Ó Springer 2006 Journal of Business Ethics (2006) 69:237–247 DOI 10.1007/s10551-006-9088-3 Ethics in countries with different cultural dimensions ABSTRACT. This paper compares ethics in countries with different cultural dimensions based on empirical data from 12 countries. The results indicate that dimensions of national culture could serve as predictors of the ethical standards desired in a specific society. The author divided societal cultural practices into desired and undesired practices. According to this study, ethics could be seen as the means for achieving a desired state in a society: for reducing some societal characteristics and increasing others. Finally, a model of the impact of cultural dimensions on desired ethical standards is proposed. KEY WORDS: ethical values, cultural dimensions, motivation theory Introduction Culture and the social world influence the values held by individuals. These values, in turn, affect attitudes and behavior (Bowditch and Buono, 2001). Individual behavior is also directed by moral beliefs (Kohlberg, 1978). Morality is the standards that an individual or group has about what is right and wrong, or good and evil (Velasquez, 2002). Values have been defined as the principles or standards that people use, individually or collectively, to make judgments about what is important or valuable in their lives (McEwan, 2001). People at the first stage of moral development try to be good people and seek to do what their fellows consider to be good (Kohlberg 1978). All moral judgments are ethnocentric (Adler, 1991) and what one ethnic group thinks about what is right or wrong depends on culture and environmental circumstances and is different across the cultures. Therefore, national culture plays a fundamental role in forming cultural values. Ruth Alas This article aims to explore the impact that dimensions of national culture have on the importance people place on the need for well-established ethical values. The results of previous studies have not indicated any clear connections (Furnham et al., 1994). The research question in this case is, which characteristics of national culture indicate a higher need for ethics. In order to discover the answer, the desire for well-established ethical standards and values is compared with societal practices and values on the basis of the GLOBE study. In this paper, the author analyzes ethical theory in connection with cultural theory. A presentation of the theoretical framework is followed by an analysis of results from empirical studies in 12 countries, and finally, a model for the impact of cultural dimensions on the desire for ethics is proposed. Ethics and values Ethical issues are all around those who work in organizations, whether we recognize them or not (Lawton, 2000). Morality refers to the standards that an individual or group has about what is right and wrong, or good and evil. Moral standards are not established or changed by the decisions of particular authoritative bodies. Instead, the validity of moral standards rests on the adequacy of the reasons that are taken to support and justify them. So long as these reasons are adequate, the standards remain valid (Velasquez, 2002). Values have been defined as the principles or standards that people use, individually or collectively, to make judgments about what is important or valuable in their lives (McEwan, 2001). Values 238 Ruth Alas exist and are communicated through social connections and may vary in different cultures and different countries (Fisher and Lovell, 2003). A small number of core ideas or cognitions are present in every society about desirable end-states (Rokeach, 1973). Values form the basis for principles and virtues and are necessary to bring the ethical principles into moral practice (Lawton, 2000). Ethics is the discipline that examines one’s moral standards or the moral standards of a society (Velasquez, 2002). If something is ethical, this means it is of an acceptable standard in terms of one’s personal and social welfare. Research results from Estonian organizations indicate that the specific environment created during the Soviet era had an impact on peoples’ value systems. A survey of values conducted in the second half of the 90s indicated that Estonian business students underestimated social values when compared with Finnish students (Ennulo and Türnpuu, 2001). National culture Social scientists use the term culture to mark a set of parameters for collectives that differentiate each collective in a meaningful way. The GLOBE study could be considered one of the most comprehensive studies of national cultures. It is a worldwide, multiphase, multi-method project, where 170 social scientists and management scholars from 62 cultures representing all major regions of the world are currently engaged in a long-term programmatic series of cross-cultural