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VALUES-PERSONAL OR CULTURAL ?
WHERE DOES BUSINESS ETHICS STAND ?
Contents
1.Personal and cultural values.......................................2
2.Dimensions of Culture..................................................4
2.1 American Culture.......................................................5
2.2 Culture in India...........................................................6
2.3. Culture in United Kingdom.......................................9
3. Ethics in Business.......................................................9
3.1 Ethical Principles.....................................................10
4.Bibliography................................................................13
Value
Value Description
High Score
Low Score
Power
Distance
or inequality, between
Index (PDI)
society
everyone is stressed.
Dimension
Individualism
Degree to which a
(IDV)
society reinforces
individual or collective
achievement and
interpersonal
relationships.
relationships.
Masculinity
Degree to which a
(MAS)
society reinforces, or
traditional masculine
male achievement,
domination.
Avoidance
uncertainty and
Index (UAI)
society i.e.
unstructured situations.
of opinions. Reflected in a
of uncertainty.
Long-Term
Degree to which a
Orientation
society embraces, or
(LTO)
long-term, traditional
long-term devotion to
traditional, forward
thinking values.
rapidly as long-term
"outsider".
to change.
2.Dimensions of Culture
Is a widely accepted industry tool that is used to measure cultural differences. One
of the commonly used dimensions is Geert Hofstedes Cultural Dimensions, where
cultural data was initially collected from IBM employees from 70 countries, then
further enhanced with data from commercial airline pilots and students in 23
countries, civil service managers in 14 counties up-market consumers in 15
countries and elites in 19 countries.
The dimensions are :
Power distance is the degree to which people in a country accept that power in
institutions and organizations is distributed unequally.
A high-power-distance rating means that large inequalities of power and wealth
exist and are tolerated in the culture. Such cultures are more likely to follow a
class or caste system that discourages upward mobility of its citizens.
A low-power-distance ranking indicates the culture discourages differences
betweenpower and wealth. These societies stress equality and opportunity.
Uncertainty avoidance:
If we explore the Indian culture through the lens of the 6-D Model, we can get
a good overview of the deep drivers of Indian culture relative to other
world cultures.
Power distance
India scores high on this dimension, 77, indicating an appreciation for
hierarchy and a top-down structure in society and organizations. Employees
expect to be directed clearly as to their functions and what is expected of
them. Control is familiar, even a psychological security, and attitude towards
managers are formal even if one is on first name basis.Communication is top
down and directive in its style and often feedback which is negative is never
offered up the ladder.
Individualism
India, with a rather intermediate score of 48, is a society with both collectivistic
and individualistic traits. The collectivist side means that there is a high
preference for belonging to a
larger social framework in
which
individuals
are
expected to act in accordance
to the greater good of ones
defined in-group(s). For a
collectivist, to be rejected by
ones peers or to be thought
lowly of by ones extended
and immediate in-groups,
leaves him or her rudderless
and with a sense of intense
emptiness.
The
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Indulgence
India receives a low score of 26 in this dimension, meaning that it is a culture
of restraint. Societies with a low score in this dimension have a tendency to
cynicism and pessimism. Also, in contrast to indulgent societies, restrained
societies do not put much emphasis on leisure time and control the
gratification of their desires. People with this orientation have the perception
that their actions are restrained by social norms and feel that indulging
themselves is somewhat wrong.
Uncertainty avoidance
At 35 the UK has a low score on uncertainty avoidance which means that as a
nation they are quite happy to wake up not knowing what the day brings and
they are happy to make it up as they go along changing plans as new
information comes to light. As a low UAI country the British are comfortable in
ambiguous situations - the term muddling through is a very British way of
expressing this. There are generally not too many rules in British society, but
those that are there are adhered to (the most famous of which of of course the
British love of queuing which has also to do with the values of fair play).
Pragmatism
In societies with a normative orientation, most people have a strong desire to
explain as much as possible. In societies with a pragmatic orientation most
people dont have a need to explain everything, as they believe that it is
impossible to understand fully the complexity of life. The challenge is not to
know the truth but to live a virtuous life.
With an intermediate score of 51 in this dimension, a dominant preference in
British culture cannot be determined.
Indulgence
A high score of 69 indicates that the British culture is one that is classified as
indulgent. People in societies classified by a high score in indulgence
generally exhibit a willingness to realise their impulses and desires with
regard to enjoying life and having fun. They possess a positive attitude and
have a tendency towards optimism. In addition, they place a higher degree of
importance on leisure time, act as they please and spend money as they
wish.
