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. (shrink)

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. (shrink)

This study draws on Kohlberg''s Cognitive Moral Development Theory and Hofstede''s Culture Theory to examine whether cultural differences are associated with variations in ethical reasoning. Ethical reasoning levels for auditors from Australia and China are expected to be different since auditors from China and Australia are also different in terms of the cultural dimensions of long term orientation, power distance, uncertainty avoidance and individualism. The Defining Issues Tests measuring ethical reasoning P scores were distributed to auditors from Australia and China (...) including Hong Kong and The Chinese Mainland. Results show that auditors from Australia have higher ethical reasoning scores than those from China, consistent with Hofstede''s Culture Theory predictions. (shrink)

Leaders and managers of today's multinational corporations face a plethora of problems and issues directly attributable to the fact that they are operating in an international context. With work-sites, plants and/or customers based in another country, or even several countries, representing a vast spectrum of cultural differences, international trade and offshore operations, coupled with increased globalisation in respect to political, social and economic realities, contribute to new dilemmas that these leaders must deal with. Not the least of these being a (...) Code of Ethics and ethical decision making.This paper examines the differences in culture between a group of managers from the United States and similar group from Croatia using Hofstede's theory of International Cultures. The study explores how these cultural dimensions may help in our understanding of the differences in reported whistleblowing. The authors then postulate four hypotheses regarding various aspects of whistleblowing. These Hypotheses were than tested using a survey administered to a sample of U.S.A. and Croatian managers. Finally, the paper discusses the findings and practical implications for contemporary managers in the international arena. (shrink)

This study uses accounting professionals from an international setting to test the individualism and power distance cultural dimensions developed by Hofstede [Culture’s Consequences (Sage Publications, Beverly Hills, CA) 1980]. Six countries, which appropriately represented high and low values on the Hofstede dimensions, were chosen for the survey of ethical beliefs. Respondents (n = 249) from the six countries were requested to supply their agreement/disagreement with eight questionable behaviors associated with the work environment. Each of these behaviors contained an individualism and/or (...) power distance cultural component for the responding accountants to consider. The results of the cultural analysis indicated significance on five of the eight survey items. Results lend support for the presence of the individualism cultural element in the ethical responses of the accountants surveyed. (shrink)

This study uses accounting professionals from an international setting to test the individualism and power distance cultural dimensions developed by Hofstede [Culture's Consequences 1980]. Six countries, which appropriately represented high and low values on the Hofstede dimensions, were chosen for the survey of ethical beliefs. Respondents from the six countries were requested to supply their agreement/disagreement with eight questionable behaviors associated with the work environment. Each of these behaviors contained an individualism and/or power distance cultural component for the responding accountants (...) to consider. The results of the cultural analysis indicated significance on five of the eight survey items. Results lend support for the presence of the individualism cultural element in the ethical responses of the accountants surveyed. (shrink)

This study examines the impact of a social desirability response bias as a personality characteristic (self-deception and impression management) and as an item characteristic (perceived desirability of the behavior) on self-reported ethical conduct. Findings from a sample of college students revealed that self-reported ethical conduct is associated with both personality and item characteristics, with perceived desirability of behavior having the greatest influence on self-reported conduct. Implications for research in business ethics are drawn, and suggestions are offered for reducing the effects (...) of a socially desirable response bias. (shrink)

The current study presents the findings of an empirical inquiry into the effects of Confucian ethics and collectivism, on individual whistleblowing intentions. Confucian Ethics and Individualism–Collectivism were measured in a questionnaire completed by 343 public officials in South Korea. This study found that Confucian ethics had significant but mixed effects on whistleblowing intentions. The affection between father and son had a negative effect on internal and external whistleblowing intentions, while the distinction between the roles of husband and wife had a (...) positive effect on those intentions. The effects of collectivism were also different depending on the specific types of collectivism. Horizontal collectivism had a positive effect on both types of whistleblowing intentions, whereas vertical collectivism did not show any significant effects on whistleblowing intentions. These results indicate that cultural traits such as Confucian ethics and collectivism may affect an individual’s whistleblowing intentions in degree and direction, making blanket predictions about cultural effects on whistleblowing difficult. (shrink)

Research on whistle-blowing has been hampered by a lack of a sound theoretical base. In this paper, we draw upon existing theories of motivation and power relationships to propose a model of the whistle-blowing process. This model focuses on decisions made by organization members who believe they have evidence of organizational wrongdoing, and the reactions of organization authorities. Based on a review of the sparse empirical literature, we suggest variables that may affect both the members' decisions and the organization's responses.

