Group 1

International Business & Trade
Cultural and Ethical

Considerations:
What is Culture?
Culture
The term culture refers to the finer things in
life, such as the fine arts, literature, and
philosophy.
The only requirement for

being cultured is to be human.
This means that all people have culture
“Culture is everything that people have, think,
and do as members of their society”
CULTURE IS LEARNED:
Culture is transmitted through the process of
learning and interacting with one’s environment,
rather than through the genetic process.
How is Culture transmitted?
Socialization: Individuals learn cultural norms, values, beliefs, and behaviors through
the process of socialization. This typically starts in early childhood and continues
throughout one's life. Family, peers, educational institutions, and other social
institutions play crucial roles in this process.
Cultural Institutions: Institutions such as schools, religious organizations, and

community groups contribute to the transmission of culture. These institutions
often have explicit roles in teaching cultural values and practices
Observation and Imitation: People often learn by observing the behaviors of

others and imitating them. This observational learning is a significant mechanism
for the transmission of cultural practices.
CULTURAL UNIVERSALS
All cultures of the world, despite many differences, face a number of common
problems and share a number of common features, which we call cultural
universals.
CULTURAL UNIVERSALS
Economic Systems
Forms of distribution:
No societies in the world have access to an infinite supply of such
basic resources as food, water, clothing, and housing materials.
Each society must develop systematic ways of producing,
distributing, and consuming these essential resources
CULTURAL UNIVERSALS
Marriage and Family Systems
All societies have patterned systems of marriage
No society permits random mating, for all societies have worked
out rules for determining who can marry whom, under what
conditions, and according to what procedures.
And since human infants (as compared with the young of other
species) have a particularly long period of dependency on adults,
every society needs to work out systematic ways of meeting the
needs of dependent children.
CULTURAL UNIVERSALS
Educational Systems
A society must have an organized way of passing on its cultural
heritage from one generation to another
Along with ensuring that the basic physical needs of the child are
met, a society must see to it that the children learn the way of
life of the society.
CULTURAL UNIVERSALS
Social Control Systems
Must develop some established ways of preserving social order;
that is, all societies must develop mechanisms that will ensure
that most of the people obey most of the laws most of the time.
If this need is not met, people will violate each other's rights to
such an extent that anarchy will prevail.
CULTURAL UNIVERSALS
Supernatural Belief Systems
Societies must develop supernatural belief systems for explaining
these unexplainable occurrences
The way people explain the unexplainable is to rely on various
types of supernatural explanations such as magic, religion,
witchcraft, sorcery, and astrology
CULTURAL CHANGE
CULTURAL CHANGE
All cultures experience continual change.
Cultural Diffusion
Cultural change is the result of diffusion.
CULTURAL CHANGE
According to a study by Everett Rogers (1971,22-23), the
rapidity with which an innovation is adopted or, indeed, whether
it will be adopted at all-is affected by the following five variables:
Relative advantage: the extent to which an innovation is

thought to be superior to whatever it replaces
Compatibility: the extent to which an innovation is perceived
to be congruous with the existing cultural values, attitudes,
behavior patterns, and material objects
CULTURAL CHANGE
Complexity: the ease with which an innovation can be
understood and utilized
Trialability: the degree to which an innovation can be tested
on a limited basis
Observability: the extent to which people in the society can
see the positive benefits of the innovation
“Most culture change occurs through a process of diffusion”
ETHNOCENTRISM
Ethnocentrism refers to the tendency of individuals or groups to evaluate and judge another
culture based on the values and standards of their own culture. It involves seeing one's own culture
as superior and viewing other cultures through the lens of one's own cultural norms and beliefs.
Cultural Bias: Ethnocentrism involves a bias toward one's own culture, often
leading to the belief that one's cultural practices, beliefs, and values are
superior to those of other cultures.
CULTURES ARE INTEGRATED
WHOLES
Cultures should be thought of as integrated wholes-that is, cultures are coherent
and logical systems, the parts of which to a degree are interrelated.
This statement suggests that cultures are complex, interconnected systems comprising various elements that
work together to create a cohesive and functioning whole.
The various parts of a culture are all interrelated
to some degree.
Ethical Challenges in cross border business
Child Labor - is the practice of employing children, usually in exploitative and

harmful work that prevents them from enjoying their childhood.
Workplace Diversity - refers to the practice of hiring individuals from different backgrounds and
demographics in order to create a more inclusive and productive work environment.
Working Standard- is the minimum requirements and regulations enforced by governments or industries to
ensure safe, fair, and decent working conditions for employees.
Human rights
issues that arise when businesses operate across different countries and cultures.
These can include problems with labor rights, discrimination against certain groups of
people, environmental concerns, and corruption.
Equal Employment Opportunity
The ethical challenges related to equal employment opportunity in cross-border business involve ensuring
fair hiring processes and compliance with local regulations to avoid discrimination based on factors such as
race or gender.
Trust and Integrity - are important ethical considerations in cross-border business.
Companies must maintain transparency and honesty in their operations to build trust
with stakeholders, such as employees, customers, and suppliers.
Thank you!

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International Business & Trade

Cultural and Ethical

The only requirement for

Cultural Institutions: Institutions such as schools, religious organizations, and

Observation and Imitation: People often learn by observing the behaviors of

Relative advantage: the extent to which an innovation is

Child Labor - is the practice of employing children, usually in exploitative and

Equal Employment Opportunity

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