How Values and Culture Are Critical to Business Success/ Essay / Paper by AssignmentLab.com

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How values and culture are critical to business success

There are many factors that influence business success and provide its further

development and growth. Business policy and ethic, corporate culture are originated from

people’s background, social values they were brought up in and a set of moral principles that

regulate people’s behaviour. In other words, the values people adhere effect business activity

direct and culture is considered as the frame where certain set of values work.

Michael E. Porter (14-15) believes that “attitudes, values, and beliefs that are sometimes

collectively referred to as "culture" play an unquestioned role in human behaviour and progress. ”

Nowadays within the framework of globalization the factors of prosperity of a nation have

changed greatly. Natural recourses became the secondary indicator of a country’s well -being;

with the development of transport it is easy to import cheap natural resources from suppliers

worldwide. It is local productivity that matters, the quality of services and products offered,

favourable business environment to establish permanent contacts and absolute reliability on the

partner or supplier became critical in doing business.

Different nations cultivate there own unique worldview and none is the same. The culture

people are born in can not but influence their moral stances and presupposes their attitude to

work and family. It seems that there must be a certain set of moral principles and values

facilitating doing business and thus contributing to a nation’s economic prosperity and well-

being.

Indeed, values play the main role in decision-making, as they govern attitude to one

situation or another. Business success depends largely on the values of individuals, their beliefs

and attitudes as these factors govern their behaviour and activity. Even the notion of prosperity

and attitude to being rich and poor makes difference in fostering the economic growth. If



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prosperity is not justified by commonly accepted values, no progress and development may be

expected, as the rich consider themselves sinners, and the poor see their poverty as the way of

self-limitations, thus considering no need in motivation and progress.

Religion is an integral part of any culture and initially gives the set of norms and

principles to adhere. Different confessions’ beliefs may either determine economic growth or

decrease its development. Max Weber considered Protestantism the most favourable religion for

capitalism as its principles consider the rich being winners and the poor being losers. Motivation

it cultivates makes people work for their success, this incentive them to self-improvement,

creative thinking, finding solutions provided that they are given a certain room of freedom and

their deeds are not dictated. Intrinsic values and self-discipline, necessity to compete in order to

gain both well-being and excellence provide success in doing business and constant economic

growth.

The economy of the USA is a spectacular example of how religion beliefs and values

matter the prosperity of the country. Having the largest economy in the world and being the

number one exporter, the USA is one of the religious nations in the world. Almost 95 % of

Americans consider themselves believers of some confession. North America proves to be an

individualistic society, where achievements of a person are encouraged as wealth is considered

God’s blessing for working hard, and poverty is shameful as it indicates a person’s laziness and

idleness. Strictly defined moral principles that are considered obligatory to adhere foster

economic development as they contribute to trust and mutual credence, reduce corruption and

increase of law obedience, consequently creating positive business environment. American

proverb says “God helps those who help themselves” which means that in order to succeed one

has to work hard to have their work rewarded. Individuals strive to succeed and get promoted,



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toiling hard for their own purpose they increase productivity of a company that result in benefit

of economy in the whole. This scheme works well as its effectiveness is more than evident.

In contrast to American individualistic society, China is the embodiment of collectivism

spirit penetrating all spheres of life. The very roots Chinese culture begins with the philosophies

of Taoism, Buddhism and Confucianism. The most ancient schools of thought has long became

way of life rather then religion. No wonder that China is considered atheist country with only

100 million people practising religion. Confucian values and Buddhist moral principles deeply

penetrated the conscious and everyday way of life for the Chinese and teach harmony between

Person and Nature, obedience and oblige to abide such norms as goodness, rightness, ritual,

wisdom and credibility. They prioritize long-term business relations based on reliability and

respect. Being highly family-oriented they render this idea to business management. Considering

a company as a family, where everyone does for the firm’s sake and not for the individual

interest plays contributed to China’s becoming the world’s fastest growing economy..

Collectivism is the main principle in all spheres of the Chinese activities, by joint effort

they strive to overcome the problems arising and obviously succeed. Chinese proverbs are the

best means in understanding their worldview, they encourage to be trustful with the highest level

of credence (“If you suspect a man, don't employ him, and if you employ him, don't suspect

him”), their thorough attitude to new projects and business activity as a whole (“If you must

play, decide on three things at the start: the rules of the game, the stakes, and the quitting time.”

“A journey of a thousand miles begins with a single step.”).

Chinese business is built on group interest, long-term relations, joint efforts aimed at the

achieving the common goal. Prosperity and succession of their country means welfare of every

Chinese family and a way to escape poverty. Obedience and ability to work for collective interest



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as a benefit for everyone as well as personal integrity and credibility facilitated economic growth

as these value gave the ground of strong business relations both in and abroad the country,

attracted inward investments and promoted solid reputation as a business partner in the

international market.

The negative influence of culture on business success is best illustrated by Russian case,

where many years of antiprofit attitude within the framework of centrally-planed economy

unmotivated people, left no chance for incentive and resulted in low adaptive abilities to the

changing market situation. The old habits as corruption and bureaucratism remained and are to

be eradicated as they put the brakes on the economy.

All things considered, the obvious conclusion to be drawn is that culture and values shape

the progress of a nation since beliefs and attitudes they provide is reflected on the economic

activities of people and thus effect the economy in a whole. On a national scale, individual

values and attitude to work sum up the progress or recession of a country’s economy. It can be

stated that there is a causal connection between values and economic welfare as intrinsic values

promote self-improvement and motivation to achieve success. In the countries where corruption

flourishes, where there is little trust between partners and companies are notorious for their bad

publicity there is little chance to economic progress and prosperity. Within the framework of

globalisation, such countries are doomed to be cast away to the outskirts of the international

market. The solution for non-profit and ailing economy may be the change in values and moral

principles, though the process of nation mind change may last for many years as old beliefs and

deep-rooted habits are difficult to deracinate.

Thus, it seems that to succeed in business you need to promote a certain set of values.

Yet, there is no universal solution of how to be as there is no two cultures that are alike.



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Works cited

Ilan Alon. Chinese Culture, Organizational Behavior and International Business

Managemen. Praeger. Place of Publication: Westport, CT. 2003. Print.

Lawrence E. Harrison Samuel. P. Huntington. Culture matters. How values shape human

progress. New Yor:. Basic book, 2000. Print.

M. Gene Aldridge. What is the Basis of American Culture? University College, Troy

State University President/CEO, New Mexico Independence Research Institute, Inc. n.d. Web.

28 March 2012

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How Values and Culture Are Critical to Business Success/ Essay / Paper by AssignmentLab.com