5- 0 © The McGraw-Hill Companies, Inc., 1999 Irwin/McGraw-Hill Chapter 5 Business Customs in Global...
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Transcript of 5- 0 © The McGraw-Hill Companies, Inc., 1999 Irwin/McGraw-Hill Chapter 5 Business Customs in Global...
5-1
©The McGraw-Hill Companies, Inc., 1999Irwin/McGraw-Hill
Chapter 5
Business Customs in Global Marketing
5-2
©The McGraw-Hill Companies, Inc., 1999Irwin/McGraw-Hill
Cultural Adaptation
Cultural ImperativesCultural Imperatives
Cultural AdiaphoraCultural Adiaphora
Cultural ExclusivesCultural Exclusives
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©The McGraw-Hill Companies, Inc., 1999Irwin/McGraw-Hill
Contextual Background of Various Countries
High Context Implicit
Japanese
Arabian
Latin American
Spanish
Italian
English (UK)
French
North American (US)
Scandinavian
German
SwissLow Context Explicit
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©The McGraw-Hill Companies, Inc., 1999Irwin/McGraw-Hill
Hall’s Silent Languages
Language of TimeLanguage of Time
Language of SpaceLanguage of Space
Language of ThingsLanguage of Things
Language of FriendshipLanguage of Friendship
Language of AgreementsLanguage of Agreements
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©The McGraw-Hill Companies, Inc., 1999Irwin/McGraw-Hill
Cultural Differences between Japanese and American Business
Game concept: Business is a game in pursuit of profits under the rules of laws and contracts
Efficiency-oriented and approximate accuracy simplicity, clarity, and quickness
Quantity-oriented
Short-term performance evaluation
Easy layoffs, dismissals of employees, and selling of businesses
Japanese BusinessAmerican Business
Mutual trust-oriented business: business is based on trusting relationship among people rather than the rules of game
Highly precision-oriented and perfectionism-high dependency on human awareness
Quality-oriented
Mid-to-long term evaluations
Job security
SOURCE: Norihiko Shimizu, “Today’s Taboos may be gone tomorrow,” Tokyo Business, February 1995, p.51.
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©The McGraw-Hill Companies, Inc., 1999Irwin/McGraw-Hill
Cultural Differences between Japanese and American Business
Top down management
Low mutual dependence between employers and employees
Control of business by stockholders and the management
Management by "force"
Heavy dependence on machinery and technology, vs. Light dependence on human resources
Limited loyalty and incentive-oriented work ethics
Excellent software-based technology development
Heavy dependence on human resources bottom-up management and teamwork
High mutual dependence between employers and employees
Joint management of business by Employees and Employees
Management by "motivation"
Heavy dependence on human resources
Strong loyalty and fewer incentives
Inadequate software development ability
Japanese BusinessAmerican Business
SOURCE: Norihiko Shimizu, “Today’s Taboos may be gone tomorrow,” Tokyo Business, February 1995, p.51
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©The McGraw-Hill Companies, Inc., 1999Irwin/McGraw-Hill
Country** CPI 1997 CPI 1996 Country CPI 1997 CPI 1996
Denmark (1) 9.94^ 9.33 Italy (30) 5.03 3.42
Finland (2) 9.48 9.05 S. Korea (34) 4.29 2.96
Norway (7) 8.92 8.87 Brazil (36) 3.56 2.96
Singapore (9) 8.66 8.80 China (41) 2.88 2.43
Switzerland (11) 8.61 8.76 India (45) 2.75 2.63
USA (16) 7.61 7.66 Mexico (47) 2.66 5.50
France (20) 6.66 6.96 Russia (49) 2.27 2.58Czech Rep. (27) 5.20 5.37 Nigeria (52) 1.76 0.69
Corruption Perception Index* (Selected Countries 1997 & 1996)
* The ranking is based on the 52 countries studied.
** ( ) number is rank in 1997 Study.
^ The maximum is 10.00. A perfect score of 10.00 would be a totally corrupt free country.
Source: “Transparency International Publishes 1997 Corruption Perception Index, “ TI Press Release, July 31, 1997. Available at http://www.transparency.de// (select Press Releases).
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©The McGraw-Hill Companies, Inc., 1999Irwin/McGraw-Hill
Bribery?
Variations on a Theme
Bribery
Extortion
Subornation
Lubrication
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©The McGraw-Hill Companies, Inc., 1999Irwin/McGraw-Hill
Three Ethical Principles
Utilitarian Ethics Does the action optimize the "common good" or benefits of all constituencies?
Rights of the Parties Does the action respect the rights of the individuals involved?
Justice or Fairness Does the action respect the canons of justice or fairness to all parties involved?
Principle Question
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©The McGraw-Hill Companies, Inc., 1999Irwin/McGraw-Hill
A Decision Tree for Incorporating Ethical and Social Responsibility Issues into Multinational Business Decisions
Does the decision efficiently optimize the common good or benefits of:
SocietyCultureOrderJustice“The good life”Other
The Individual?FreedomHealth and welfareSelf-realizationHuman dignityOpportunityOther
The Business firm?StockholdersManagementProfitsGrowthOther
The Economy?Economic growthAllocation of resourcesProduction and distribution of goods and servicesOther
Are there critical factors that justify suboptimizing these goals and satisfactions?
Does the decision respect the rights of individuals involved.
Reject decision
Are there critical factors that justify the abrogation of a right.
Does the corporate decision respect the canons of justice or fairness to all parties involved?
Rejectdecision
Are there critical factors that justify the violation of a canon of justice?
Rejectdecision
Accept decision
YESNO
YES
NO
YES YES
NO
NO
YES YES
NO
NO
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©The McGraw-Hill Companies, Inc., 1999Irwin/McGraw-Hill
The Caux Round Table Principles
The responsibilities of businesses : Beyond shareholders toward shareholders.
The economic and social impact of business: Beyond shareholders toward justice and world community.
Business behavior: Beyond the letter of law toward a spirit of trust.
Respect for rules.
Support for multilateral trade.
Respect for the environment.
Avoidance of illicit operations.
General Principles
SOURCE: Joel Makower and business for social responsibility, Beyond The Bottom Line: Putting Social Responsibility to Work for your Business and the World (New York: Simon and Schuster, 1994)
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©The McGraw-Hill Companies, Inc., 1999Irwin/McGraw-Hill
The Caux Round Table Principles
The mobility of employment, capital, products, and technology is making business increasingly global in its transactions and its effects.
Laws and market forces are necessary but insufficient guides for conduct.
Responsibility for a business's policies and actions and respect for the dignity and interests of its shareholders are fundamental.
Shared values, including a commitment to shared prosperity, are as important for a global community as for communities of smaller scale.
For these reasons, and because business can be a powerful agent of positive social change, we offer the following principles as a foundation for dialogue and action by business leaders in search of business responsibility. In so doing, we affirm the necessity for moral values in business decision making. Without them, stable business relationships and a sustainable world community are impossible.
SOURCE: Joel Makower and business for Social Responsibility, Beyond the Bottom Line : Putting Social Responsibility to Work for your Business and the World (New York: Simon and Schuster, 1994)
Preamble
