Diversity in Decisionmaking of the Global Business Environment

&nbsp.A rival company has been awarded three previous contracts – and should this money not be paid, this contract will go to the rival company, too. A Code of Ethics does exist for the bidding company – a paragraph relating to the practice of “buying influence” is not clear and defined, though, and the marketing manager is required to make the call to go ahead and take full responsibility for the decision.&nbsp.A rival company has been awarded three previous contracts – and should this money not be paid, this contract will go to the rival company, too. A Code of Ethics does exist for the bidding company – a paragraph relating to the practice of “buying influence” is not clear and defined, though, and the marketing manager is required to make the call to go ahead and take full responsibility for the decision.

Scenario One: Discussion Almost universally, corruption is increasing in business across the globe. The need to prevent such corruption is obvious. At the same time, however, business cultures in different places may define corruption in different ways. If the stereotype is applied to the culture of the Middle East, it may seem that the use of a bribe is expected.&nbsp.It may also be argued that there is a notable difference between the individualist cultures of the Western (largely European and North American) world and the collectivist cultures dominant in the Asian, South American, and Middle Eastern world. In collectivist cultures, the good of the community, the society, or even the country takes precedence over the good of the individual person. The collectivist culture of the Middle East also stereotypically suggests that a family member could be advantaged by the business conducted by his/her relative.&nbsp. In such collectivist cultures, the use of intermediaries may be essential – trust is not given easily to the outsider, and agents or intermediaries may be used to build a trust relationship. In the scenario outlined, however, the family member is acting in addition to the agents the company is already using to bid for this contract. This family member has no discernible official role in these negotiations.&nbsp.

A major caution in this line of reasoning is, however, that the individual can never be seen to fit the stereotype of a particular group.&nbsp. The government minister’s relative maybe just a crooked individual, looking to make some quick money, without the knowledge of the minister.