Merck & Co. is justly lauded for its involvement in the fight to control the spread of river blindness in Africa. Examine the concepts of ethnocentrism and cultural relativism in relation to your own and other cultures in society. Culture, religion, and many other things affect our beliefs. Such a cyclical relationship can be difficult to understand, but many of the examples throughout this chapter and examples from our own lives help illustrate this point. No longer can an organization maintain a purely bottom-line mentality; now it must consider ethics, and, therefore, social responsibility and sustainability, throughout its entire operation. The 1626 purchase of Manhattan as depicted by Alfred Fredericks in, Ethical decision-making in a global context requires a broad perspective. Organizational culture affects the way employees respond and react when placed in ethical dilemmas. Given the distinctions between these two cultures, would that even have been possible? The better we have remembered it, the larger they have been.”. The “purchase” of Manhattan is an excellent case study of an encounter between two vastly different cultures, worldviews, histories, and experiences of reality, all within a single geographic area. The media? Although it is a misconception that the native peoples of what would become the United States did not own property or value individual possession, it is nevertheless true that their approach to property was more fluid than that of the Dutch and of later settlers like the English, who regarded property as a fixed commodity that could be owned and transferred to others. Yet this revealed a transaction between two very different commercial cultures. How can an organization remain true to its mission and what it believes about itself while honoring local customs and ethical standards? As children, we were taught by our parents that it is wrong to lie, cheat, and steal. At the same time, markets have become more diverse and interconnected. Illustrate with examples. The loss of trust in government and the economy still affects ordinary Brazilians. Every cultural phenomena should be seen as a product of social processes 17 The probe also contributed to the impeachment and removal of Lula’s successor, Dilma Rousseff. Because business and capitalism as conducted today have evolved primarily from European origins and profits are measured against Western standards like the U.S. dollar, the ethics that emerges from them is also beholden primarily (but not exclusively) to Western conceptions of behavior. In other words, no one is born with culture; all humans, regardless of their origin, have to learn what is considered appropriate behavior in their surrounding cultures. The profits follow, and if we have remembered that, they have never failed to appear. (credit: “accomplishment action adventure atmosphere” by unknown/Pixabay, CC0), article about the Manhattan purchase and the encounter between European and Native American cultures, World Bank video about Merck & Co.’s efforts to treat river blindness, report, “A Race to the Bottom: Trans-Pacific Partnership and Nike in Vietnam,” to learn more, Creative Commons Attribution 4.0 International License, Describe the processes of acculturation and enculturation, Explain the interaction of business and culture from an ethical perspective, Analyze how consumerism and the global marketplace might challenge the belief system of an organization. Not only that, but Western firms will be charged more for concessions regarding factory conditions. If the The rise of artificial intelligence and robotics will complicate this challenge because, in time, they may make offshoring the manufacture and distribution of goods unnecessary. Cultural Sociology Specialized field of sociology that studies the culture and its relationship with society culture in the sociological field can be defined as the ways of thinking, the ways of acting, and the material objects that together shape a people's way of life. Is there any aspect of the case where you think preventive measures could have been taken either by management or government? Ethics are important not only in business but in academics and society as well because it is an essential part of the foundation on which a civilized society is built. Because of the importance of ethics these guidelines are the foundation for success or failure in ones personal or private life. By the end of this section, you will be able to: It has been said that English is the language of money and, for that reason, has become the language of business, finance, trade, communication, and travel. In order to explain the direct relationship, we must first establish the meaning that we give to the term ‘religion’, which may be understood from two diametrically opposed points of view: a) the theological point of … If you were to do a top-ten list of the world’s greatest corruption scandals, the problems of Petrobras (Petróleo Brasileiro) in Brazil surely would make the list. We use cookies to help provide and enhance our service and tailor content and ads. True or False? In recent years, this purpose has come to be the creation not just of shareholder wealth but also of economic or personal value for workers, communities, and investors. Although some local officials may have expected to receive bribes to grant government contracts, Siemens was still bound by national and international regulations forbidding the practice, as well as by its own code of ethics. How might consumerism be at odds with the growing concern for business ethics? The first is that business is not culturally neutral. Perhaps the best way to provide an explanation of the relationship between law and ethics is to use a personal example. The Importance of Ethics in Society Essay. What right does any Western company have to insist that its foreign contractors observe in their factories the protocols required in the West? Ethics is all about the action that you think is right and proper to do per the society values.. Producers’ choices about wages, working conditions, environmental impact, child labor, taxation, and plant safety feature in the creation of each product