A Key Role of Culture

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The following sections examine the importance of national culture in the business context.How People See Themselves: In some countries people are viewed as basically honest and trust worthy where as in others as suspicion and distrust. This may result from the way people see themselves. They assume others are like them. they set certain schemas about different people. For example, it took Mc Donald’s a year to realize that Hindus in India does not eat beef, this hamper their sales initially until they get shifted to lamb meatEthical Decision Making: Society continues to be apprehensive about the impact of ethics on decision making. The increased globalization of today’s business suggests that more emphasis should be given to the potential impact of culture on ethical decisions. Understanding of cross-cultural ethical differences is quite important in today’s world because the ethical standards are variable in different cultures.Individualism versus Collectivism: Individualism refers to people regarding themselves as individual like USA, Canada, Britain etc, while collectivism refers to people regarding themselves as a part of a group like Japan, China, Israel etc. The differences between the two reflect in many ways, such as in hiring practice. In countries where individualism is important, job applicants are evaluated on the basis of personal, educational and professional achievement where as in group oriented societies applicants are evaluated on the basis of trustworthiness, loyalty.