studies (House and Javidan, 2004). In the GLOBE study, culture is defined as shared motives, values, beliefs, identities, and interpretations or meanings of significant events that result from common experiences among members of collectives that are transmitted across generations (ibid.). There are nine core cultural dimensions in the GLOBE project (House and Javidan, 2004): Uncertainty Avoidance is the extent to which members of an organization or society strive to avoid uncertainty by relying on established social norms, rituals, and bureaucratic practices. People in high uncertainty avoidance cultures actively seek to decrease the probability of unpredictable future events that could adversely affect the operation of an organization or society and remedy the success of such adverse effects. Power Distance is the degree to which members of an organization or society expect and agree that power should be stratified and concentrated at higher levels of an organization or government. Institutional Collectivism is the degree to which organizational and societal institutional practices encourage and reward collective distribution of resources and collective action. In-Group Collectivism is the degree to which individuals express pride, loyalty, and cohesiveness in their organizations or families. Gender Egalitarianism is the degree to which an organization or society minimizes gender role differences while promoting gender equality. Assertiveness is the degree to which individuals in organizations or societies are assertive, confrontational, and aggressive in social relationships. Future Orientation is the degree to which individuals in organizations or societies engage in futureoriented behaviors such as planning, investing in the future, and delaying individual or collective gratification. Performance Orientation is the degree to which an organization or society encourages and rewards group members for performance improvement and excellence. Humane Orientation is the degree to which individuals in organizations or societies encourage and reward individuals for being fair, altruistic, generous, caring, and kind to others. These dimensions reflect two distinct kinds of cultural manifestations: values and practices. Empirical study of employee attitudes Methodology and sample The current article is based on data from two international surveys—from the GLOBE study and from the Denki Ringo research group. The author of this article organized these surveys in Estonian organizations. The data about cultural dimensions was taken from the Globe study (House et al., 2004). The core cultural dimensions were measured in terms of two Ethics in countries with different cultural dimensions manifestations of culture—practices and values. Practices are measured using the responses of middle managers to questionnaire items concerning ‘‘What Is,’’ or ‘‘What Are,’’ common behaviors, institutional practices, proscriptions, and prescriptions. Values are expressed in response to questionnaire items concerning judgments of ‘‘What Should Be,’’ which are intended as a measure of the respondents’ values concerning the practices reported by the respondents. A 7-point scale was used, where ‘1’ indicated ‘strongly disagree’ and ‘7’ ‘strongly agree’. In Estonia, 170 questionnaires were completed, 53% of the respondents were men and the average age of the respondents was 35.5 years. The average work experience was 14.4 years. The data about ethical values was collected during the Denki Ringo study (Ishikawa et al., 2006). This was a survey of attitudes in the electronics industry, the third phase of which was conducted between 1999 and 2001. A research partner from each country was requested to select two plants: one producing telecommunications equipment and the other electrical goods for household use. The author organized the survey of two plants in Estonia with 536 respondents. There were 4,874 respondents from 12 countries (Appendix I). Ethical values were evaluated by using the question—‘What kind of society do people prefer?’ The following items were given for evaluation: 1. People are provided with a good material standard of living 2. Everyone cooperates with each other in solidarity 3. People live life by observing well-established values and ethics 4. Social equality among people is highly developed 5. Individuals can develop their lives with great opportunities 6. Social order is well kept with few criminal offences 7. People can live with peace of mind 8. People can acquire all the results of their own work A 4-point scale was used where ‘1’ signifies ‘very important’ and ‘4’ ‘not important’. This scale is or- 239 ganized in the opposite direction to the scale used for the dimensions of organizational culture. Results The results of both studies are brought together in the table in Appendix I. The desire for ethics