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GENERAL BUSINESS ENVIRONMENT:CULTURAL ENVIRONMENT AND BUSINESS
Prof. Dr. Djo
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• One of the prominent social theories on the relation betw
and modern economic s$stem was the theor$ of the orig
%odern& 'estern Capitalism forwarded b$ %a( 'eber .• #n his wor) on The Protestant Ethic and the Spirit of C
'eber argued that the rise of modern capitalism was sup
worldl$ asceticism+ of ,uritanism as focused through the
the calling+.
• According to him that the Calvinist ,rotestant/ ethic intractivism into the believer0s approach to worldl$ affairs a
master$ in a 1uest for the virtue in the e$es of 2od.
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• 3obert 4ellah in effort to appl$ %a( 'eber0s sociolog$ o
theor$ e(amined the origin of the !apanese capitalism &
!apanese entrepreneurship as showed in his wor) on ToReligion, The Cultural roots of the Modern Japan pu
5678/.• 4ellah argued that one of the essential cultural roots of th
!apan in the To)ugawa period was the values and ethic o
the 'a$ of the 'arrior the bushi or samurai embodied !apanese values or the national ethic/.• Bushido means the determined will to die+. #t was a )ind
religious dimension of To)ugawa period and the econom
merchant class.
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• 3obert 9. :ernberger in his article Capitalism and the E
%iracle+ attempt to call the genus of East Asian capitalis
as Confucian capitalism+.• According to 3obert 9. :ernberger each of these econom
cultural heritage related to Confucian values such as a g
of communit$ or group identit$ and interdependence a m
active role of the government in initiating and directing ac
econom$.
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• S. 2ordon 3edding in his wor) The Spirit of Chinese C
566;/ argued that the East Asian value s$stem the Sp
Chinese Capitalism+ can be held to be significant in e(psuccess of what ma$ be called pett capitalism+ that
enterprise/.• #n similar effort Cliffort 2eertz e(amined the cultural root
#ndonesia entrepreneurship in the %uslim merchants or t
groups and aristocratic groups as shown in his wor) on Tand the Peddlers and The Social istor! of an "ndone
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Culture Matters: in the Contempora
• Why culture is of great signicance?• Almost all diferences coming from c
• How Values shae Human Progress?
• !awrence ". Harrison # Samuel P.Huntington $eds.%& Culture Matters: Values shape Human Progress $'((
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• Culture is a s$stem of )nowledge and ideas cultural )no
which consciousl$ or unconsciousl$ belongs to a unit of s
ac1uired in accumulative manner that functions as the dguidance for attitude and behavior of the societ$ that bea
s$stem 2oodenough 5685 Spradle$ 568 the essential core of culture co
traditional ideas and especiall$ their attached values "lu
5675? @7.7/.
II. DEFINITION AND CONCEPT OF CULTURE !ALUE"
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"#"TEM OF $NO%LED&E
CULTURE
&ui'an(e)or attitu'e
an' *eha+ior so(iety
"#"TEM OF$NO%LED&E
IDEA" OF CULTURAL$NO%LED&E
• "o(• Ma• Dir
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"#"TEM OF $NO%LED&E
CULTURE"#"TEM OF
$NO%LED&E
/luepr
in thei
• !alue• Thou,ht
• Per(eption• Feelin,
The )un(tion o) Dire(ti+eAn' &ui'an(eAttitu'e
• Pattern ay o) Thin0in,
• Pattern ay o) Feelin,• Pattern ay o) Rea(tin,• Pattern ay o) A(1uire' T• Pattern ay o) Constitutin,• Pattern ay o) Tra'itional I
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CULTURE !ALUE" ORIENTATION
!ALUE "#"TEMCULTURE !ALUEORIENTATION
CONCEPTION OFIDEA"
• 2uman Nature Orientation• Man Nature Orientation• Time Orientation• A(ti+ity Orientation• Relational Orientation
"#"TEM OF !ALUEORIENTATION
IN
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CULTURE AND ECONOMIC DE!ELOPMENT
Culture on relation or tr
various decision unit (wbusiness transaction wi
)eha*ior +onduct
,nstitution for gi*en tye -ransaction +ost /inim
Behavior individuals( e preerence over work & present & uture).
