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Ehtic Issues in different cultures

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Ehtic Issues in different cultures
Ethical issues across cultures: managing the differing perspectives of China and the
USA
Dennis A. Pitta

Professor of Marketing, University of Baltimore, Baltimore,
Maryland, USA

Hung-Gay Fung

Dr Y.S. Tsiang Professor of Chinese Studies, University of Missouri,
St Louis, Missouri, USA

Steven Isberg

Associate Professor of Finance, University of Baltimore, Baltimore,
Maryland, USA
Keywords China, Consumer behaviour, Ethics, Marketing strategy, National cultures,
USA
Abstract US marketers know the US standard of ethics. However, that standard can lead to ethical conflict when Americans encounter the emerging market giant, China. As smaller US companies enter China, the potential for ethical conflict increases. Reducing that potential requires knowledge. Knowing the nature and history of the two cultures can lead to an understanding of the foundation of their ethical systems. Ethics and the expectations within cultures affect all business transactions. It is vital for Western marketers to understand the expectations of their counterparts around the world.
Understanding the cultural bases for ethical behavior in both the USA and China can arm a marketer with knowledge needed to succeed in cross-cultural business. Implementing that knowledge with a clear series of managerial guidelines can actualize the value of that understanding.

Introduction
Western businesspeople often concentrate on the fundamentals. In the business and marketing sense, the fundamentals are:
.

sound marketing strategy;

.

professional marketing research;

.

world-class product development;

.

effective pricing;

.

motivating promotion; and

.

appropriate distribution.

Focusing on the basics makes success in competitive markets possible.
However, serious problems can materialize in business practice between the
West and the emerging market giant, China.
Cultural factors

The difficulty lies in more fundamental issues than



References: Armstrong, R.W. and Sweeney, J. (1994), ``Industry type, culture, mode of entry and perceptions of international marketing ethics problems: a cross-cultural comparison ' ', Honeycutt, E., Siguaw, J. and Hunt, T.(1995), ``Business ethics and job-related constructs: a cross-cultural comparison of automotive salespeople ' ', Journal of Business Ethics, Jackson, T. and Artola, M., (1997), ``Ethical beliefs and management behaviour: a crosscultural comparison ' ', Journal of Business Ethics, Vol. 16, pp. 1163-73. Jeurissen, R.J.M. and van Luijk, H.J.L. (1998), ``The ethical reputations of managers in nine EU-countries: a cross-referential survey ' ', Journal of Business Ethics, Vol Kluckhohn, F.R. and Strodtbeck, F. (1961), Variations in Value Orientations, Row Peterson, Evanston, IL. Kohls, J. and Buller, P. (1994), ``Resolving cross-cultural ethical conflict: exploring alternative strategies ' ', Journal of Business Ethics, Vol Muller, J.Z. (1993), Adam Smith in His Time and Ours: Designing the Decent Society, Free Press, New York, NY.

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