TOPIC : The Cultural Environment The role of culture in international business Identify various elements of culture To appraise what global business ethics are and learn how ethical issues impact global business Cross-Cultural Risk A situation or event where a cultural miscommunication puts some human value at stake Arises when we enter environments characterized by unfamiliar languages and unique value systems, beliefs, attitudes, and behaviors One of the four major risks in international business Much of the problem in any cross-cultural interaction stems from our expectations. The challenge is that whenever we deal with people from another culture-whether in our own country or globally-we expect people to behave as we do and for the same reasons. understanding another culture's mind-set and how its history, economy, and society have impacted what people think. Understanding so you can properly interpret someone's words and actions means you can effectively interact with them.Manifestations of Cross-Cultural Risk Ethnocentric orientation: using our own culture as the standard for judging other cultures Polycentric orientation: a mindset in which the manager develops a greater affinity with the country in which he/she does business than the home country. Geocentric orientation: a global mindset in which the manager is able to understand a business or market without regard to national boundaries. Managers should strive for a geocentric orientation Culture The beliefs, values, mind-sets, and practices of a group of people. Includes the behavior pattern and norms of that group-the rules, the assumptions, the perceptions, and the logic and reasoning that are specific to a group. Culture is the collective programming of our minds from birth. Culture awareness most commonly refers to having an understanding of another culture's values and perspective.Cross-cultural understanding requires that we reorient our mind-set and expectations, in order to interpret the gestures, attitudes, and statements of the people we encounter. We reorient our mind-set, but we do not necessarily change it. Some factors that constitute a culture: manners mind-set rituals laws ideas historical, political, and social issues. Culture is: Socialization: The process of learning the rules and behavioral patterns appropriate to one's given society, ie. cultural learning. Acculturation: The process of adjusting and adapting to a culture other than one's own, commonly experienced by expatriate workers. Culture is like an iceberg - above the surface, certain characteristics are visible; below the surface is a massive base of assumptions, attitudes and values that strongly influence decision-making, relationships, conflict, and other dimensions of business.Culture is: Not right or wrong. Culture is relative. There is no cultural absolute. Different nationalities simply perceive the world differently. Not about individual behavior. Culture is about groups. It refers to a collective phenomenon of shared values and meanings. Not inherited. Culture is derived from the social environment. We are not born with a shared set of values and attitudes; we learn and acquire as the grow up. Political, economic, and social philosophies all impact the way people's values are shaped. All cultures are constantly evolving. Cultures within one border can turn up within other geographic boundaries looking different or the same. Many groups are defined by ethnicity, gender, generation, religion, or other characteristics with cultures that are unique to them.Hofstede and Values The first and largest database composed of answers that matched employee samples from forty different countries to the same survey questions focused on attitudes and beliefs. The second consisted of answers to some of the same questions by Hofstede's executive students (from 15 countries and a variety of companies/industries). He developed a framework for understanding the systematic differences between nations in these two databases. This framework focused on value dimensions. Values are broad preferences for one state of affairs over others, and they are mostly unconscious. Masculinity -refers to how a culture ranks on traditionally perceived "masculine" values: assertiveness, materialism, and less concern for others. Uncertainty avoidance (UA)- refers to how much uncertainty a society or culture is willing to accept. It can also be considered an indication of the risk propensity of people from a specific culture. People who have high uncertainty avoidance generally prefer to steer clear of conflict and competition. They tend to appreciate very clear instructions. Three Approaches to Interpreting Culture Metaphors refer to a distinctive tradition or institution strongly associated with a society- a guide to deciphering attitudes, values, and behaviors.Stereotypes are generalizations about a group of people that may or may not be factual, often overlooking real, deeper differences. An idiom is an expression whose symbolic meaning is different from its literal meaning- a phrase that cannot be understood by simply knowing what the individual words mean. Stereotypes are often erroneous and lead to unjustified conclusions about others. Still, most people employ stereotypes, either consciously or unconsciously, because they are an easy means to judge situations and people. There are real differences among groups and societies- we should examine descriptive behaviors rather than evaluation stereotypes. An example: Some Latin Americans procrastinate via the "manana syndrome". To some Latin Americans, mahana means an indefinite future with many uncontrollable events; thus, why fret over a promise?Instructions 1. What is/are the muddiest point on the given topic? 2. What are the different learnings you have? Provide at least 2. Attached your paper and limit only in 1 pager. Font size: 11 & Paragraph spacing: 1.5