*can be found anywhere

*come from socially transmitted information and are a part of the heritage that we call cultures, ethics, and norms

*underpinned by the normative and cognitive pillars 

*politics, laws, economics

*important but they make up a small part of the rules of the game that govern individual/firm behavior.

*specifies the dos and the donts. 

any language that is widely used as a means ofcommunication among speakers of other languages. ex: English is the lingua franca used as a global business language and is driven by two factors.

what two factors drive English as the dominate global business language?

what are 2 disadvantages of English being solely dominate?

1. English speaking countries contribute the largest share (40%) of global output. 
2. Recent globlization has called the use of one common language.

the collective programming of the mind which distinguishes the members of one group or category of people from another

1. There is NO strict one to one correspondence between cultures and nation states exist 

2. Culture has many layers, such as regional, ethnic, and religious.

self-centered mentality within a society; people tend to perceive their own culture, ethics, and norms as “natural, rational, and morally right”

1. Chinese 20%
2. English 6%
3. Hindi 5%
4. Spanish 5%

1. language
2. religion

1. Christianity 1.7 billion people
2. Islam 1 billion
3. Hinduism 750 million
4. Buddhism 350 million

This fallacy assumes that all members of a group exhibit characteristics of the group at large. 

Stereotypes are one form of ecological fallacy. 

1. context approach
2. cluster approach
3. dimension approach

communication is taken at face value

North American and Western European countries

"no means no"

communication relies on unspoken conditions or assumptions

Arab and Asian countries

Cluster

Ronen & Shenkar clusters

Global Leadership and Organizational Behavior (GLOBE)

Huntington Civilizations

a group of countries that have similar cultures

R & S: 8 clusters which covers 44 countries

GLOBE: 10 clusters which covers 62 countries

Huntington: 8 civilizations covering every country

**the underlying idea is that people and firms are more comfortable doing business with other countries within the same cluster/civilizations. 

Focuses on multiple dimensions of cultural differences both within and across cultures.

ethics 

code of conduct

The principles, standards, and norms of conduct governing individual and firm behavior. 

**There is overlap between what is ethical and legal. But in some cases, what is legal may be unethical. 

code of conduct: a set of guidelines for making ethical decisions. 

a perspective that suggests that all ethical standards are relative. 

"when in Rome, do as the Romans do"

Unrealistic-->would have to accept any local practice

the absolute belief that "there is only one set of ethics, and we have it"

*unrealistic-->it may cause resentment and backlash among locals

1. a negative view: suggests that firms may simply jump onto the ethics bandwagon under social pressures to appear more legitimate without becoming better. 
2. a positive view: maintains some firms may be self-motivated to do it right regardless of social pressure
3. an instrumental view: believes that good ethics may simply be a useful instrument to help make money. 

Alternate view:  Three Core Principles

Respect for human dignity and basic rights

Respect for local traditions 

Respect for institutional context 

The abuse of public power for private benefits usually in the form of bribery, in cash or in kind. 

competition should be based on products and services, but corruption distorts that basis, causing misallocation of resources and slowing economic development. 

Gift-giving is part of negotiating and relationship building in some parts of the world. But it’s a matter of degree: there are limits in all cultures beyond which an action becomes corrupt. 

Foreign Corrupt Practices Act (FCPA)

Forbids illegal payments or gifts to officials of foreign governments for the sake of getting or retaining business

1. reactive strategy (deny responsibility, do less than required)
2. defensive strategy (admit responsibility but fight it, do the least that is required) 
3. accommodative strategy (accept responsibility, do all that is required
4. proactive strategy (anticipate responsibilty, do more than required). 

1. awareness (the recognition of both the pros and cons of your own cultural mental software and the appreciation of people from other cultures)
2. knowledge (refers ti the ability to identify symbols , rituals, and taboos in other cultures)
3. skills (good practices based on awareness and knowledge of other cultures)

Global Mindset  is the ability  to influence others who  are different than you. It is  a critical combination of intellectual, psychological and social capital :  

Intellectual Capital  refers to  your global business  savvy, cosmopolitan  outlook, and cognitive  complexity.

Psychological Capital  refers  to your passion for  diversity, quest for  adventure, and your self- assurance.

Social Capital  refers to your  intercultural empathy,  interpersonal impact, and  diplomacy