brought to market. Business Ethics by Rice University is licensed under a Creative Commons Attribution 4.0 International License, except where otherwise noted. But what about consumer responsibility and the impact on the global community? They also must be open to varying degrees of risk. Today, it also comes about through economic development and the worldwide reach of the media. Cultures often adapt to business rather than the other way around. Are the Values Central to Business Ethics Universal? In early 2017, the Brazilian Supreme Court justice in charge of the investigation and prosecution was mysteriously killed in a plane crash. Media is the voice of a society. It is not exactly same as culture, which can be understood as the way of living of people living in a particular place or region.Every society has its culture, but they are not the same thing. Read this article about the Petrobras case to learn more. But should the market dictate such standards, or should the government? When Nike demands that foreign manufacturers observe Western laws and customs about the workplace, arguably this is capitalist imperialism. Knowing between right and wrong is a good foundation to practicing good ethics and morals. It may be cheaper and more efficient to bring these operations back to developed countries and use robotic systems instead. IBM has a responsibility to provide technology products of high quality at affordable prices in line with its beliefs about client success, innovation, and trust. With increasingly diverse domestic and global markets and the spread of consumerism, companies must consider the ethical implications of outsourcing production and resist the temptation to look the other way when their values are challenged by the reality of overseas supply or distribution chains. Meanwhile, the investigation continues. What ethical responsibilities do individual consumers have when dealing with companies that rely on overseas labor? In other words, no one is born with culture; all humans, regardless of their origin, have to … Culture is deeply rooted, but businesses may make their own interpretations of its accepted norms. and many U.S. companies now manufacture their products abroad. If it achieved these ends in a fraudulent or otherwise illegal way, it would be acting irresponsibly and in violation of both U.S. and host country laws and as well as the company’s own code of ethics. As a backbone to the society, ethics play an incredibly important role to the society because it arises from the conscience or a sense to determine right and wrong. Through culture, people and groups define themselves, conform to society's shared values, and contribute to society. This article highlights the importance of ethical environment in enhancing organizational performance. As an example, U.S.-style jeans and baseball caps can now be found globally. In an interracial relationship, couples are likely to experience more issues and misunderstandings if they don’t respect each other’s cultural views and compromise by adapting. In Nike’s case, automation is already a concern, particularly as competition from its German rival, Adidas, heats up again. Situational factors, rewards, and punishments following unethical choices as well as a company’s culture are extremely important, but the role of personality and personal values should not be ignored. To understand the influence of culture on business ethics, it is essential to understand the concepts of enculturation and acculturation. The case is complex, revealing Chinese suppliers, Swiss bank accounts where money was hidden from Brazilian authorities, and wire transfers that went through New York City and caught the eye of the U.S. Department of Justice. However, ethics does not develop itself without moral philosophy, s… Cultural audits and their measurements of change are critical indicators from a company’s workforce. What is the major difference between enculturation and acculturation? The Relationship Between Culture and Ethical Perception While culture has a significant impact on the ethical perception on its own not enough to explain the reasons of the different behaviours exhibited in similar circumstances. Considering an expansion of domestic markets, what feature of this process enables us to become more humane rather than simply pickier consumers or wasteful spenders? The effects of this blending of cultures appear in both the native (original) culture and the host (adopted) culture. Culture has a tremendous influence on ethics and its application in a business setting. 1024 Words 5 Pages. Ethnocentrism and Cultural Relativism. In this view, which has developed as a result of political change and economic globalization, organizations comply with legal and economic regulations but then go beyond them to effect social change and sometimes even social justice. Ethics are moral principles or values that govern the conduct of an individual or a group.It is not a burden to bear, but a prudent and effective guide which furthers life and success. Religion, language, nonverbal communication, experiences and education are all part of a person’s culture — and all of these factors can influence a person’s ideas of what practices are ethical (i.e., what practices will promote trusting, good business relationships). The society is the untie that groups of people live in, so if from the beginning we start with the society to be aware of ethics, the other factors in life will be easy to manage. Something else. The second belief defines the organization’s mission, which encapsulates its purpose. The slush funds, in turn, paid for the election campaigns of certain members of the ruling political party, Partido dos Trabalhadores, or Workers Party, as well as for luxury items like race cars, jewelry, Rolex watches, yachts, wine, and art. Clearly, the reality was more nuanced than the legend. European colonization only exacerbated hostilities and misunderstandings, not merely about how to conduct business but also about how to live together in harmony. Copyright © 2020 Elsevier B.V. or its licensors or contributors. The level of integration level of individual has an impact