This thesis summarises how descriptive ethical research has so far treated cultural differences between Confucian-influenced and Anglo-American countries as well as globally in its analysis of ethical business decisions by looking at firms’ CSR behaviour. It analyses empirical studies and summarises how and to what extend national culture was found to influence firms’ CSR practices. It tries to answer the following questions: What is Confucian-influenced and Anglo-American business culture? How was culture measured? Which cultural dimensions affect CSR behaviour and how? Are there contradicting findings? Can a prescriptive conclusion be drawn?
It starts by outlining cultural aspects of Confucian-influenced and Anglo-American (ethical) business culture. The third chapter summarises the designs, operationalization of variables and findings of cross-cultural studies and the fourth chapter critically discusses these studies and their findings to derive suggestions for practitioners. The fifth chapter draws a conclusion.
Table of Contents
1 INTRODUCTION
2 CULTURE IN DESCRIPTIVE BUSINESS ETHICS
2.1 Confucian-influenced business culture
2.2 Anglo-American business culture
2.3 Towards global business ethics
2.4 Measuring culture: Hofstede and GLOBE
2.4.1 Confucian-influenced countries
2.4.2 Anglo-American countries
3 CROSS-CULTURAL STUDIES ON CSR
3.1 Research frameworks and operationalization of CSR – dependent variable conception and measurement
3.2 The effect of national culture on firms’ CSR behaviour
4 CRITICAL DISCUSSION OF THE RESEARCH FINDINGS
5 CONCLUSION
Research Objective & Topics
This thesis examines the influence of national culture on ethical business decision-making and Corporate Social Responsibility (CSR) behavior. It specifically investigates the differences in cultural frameworks between Confucian-influenced and Anglo-American societies to determine how these variations affect CSR practices and whether universal ethical business standards can be established.
- Cultural foundations of Confucian-influenced vs. Anglo-American business environments.
- Methodological approaches to measuring national culture (Hofstede and GLOBE frameworks).
- The operationalization of CSR as a dependent variable in empirical studies.
- The impact of cultural dimensions on firm-level CSR performance and financial outcomes.
- Critical analysis of current research findings and their implications for international management.
Excerpt from the Book
2.1 Confucian-influenced business culture
The Greater China region, as well as other regions with substantial Chinese population such as Singapore, is mostly populated by ethic Chinese, who can be seen as rooted in Chinese culture (Chan/Ip/Lam 2009). This rootedness might also be given in the case of Chinese-socialised overseas Chinese (Chan/Ip/Lam 2009). It is only through broad generalisations that this culturally heterogeneous region and its business cultures can be summarised under the term of Confucian-influenced business culture (Law, 2017). Nevertheless, such a generalisation is meaningful to gain insight into decision frames that cause moral awareness and hence lead to moral or ethical business decisions and finally also to firms’ CSR behaviour.
Traditional Chinese culture is also influenced by Taoism and Buddhism (Opdebeeck/Habisch 2011), even though Confucianism is seen as the major traditional influencer (Whitcomb/Erdener/Li 1998; Yeung/Tung 1996). Confucianism advocates a set of rules individuals shall follow to lead a life in line with virtue mainly cultivating “patience, sincerity, obedience, and knowledge” (White/Taft 2004: 468). It further stresses the importance of humanness (ren) towards others and employs a Golden Rule: “Do not unto others as you would not have them do unto you” (ji suo bu yu, wu shi yu ren; Mencius VII.A.4). Etiquette (li) is a central concept in Confucianism that stresses the importance of harmony within one’s own relationships and the overall society that is to be achieved through social hierarchy, fulfilling one’s role(s) as a child, parent, employee, employer and so on (Whitcomb/Erdener/Li 1998; Redding, 1990).
Chinese culture, as well as business culture, are deeply influenced by guanxi (Liu/Wang/Wu 2011; Hwang/Baker 2000; Lovett/Simmons/Kali 1999). Guanxi is not only a social network and the benefits that come with it but can be defined as “the activities directed toward establishing, developing and maintaining mutually successful business activities.” (Berger/Herstein 2014: 779).
Summary of Chapters
1 INTRODUCTION: This chapter introduces the role of national culture as an independent variable affecting business behavior and outlines the research objective to analyze how cultural differences impact CSR practices.
2 CULTURE IN DESCRIPTIVE BUSINESS ETHICS: This section explores the theoretical cultural frameworks, specifically comparing Confucian-influenced and Anglo-American business values, while introducing measurement methodologies like Hofstede and GLOBE.
3 CROSS-CULTURAL STUDIES ON CSR: This chapter reviews empirical research on how different cultural dimensions are operationalized and tested to explain varying levels of CSR engagement across different countries.
4 CRITICAL DISCUSSION OF THE RESEARCH FINDINGS: This chapter addresses the inconsistencies in existing empirical studies, highlighting methodological challenges such as varying CSR definitions and the complexity of isolating cultural effects.
5 CONCLUSION: This chapter summarizes the key findings and suggests that while culture significantly influences CSR, managers must emphasize local adaptation and cultural awareness to implement effective CSR programs.
Keywords
Corporate Social Responsibility, CSR, National Culture, Confucian-influenced Culture, Anglo-American Culture, Guanxi, Hofstede, GLOBE, Business Ethics, Ethical Decision-Making, Stakeholder Approach, Environmental Proactivity, Cross-Cultural Management, Cultural Relativism, Performance Orientation.
Frequently Asked Questions
What is the core focus of this thesis?
The thesis focuses on how national culture influences ethical business decision-making and the subsequent Corporate Social Responsibility (CSR) behavior of firms across different cultural regions.
What are the primary cultural clusters analyzed?
The analysis primarily compares Confucian-influenced business cultures (e.g., China, Hong Kong, Singapore) with Anglo-American business cultures (e.g., USA, Canada, UK).
What is the research objective of this work?
The goal is to summarize empirical research regarding the influence of national culture on CSR, identify how these concepts are measured, and determine if prescriptive management conclusions can be drawn.
Which scientific methods are used to measure culture in this research?
The thesis utilizes established frameworks, specifically Geert Hofstede’s six-dimensional model and the Global Leadership and Organisational Behaviour Effectiveness (GLOBE) project's nine-dimensional model.
What does the main body of the work cover?
The main body covers the theoretical definition of culture in business ethics, a detailed review of cross-cultural CSR studies, and a critical discussion of the methodological inconsistencies found in the existing literature.
Which keywords define this academic work?
Key terms include Corporate Social Responsibility, National Culture, Confucian-influenced Culture, Guanxi, Business Ethics, and cross-cultural performance metrics.
How does the concept of 'Guanxi' impact CSR in Confucian societies?
Guanxi acts as a fundamental network-based mechanism for business interactions. In the context of CSR, it shifts the focus towards relationship-based business practices, which can sometimes be perceived as conflicting with Western, rule-based CSR standards.
Why are the findings in this field often considered contradictory?
Contradictions arise because different studies use diverse data sources, inconsistent definitions of CSR, varying control variables, and different institutional contexts, making it difficult to establish a single, universally accepted link between specific cultural dimensions and CSR outcomes.
- Quote paper
- Eva Lena Richter (Author), 2017, The role of culture and nationality in ethical business decisions, Munich, GRIN Verlag, https://www.grin.com/document/387952