3. Ethics in Business
Employers do their best to hire individuals who are a good fit, meaning that
they match well with the organization's norms. Still, people are not
clones. They come into an organization with the personal values they
obtained from their family, school, and religion. A conflict can occur
when an employee has to make an ethical decision if their personal
values do not match the organization's norms.
The employee may not openly express their divergent view, but their
resistance to the norms of the organization can still surface in subtle ways.
And like a cancer, their stance can spread throughout the organization,
causing negativity and dysfunction.
Today, things have got more complicated:
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1.There is no longer one agreed moral code. Most people have a weak sense
of religion or none at all. So their morals must come from somewhere else.
2.There are competing religious and social moral codes, especially for
multinational companies operating in different parts of the world and
employing people from different cultures.
3. The pursuit of profit has become a goal in its own right, and this puts
pressures on people to compromise their standards, not just ethically, but in
less important areas also. For example, a very rude manager might be
tolerated because he (it usually is a he) makes large profits. So when good
behaviour and good profits come into conflict, businesses find it difficult to
resist the profits.
4. Businesses are only the people who work there; businesses dont decide
anything its the people who make decisions. But businesses have group
cultures with their own norms and standards. Individuals have a strong need
to fit in and be accepted, so it is very difficult for any individual to stand up
against attitudes and decisions they disagree with.
5. Greater wealth in the western economies means people have less
tolerance for ethically dubious behaviour. We are no longer so desperate for
growth and employment at any cost. People are also better educated and
better informed. People are less deferential ie they are less accepting of what
people in authority say. So there are higher expectations of how businesses
should behave.
6. Businesses have to sell to consumers and employ workers who have their
own standards and opinions. They are not going to buy from or work for a
business they disapprove of. So there is a competitive pressure for better
behaviour from businesses.
7. Many managers and owners have ambitions of social acceptance and
recognition eg knighthoods, and so are not going to get caught behaving
unethically.
8. Modern technology creates ethical dilemmas which never existed until quite
recently. Medical products, and gene technologies, are a good example of
this. Should parents be allowed to alter the genes of their unborn children,
and should businesses sell the products to do this?
people think your intentions and actions are honorable and ethical) .while your
character is determined and defined by your actions (i.e., whether your
actions are honorable and ethical according to the 12 ethical principles:
1. HONESTY. Be honest in all communications and actions. Ethical
executives are, above all, worthy of trust and honesty is the cornerstone of
trust. They are not only truthful, they are candid and forthright. Ethical
executives do not deliberately mislead or deceive others by
misrepresentations, overstatements, partial truths, selective omissions, or any
other means and when trust requires it they supply relevant information
and correct misapprehensions of fact.
2. INTEGRITY. Maintain personal integrity. Ethical executives earn the trust
of others through personal integrity. Integrity refers to a wholeness of
character demonstrated by consistency between thoughts, words and actions.
Maintaining integrity often requires moral courage, the inner strength to do the
right thing even when it may cost more than they want to pay. The live by
ethical principles despite great pressure to do otherwise. Ethical executives
are principled, honorable, upright and scrupulous. They fight for their beliefs
and do not sacrifice principle for expediency.
3. PROMISE-KEEPING. Keep promises and fulfill commitments. Ethical
executives can be trusted because they make every reasonable effort to fulfill
the letter and spirit of their promises and commitments. They do not interpret
agreements in an unreasonably technical or legalistic manner in order to
rationalize non-compliance or create justifications for escaping their
commitments.
4. LOYALTY. Be loyal within the framework of other ethical
principles. Ethical executives justify trust by being loyal to their organization
and the people they work with. Ethical executives place a high value on
protecting and advancing the lawful and legitimate interests of their
companies and their colleagues. They do not, however, put their loyalty above
other ethical principles or use loyalty to others as an excuse for unprincipled
conduct. Ethical executives demonstrate loyalty by safeguarding their ability
to make independent professional judgments. They avoid conflicts of interest
and they do not use or disclose information learned in confidence for personal
advantage. If they decide to accept other employment, ethical executives
provide reasonable notice, respect the proprietary information of their former
employer, and refuse to engage in any activities that take undue advantage of
their previous positions.
5. FAIRNESS. Strive to be fair and just in all dealings. Ethical executives
are fundamentally committed to fairness. They do not exercise power
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4.Bibliography
1.https://www.princeton.edu/~achaney/tmve/wiki100k/docs/Business_ethics.html
2. http://geert-hofstede.com/united-kingdom.html
3.http://www.prenhall.com/behindthebook/0132431521/pdf/Robbins_CH03.pdf
4. http://www.uri.edu/mind/VALUES2.pdf
5. http://lms.aspira.org/sites/default/files/Definition%20of%20Values.pdf
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