is presented in the table in two ways—first, the average score that the respondents gave on the 4point scale regarding ethical values, and second, the ranking of ethical values from among all eight values given. The author proposes that culture and ethical values are connected and that by knowing a society’s culture helps us to predict how ethics is valued in that society. In order to predict the importance of ethics in this way the author analyzed the results from the ethics survey and the questionnaire on societal culture by using Linear Regression analyses. In the analyses, ethics was taken as a dependent variable and the nine scales of societal culture as independent variables. The analysis was performed twice, first with societal practices and second with values. The author calculated the coefficient Beta (ß), which enables us to predict how orientations of culture forecast ethics. The Linear Regression analysis method revealed that almost 18% of the variability in ethics could be explained by reference to the nine orientations of societal culture. This result was similar for both practices and values. For values: R2 = 0.185, F(9,4864) = 123.628, p < 0.001, for practices: R2 = 0.184, F(9,4864) = 123.290, p < 0.001. But there are differences in direction (Appendix II). Statistically significant connections between ethics and culture are also shown in Figure 1. Groups according to ethical evaluations According to the evaluation of ethical values and the position of ethical values in the value hierarchy, countries were divided into two groups. The first group of six countries—China, Poland, HongKong, South Korea, U.S.A. and Hungary—forms a group that valued ethics more highly. The other six countries—Japan, Italy, France, Finland, Estonia, and Spain—did not value ethics as highly as the first group. Ruth Alas 240 Practices Values Institutional collectivism In-group collectivism Humane Orientation Performance Orientation Power Distance - Institutional collectivism In-group collectivism + Importance of ethics Assertiveness + Future Orientation Gender egalitarianism Uncertainty Avoidance Humane Orientation Performance Orientation Power Distance - Assertiveness Future Orientation Gender egalitarianism Uncertainty Avoidance Figure 1. Impact of social values and practices on ethics. A T-test for both groups indicated statistically significant differences in all societal practices and values (Appendix III). Due to the results from the comparative analysis of societal practices and values in the two groupings of countries according to a higher or lower desire for ethics, dimensions of national culture were also divided into two groups according to evaluations of societal practices by these two groups of countries (Figure 2). The first group was formed on the basis of cultural practices that were higher in the group that evaluated the need for ethics more highly. These practices were Assertiveness, Performance orientation, Power distance, and Group collectivism. The second group was formed from practices that were lower in the group that evaluated the need for ethics more highly. These were Institutional collectivism, Future orientation, Gender egalitarianism, Humane orientation, and Uncertainty avoidance. In order to find connections between ethical values and societal practices, a correlation analysis was performed for both groups of countries (Appendix IV). Conclusions and discussion The research results indicate that lower scores in regard to some societal cultural practices are connected with a greater need for well-established ethical standards and values. Higher scores for these same scales are connected with less of a need for ethics. The author has called this group of practices desired societal practices. At the same time, there are also some societal cultural practices where higher Group with higher desire for ethics Group with lower desire for ethics Assertiveness Power distance Future orientation Gender egalitarianism Institutional collectivism In-group collectivism Humane orientation Performance orientation Uncertainty avoidance + Importance of ethics Institutional collectivism Future orientation Humane orientation Performance orientation In-group collectivism Power distance Assertiveness Gender egalitarianism Uncertainty avoidance + Figure 2. Impact of societal practices on ethics in two groups of countries with different evaluations of ethics. Ethics in countries with different cultural dimensions scores for these practices were connected with a low valuation of the same practices. This means, that people do not desire to have these practices in society to such a great extent. The higher scores for these practices are connected with a greater need for well-established ethical standards and values. The lower scores for these scales are connected with a lower need for ethics. People