1. CHINA, MEXICO & THE USA: ENTREPRENEURIAL ETHICS.
- Author
-
Goodman, JoAnne, Hu, Ivan, and Steinberg, Hannah
- Subjects
ENTREPRENEURSHIP ,BUSINESS ethics ,CUSTOMER services ,EMPLOYEES ,LOYALTY - Abstract
Sales of goods and services - power distance at a lower level in US are apparent with having unions. Here the members of the group ascertain that they are employed under fair conditions with fair pay. (Elaborate a little on unions). Unethical business practices occur when these members underperform in their jobs but cannot be fired because of union the protection of the unions. The effect is a decline in customer service. Mexico experiences a higher degree in the power distance in Hofstedes model. In their businesses, employees do not necessarily question their status in the hierarchy or in pay. They do not have unions as in the US, therefore employees are more readily willing to work for far less pay than in America. Customer service in this country is potentially much better than in the US for this reason. Individualism vs collectivism- America appears to lean towards individualism because people here tend to only take care of themselves or immediate family. Mexico describes collectivism in the sense that the people there, as in families, tend to take care of extended families as well. It is much more of a loyalty based approach. The model is reversed in a business setting. In the US, for example, businesses highly regard employees and strive to keep high retention rates. High turnover rates are costly to businesses so creating loyalty is important. Pay raises, benefits, and other incentives such as bonuses also assure better customer service. In Mexico, high turnover is not a primary concern and customer service possibly does not suffer since jobs are readily accepted with low wages. Masculinity vs femininity- US describes femininity in that women share the same modest and caring views as men do. In a business environment, women are still aiming to bridge the gap with higher number of women in top executive positions and higher pay so a sense of masculinity still lingers. There isn't a difference in customer service from a male vs a female either. Mexico, on the other hand, exhibits a masculinity environment in that men assume a higher authoritative place in society, to a degree, than women do. Their business culture mirrors, to a degree, that of the US. Theirs, however, does appear to lean more in masculine side than the US. Pushing for female. Ethics, Hofstede's Cultural Dimensions, and Strategic Customer Service in the United States and China As the two premier economic powerhouses, the United States and China have reached their titanic status through different approaches in both culture and business. Careful analysis of these different approaches in ethics, cultural dimensions, and strategic customer service offers insight into the similarities and differences behind the success of these nations. The United States has historically been a nation of ideals and was born from the pursuit of socio-theological principles. The importance of individual freedoms has translated into the free nature of the American market economy. Efficiency and effectiveness are stressed, and business contracts ensure that agreements are carried out under threat of law. Conversely, Chinese business ethics stresses particular social groups and "guanxi", or the network of relationships among parties that support each other. This concept extends into the business sphere as well as many other day-to-day dealings. Relationships are championed before the transaction, and trust is an important currency. Familiarity, verbal promises, and consideration are much more valuable in Chinese business ethics than that of American business ethics. The differences between American and Chinese cultural dimensions are readily apparent when examined under the lens of Hofstede's six dimensions. While the United States and China score similarly in masculinity, which defines the extent to which a society is driven by competition, achievement, and success, other dimensions are much more dichotomous. The Chinese score an 80 on the power distances scale, which is exceptionally high. They freely embrace the fact that power is unevenly distributed among individuals, while Americans are much less wont to do so. In the same vein, the American culture scores exceptionally high in individualism. At 91 points, the American populace generally defines themselves in terms of "I". People generally look after themselves and their immediate family, and often conduct business with people they don't know too well. The Chinese take the opposite stance. Groups and friendships are valued, stemming from the concept of "guanxi" touched on previously. The last dimension of particular interest is that of long term orientation. The Chinese scored an 87, indicating that it is a very pragmatic culture. The Chinese adapt according to varying circumstances. Conversely, the United States scores low in the dimension with a 26. Americans are more prone to view societal change with suspicion. Additionally, American business focus more intently on the short-term basis, with particular emphasis placed on quarterly reports and quick results. Customer service offers an important source of competitive advantage. Cultural considerations are paramount to success, and Hofstede's cultural dimensions offer a good starting point. Countries scoring high in power distance treat the customer as king, such as in China. Respect shown to customers is important in China, while customers are often slighted in the United States. Furthermore, individualism gives insight into whether customer service should focus on the task or the relationship. In the United States, it is more important to fix the task or product. However, in China it is more crucial to rebuild good faith and to restore relationships when a business deal fails. Careful consideration of cultural differences and its effect on customer service will add value to a business and improve its image. [ABSTRACT FROM AUTHOR]
- Published
- 2017