- Expand on your colleague’s posting.
- Share an insight you gained from having read your colleague’s post.
- Validate an idea with your own experience.
The system that controls and guides an organization as said by Elango, Paul, Kundu, and Paudel (2010) is called corporate governance (CG). One of the purposes of CG is to develop a set of systems to guarantee sound administrative pronouncements are made, considering the privileges and influences of the different stakeholders, along with the ethical standards and rules of the organization. Therefore, creating and continuing an optimistic ethical climate is important when working cross-culturally. An ethical climate prevents organizations from embarrassment and financial burdens because of ethical wrongdoings. Internal motivation of the organization’s members enables the success of ethical climate. Also, the ethical climate consisted of organizational ethics and the individuals in the organization ethics and agreement. The challenge is congruence meaning being in harmony with the country and compatible. So, meeting with the workers and leaders of the host country to collaborate on what can be universal is a way to deal with this challenge. Another ethical consideration when working internationally, according to Knapp, VandeCreek, Handelsman, and Gottlieb (2013) is social conventions. Social conventions or normal habits or preferences that people use. The social convections range from the name used, titles used, and the dress of, the I/O Psychologist. So, social boundaries must be set to show the psychologist as a professional and I/O psychologist must understand the norms and cultural of the country they are serving. The challenge is for the organization not to set guidelines that fight against the norms and values of the host country. Training the leaders and workers of the norms and values of the host nation is a way to handle this challenge. Additionally, Pettifor (2004) argued that multi-cultural competency are ethical considerations important to working cross-culturally. Multi-cultural competency is described as psychologists respecting the environments where they work and not forcing the people of the country to comply with what is important to them. Dealing with this challenge requires psychologist to have an understanding on what is of value to the country and the people where they work.
According to Elango, Paul, Kundu, and Paudel (2010), an individual from a culture that values diversity or equal opportunity my prefer to hire an individual from a preferred ethnic category or one gender over another because of cultural expectations. Also, in international settings faced significant issues on bribery because it is tolerated in their culture. Thus, money or favors can influence their decision-making.
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As the world of works expands to encompass markets and talent that cross geographic and cultural borders, organizations need to ensure that their ethical considerations include diverse cultural backgrounds, the understanding that such diversity can lead to a misalignment with current organizational standards of ethics and that the managers leading those markets or teams will need to address those issues despite a potential lack or reduction of resources and/or regulations.
Multi- or cross-cultural organizations can encounter specific challenges if these issues are not taken into consideration. An organization with reach that extends beyond their local sphere can encounter goals and values that conflict with their home country (Knapp& VandeCreek, 2007, p. 665). The tendency is to impose Western principles with a view that they are superior (Pettifor, 2004, p. 269). However, in the scenario posed, that tendency led to the Chinese workers and managers not implementing foreign policies and decreased morale, potentially decreased productivity. Elango, Paul, Kundu & Paudel posit that an ethical congruence between the home and host country as well as the individual and the organization’s ethical values lead to the resolution of those conflicts with higher levels of ethical decisions being made (2010, p. 544).
An additional impact of culture on the decision-making process in the global business space can be seen in the example Elango, Paul, Kundu & Paudel give of making different choices and ethical intentions based on cultural expectations such as hiring to a specific gender or ethnicity (2010, p. 544). Knapp & VandeCreek’s recommendation for addressing those challenges are to rely on principle-based ethics where the most salient or pivotal moral principle is taken into consideration through a sequential process of determination (2007, p. 664). Pettifor echoes that while working through a moral framework of universalism to find “common humanity while still respecting the diversity of beliefs in different cultures” (2004, p. 264).