Ethical Challenges in European Cultures 1

Ethical Challenges in European Cultures

Thomas Edison State College

Ethical Challenges in European Cultures 2

1.0 Introduction

According to Dafoulas & Macaulay (2001), “Culture is the way of live of a particular

society. It constitutes things like sets of rules on manners, dressing codes, language, religion,

rituals, norms, and systems of belief” (p. 1). Culture of a society can be looked at as constituting

four elements, which are passed on from one generation to the next through learning as Dafoulas

& Macaulay continues to say. These are values, norms, artifacts, and institutions. Values

consists of thoughts about the important things in life as seen by a society, norms on the other

hand are expectations of behavior of people in different circumstances. Cultural institutions are

organizations of the society through which norms and values are handed on while artifacts are

the physical things or materials, which represent a society’s cultural values and norms such as

buildings, a national flag, monuments, etc. In a business organization, it could be prizes won in

challenges or the pioneer products of a company, which have special meanings, and there could

be stories told about them. In a business organization, ceremonies and celebrations could be a

cultural element where these actions are performed repeatedly in specific situations and hold

specific meanings such as promotions and retirements, everyday events such as Christmas. An

organization could also have heroes in its culture, which are used as epitomes and idealized so

the members can learn from them such as founders of an organization, or an officer who did a

heroic act. The Charlotte-Mecklenburg Workforce Development Board (2002) says, “Attitudes

are an important cultural aspect in an organization where members display certain beliefs that tell

others where they belong” (p. 3).

2.0 Business and Economic Implications of Differences in Culture and Values

In understanding the actions of business organizations in Europe or elsewhere in the

world, culture is an important factor to consider. The language used in the European culture is
Ethical Challenges in European Cultures 3

one element that has an impact on all business adventures. Even people who use the same

language such as English among the Americans and the British, it can still bring

misunderstanding as illustrated in the story by Watson Churchill (Hill, 2008). The American and

British soldiers were planning for the famous D-day in the WWII where the British wanted the

issue to be talked right then and used the phrase “table it” which the American soldiers

understood it to mean to postpone until later.

According to C. W. Hill (2008), “Another aspect is cultural values of different societies

which has implications on business etiquette are expressions of agreement and disagreement

which are different among different societies” (p.38). In western culture mostly among

Americans and most Europeans, a lot of argument follows disagreements with participants

willing to express this verbally. This is different compared to most Asian societies who find it

hard to say no verbally even when the answer is no and their disagreement is expressed

nonverbally.

Cultural values also affect the nature of business relationships that are likely to occur. In

western culture again such relationships are easy to form, short termed and express a lot of

importance to written agreement rather than relationships. In Asian cultures such as Japan,

business transactions do not occur until a firm relationship is formed and written agreements are

less important. They also last long. Additionally, in western cultures, business meetings are

based on time, where being on time and starting and ending on time is important while in eastern

cultures appointments are focused more on the purpose rather than time (Hill, 2008, p. 7).

3.0 Compare and Contrast differences in Social Culture influence Values in the Work
Place
Ethical Challenges in European Cultures 4

Social culture refers to the ordering of social relationships between people in a society

according to (Ralston, Holt, Terpstra, & Cheng, 2008, p. 10). Differences in social culture of

members of an organization can influence workplace values either negatively or positively.

3.1 Positive Influences

Differences in social culture add enthusiasm to the workplace. Some cultures value hard

work and their members are trained to go about their work with dedication and respect. When

this is brought to an organization, a lot of enthusiasm and motivation is seen. Different social

cultural aspects in an organization also gives it an international or global look which is good

especially for those tied to the global economy or serving a varied customer base (Ralston et al,

2008, p. 14).

3.2 Negative Influences

Different cultural values and language barriers can bring misunderstandings in

communication in the work place. Example is where in some cultures disagreements are not

voiced verbally but expressed in actions such as silence. This can bring complications in

effective communication in the workplace. This can also bring about the problem of biases and

stereotyping among co-workers, supervisors, and managers. This can result in resentment and

lack of effective communication, which in turn affects productivity. Further, the difference in the

cultural roles and status of people in the work place can also be a negative thing. In some

cultures, women are seen as subordinates to men where they should not speak or look at a man

directly in the eyes. This brings problems in communication and interactions in the workplace

(Dafoulas & Macaulay, 2001, p. 7).

Ethical Challenges in European Cultures 5

4.0 Ethical issues and ethical dilemmas faced by International Businesses

Business ethics are moral principles or philosophies that guide an organization in its

conduct in its day-to-day activities. It consists of how an organization deals with its customers,

employees, and co-workers and the business practices it carries out (Yucel, Dagdelen, & Elibol,

2009, p. 10). The first ethical dilemma a project manager in international business may face

regards local laws and customs that are different from home ones as Yucel and colleagues points

out in his article. These in many cases tend to be ambiguous and contradictory to the home one

such as paying an official in a foreign country to get police protection. This may be seen at

home, as bribery while it is understood as facilitating fee. Another dilemma may be in laws

existing in the foreign country that are unacceptable at home. Example of such law is the

mandatory drug testing in USA for employees of a company and is not allowed in countries like

Canada (Navran, 2004, p. 6).

5.0 What Managers can do to incorporate ethical considerations into their decision-
making

When faced with ethical dilemmas, it is important for the business managers to put their

dealings within the right ethical and legal framework. The US has the Foreign Corrupt Practices

Act-FCPA for international businesses, which guides organizations conduct in foreign countries.

Managers can also use the five question criteria or matrix outlined by Navran (2004) by asking

themselves whether it is legal, whether any laws will be violated, whether the action or decision

fair both in long term and short term, what it would feel if they were on the other parties shoes,

and whether they are proud of the decision or action they are taking.

6.0 Summary/Conclusion

Culture is the way of life of a society. It is characterized element such as values, attitudes,

artifacts, heroes and institutions. Culture has implications on the business organization in terms
Ethical Challenges in European Cultures 6

of the language used, which can bring misunderstanding and the cultural values that have

implications on business etiquette. Social culture on the other hand has positive such as a global

outlook of an organization and negative influences on the workplace values such as stereotypes

and biases among co-workers. International business faces many ethical dilemmas such as

contradictory legal framework, which managers have to deal with.

Ethical Challenges in European Cultures 7

References

Charlotte-Mecklenburg Workforce Development Board. (2002). Cultural and Language

Barriers in the Workplace. Charlotte-Mecklenburg Workforce Development

Board.

Dafoulas, G., & Macaulay, L. (2001). Investigating Cultural Differences i Virtual Softwa

Teams. The Electronic Journal on Information Systems in Developing Countries , 1-14.

Hill, C. W. (2008). Global Business Today. McGraw-Hill Irwin.

Navran, F. J. (2004, March 15). Resources. Retrieved September 25, 2010, from Ethics

Resource Center: http://www.ethics.org/resources/article.

Ralston, D. A., Holt, D. H., Terpstra, R. H., & Cheng, Y. K. (2008). The Impact of

National Culture and Economic Ideology on Managerial Work Values: A Study of the

United States, Russis, Japan, and China. Journal of International Business Studies , 8-26.

Yucel, R., Dagdelen, O., & Elibol, H. (2009). Globalisation and International Marketing

Ethics Problems. International Research Journal of Finance and Economics , 93-105.