Cultural Challenges in International Business:Employment • Business Courtesies• Raising Concerns

Objective: Discuss Challenges Faced When Doing Business in a Global Environment Where Cultural Expectations and Norms Vary

Areas for Discussion

Employment Values-based Q&A

Business Courtesies Policy, Perception, Reputation, and

Relationship considerations Raising Concerns

Cultural norms

CULTURAL CHALLENGES IN INTERNATIONAL BUSINESS:

Employment

Would you hire a 10-year-old in a developing nation?

1. Yes, if doing so is compliant with local laws and company policies

2. Yes, even if a waiver of company policy is required

3. No

10

0%20%40%60%80%

100%

0%0%0%

Would you hire a 10-year-old in a developing nation if his/her other options were extreme poverty, potential starvation, homelessness or drug trafficking?

1. Yes, if doing so is complaint with local news and company policies

2. Yes, even if a waiver of company policy is required

3. No 10

Yes, if doing so is com-plaint with local news and com-pany poli-

cies

Yes, even if a waiver of company policy is required

No 0%

10%20%30%40%50%60%70%80%90%

100%

0% 0% 0%

You’ve learned a subcontractor selling your company items manufactured in unsafe working conditions, paying low wages and providing no employee benefits. Still, they delivered to the agreed quality standard, on time/early and below estimated cost. What do you do?

1. Terminate the contract and seek a more acceptable subcontractor

2. Seek to understand local laws and take no action if the subcontractor is compliant with local laws

3. Provide additional work scope to the subcontractor if they are exceeding performance expectations

4. Take no specific action and allow work to carry on

0%20%40%60%80%

100%

0%0%0%0%

10

CULTURAL CHALLENGES IN INTERNATIONAL BUSINESS:

Business Courtesies

Your new VP of Sales is on business travel in Asia. After a meeting with a potential customer, the VP is presented with a commemorative fountain pen bearing the customer’s logo on the presentation box. Should the gift be accepted?

1. Yes, because hospitality gifts are customary in Asian culture

2. No, because the gift could create a perception of impropriety

3. Yes, because the gift is permissible under local law and company policy

4. No, unless other potential customers also offer a similar gift at their meetings

0%20%40%60%80%

100%

0%0%0%0%

10

What if the commemorative fountain pen from the previous scenario was a Montblanc valued at US $1,200.00 with the customer’s logo on the presentation box? Should the VP accept the gift?

1. Yes, it’s an acceptable promotional item because it has the customer’s logo on it

2. No, it’s too expensive3. Yes, because it would

be rude to decline the gift

4. No, because the gift could create a perception of impropriety

0%20%40%60%80%

100%

0%0%0%0%

10

1. Keep the watch. It’s a personal gift because of the personal relationship with the customer

2. Decline the gift and tell the MOD it is unacceptable under company policy

3. Accept the gift but reduce the cost of the next order by $5,000 to offset the value of the gift

4. Something else

Your VP of Business Development is in the first of a five-year assignment in the Middle East and has developed a strong working relationship with his customer, the MOD there. The MOD presents him with a birthday gift, a wristwatch valued at US $5,000. The VP calls Ethics for guidance. What do you advise?

0%

30%

60%

90%

0%0%0%0%

10

CULTURAL CHALLENGES IN INTERNATIONAL BUSINESS:

Raising Concerns

You have recently joined a global organization leading ethics and compliance across multi-international sites, and learn 98% of Ethics Line calls come from US facilities. You are tasked with ensuring effectiveness of the line across all international sites. What is your next step?

1. Educate leadership on the cultural differences in reporting issues across international locations

2. Travel to key international locations to conduct focus groups

3. Assign an ethics focal point at each site with 25+ employees; educate employees about reporting issues to their site’s ethics focal

10

0%20%40%60%80%

100%

0% 0% 0%

Following up to the previous scenario: You decide to visit the international sites, beginning with Germany. You conduct focus groups asking employees why they have not utilized the Ethics Line. What is your anticipated response?

1. What is a focus group?

2. That is not how we do things here

3. Why would I call you?

4. I will not denounce my co-workers

5. All of the above

10

Wha

t is a

focu

s gro

up?

That

is n

ot h

ow w

e do

things

her

e

Why

wou

ld I

call y

ou?

I will

not d

enou

nce

my co

-wor

kers

All of t

he a

bove

0%

20%

40%

60%

80%

100%

0% 0% 0% 0% 0%

From which location would you most likely hear the following perspective about reporting issues and utilizing an Ethics Line?

Anonymous whistleblowers are untrustworthy and escape accountability for their denunciations

1. United States2. France

United States

France0%

20%

40%

60%

80%

100%

0% 0%

10

From which location would you most likely hear the following perspective about reporting issues and utilizing an Ethics Line?

Anonymous whistleblowers are a powerful weapon in the fight against wrongdoing

1. United Sates2. Mexico

United Sates

Mexico 0%

20%

40%

60%

80%

100%

0% 0%

10

From which location would you most likely hear the following perspective about reporting issues and utilizing an Ethics Line?

Corporate whistleblowing in our country is unheard of…such actions are seen as a betrayal of country and carry a social stigma

1. Korea2. United States

Korea United States

0%

20%

40%

60%

80%

100%

0% 0%

10

Where to go for help:

http://www.dii.org