are satisfied with the current level of these practices. These could be called undesired societal practices. The first group was formed from the practices Institutional collectivism, Future orientation, Gender egalitarianism, Humane orientation, and Uncertainty avoidance. The second group was formed from the practices Assertiveness, Performance orientation, Power distance, and Group collectivism. The model of the impact of cultural dimensions on the desire for ethics is presented in Figure 3. Undesired practices High assertiveness practices value aggressive, dominant, and tough behavior, and emphasize results over relationships. Lower assertiveness practices value people, relationships, cooperation, modesty, and tenderness (Den Hartog, 2004, p. 405). In many cultures people want less assertiveness in the interpersonal relationships in society than they have (ibid., p. 408). Performance orientation has an impact on the way a society defines success in adapting to external challenges and on the way society manages inter-relationships among its people (Javidan, 2004, p. 243). Societies that score higher on performance orientation emphasize results more than people and value assertiveness, competitiveness and materialism. The scores for performance orientation practices tend to High Desired practices: Institutional collectivism Future orientation Gender egalitarianism Humane orientation Uncertainty avoidance Low be related to the lack of a single dominant religion (ibid.). Societies that score lower on performance orientation tend to value societal and family relations, loyalty and belongingness, and have a high respect for quality of life (ibid., p. 245). In the study of 41 countries no relationship was found between work ethics and improvement orientation (Lynn, 1991). There is a statistically significant negative correlation between performance orientation practices and values (Javidan, 2004, p. 245). In societies that practice power distance, there is less emphasis on integrating different societal groups—only a few people have access to resources, skills, and capabilities (Carl et al., 2004, p. 531, 536). Lower power distance enables better access to information and higher upward social mobility (ibid., p. 536). Power distance has a significant negative correlation with societal health and general satisfaction (ibid., p. 558). Higher power distance values predict greater corruption and lower civil liberties (ibid., p. 558). There is a statistically significant negative correlation between power distance practices and values (ibid., p. 541). In cultures with a high score for collectivism, group goals take precedence over individual goals and there is lower subjective well-being than in societies with lower collectivism (Gelfand et al., 2004, p. 454). Realo and Allik (1999) found even three clearly distinguishable types of collectivism — relations with family, peers, and society. The institutional collectivism scale is highly distinct from the in-group collectivism scale—these scales are negatively correlated (Gelfand et al., 2004, pp. 467–468). This may explain why in-group collectivism is in the group of undesired practices and institutional collectivism is in the group of desired practices. In societies with high in-group High Need for ethics and well-established Low 241 High Undesired practices: Assertiveness Performance orientation Power distance In-group collectivism Low Figure 3. Impact of two groups of societal practices on need for ethics. 242 Ruth Alas collectivism, authority is respected (ibid., p. 474). Societies with high institutional collectivism are less assertive and have less power distance (ibid., p. 472). In-group collectivism has a statistically significant negative correlation with societal health, life expectancy, and general satisfaction. At the same time institutional collectivism has modest positive correlations with the same indicators (ibid., pp. 484–485). This could explain why institutional collectivism and in-group collectivism belong to different groups of practices. To summarize, the desired practices scales have a statistically significant negative correlation with societal health, and in general, people wish to have less of these practices. These practices are positively correlated with each other. Where these practices were higher, the need for ethics was also higher. Where these practices were lower, the need for ethics was also lower. People feel that they need some kind of regulation mechanism in an aggressive society, a mechanism with strong interest groups and a strong hierarchy. They expect ethics and wellestablished values to be able to serve as this mechanism for achieving the desired society with lower levels of undesired practices. Desired practices Societies that show a higher score for future orientation tend to have individuals who are more intrinsically