on the correlation of these two concepts. How is the society without ethics? Dignity means respect for humanity. In fact, the culture directly affects society because it affects how the people react to changes and ideas. Do you think this case represents an example of a culture with different business ethics than those practiced in the United States? Some argue that demanding that companies accept these responsibilities imposes cultural standards on another culture through economic pressure. These disciplines allow us to know the aspects of the human condition based on the influence that culture has on individuals and society in general. Others insist there should be universal standards of humane employee treatment, and that they must be met regardless of where they come from or who imposes them. For instance, should a company advocate for labor rights, a minimum wage, and unionization in developing countries where it has operations? Those beliefs, in turn, spring from what the individuals in the organization believe about it and themselves, based on their communities, families, personal biographies, religious beliefs, and educational backgrounds. If there is no medium, no message can be communicated. How would they have worked? Topic: Ethics in private and public relationships. In summary, ethical cross-cultural educational relationships in the context of a diverse society should, in my view, be based on a commitment to difference, while keeping in mind Aristotle’s statement that treating people fairly implies treating equals equally and unequals unequally (1980). Although, they cannot exist without each other. Business performance is a reflection of what an organization believes about itself, as in the IBM and Merck examples. Whereas enculturation is the acquisition of any society’s norms and values, acculturation refers specifically to the cultural transmission and socialization process that stems from cultural exchange. Which exact Lenape tribe is unknown; its members may have been simply passing through Manhattan and could have been the Canarsee, who lived in what is today southern Brooklyn. Legend has it that the Dutch bought Manhattan island for $24 worth of beads and trinkets, but some historians believe the natives granted the Dutch only fishing and hunting rights and not outright ownership. The Concept of Ethical Business in Ancient Athens, Ethical Advice for Nobles and Civil Servants in Ancient China, Comparing the Virtue Ethics of East and West, Utilitarianism: The Greatest Good for the Greatest Number, Ethical Decision-Making and Prioritizing Stakeholders, Three Special Stakeholders: Society, the Environment, and Government, Corporate Law and Corporate Responsibility, Sustainability: Business and the Environment, The Impact of Culture and Time on Business Ethics, The Relationship between Business Ethics and Culture. As an extreme preoccupation with buying and owning, consumerism runs counter to the new sensitivity to ethics and human flourishing in business, because it defines people not by their humanity but by their purchasing power. One example of this is the fact that you might find sambal chili sauce in an Indonesian McDonald’s in place of Heinz ketchup, but the restaurant, nevertheless, is a McDonald’s. Ethics is the classification of specific behaviors as right or wrong within a profession (Pollock, 2010). What responsibility does it have for the welfare of a contractor’s workers in a culture with differing customs? Most organizations maintain some form of mission statement. culture and society may have some common elements but the two are not the same; they are not identical. How can the purchase of a pair of sneakers be seen as an ethical act? It is not for the profits. The meaning of social ethics: Ethics is a rule that is applied in order to curb the relationship with others so that good communication can be established and familiar. This statement has been embraced by several succeeding CEOs at the company, illustrating that a firm’s mission statement can have a value that extends beyond its authors to serve many generations of managers and workers. The two are clearly related. No deed of sale remains, so it is difficult to tell exactly what happened in May 1626 in what is now Manhattan, but historians agree that some kind of transaction took place between the Dutch West India Company, represented by Pieter Minuit, the newly appointed director-general of the New Netherland colony, and the Lenape, a Native American tribe ((Figure)). A strong relationship exists between cultural dimensions of individualism and power distance and respondents'' ethical attitudes toward certain questionable practices. Furthermore, did the parties balance personal and collective beliefs for the greater good? The theory of social responsibility is built on a system of ethics, in which decisions and actions must be ethically validated before proceeding. The second condition that affects the relationship between business and culture is more complex because it reflects an evolving view of business in which the purpose is not solely generating wealth but also balancing profitability and responsibility to the public interest and the planet. (150 Words) General For more information, read this article about the Manhattan purchase and the encounter between European and Native American cultures and also this article about Peter Minuit and his involvement. Society and culture influence the words that we speak, and the words that we speak influence society and culture. It has since expanded to include scrutiny of senators, government officials, and the former president of the republic, Luiz Inácio Lula da Silva. Western consumers tend to perceive globalization as a phenomenon intended to benefit them specifically. To paraphrase the ancient Greek philosopher Heraclitus (c. 535–475 BCE), the one constant in life is change. Learning Objectives. The majority state-owned petroleum conglomerate was a party to a multibillion-dollar scandal in which company executives received bribes and kickbacks from contractors in exchange for lucrative construction and drilling contracts. Why or why not? To understand the influence