolved by administering a nationwide survey that builds on two Journal of Business Ethics studies, Beltramini et al. (J Bus Ethics 3:195?C200, 1984) and Peterson et al. (J Bus Ethics 10:733?C738, 1991), resulting in the latest segment of a three-decade historical perspective of ethical concerns. Our findings indicate fundamental shifts regarding the nature of concerns, and provide a number of practical and theoretical contributions to the ethics literature, bringing us one step closer to more comprehensively understanding, and ultimately enhancing ethical practices in business.     

Ethical dilemmas in organization development: A cross-cultural analysis

The purpose of this study was to examine the nature and extent to which cultural differences bear on perceptions of ethical Organizational Development consulting behaviors. U.S. (n=118) and Taiwanese (n=267) business students evaluated eleven vignettes depicting potential ethical dilemmas. Respondents judged the ethicality of each vignette, the likelihood of the event's occurrence and the party responsible for the event's occurrence. Multivariate Analyses of Variance revealed significant cultural differences in perceptions of ethicality, and group differences in perceptions of the events' likelihood of occurrence. U.S. subjects provided higher ethicality ratings than the Taiwanese, and lower ratings on the likelihood of occurrence. Response distributions resulting from the identification of the responsible party were similar for six of the eleven vignettes. When differences did occur, it appeared that the Taiwanese were more inclined than the U.S. subjects to view responsibility as shared by the client and the consultant. The results suggest the need for the incorporation of cultural differences in a code of ethics for the profession and the need for cross-cultural ethics training for partitioners.Louis P. White is Associate Professor of Management at the University of Houston-Clear Lake. His articles have appeared in theAcademy of Management Review, theTraining and Developing Journal, Gaming and Simulation, andHuman Relations. He is also the author ofProfessional Ethics and Practice in Organizational Development (with Kevin C. Wooten), Dr. White received his Ph.D. in Industrial Psychology.Melanie J. Rhodeback is an active Human Resource Management consultant, writer and speaker, and the owner of Rhodeback & Associates, a firm specializing in data analytic strategies to improve management decision making. Her research and consulting interests include the assessment of attitudes, values, ethics, and equity. Dr. Rhodeback serves as adjunct faculty at the University of Houston-Clear Lake in the School of Business and the School of Human Sciences & Humanities.     

Convenience samples of college students and research reproducibility

Tests of theory in marketing and consumer behavior research are frequently based on convenience samples of undergraduate college students. In a study of business-related ethicality, analysis of data from four dozen convenience samples of undergraduate business students revealed significant differences in means, variances, intercorrelations, and path parameters across the samples. Depending on the particular convenience sample used, relationships between variables and constructs were positive or negative and statistically significant or insignificant. The present research empirically documents, for the first time, the uncertainty created by using convenience samples of college students as research subjects. Only through empirical replications can researchers pragmatically assess the reliability, validity, and generalizability of research findings.     

Ethical Perceptions of Business Students: Differences Between East Asia and the USA and Among “Confucian” Cultures

This paper reports the results of a survey of 842 undergraduate business students in four nations – the United States of America (the USA), the Peoples’ Republic of China (the PRC), Japan, and the Republic of Korea (the ROK). This survey asked students to respond to four scenarios with potentially unethical business behavior and a string of questions related to the importance of ethics in business strategy and in personal behaviors. Based on arguments related to differences in recent historical experiences, the authors suggest that student responses may be as different within the East Asian (Confucian) environment as they are between this environment as a whole and the USA. Survey results indicate a greater perception of ethical problems and more importance placed on ethics per se in business practices, as well as less of an emphasis on social harmony (a key distinguishing characteristic of Confucian values identified in prior research) on the part of USA students. At the same time, substantial national differences in response are also witnessed within the set of East Asian students. A priori expectations as to the manner in which these East Asian responses should vary based on differences in recent historical experiences are partially, but not fully, supported. The authors argue that the key value of the reported research rests on a demonstration that national differences within a common cultural (e.g., East Asian or Confucian) area can be as great as differences across cultural (East vs. West) areas and that practitioners of global business must fine-tune their expectations as to acceptable business and personal actions to accommodate specific national historical experiences to be effective. Professors Chung and Eichenseher are professor of accounting at their respective universities. Professor Taniguchi's primary field of study is economics.     

