Culture has much to do with how people think and how people manage their diversified interests. In particular it is established that people in different cultures tend to have relative ethical interests and absolute ethical standards. Ethical standards are accepted as per the environment that people are in. They are considered as the majority good considered by a populace within a place setting. In societal structures where people do not follow the required ethical standards then there will be sanctions imposed or other penalties according to the laws imposed on such places. The consequences of unethical behavior will be dependent on the form of rulemaking that exists in the society in which the person lives. The enforcers of these rules are considered to be the authorities in decision making. An analogy can be drawn between society as an institution and an actual corporate institution. Management perspectives on ethical practices and decision making is drawn from influences on ethics. Influence on ethics is from both external factors and interact factors. Culture is associated to organization as both an external and internal factor. Culture of the country where the organization operates in is significant. Culture can also be understood as the cultural background of the sum majority of people who are working with the organization.
Culture as a Challenge to Managerial Perspectives
“Ambiguous interpretations of the relationship between ethics and business culture occur when one accepts that competitive advantage is gained through a dual focus: satisfying customers and developing people” (Lozano, 1998). The challenges to managerial perspectives when it comes to ethical decision making is answering for what a reasonable person would do in an ethical dilemma. In a situation where the impact of culture is perhaps not considered, then according to researcher Hojnacki (2004) three management rules should be applied. Firstly, the rule of private gain must be applied. This is a rule where the person who gains from the decision is first identified. This could be the manager making the deicison or others. Secondly, the decision or action must be considered by the manager in a broader context, as in who would be affected. This can help understand ethical behavior in terms of all stakeholders. Finally, there is a benefit versus burden perspective here. This is to understand whether there are benefits as end result or whether there are burdens. Now the cultural issues that could arise as challenges to the manager in the group are that when individuals work together on a prject, the core values of the group could be aligned or could be different. Individuals within a group usually end up compromising their own values for a group value. Now the important question is to understand if in facing ethical issues would such values be aligned or would group dynamics come under immense pressure becomes a question. This needs to be moderated by managers. Managerial perception on ethical decision making becomes more challenging when the influence of culture is brought into the discussion.