As more and more firms operate globally, an understanding of the effects of cultural differences on ethical decision making becomes increasingly important for avoiding potential business pitfalls and for designing effective international marketing management programs. Although several articles have addressed this area in general, differences along specific, cultural dimensions have not been directly examined. Hence, the purpose of this study was to examine differences in ethical decision making within Hofstede's cultural framework. The results confirm the utility of Hofstede's cultural dimensions (...) and place ethical decision making within an overall theoretical framework. Sales agents from a high power distance, uncertainty avoidant, Confucian, collectivist culture (i.e., Taiwan) placed more value on company and fellow employee interests (vis-à-vis self interests) than did managers from a masculine, individualistic culture (i.e., the United States). American and Taiwanese managers did not differ in their deontological norms or on the importance that they placed on customer interests. The theoretical and managerial importance of these findings are also discussed. (shrink)

Previous studies investigating reports of corporate or individual wrongdoing have failed to examine the effects of an organization's structure upon the decision to blow the whistle. This paper suggests that an organization's structure may perform a significant role in the decision to report versus not report an observed wrongdoing. Five organizational structures (that is, centralized, matrix, horizontal, hybrid, and divisional) were examined in regards to their effectiveness in encouraging or discouraging observers of unethical conduct channels for reporting such behavior. Discussion (...) and implications are provided. (shrink)

Previous studies investigating reports of corporate or individual wrongdoing have failed to examine the effects of an organization's structure upon the decision to blow the whistle. This paper suggests that an organization's structure may perform a significant role in the decision to report versus not report an observed wrongdoing. Five organizational structures were examined in regards to their effectiveness in encouraging or discouraging observers of unethical conduct channels for reporting such behavior. Discussion and implications are provided.

Neither the corporate view of whistle blowers as tattle-tales and traitors, nor the more sympathethic understanding of them as tragic heroes battling corrupt or abused systems captures what is at stake in whistle blowing at its most distinctive. The courage, determination and sacrifice of the most ardent whistle blowers suggests that they only begin to be appreciated when they are seen as the saints of secular culture. Although some whistle blowers may be attempting to deflect attention from their own deficiencies (...) and others may be disgruntled employees, the most serious instances involve a level of moral sensitivity that approaches religious proportions that are baffling for a culture that has dispensed with sainthood. (shrink)

We conduct quantitative and qualitative analysis of 33 cases of internal and external whistleblowers wrongfully fired for reporting wrongdoing. Our results show external whistleblowers have less tenure with the organization, greater evidence of wrongdoing, and they tend to be more effective in changing organizational practices. External whistleblowers also experience more extensive retaliation than internal whistleblowers, and patterns of retaliation by management against the whistleblower vary depending on whether the whistleblower reports internally or externally. We discuss implications for organizations and whistleblowers, (...) and we conclude that researchers need to develop different theoretical explanations of internal and external whistleblowing processes. (shrink)

We conduct quantitative and qualitative analysis of 33 cases of internal and external whistleblowers wrongfully fired for reporting wrongdoing. Our results show external whistleblowers have less tenure with the organization, greater evidence of wrongdoing, and they tend to be more effective in changing organizational practices. External whistleblowers also experience more extensive retaliation than internal whistleblowers, and patterns of retaliation by management against the whistleblower vary depending on whether the whistleblower reports internally or externally. We discuss implications for organizations and whistleblowers, (...) and we conclude that researchers need to develop different theoretical explanations of internal and external whistleblowing processes. (shrink)