An Exploration of Ethical Decision-making Processes in the United States and Egypt

In this comparative survey of 191 Egyptian and 92 U.S. executives, we explore the relationship between national culture and ethical decision-making within the context of business. Using Reidenbach and Robin’s (1988) multi-criteria ethics instrument, we examine how differences on two of Hofstede’s national culture dimensions, individualism/collectivism, and power distance, are related to the manner in which business practitioners make ethical decisions. Egypt and the U.S. provide an interesting comparison because of the extreme differences in their economies and related business development. Our results indicate that respondents from the U.S, individualistic and low in power distance, were likely to view the decision making outcome in ethics scenarios as more unethical than the more collectivistic and high power distance Egyptians, when applying ethical criteria based on justice, utilitarianism, relativism, and (contrary to our predictions) egoism. However, we also found that both Egyptians and Americans rely on justice, utilitarianism, and relativism in predicting their intentions to behave ethically, and that Americans substitute egoism for justice, when the behavioral intentions of peers are examined.     

A Cross-Cultural Comparison of Ethical Attitudes of Business Managers: India Korea and the United States

Culture has been identified as a significant determinant of ethical attitudes of business managers. This research studies the impact of culture on the ethical attitudes of business managers in India, Korea and the United States using multivariate statistical analysis. Employing Geert Hofstede's cultural typology, this study examines the relationship between his five cultural dimensions (individualism, power distance, uncertainty avoidance, masculinity, and long-term orientation) and business managers' ethical attitudes. The study uses primary data collected from 345 business manager participants of Executive MBA programs in selected business schools in India, Korea and the United States using Hofstede's Value Survey Module (94) and an instrument designed by the researchers to measure respondents' ethical attitudes (attitudes toward business ethics in general and toward twelve common questionable practices in particular). Results indicate that national culture has a strong influence on business managers' ethical attitudes. In addition to national culture, respondents' general attitudes toward business ethics are related to their personal integrity; their attitudes toward questionable business practices are related to the external environment and gender, as well as to their personal integrity. A strong relationship exists between cultural dimensions of individualism and power distance and respondents' ethical attitudes toward certain questionable practices. The analysis of the relationship between cultural dimensions of masculinity, uncertainty avoidance and long-term orientation and respondents' ethical attitudes toward questionable practices produced mixed results, likely due to the lack of notable differences in cultural dimension scores among the countries surveyed.     

The spectrum of ethicality

Business ethics is the continuing process of re-defining the goals and rules of business activity. In times of rapid change, spurred equally by technological innovation within the business community and by societal expectations in the larger community, participants who share in that process of re-defining goals and rules should be sensitive to professional differences. Lawyers and executives, for instance, while seeking a common societal good, will utilize measurably different goals and methods based on differences in leadership style, accountability to constituents and client relationship generally. Because of these differences, definitions of what is ethical will vary as well, spread across a spectrum of ethicality. He was formerly a Teaching Assistant in Management Psychology Laboratory, Sloan School of Management, MIT, Cambridge, Mass. His most important publication is: ‘The Ethical Side of Enterprise’,Sloan Management Review, MIT.     

Perceptual differences in appropriateness and likelihood of use of negotiation behaviors: A cross-cultural analysis

This paper examines the influence of culture and economic climate on perceptions of ethicality of negotiation behaviors between two emerging trading partners in the Western Hemisphere. Three hundred and forty future business leaders from Brazil and the United States rated their perceptions of the appropriateness and likelihood of use of eighteen negotiation behaviors. The results indicate significant differences in perceptions of the appropriateness of most tactics, but similarities in terms of respondents' likelihood of employing tactics that involve third parties. For respondents from both countries, traditional competitive bargaining behaviors (e.g., pretending you are in no hurry, hiding your bottom line, exaggerating an opening demand) were among the most accepted tactics. The implications of these findings for cross-cultural negotiations are discussed, along with opportunities for future research.     