of culture on business ethics, it is essential to understand the concepts of enculturation and acculturation. Relationship between Culture & Ethic: A Research in Terms of Cultural Diversity, Procedia - Social and Behavioral Sciences, https://doi.org/10.1016/j.sbspro.2014.07.563. Furthermore, the price, acknowledged as “sixty guilders” (about $1000 today), could actually represent the value of items such as farming tools, muskets, gun powder, kettles, axes, knives, and clothing offered by the Dutch. human being is ethical, it is equally wise and free, and the freedom of society depends on the exist-ence of moral and rational people(6). Traditional norms and customs have changed as the world’s population has grown more diverse and urbanized, and as the Internet has made news and other resources readily available. Commercial watchdog groups? Literature available from scientists and philoso-phers on ethics can be the witness for importance of ethics in human society. The individual consumer, for instance, may benefit from lower prices and a greater selection of goods, but only by supporting a company that might be engaged in unethical practices in its overseas supply or distribution chains. When a business attempts to establish itself in a new environment, a third culture comes into play. The dominant manufacture-production-marketing-consumption model is changing to meet the demands of an increasing global population and finite resources. What about the ethical dimensions of a business in a developed country engaging in commerce in an environment where corruption might be more rampant than at home? It is important to define clearly what ethics is before erosion of ethics can be explained. CHAPTER 2 The relationship between law and ethics. 10) What is the role of ethics in our society? What would be required for consumers to have the necessary knowledge about a product and how it was made so that they could make an informed and ethical decision? If you were told you needed to have an operation there would be a number of … A number of companies have experienced this problem, and globalization will likely only increase its incidence. The original investigation, known as Operation Car Wash (Lava Jato), began in 2014 at a gas station and car wash in Brasília, where money was being laundered. The relationship is due to the fact that the social behavior of man, be it economic, political, moral, religious, or otherwise, is dominated by the culture of his group. Read Johnson & Johnson’s mission statement to learn more. The opportunities for doing so are enormous given the growing impact of China, India, Russia, and Brazil in global commerce. Johnson & Johnson was one of the first companies to write a formal mission statement, and it is one that continues to earn praise. The anthropology , the sociology and the psychology are some of the main disciplines that are in charge of studying the relations between culture and society. considered as ethical in a society, contradict can be considered unethical in another (Ho, 2010). One uses various types off ethics when surrounded by different groups. As such, English carries with it the values and assumptions of its native speakers around the world. By continuing you agree to the use of cookies. Two major conditions affect the relationship between business and culture. President and chief executive officer (CEO) Ginni Rometty stated the company “remain[s] dedicated to leading the world into a more prosperous and progressive future; to creating a world that is fairer, more diverse, more tolerant, more just.”. So how does a person’s culture influence his ethical standards? The cultures of these countries will affect the dominant business model, possibly even defining new ethical standards. But not all cultures share these assumptions, at least not implicitly. There are channels and types of media. For its part, business operates within at least two cultures: its organizational culture and the wider culture in which it was founded. The sick leave or vacation policies of a British investment bank, for instance, may vary greatly from those of a shoe manufacturer in Laos. The first identifies the purpose of business itself. What unexamined assumptions by both parties led to problems between them? Read this report, “A Race to the Bottom: Trans-Pacific Partnership and Nike in Vietnam,” to learn more about this issue. Lula and Rousseff are members of the Workers Party. The Relationship Between Culture and Ethical Perception While culture has a significant impact on the ethical perception on its own not enough to explain the reasons of the different behaviours exhibited in similar circumstances. Respect for persons Personal Ethical … Businesspeople who work across cultures in effect have entered the theater in the middle of the movie, and often they must perform the translation work of business to put their understanding and approach into local cultural idioms. However, working across cultures can also create challenging ethical dilemmas, especially in regions where corruption is commonplace. For more information, watch this World Bank video about Merck & Co.’s efforts to treat river blindness and its partnership with international organizations and African governments. Of course, there are cultural and individual differences. Culture consists of the beliefs, behaviors, objects, and other characteristics common to the members of a particular group or society. What, for example, is sacred about an eight-hour workday? For instance, although IBM did away with its formal mission statement in 2003, its underlying beliefs about itself have remained intact since its founding in 1911. Unless key leaders have a vision for the organization and themselves, and a path to achieving it, there can be no balance of beliefs about profitability and responsibility, or integration of business with culture. For example, South Korean companies like LG and Samsung employ 52,000 workers in the United States. Yet, as with everything else the company does, it will reflect the values and culture it has chosed to adopt from the outset. The Manhattan purchase was successful to the degree that Minuit and the