Institutions: Regulatory Pillar legal system, governmentNormative Pillar group culture, historyCognitive Pillar personal ethicsPolitical Systems:Democracy,TotalitarianismLegal Systems:Civil law,Common law,Theocratic lawProperty Rights, Intellectual Property RightsEconomic Systems: Market Economy,Command Economy,Traditional Economy2 Elements of Culture1. Language_Lingua franca, 2. ReligionContext Approach Context the background against which interaction takes place Low Context: North America, Western Europe Communication is taken at face value High context: Asia, Middle East Communication relies on unspoken assumptionsClusters groups of countries that share similar cultures

Hofstede identified 5 dimensionsPower distanceHigh Power Distance: Brazil, Low Power Distance: SwedenIndividualism v. collectivismIndividualist: US, Collectivist: ChinaMasculinity v. femininityHigh Masculinity: Japan, Low masculinity: SwedenUncertainty AvoidanceHigh Avoidance: Greece, Low Avoidance: SingaporeTime orientationLong term: China, Short term: PakistanStrategic responses to ethical challengesReactiveDeny responsibility, do less than required. Ex. Ford PintoDefensiveBegrudgingly admit responsibility, do the minimum that is required. Ex. NikeAccommodativeAccept responsibility, do all that is required. Ex. ToyotaProactiveAnticipate responsibility, do more than is required. Ex. BMWmanagerial CSR. Corporate Social Responsibility1. Understand the rules of the game, anticipate changes, and see to shape/influence changes.2. Pick CSR battles carefully. Dont blindly imitate other firms CSR activities.3. Integrate CSR as part of the core activities and processes of the firm. Faking it doesnt last long. Stakeholders1. Primary Stakeholders2. Secondary StakeholdersSustainability