Custom and Moral Sentiment: Cross-Cultural Aspects of Postgraduate Student Perceptions of Leadership Ethicality

The recent crisis in a prominent German car manufacturer generated by unethical leadership practices has brought into sharp focus, once again, the need for radical and fundamental ethical transformation among members of capitalism’s leadership elite. The divide between ethics and business needs to be closed and to do this effectively in a globalized world, cross-cultural aspects of moral sentiment need to be better understood. The current paper contributes to the extant literature in this regard by describing and analyzing cross-cultural aspects of German and South African student’s ‘sympathy’ towards business ethical phenomena, using Adam Smith’s ‘Theory of Moral Sentiment’ as a theoretical framework and qualitative methods. The paper constructs a heuristic device based on Adam Smith’s theoretical framework and then proceeds to empirically analyze the theory by investigating German and South African student moral sentiments towards specific ethical leadership behaviors. The study indicates that while there is general cross-cultural homogeneity in moral approbation among students for fundamental aspects of ethical leadership behavior, nuanced custom-based differences emerge from the qualitative analysis. Following Adam Smith, fine grained differences in moral sentiment arising from ‘custom’ are evident. Thus, although ethicality of specific leadership behavior is found to be viewed similarly by both groups of students, significant nuanced differences arise in German students who emphasize intellectual autonomy over the conservatism favored by their South African counterparts. Practical aspects of these findings are briefly discussed.     

Teaching Business Ethics Through Literature

America's economic ideology lacks a vocabulary of ethics. If, as we assume, an economic system requires a moral component for long-term survival, students in business schools must be exposed to a vocabulary of ethics that is consistent with the ideology of capitalism. We present a vocabulary of ethics and describe an approach to teaching business ethics based on business-related classic literature and moral philosophy.     

Modelling CSR: How Managers Understand the Responsibilities of Business Towards Society

The purpose of this article is to develop a model of how managers perceive the responsibilities of business towards society. The article is based on the survey responses of more than 1,000 managers in eight large international firms. It is concluded that the managerial perceptions of societal responsibilities differ in some respects from the mainstream models found in the corporate social responsibility (CSR) and business ethics literature. The article is an output of RESPONSE: an EU- and corporate-funded research project on managerial perceptions of CSR.     

Managing Cross Cultural Business Ethics

The Trompenaars database (1993) updated with Hampden-Turner (1998) has been assembled to help managers structure their cross cultural experiences in order to develop their competence for doing business and managing across the world. The database comprises more than 50,000 cases from over 100 countries and is one of the world's richest sources of social constructs. Woolliams and Trompenaars (1998) review the analysis undertaken by the authors in the last five years to develop the methodological approach underpinning the work. Recently Trompenaars with Hampden-Turner (Trompenaars and Woolliams, 1999) have extended the concepts into a new model on dilemma reconciliation of cultural differences. This paper reviews these latest updates in relation to dilemmas of cross-cultural business ethics. The paper asserts that knowledge in relation to business ethics is culturally specific; and that ethnocentrism is not easy to avoid. Too great an emphasis on rational-analytic conceptions of reality may mean that syntheses, emotion, and intuition, are not adequately developed. This presents implications for doing business and managing across cultures and for resolving ethical dilemmas.     

Religious Intensity,Evangelical Christianity,and Business Ethics: An Empirical Study

Research on the relationship between religious commitment and business ethics has produced widely varying results and made the impact of such commitment unclear. This study presents an empirical investigation based on a questionnaire survey of business managers and professionals in the United States yielding a database of 1234 respondents. Respondents evaluated the ethical acceptability of 16 business decisions. Findings varied with the way in which the religion variable was measured. Little relationship between religious commitment and ethical judgment was found when responses were compared on the basis of broad faith categories – Catholic, Protestant, Jewish, other religions, and no religion. However, respondents who indicated that religious interests were of high or moderate importance to them demonstrated a higher level of ethical judgment (less accepting of unethical decisions) than others in their evaluations. Evangelical Christians also showed a higher level of ethical judgment.     

Attitudes of University Students toward Business Ethics: A Cross-National Investigation of Australia, Singapore and Hong Kong

With the current globalisation and complexity of today’s business environment, there are increasing concerns on the role of business ethics. Using culture and religion as the determinants, this paper presents a cross-national study of attitudes toward business ethics among three countries: Australia, Singapore and Hong Kong. The results of this paper have shown the attitudes toward business ethics to be significantly different among the three countries. It was also found that respondents who practised their religion tend to consider themselves more ethically minded than those who do not. Additional findings on gender have also revealed significant differences between the males and females for respondents in Singapore and Australia. Males are generally considered more ethical than females across the three countries studied. Dr. Ian Phau teaches Marketing at the Curtin University of Technology. He is an avid researcher in the area of country image and branding issues. He also edits a peer reviewed marketing journal. Garick Kea is a researcher with the Curtin University of Technology. His research interests include consumer ethnocentrism, Consumer Animosity and marketing ethics.