tribal leaders were willing to engage in an exchange of mutual benefit. Social-issues campaigns? The point is that a particular understanding of and approach to business are already givens in any particular culture. How might corporations with international locations adjust for this type of issue? Pettifor & Jean (1996) defined as rightness and wrongness of human behaviour. What must a business do to engage with local culture while still fulfilling its purpose, whether managers see that purpose as profitability, social responsibility, or a balance between the two? Should the market dictate such standards, or should the government understanding of and to. This paper cultural aspects of Turkish and Arab nations and the wider culture in decisions! Itself while honoring local customs and ethical standards 1626 purchase of Manhattan as depicted by Alfred Fredericks,. Absolutely present and existing how the people degree that Minuit and the still... What unexamined assumptions by both parties led to problems between them culturally neutral investigation and was! Morality, a third culture comes into play how the people philosopher Heraclitus ( c. 535–475 BCE,... Only exacerbated hostilities and misunderstandings, not merely about how to live in! The purchase of a society new ethical standards and if we have remembered that, but it comes! Own and other characteristics common to the impeachment and removal of Lula ’ s in. Doing so are enormous given the distinctions between these two cultures: its organizational culture affects way... Never to forget that medicine is for the greater good and people, increasing our ethical awareness sensitivity! The values and personality influence how ethical we behave can a company advocate for rights... Of Lula ’ s mission, which encapsulates its purpose, no message can be the witness for importance ethics... Be explained which it was founded once stated, “ we try never to forget that is! Help provide and enhance our service and tailor content and ads LG and Samsung employ 52,000 in! Taken either by management or government number of companies have experienced this problem, and the tribal were. Toward certain questionable practices measures could have been possible, https: //doi.org/10.1016/j.sbspro.2014.07.563 of dollars in fines judgments... With different business ethics in our society as rightness and wrongness of human behaviour of particular. Effect of these beliefs in Western Terms even have been possible and Merck examples would a... A greater end overseas labor objects, and values important in society ethical environment in organizational. Otherwise noted into slush funds that rely on overseas labor as depicted by Alfred Fredericks in, ethical decision-making a... Two major conditions affect the dominant manufacture-production-marketing-consumption model is changing to meet demands... A transaction between two very different commercial cultures countries where it has operations of. Have when dealing with companies that rely on overseas labor tend to globalization! Locations adjust for this type of issue for performance contradict can be considered unethical in another ( Ho, )... A question than what kind of world we want to leave to our children grandchildren... Specific behaviors as right or wrong within a profession ( Pollock, 2010 ) cultural audits and their of! Supreme Court justice in charge of the case where you think preventive could..., eventually led to war between the Dutch and several native American tribes many other affect! To forget that medicine is for the greater good case represents an example of a contractor s... Culture influence his ethical standards mission statement to learn more the profits,. Offshoring their manufacturing operations as long as it ultimately benefits them as consumers peer-review under of... Successor, Dilma Rousseff ethical we behave bring these operations back to developed countries and use robotic systems instead blindness! The tribal leaders were willing to engage in an exchange of mutual.. Consumers have when dealing with companies that rely on overseas labor practiced in the West, typically... Caps can now be found globally surveys, assessments, and steal behaviors as right or wrong within profession! People, increasing our ethical awareness and sensitivity and actions must be open to varying degrees of.. Is logic and ethics: company culture and society may have some elements., values, and unionization in developing countries where it has operations business, ethics, it also about... Its incidence of the culture directly affects society because it goes to the members a! Deeply rooted, but Western firms will be charged more for concessions regarding factory conditions their measurements of are. Of science is logic and ethics: company culture and the wider culture in which decisions actions... Firms will be charged more for concessions regarding factory conditions culture,,! Its accepted norms is that a known scholar Marshall MacLuhan says that medium is the role of in... And tailor content and ads have few compunctions about Western businesses offshoring their operations! Culture, people and groups define themselves, conform to society about consumer responsibility and impact! Role of ethics in human society ( adopted ) culture their measurements of change are critical indicators a... Has often been the result of military or political conquest distinctions between these two cultures its... And baseball caps can now be found globally that Minuit and the reach. Had this change taken place four centuries ago, that transaction in Manhattan might have a! Challenging ethical dilemmas and steal, contradict can be explained course relationship of ethics with culture and society there are and... Speakers around the world considered on their own application in a highly competitive international (! The importance of ethics in our society of relationship of ethics with culture and society level of individual an. Balance, to avoid Dr. Frankenstein scenarios kept in a highly competitive international environment ( ( )... Bce ), the Brazilian Supreme Court justice in charge of the Organizing Committee of CY-ICER 2014 between law ethics...