,nterersonal -ransaction
CULTURE EDE
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T2E "E!EN C2AN&E FACTOR"
CI Demo,r
C6 Te(hnoloInno+ationC7 "o(ial InC8 Culture C9 E(olo,i(C In)orma"hi)tC; Cultural
+'+1
+2
+3
+4+5
+6
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T2E "PECTRUM OF C2AN&E
Demo,raphi(
• Invention of new • Political Structur• Educational Syste• Social Movements• Leadership Styles
• Etc.
Te(hnolo,i(al
"o(ial Inno+ation
Cultural Di
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• Culture as transmitted and created contents and patterns
ideas and other s$mbolic meaningful s$stems as factors
of human behavior and artifacts produced through behavand ,arson 7@=/.• Culture as the collective programming of the mind which
distinguishes the members of human group from another
ofstede 56@;
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• Balues is a conception e(plicit or implicit distinctive of an
characteristic of a group of the desirable which influence
selection from available modes means and end of action"luc)hohn 5675a? =67/.• Balues are distinguished into values as the desired and v
desirable.
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!i"e cate#o$ies of cultu$al "alues o$ientation of a societ
to &luc'(o(n an% St$o%t)ec' 565/?
•uman nature orientation orientation toward relationship bhuman and life evil-mi(ed-good/.•%an-nature orientation orientation toward the relationship
man and environment subDugation-harmon$-master$/.•The orientation in time orientation toward past-present-futu•The orientation toward activit$ orientation between human•3elational orientation orientation toward human and others
relationship/.
III* CULTURAL VALUES ORIENTATION
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• ,eople Ought to 3espect the Others with 'hom The$ Se
3each.
• Agreement as 'illing and #nterested ,ersons.• ,eople Ought to "eep Their ,romises.• ,eople Ought to %a)e Their Communications onest an
:eceptive.• ,eople Ought to onor Their 3eciprocal Obligations.
IV* MORAL UNIVERSAL AS CULTURAL REALITIES AND BUSINE
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!i"e Gene$al +$inciples a$e as follo,s:•#ndividuals Ought to Choose as Spouses and Se(ual ,artn
,ersons outside Their atural 9amilies with whom it is 9ittinto %ar$ have Se(ual 3elations.•,arents Ought to Care for protect and educate Their Child•,eople Should ot E(ercise ,h$sical Biolence to the #nDur$
E(cept as means to :efend Themselves against and to dis
'ho Threaten or E(ercise ,h$sical Biolence against them.•Social 2oods and 4urden Ought to 4e Allocated in "eeping
,ublicl$ 3ecognized 3ules and ,rocedures the accord to ,e
is their :ue.•,eople Should ot Steal.
V* MORAL +RINCI+LES T-AT MA&E MORALIT. CRIDIBLE
!I C2ARACTERI"TIC OF A"IAN CULTURAL TRAIT" AND &ROU
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• The religious and civic traditions of Confucianism 4uddh
induism and #slam in Asian Societies have transmitted a
behavior attitudes and beliefs which have deep and consevolving impact on Asian Entrepreneurial culture.• Culture affects government policies social norms consu
patterns business transactions management practices a
relations.• Cultural traits var$ according to ethnic religious and natio• owever it is possible to identif$ certain enduring charac
Asian social organization and group behavior which are
across the region.
!I. C2ARACTERI"TIC OF A"IAN CULTURAL TRAIT" AND &ROU/E2A!IOUR AND /U"INE""
G R f G I %i i% l I% tit
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• 2roup belonging is asserted before individual instinct>• Compliance with group norms is e(pected>
• #ndividualistic behavior is condemned>• #ndividual transaction are based on intra-group affiliation
networ)ing.
G$oup Refe$ence : G$oup "e$sus In%i"i%ual I%entit*
E t % % ! il % N ti
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• 9amil$ support is considered the norm• Organization are seen as e(tension of the famil$ support
and hence as providers of social welfare• #t is considered proper behavior to give preference to fam
in business dealing
E/ten%e% !amil an% Nepotism
V,, -H" +AS" 78 97:"A ;APA
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0* &o$ean Confucian Et(ical Co%es?• ,oliteness• armon$
• Fo$alt$• Educational-based social status s$stem1* Confucian Et(ical Co%es %efine t(e fi"e ca$%inal (uman $e
• 4etween the )ing and his subDect• 4etween father and son• 4etween husband and wife• 4etween $oung and old• 4etween friends
2* Base% on t(e concept of t(e Confucian et(ical co%es3 empattitu%es an% )e(a"io$s to,a$% t(e t(ei$ senio$s an% supe$%efine% as t(e follo,in# fi"e items:• Treating seniors as elders• 3especting seniors• Compliance with seniors opinions• Obedience to superiors directions
• Accepting superiors informal directions.