motivated (Ashkanasy et al., 2004, p. 302). Countries with higher-level future-oriented practices tend to enjoy a higher quality of life (ibid., p. 316). Past-oriented individuals and collectives do so by recalling and showing appreciation for prior learning, obligations, and traditions (Keough et al., 1999). Societies with a higher time horizon for the past tend to have a higher time horizon for the present and future (Trompenaas and Hampden-Turner, 1998). Societies with low future orientation display the need to move toward a more strategic and spiritually fulfilling perspective (Ashkanasy et al., 2004, p. 306). Societies with more gender egalitarian practices have greater member longevity, knowledge, and standard of living (Emrich et al., 2004, p. 368). Respondents would prefer less male dominated industries than they have now (ibid., p. 362). In societies with a high score for humane orientation, others are important and members of society are expected to provide social support for each other. Therefore, there are fewer psychological and pathological problems (Kabasakal and Bodur, 2004, p. 570). In societies with a low score for humane orientation, people are expected to solve their personal problems on their own. In these societies people express the desire to reach a higher level of humane orientation in their relationships (ibid., p. 575). Societies with high levels of uncertainty avoidance have a tendency to formalize their interactions with others and have less tolerance for the breaking of rules (De Luque and Javidan, 2004, p. 618). High uncertainty avoidance practices are positively correlated with societal health, life expectancy, and general satisfaction (ibid., p. 632). Cultures with weaker uncertainty avoidance practices have stronger uncertainty avoidance values (ibid., p. 621). To summarize, the scales of desired practices are positively correlated with societal health and general satisfaction. These scales are also mostly positively correlated with each other. When these practices were valued less, then the need for ethics was higher. If these practices were seen as highly represented in society, then the need for ethics was lower. People desire a society with such characteristics and if the reality is not consistent with this desire, then they hope that ethics will help them to achieve this kind of society. It could be stated here that ethics and wellestablished values are like a functional mechanism for achieving the desired society. If the desired state is achieved, the need for ethics is not so high any more. Maslow’s (1954) theory about the satisfaction of needs could serve as an explanation here. According to Maslow (1954), unsatisfied needs motivate people while satisfied needs are no longer motivating. As societal cultural values and practices have a significant and strong positive relationship with organizational culture and practices (Ashkanasy et al., 2004, p. 324; Den Hartog, 2004, p. 426; Emrich et al., 2004, p. 381; Gelfand et al., 2004, p. 491; House and Javidan, 2004, p. 18; Javidan, 2004, p. 266) the results of the current survey could be connected with organizational practices, values, and ethics. Based on this, in order to create a motivating work environment, managers could develop more humane and future-oriented practices, Ethics in countries with different cultural dimensions which give equal opportunities regardless of gender. Organizations should not be over-regulated—using too many rules and procedures. Instead, the inner climate of the organization could encourage creative solutions, risk taking, and learning from mistakes. Institutional collectivism instead of group collectivism should be emphasized and organizational goals should dominate over group goals. Certain groups should not enjoy too much power so they can form ‘inner-groups’ that actually lead the organization, and neither should they enjoy too many privileges. Managers should avoid aggressiveness in social relationships and also avoid high levels of power distance. Performance orientation should not be the only strong or dominant element in an organization as this may hinder the development of social capital. Following these guidelines will contribute to the creation of a learning environment, necessary for surviving and competing in uncertain environments. 243 In order to strengthen ethical practices in organizations, managers could build up levels of ethical competence in their companies and create a code of ethics. In order to develop such ethical competence, people should be trained to bring moral considerations into the decision making process. Writing a code of ethics is actually not enough on its own. Such a code can only start to work if it is integrated into the everyday management processes, if it is connected to pay, if ethical behavior is rewarded and there are in turn consequences for unethical behavior. To conclude, dimensions of national culture could serve as predictors of how people desire high ethical standards in a particular society. Ethics could be seen as the means for achieving a desired state in society—by reducing some practices and increasing others. 