Question 1 How might different national cultural values impact business ethics and corporate social responsibility? What practices might improve the effectiveness of international managers who are seeking to deal with these conflicts?
TASK ONE
REFLECTIVE REPORT
In this current global environment, the business is gradually developing in an unprecedented manner. This business growth brings out tremendous opportunities that will account for the development of the multinational economy across the globe. Therefore in this context, culture plays a vital role in the business practices in the social context. And specifically, when there is a discussion of international business at that point cultural diversity along with cultural values are very vital points. Therefore the reflective report is prepared considering the business scenario of the international business environment concerning both national culture and organizational culture. In this report, there is a reflection on why the national culture is considered to have more impact on organizational culture about business ethics as well as corporate social responsibility.
The reflective report, therefore, brings the scenario of how the national culture affects business ethics and corporate social responsibility. As per basic knowledge, business ethics and corporate social responsibility are the two vital pillars that will contribute to the success of the business in the international market. With the coordination of these two, international business reaches its greatest height. It is just because business ethics takes care of the actions and behavior of the individual in the organization as well and decorum is maintained within the organization.
At the same time, corporate social responsibility maintains the social responsibility within the organization that makes the organization get the three main approaches. Through this, the organization can achieve success over three imperatives, social, economic, and environmental. With this, the organization can get access to address the stakeholders as well as the shareholders. That is the reason both business ethics and corporate social responsibility collectively can form the base for the formation of the strategic concept of the organization. Due to this, the organization can be able to gain a reputed place in the international market. But the time when the part comes to international business at that time it affects the national culture, which is the major question of this report.
Therefore from a personal point of view, it can be said that the national culture is a part of the concern for the proper functioning as well as the success of the organization. And again from the international business perspective, the national culture can bring some hindrances in the growth of business. It is just because the national culture is quite involved within the personality of the individual or any group within the organization. Therefore from a close perspective, it can be said that forms the base for distinguishing the members or groups within the organization which in any instance can affect the business environment within the organization. It is because due to this cultural arrangement the group of similar cultures gets distinguished from other groups that have effects on the business ethics within the organization. Due to this reason while running the business in the international market, the national culture becomes a hurdle.
For example, when the organization decides to expand at that condition the organization must get the proper knowledge of its culture. It is a suggestion from a personal perspective. It is because it allows the managers to deal with the issues with ease. The knowledge of one’s culture is a vital part of reaching success in a region. It is no doubt the point that I feel is quite essential. In dealing with the issues the managers generally face the issues of communication, interaction, and behavioral aspects of the employees which I feel becomes quite intense with time if not handled carefully. So the national culture is the part that is noticed as the platform for growth but it also hurts the business.
But when comes to the practical concept it is asked this question how do managers manage the conflicts raised in the organization in the international market? It is quite well known that international business includes various nations where there are various types of national cultures interfering with the business. It is therefore quite necessary from the personal perspective that there should be the implementation of the strategic framework which will help the managers to deal with the conflicts within the organization.
With knowledge in this field, it can be suggested that the strategic framework can help managers in the international market in dealing with the issues that arise in the organization. The basic theoretical framework that describes all the aspects of national culture in the international market is Hofstede’s Theory.
In my view, it is the theory that will enable international managers to manage the scenario within the organization. This theoretical framework is best suggested just because it can better sense the sensitivity of the issue with which the managers can take suitable measures to deal with it. This theory is formulated in such a way that it covers all the aspects of a national culture. Further, it includes all the paradigms of the national culture by depending upon which there will be the perfect picturization of the solution for the conflict raised within the organization. It is selected because it contains various dimensions that show the picture of the cultural scenario of the organization. These dimensions are power distance, uncertainty avoidance, individualism vs. collectivism, masculinity vs. feminity, and long-term orientation vs. short-term orientation.
The two other dimensions are indulgent vs. restraint. All these dimensions show a clear picture of the cultural scenario within the organization. By making these as standard parameters the manager can get an idea of the effectiveness of the hierarchical system over the employees. Along with that, the managers can get an idea of how to deal with unexpected situations as well as the building relationships within the organization. With these dimensions, the managers can make the employees motivated and goal-oriented. All these dimensions therefore collectively can account for the success of the organization in the international market.
This reflective report brought out why the national culture makes an impact on the organizational culture. From the personal perspective as well as from the organizational perspective it is quite well known that the theoretical framework of Hofstede will be able to help international managers. With the framework, international managers can be able to solve the issues raised within the organization as well as improve the effectiveness of decision-making for the organization.
