Institutions: Regulatory Pillar – legal system, government。Normative Pillar – group culture, history。Cognitive Pillar – personal ethics Political Systems:Democracy,Totalitarianism Legal Systems:Civil law,Common law,Theocratic law Property Rights, Intellectual Property Rights Economic Systems: Market Economy,Command Economy,Traditional Economy 2 Elements of Culture：1. Language_Lingua franca, 2. Religion Context Approach： • Context – the background against which interaction takes place – Low Context: North America, Western Europe • Communication is taken at face value – High context: Asia, Middle East • Communication relies on unspoken assumptions Clusters – groups of countries that share similar cultures Hofstede identified 5 dimensions – Power distance • High Power Distance: Brazil, Low Power Distance: Sweden – Individualism v. collectivism • Individualist: US, Collectivist: China – Masculinity v. femininity • High Masculinity: Japan, Low masculinity: Sweden – Uncertainty Avoidance • High Avoidance: Greece, Low Avoidance: Singapore – Time orientation • Long term: China, Short term: Pakistan Strategic responses to ethical challenges： • Reactive – Deny responsibility, do less than required. Ex. Ford Pinto • Defensive – Begrudgingly admit responsibility, do the minimum that is required. Ex. Nike • Accommodative – Accept responsibility, do all that is required. Ex. Toyota • Proactive – Anticipate responsibility, do more than is required. Ex. BMW managerial CSR. ：Corporate Social Responsibility 1. Understand the rules of the game, anticipate changes, and see to shape/influence changes. 2. Pick CSR battles carefully. Don’t blindly imitate other firms’ CSR activities.
Institutions: Regulatory Pillar legal system,
governmentNormative Pillar group culture, historyCognitive Pillar
personal ethicsPolitical Systems:Democracy,TotalitarianismLegal
Systems:Civil law,Common law,Theocratic lawProperty Rights,
Intellectual Property RightsEconomic Systems: Market
Economy,Command Economy,Traditional Economy2 Elements of Culture1.
Language_Lingua franca, 2. ReligionContext Approach Context the
background against which interaction takes place Low Context: North
America, Western Europe Communication is taken at face value High
context: Asia, Middle East Communication relies on unspoken
assumptionsClusters groups of countries that share similar
cultures
Hofstede identified 5 dimensionsPower distanceHigh Power
Distance: Brazil, Low Power Distance: SwedenIndividualism v.
collectivismIndividualist: US, Collectivist: ChinaMasculinity v.
femininityHigh Masculinity: Japan, Low masculinity:
SwedenUncertainty AvoidanceHigh Avoidance: Greece, Low Avoidance:
SingaporeTime orientationLong term: China, Short term:
PakistanStrategic responses to ethical challengesReactiveDeny
responsibility, do less than required. Ex. Ford
PintoDefensiveBegrudgingly admit responsibility, do the minimum
that is required. Ex. NikeAccommodativeAccept responsibility, do
all that is required. Ex. ToyotaProactiveAnticipate responsibility,
do more than is required. Ex. BMWmanagerial CSR. Corporate Social
Responsibility1. Understand the rules of the game, anticipate
changes, and see to shape/influence changes.2. Pick CSR battles
carefully. Dont blindly imitate other firms CSR activities.3.
Integrate CSR as part of the core activities and processes of the
firm. Faking it doesnt last long. Stakeholders1. Primary
Stakeholders2. Secondary StakeholdersSustainability