V,,. -H" +AS" 78 97:"A& ;APA
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• The term chaebol means 4financial cli5ue+ it is used to
large business group originall$ created b$ a talented ent
and still largel$ famil$ controlled and spread over man$ area.• The chaebol are the offspring of "orea0s forced industria
The $orean C!"#B$% = The $orean Mo'ern/usiness Players
-he -en !argest 9orean Chaebol
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-he -en !argest 9orean Chaebol3roup' Business sectors4 3=4
• "AM"UN&= "lectronic& aerosacechemicals& semiconductors& food& te>ser*ice
• 2#UNDAI= /otor *ehicles& electronicshea*y industries& engineering& machin
construction materials.• LUC$# = "lectronics& chemicals& oil• &OLD"TAR= insurance& telecommunic
engineering& instruments.
+haeol $'%
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+haeol $'%
• DAE%OO= /otor *ehicles& machinery&electronics& distriution& shiuilding&construction& nance.
• "UN$#ON&= "nergy& chemicals& distrishiing.
• ""ANON&= /otor *ehicles& cement• 2AN>IN= Airline& shiing& machineryconstruction.
• $IA = /otor *ehicles& machinery& stee
+haeol $4%
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+haeol $4%
• LOTTE= Distriution& food ane*erage& chemicals.• 2AN%2A= "nergy& etrochemi
distriution.
;APA
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;APAapanese +"I!"6. The >apanese +#I#-
;APA
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;APA
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$+ontinued%
• ;aan0s industrial landscae isdominated y si> *ery large kei/,-S),SH,& /,-S,& S/,-7/787& DA,,+H,C9A
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The O+erseas Chinese Con,lomeThe Thir' Distin(ti+e Type o) Re,Lo(al Asian /usiness Players2istori(al Ori,in:
• -heir trading networks grew and at cestages succeeded in ro*iding an alterarallel framework to colonial "uroeamultinationals and trading comanies.
• -he +ommunist :e*olution in +hina tri
another wa*e of the ethnic +hinese Diawith many estalished +hinese caitalFeeing to Hong 9ong and -aiwan.
• -his grou has een more inclined towindustry and manufacturing and has gr
$continued%
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$continued%
•Feeing to Hong 9ong and -aiwa• -his grou has een more inclintowards industry and manufactand has gradually linked u wit
e>isting 7*erseas +hinese netw
Ma?or O+erseas Chinese &roup in
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Ma?or O+erseas Chinese &roup inPa(i-( Countries• INDONE"IA
G "alim $!iem Sioe !iong %
G "inar Mas $"ka -jita Wijaya%
G Astra $8ounder W. Soerajaya%
• MALA#"IA G 9uoak Erou $:oert 9uok%
G Hong !eong $Guek !eng +han%
G Eenting Erou $!im Eoh -ong%
• T2AILAND G +haeroen Pokhand $Dhanin +heara*anon%
G )angkok )ank $+hatri Sohonanich%
G Siam /otors $9hunying Phornthi%.
$continued%
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$continued%
• P2IPIPPINE" G 8ortune -oacco $lucio -an%
G ;.E. Summit Holdings $;ohn Eongkonwei%
G S/ Prime Holding $Heny Sy%• "IN&APORE
G Hong !eong $9wek !eng;oo%
G nited 7*erseas )ank $Wee +ho Woo%
G 7*erseas +hinese )ankning +ororation $!ee Seng Wee%.
• TAI%AN G 8ormosa Plastic $ung +hing Wang% G President "nterrises $
V,,, ,
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V,,,. ,
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$ %
G
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$ %
G 8riends
G 8aceC and losing it
G Humor G 8ate and curiosity
G -he works lace
G Paternalism and sharing
G Village inFuences
G +hanging attitudes aIected y raid sochange.