TASK TWO
Introduction
The culture has its value upon the business practices concerning the social context. When taking into account the part of international business there will be a description as well as a discussion of the cultural values. These cultural values are again divided into their specific types as per their specification. The international business, therefore, takes into account two types of cultures that act within the business scenario along with having the essential roles that have a great impact on the business. These two are the organizational culture and the national culture (Adekola & Bergi, 2016).
Both cultures have specific types of work resulting in the success of the business. The organizational culture generally deals with the basic guidelines that provide the rules that are essential for the organizational practices as per the job role. At the same time, the natural culture deals with all total overall values that are generally deeply held in the organization. Out of both the cultures involved in the business practices, the matter of concern in this context is the national culture.
As per Chanlat, Davel & Dupuis, in this manner, the essay is formulated to make the description of the fact showing the impact of the national culture on the business culture scenario. The business culture scenario further involves business ethics along with corporate social responsibility(Chanlat, Davel& Dupuis, 2013). These two are criteria that make up the whole business scenario. Therefore, in the long run, the sources provided that the national culture has an impact on business ethics and corporate social responsibility. Further, the essay also provides some theoretical frameworks that will help managers find effective solutions to deal with the conflicts being raised in the long run of business.
National Culture Affecting Business Ethics and Corporate Social Responsibility
National Culture is a matter of wide concern providing the whole knowledge regarding the functioning of the organization. It, therefore, encompasses all types of feelings going on within the area country, or organization. Eisenberg et al said that it makes the pasteurization of the scenario of how a person behaves interacts communicates, or works. Every activity of a person can represent its culture. Therefore a person’s identity is very well governed by cultural influences (Eisenberg et al., 2013).
Specifically, when it comes to the matter of concern from the business point of view, people generally realize the impact of national culture on business interactions. National Culture is, therefore, the process of the practice of the beliefs, customs, and conduct along with the convention that is followed by the specific population or the people of the specific region.
As per Eisenberg, Härtel & Stahl, in other words, it can be said that the national culture is the sense that provides the idea of the collective process required to make the programming that distinguishes the members present in the organization. In that case, the members of one group can be very well distinguished from the other category of people depending on the culture (Eisenberg, Härtel& Stahl, 2013).
Now when it comes to business ethics and corporate social responsibility concerning the national culture, it is a must to have a clear understanding of these two essential features of the business of the organization. According to Holgersson et al., business ethics in an organization is the part that deals with the specific area involving the contemporary standard values of the organization (Holgersson et al., 2016).
International business depends upon these values just because these ethics make the governance of actions and behavior of any individual of the organization. It is just because the business ethics of the organization deals with the formula relating to ethical principles as well as the moral principles for conducting decorum in the business environment t(Holgersson et al., 2016). It makes application towards conducting the business involving the individuals of a different culture concerning the entire organization. Therefore business ethics are generally normative as well as descriptive in their terms where they show the valuation that regulates the areas and the details of the behavioral aspects of the employees working in the organization.
As per Karin Andreassi et al, the same time, another vital part is corporate social responsibility (Karin Andreassi et al., 2014). It is the part that deals with the social aspects of the corporate organizations involved in international business. It helps in fulfilling the social responsibility of the organization. It is, therefore, the concept of management that makes the integration of the social and environmental aspects of the organization and deals with any type of issues raised in the business operations. The management also handles the various inevitable issues with the help of corporate social responsibility.
As per Lücke, Kostova& Roth, that is the reason the establishment of corporate social responsibility in the organization enables the government to achieve the most important three bottom-line approach of the organization (Lücke, Kostova& Roth, 2014).
According to Mor, Morris & Joh, due to that condition, it can be social it can be concluded that corporate social responsibility as well as business ethics makes up the strategic concept of business management that enhances the reputation of the organization in the international market that further makes the strengthening of its brand with eventually success in fulfilling the triple bottom line (Mor, Morris & Joh, 2013).
In that situation, the essay brings out the question for the identification of the scenario that deals with the case showing the effects or the impacts of the national culture upon the ethical values of the business as well as the corporate social responsibility of the organization. As per Mendenhall et al, the national culture in some instances makes a difference in bringing up the fulfillment of business ethics. The ethical values of the organization get disturbed along with the deviation in the processing of CSR (Mendenhall et al., 2013).
Further, the national cultures make the differences in various ways. For example, if any company planning for its business expansion in another country, then there will have to make the fixation clear regarding the cultural dimensions of the target market. As per Moran, Abramson & Moran, in that case, every country has its different cultures with which they can get their desired business aspects. Therefore in some instances, the management of the organization needs to take care of the cultural scenario of that place so that it can be able to deal with the behavioral aspects of the people of that place. On a general basis, the behavioral aspect, communication, and interaction are the major factors that affect business ethics during business interactions (Moran, Abramson & Moran, 2014).
