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Chapter 2

Depth component: Ethical decision making and theories surrounding cross cultural interaction among companies

The ethics of a company is not solely reliant on the way that it conducts its daily operations. Ethics stretches to include the way that the business entity treats it employees as well as the clients that it serves (Sinnick, 2014). With the use of technology in the way that business is carried out, there are many issues that could undermine the way that the clients are treated. One of such an issue is that of cross-cultural interactions and the need for cultural respect among varying groups of people. International corporations are at risk of this problem however it goes beyond just the multinational corporations. Craft (2013) further states that globalization also increases cross-cultural interactions among companies that fall under the same category and conduct the same businesses. There are therefore several models that have been used to explain the motivations of these actions as well as facilitate the company in making ethical decision making when it comes to such interactions.

Hofstede’s theory of cultural dimensions focuses on the recognition and effects of the culture of a society on its values and the impact that these two have on people’s behavior. According to Beugelsdijk, Kostova & Rota (2017), the theory is based on the factor analysis that uses four other dimensions namely the uncertainty avoidance, power distance, individual collectivism, and masculinity-femininity. Recognition of the differences in cultures, according to Hofstede, is used by international entities to promote conformity and relevance as well as eliminate the possibility and emergence of conflict among the people. The theory advocates for the recognition of the cultural differences, acknowledgment of the things that could bring out the distinction between various groups of individuals (Nistor, Lerche, Weinberger, Ceobanu & Heymann, 2014). Acknowledging that there is a difference works to serve better international and cross-cultural conflicts. An assumption, according to this theory, often results into negligence and consequent misunderstanding and unprecedented hate for one another. Craft (2013) states that with the availability of information technology, companies could embrace the need for educating themselves on the various cultures that they will have to deal with every day so as to find common ground and make sense of the differences. The application of Hofstede typology is seen in international communication, international negotiation, international marketing and international management and more recently international conflict resolution that go beyond business entities. The value and relevance of this theory in the issue of concern in ethical decision making are that the acknowledgment associated with this approach reduces the possibility of errors and increases international relations that are often characterized by peace and more understanding.

Taking on a different perspective, the need for ethical decision-making and the process of attaining it can be explained using the interactionist theory of sociology. Initially, the interactionist theory was formulated to account for the process of language acquisition among children and the interaction of people from different backgrounds (Rose, 2013). Language development is the aspect of this method that can be extracted by the ethical management team to translate to multinational companies. According to Smith (2015), socialization results into the differential acquisition and through this a person can learn quite a lot. It should be noted however that corporations that deal with other businesses or people of different backgrounds and cultures need to apply this theory to promote socialization and tolerance. In the first stage of this theory, there is information processing. In this theory, there is a need for social construction and cognitive recognition (Rose, 2013). Just as the child uses external stimuli to respond to the stimulation around him that deliberately lead to language acquisition, the process of cultural interaction acts in the same way. Sinnick (2014) asserts that people with opposing views are likely to develop a consensus where they meet the needs of each other at the center and will naturally acquire different aspects of each other’s culture which in turn can be used to translate to tolerance and interdependent.

As opposed to the behaviorism theory that views the item of interaction as passive beneficiaries, this model emphasizes the role of active participation and intense interaction for the transfer of cultures and more particularly language (Nistor et al., 2014). The language is an essential part of mutual understanding, and it should be focused on. In as much as an individual may not acquire all the languages on earth in an attempt to remain culturally relevant, it is possible that one can learn a few of these languages and still get accustomed to the interaction that goes beyond the various cultures. An employee of a firm may not have to acquire all languages to obtain a means of communication with people of varying cultures. Instead, there is an order of acquisition that means that the employee can learn certain important values that the other employee has to promote common ground and an appropriate means of communication. It all lies in the recognition of differences and the need for basic knowledge about one culture (Rose, 2013).

In addition to the above theories, the balanced approach can also be used to make sense of interactions among employees of various cultures. The theory was originated by Heider Fritz to attempt to show the development of relationships between people, their environment and those around the individual (Koelsch et al., 2015). Under this theory, a system is a set of cognitive elements that one then attempts to create a balance among them. According to Smith (2015), there is an elimination of a feeling of out of balance that one acquires and this further brings discomfort. On an organizational level, there is an attempt to create interaction and relational balance among the people of varying cultures. This theory does not wholly address the disparities that may have occurred when the balance was not achieved, but it is a step towards the right direction in the achievement of a proper work condition and relationship.

The three theories as stated above take on different angles of interaction and employee behavior. Their application is also different as while some may explain interaction, the other may account for employee behavior and thinking. What is critical is the understanding that the theories give a background for the assumption that companies must always target to bring about peace, understanding, and respect among employees despite the distinction in conduct and cultures. It is highly unlikely that a theory may make sense if it is stand alone. What this implies is that a good explanation will be one that incorporates the three approaches as they all take on varying approaches in explaining the responsibility of employee interaction. Finally, a company can use these methods in making ethical decisions. Ethical decision-making process must take into account the differences in culture and the means through which a common ground can be established. In the spirit of promoting unity, ethical decision making can be used to improve cross-cultural relationships as opposed to the creation of differences which in turn may result in the eruption of conflicts

References

Beugelsdijk, S., Kostova, T., & Roth, K. (2017). An overview of Hofstede-inspired country-level culture research in international business since 2006. Journal of International Business Studies, 48(1), 30-47.

Craft, J. L. (2013). A review of the empirical ethical decision-making literature: 2004–2011. Journal of Business Ethics, 117(2), 221-259.

Koelsch, S., Jacobs, A. M., Menninghaus, W., Liebal, K., Klann-Delius, G., von Scheve, C., & Gebauer, G. (2015). The quartet theory of human emotions: an integrative and neurofunctional model. Physics of life reviews, 13, 1-27.

Nistor, N., Lerche, T., Weinberger, A., Ceobanu, C., & Heymann, O. (2014). Towards the integration of culture into the Unified Theory of Acceptance and Use of Technology. British Journal of Educational Technology, 45(1), 36-55.

Rose, A. M. (2013). Human behavior and social processes: An interactionist approach. Routledge.

Sinnicks, M. (2014). Practices, governance, and politics: applying MacIntyre’s ethics to business. Business Ethics Quarterly, 24(02), 229-249.

Smith, J. A. (Ed.). (2015). Qualitative psychology: A practical guide to research methods. Sage.