428 340 209 509 234 827 566 539 251 148 248 521 4874 N 1.27 1.78 1.82 1.51 1.98 2.31 1.46 1.41 1.45 1.62 1.47 1.64 1.67 EV 2 6. 8. 3. 8. 8 2. 5. 5. 5. 4. 6. PE 3.77 4.05 4.44 4.71 4.12 3.69 4.36 4.11 4.53 4.39 4.39 4.04 4.15 P 1 4.67 4.77 4.20 3.63 3.75 5.23 5.20 4.51 4.03 3.87 3.87 3.71 4.44 P 2 5.86 4.23 4.66 5.31 4.99 4.72 5.71 5.55 5.33 5.53 5.53 4.79 5.18 P 3 3.68 4.39 3.74 3.31 3.34 4.29 3.90 3.23 3.88 3.52 3.52 4.20 3.80 P 4 3.03 3.55 3.81 4.02 3.30 3.17 2.45 3.94 3.26 3.06 3.06 3.60 3.36 P 5 4.29 4.19 3.60 3.39 3.66 4.34 3.73 3.67 3.72 3.29 3.29 3.39 3.79 P 6 4.37 4.02 4.43 3.50 3.66 4.22 4.53 3.96 4.69 4.00 4.00 3.87 4.10 P 7 Notes: EV – Ethical values according to Denki Ringo research PE – Position of ethics among other values according to Denki Ringo research P – societal practices in GLOBE study V – societal values in GLOBE study 1 – Assertiveness 2 – Institutional collectivism 3 – In-Group Collectivism 4 – Future Orientation 5 – Gender egalitarianism 6 – Humane Orientation 7 – Performance Orientation 8 – Power Distance 9 – Uncertainty Avoidance China Finland France Hungary Italy Japan Korea Poland Hong-Kong Spain USA Estonia Total Country 5.02 5.08 5.68 5.47 5.45 5.23 5.69 5.09 4.94 5.53 5.53 5.16 5.29 P 8 4.81 5.11 4.66 3.26 3.85 4.07 3.52 3.71 4.17 3.95 3.95 4.01 4.02 P 9 5.52 3.91 3.57 3.42 3.87 5.84 3.69 3.95 4.80 4.01 4.01 3.90 4.34 V 1 4.52 4.34 5.27 4.57 5.20 4.01 3.84 4.24 4.35 5.25 5.25 4.33 4.40 V 2 Cultural practices and values together with ethical values APPENDIX I 5.12 5.60 5.88 5.58 5.76 5.44 5.50 5.69 5.11 5.82 5.82 4.95 5.47 V 3 4.70 5.24 5.35 5.74 6.01 5.42 5.83 5.17 5.52 5.66 5.66 5.04 5.40 V 4 3.73 4.47 4.71 4.65 4.88 4.41 4.23 4.53 4.27 4.82 4.82 4.73 4.46 V 5 5.34 5.80 5.91 5.48 5.57 5.53 5.61 5.32 5.38 5.63 5.63 5.36 5.51 V 6 5.72 6.23 6.10 5.97 6.11 5.37 5.41 6.06 5.71 5.85 5.85 5.68 5.76 V 7 3.01 2.46 2.96 2.59 2.51 2.76 2.39 3.19 3.00 2.23 2.23 2.87 2.73 V 8 5.34 4.04 4.65 4.74 4.52 4.40 4.74 4.75 4.52 4.80 4.80 4.31 4.62 V 9 244 Ruth Alas Ethics in countries with different cultural dimensions 245 APPENDIX II Connections between ethical values and societal practices and values (according to standardized regression coefficient Beta) Practices Assertiveness Institutional collectivism In-Group collectivism Future orientation Gender egalitarianism Humane orientation Performance orientation Power distance Uncertainty avoidance Values Beta Sig. Beta Sig. )0.233 )0.228 )0.516 )0.192 )0.096 0.299 0.166 0.129 )0.296 0.000 0.000 0.000 0.000 0.005 0.000 0.000 0.000 0.000 0.717 )0.549 )0.395 0.201 0.796 0.542 0.394 0.067 0.447 0.000 0.000 0.000 0.000 0.005 0.000 0.000 0.003 0.000 Notes: All coefficients are statistically significant, p < 0.01. APPENDIX III Means of societal practices and values in groups with different ethical values Assertiveness Institutional collectivism Group collectivism Future orientation Gender egalitarianism Humane orientation Performance orientation Power distance Uncertainty avoidance Practices lower ethics N = 2679 Practices higher ethics N = 2374 Values lower ethics N = 2679 Values higher ethics N = 2374 3.98 4.48 4.74 4.09 3.39 3.89 4.06 5.28 4.23 4.29 4.41 5.57 3.55 3.34 3.70 4.14 5.31 3.83 4.59 4.45 5.45 5.38 4.59 5.57 5.74 2.70 4.39 4.14 4.37 5.49 5.42 4.36 5.45 5.79 2.76 4.83 Notes: All scales are statistically significantly different according to T-test, p < 0.01. Bold indicates higher societal practices and values compared to the other group. APPENDIX IV Correlation coefficients for ethical values and societal practices in both groups Assertiveness Institutional collectivism Group collectivism Future orientation Gender egalitarianism Lower ethics N = 2679 Higher ethics N = 2374 )0.281** 0.298** )0.036 0.089 )0.241** 0.122** )0.053** )0.098** )0.018 0.025 246 Ruth Alas APPENDIX IV Continued Humane orientation Performance orientation Power distance Uncertainty avoidance Lower ethics N = 2679 Higher ethics N = 2374 0.298** 0.178** )0.017 )0.082** )0.118** )0.052** 0.082** )0.114** Note: **Correlation is significant at the 0.01 level (2-tailed). The connections are opposite here because of the difference of the evaluation scales. References Adler, M. J.: 1991, Desires Right & Wrong: The Ethics of Enough. Macmillan Publishing Company. Ashkanasy, N., V. Gupta, and M. S. Mayfield: 2004, ‘Future Orientation’, in R. House et al. 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Institute of Management, Estonian Business School, Lauteri 3, Tallinn, Estonia, 10114, Estonia E-mail: [email protected]
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