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Values, culture, and ethics are the terms that are interlinked with each other. Organizational culture can be described as a system of shared values and beliefs that govern the behavior of the people in that specific organization (Morcos, 2018). On the other hand, ethics are a set of principles and beliefs that help in determining what is wrong or right. Typically, when working globally, ethics may also combine respecting co-worker’s cultural background while also accepting the differences. An organizational value can be described as the rules and ethics that a company will abide by. Culture, values, and ethics are considered as drivers for the performance of an employee in an organization. Additionally, it helps in integrating the members of an organization while also influencing the decision-making ability of an employee. Culture has a significant impact on the ethical perception of an individual as it affects an employee's reaction when placed in ethical dilemmas (Sinclair, 1993). Generally, the culture of an organization implies several fundamental rules and principles that cannot be changed easily. Thus, developing an organizational culture based on strong ethics and values can help in long-term competitive advantage (Osland & Turner, 2015).
Specifically, discussing the Hofstede cultural dimensions, he presented six cultural dimensions that help in modeling the cultural differences between different countries. These dimensions are uncertainty-avoidance, power-distance, collectivism versus individualism, femininity versus masculinity, long term orientation and indulgence versus restraint. Power distance explains the equality and inequality of people within the same cultural boundary. Uncertainty avoidance depicts a degree to which the people feel uncomfortable with ambiguity. Individualism and collectivism explain the degree to which members of society are integrated into different groups. Individuals are expected to take care of only themselves yet collectivism refers to the tightly-knit framework in society. The other dimension that is masculinity can be described as the social preference for achievement and heroism (Hofstede, 2009). Typically, in male dominant society, women are competitive, yet still, they are considered lesser than men. Long-term and short-term refers to the connection between past, present, and future. Indulgence can be described as the degree of freedom while restraint refers to the society that oppresses gratification of needs. These dimensions have several applications such as international marketing (Soares & Shoham, 2007). Also, these dimensions facilitate a lot in comparing and contrasting different nations that further help in understanding the cultural background of different nations.
In any business setting, culture has a huge influence on ethics and its application. With the rise of diverse global and national markets, organizations must consider ethical implications as well. To spread business globally, it is necessary to understand the culture and values of the people living in that region. A successful global leader is someone who can effectively operate across national boundaries by determining goals. These goals will in turn appeal to people that are of different cultural backgrounds. In a global economy, it is necessary to understand the needs of the customers and internal and external stakeholders. Having cultural awareness, global leaders can shape the culture of their organization accordingly that will help them in spreading their business effectively. Using the Hofstede cultural dimensions’ leaders can learn about the cultural background of different nations by comparing and contrasting them. This will help global leaders in defining a set of principles and ethics in their organization. They can also reinforce positive behavior in which every employee accepts each other’s cultural differences. However, it is the responsibility of leaders as well to convey through their actions that all people, regardless of their different cultural backgrounds are equal. This will also ensure transparency and accountability. A leader can also offer ethical training sessions so that all the employees can learn about different cultures and values. Thus the success of an organization depends not only upon its cultural and ethical principles but also upon the way its leaders conduct themselves (Thoms, 2008).
References
Hofstede, G. (2009). Geert Hofstede cultural dimensions.
Morcos, Michael. (2018). ORGANISATIONAL CULTURE: DEFINITIONS AND TRENDS.
Sinclair, A. (1993). Approaches to organisational culture and ethics. Journal of Business ethics, 12(1), 63-73.
Osland, J., Devine, K., & Turner, M. (2015). Organizational behavior. Wiley Encyclopedia of Management, 1-5.
Soares, A. M., Farhangmehr, M., & Shoham, A. (2007). Hofstede's dimensions of culture in international marketing studies. Journal of business research, 60(3), 277-284.
Thoms, J. C. (2008). Ethical integrity in leadership and organizational moral culture. Leadership, 4(4), 419-442.
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