Apart from that it also makes the differentiation in maintaining the social responsibility just because in some workplaces there are more preferences given to masculinity whereas in some places preferences given to feminism. As per Thomas & Peterson, along with that the international market also carries out the situation making them more inclined towards the power index. Therefore the national culture in some instances can have of positive impact on the situation whereas in some instances it is seen as making a negative impact on the business (Thomas & Peterson, 2014).
Practices to deal with the conflicts due to National Culture
From the above section, it is quite clear that every area, every country, and every locality has its different types of cultures with which they handle their business interactions. In the situation where the company makes its expansion in a different place with different cultural dimensions, it faces the unusual condition of facing the issues raised due to the national culture.
Szkudlarek said that the international managers involved in this process will formulate the scenario by focusing on various theoretical frameworks describing the process (Szkudlarek, 2013). The processes or the frameworks described below will enhance the working effectiveness of the international managers in dealing with the conflicts raised in the organization. Below are described two theories that will help in defining the sensitivity of the problem by which the managers can be able to deal with the conflicts (Szkudlarek et al., 2013).
Hofstede’s Theory
This theory was coined by Geert Hofstede who has collectively coined out the scenario of national culture and showed its effectiveness upon the organization. Hofstede in this theory discussed various paradigms involved in the national culture, depending upon which there will be the pasteurization of the basic problems involved in the different national societies.
Figure 1: Hofstede’s Theory Model
Source: (Lücke, Kostova& Roth, 2014)
As perLücke, Kostova & Roth, those paradigms are the values, symbols, heroes, and rituals. The values of the national cultures afterward further get divided into the organizational culture when the business point of view is taken into account (Lücke, Kostova& Roth, 2014). In this process, there occurred various surveys of the multinational organizations eventually formulate the cultural status of the organization as well as provide a systematic framework for which it can be validated.
Therefore international managers can go through a survey of the organization with which some dimensions can be found.
Power Distance: This section takes care of the equal distribution of power within the organization. This dimension is meant to analyze how people feel regarding the power distribution in the organization. With this, the manager can calculate the effectiveness of the hierarchical system over the employees.
Uncertainty Avoidance: This part of this index measures the particular point up to which the employees of the organization can tolerate the matter of uncertainty and ambiguity within the organization. By having this dimension the manager can get access to the process of how the unexpected situations in the organization can be dealt with (Karin Andreassi et al., 2014).
Individualism Vs Collectivism: This dimension makes sure regarding the percentage of integration of people into groups. With this dimension, the manager can get to know the capability of the people both individually and in the group.
Masculinity and Feminity: It facilitates the proper distribution of the emotional roles between the genders. The proper knowledge of this dimension will help the managers in making a mark to measure the difference between genders in the workplace and will pay more emphasis to relationship building in the workplace.
Long-Term Orientation Vs Short-Term Orientation: The knowledge of this dimension will help the managers in evaluating the time horizon of the society and the managers will motivate the employees to be goal-oriented.
These five dimensions can be said to be very effective in analyzing the situation affected by the national culture and the international managers will be able to their effectiveness in the organization.
Apart from these one more factor that can be considered by the managers in some instances is the dimension of indulgence. This particular dimension in the organization deals with the scenario of the organization where there occurs the measurement of the culture’s ability can be used for the satisfaction of the members of the organization (Karin Andreassi et al., 2014).
This dimension makes the manager aware of the desires of the employees through which the manager can work for the fulfillment of the needs of the employees to make them motivated. Furthermore, the manager can formulate rules and regulations based on these criteria. In that case, it can be said restraint is just because the organization must also possess such strict rules and regulations that are feasible socially and in some instances can regulate and discourage the drives of desires and satisfaction of the employees (Moran, Abramson & Moran, 2014).
Hofstede, therefore, formulated these dimensions keeping in mind the assessment of an organization of any given national culture. Getting into the national culture will be helpful for the organization to make the required decisions in support of the organization (Lücke, Kostova& Roth, 2014).
Conclusion
The essay discussed the impact of national culture on business ethics along with corporate social responsibility. This question provides a scenario to clarify the factors involving the cultural attributes of any place. That is the reason the essay included a description of the role of business ethics and corporate social responsibility within the organization.
Due to this reason, therefore, the managers have acquired the process following the Hofstede theory of cultural dimensions to mark a clear framework to assess the national culture of a country that results helpful for the managers to improve their effectiveness in decision making.
References
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