A Cross-Cultural Study Of The Effects Of Culture On Ethical Decision Making

As more and more firms operate globally, an understanding of the effects of culturaldifferences on ethical decision making becomes more important for avoiding potentialbusiness failure and for adopting effective international management. Although severalstudies have explored this area, cultural dimensions have not received enough attention.Hence, the purpose of this study is to examine differences in ethical decision makingin the context of Hofstede's cultural dimensions. The results confirm the utility ofHofstede's cultural dimensions. Sales people from a high power distance, Confucian,collectivist culture (i.e., China) place more value on company and fellow employeeinterests (vis-à-vis self interests) than ones from a masculine, individualistic culture(i.e., the United States). American and Chinese managers do not differ in deontologicalnorms or the importance that they place on customer interests.The managerial importance of these findings and suggestions for further studies arealso discussed.