ETHICAL We can measure the transparency
FRAMEWORK
level of developed countries,
3 developing countries and under- 4 Thus income
Transparency and developed countries based on inequality in under-
FOR
corruption perception index (CPI) Income Inequality
corruption that has been released by
developed countries
transparency international every are very high
BUSINESS
year
Most corrupt
ENVIROMENT
countries
Somalia (9) We can measure
Uses a scale of 0 South Sudan income inequality
to 100 where 0 is (12) based on GINI GINI index for
BY ADAM ZAQWAN BIN highly corrupt and Syria (14) INDEX that has developed countries
ZULKIBRI MIZWAN 100 is very clean been released by are lower compared
D20191087254 to GINI Index in
The World Bank.
under-developed
Least corrupt countries
countries
New Zealand The rule of thumb is
(89) GINI Index
that, the lower the
Denmark (88) Finland 21.5
income inequality,
1 low level of Finland (85) Sweden 24.9
the lower the GINI
income Malaysia 46
Factors that influence mass poverty
Index.
Zambia 57
individual ethical heavy pollution Lack of Capital
South Africa
Formation
behaviour pressure
Agricultural
62
Backwardness
Unemployment
Problem
The Peson From the Historical
Under-
Malaysia for example was perspective, we can see
referring to the family The organization developed Unexploited Natural
influences, religious colonised by Portuguese, that colonization changed
supervisory countries. Resources
values, personal behavior, peer Shortage of Britain, Japan and Denmark, the landscape of economy,
standards, as well as group norms and Technology and Skills for nearly 500 years. politics and social of
developing Lack of Infrastructural
personal needs. behavior colonized and colonial
countries Development
countries.
We can see that the colonial
countries such as
Portuguese, Britain and
The environment 2 Denmark are more advance
5
Government laws and than the colonized
Characteristics of the developed countries Historical
regulations, societal
norms and values, and countries in the world. countries Perspective
competitive climate in
an industry.
Culture is defined as
In India – McDonalds
the collective mental
In Malaysia – Pizza hut sell burger patty in
programming of the
6 human mind which
in Malaysia sells pizza India instead of beef.
rendang and pizza ikan They make the patty
CULTURAL distinguishes one
out of potatoes,
bilis during hariraya.
group of people from
PERSPECTIVE Muslims are not vegetables and spices.
another In business ethics, it is
allowed to involve any
not permissible for a
business related to
male staff to shake
usury, pork, liquor,
hand/ or to touch the
cigar, and bad activities
female staff.
We can look at The such as gambling and
Hofstede Model of sex industry. •Some firms produce
national culture in order food that suit with the
The Hofstede model of to understand the taste buds of the
national culture cultural perspective of 7 society in that country.
consists of six each countries in the RELIGIOSITY
dimensions world.
PERSPECTIVE
(ISLAM)
INDIVIDUALISM VERSUS
POWER DISTANCE INDEX COLLECTIVISM •Muslims women are
•This dimension expresses •Individualism can be defined required to cover their bodies The westerners like to smile and
Bribery, discrimination
the degree to which the less as a preference for a loosely- from head to toe and any greet others when they meet. I
and cheating in
powerful members of a knit social framework in kind of manipulation of remember that when I walk on
which individuals are women for example nudity or business is forbidden in
society accept and expect the street, they always say “hi” to
that power is distributed expected to take care of only any act of shamelessness in Islam
me though we never knew each
unequally. themselves and their the advertisement is not
immediate families. other very well. But, never ask
acceptable.
questions related to their
In China – if they serve personal details, such as their
food, don’t finished age and religion.
INDULGENCE VERSUS MASCULINITY VERSUS them all. It means that
RESTRAINT (IND) FEMININITY (MAS)
Indulgence stands for a •The Masculinity side of this the host is not
society that allows dimension represents a affordable to provide
relatively free gratification preference in society for
enough food for the
of basic and natural achievement, heroism,
human drives related to assertiveness, and material guest, while the Malays
enjoying life and having rewards for success. Society culture behave
fun at large is more competitive.
differently.
8
LONG TERM ORIENTATION
VERSUS SHORT TERM
UNCERTAINTY EXAMPLES OF
NORMATIVE ORIENTATION AVOIDANCE INDEX
(LTO) •Related to how society deal BUSINESS ETHICS
• It focuses on how society with uncertainty and In Singapore – Kiasu is
deal with challenges of the
ambiguity. Countries with PRACTICES
present and the future.
high uncertainty avoidance embedded in their work
Societies who score low on
this dimension, for example, maintain rigid codes of belief culture (which means
prefer to hold with old and behaviour, and are afraid to lose out).
traditions and norms while at
intolerant of unorthodox
the same time dislike and
disengage with changes in behaviour and ideas.
society.