National difference in Political, Legal, Culture
Subject: Business Ethics For Bharathiar University Students
Published on: Mar 5, 2016
Transcripts - National difference in Political, Legal, Culture
NATIONAL DIFFERENCE IN
R.Gnanaraj B.Com., (CA), MBA
• A Political System is a system of politics and
• It is usually compared to the law system, economic
system, cultural system, and other social systems.
Political systems can be assessed
• In terms of the degree to which they emphasize
collectivism as opposed to individualism.
• In terms of the degree to which they are democratic or
• Collectivism refers to a system that stresses the primacy
of collective goals over individual goals.
• When collectivism emphasized, the needs of society as a
whole are generally viewed as being more important than
• Individualism is the opposite of collectivism.
• Individualism is a political philosophy that suggests
individuals should have freedom over their economic and
• Who believed that all citizens are politically and legally
equal, and hence were entitled to freedom of thought,
opinion, belief, speech, and association.
• Totalitarianism means one person or political party
exercises absolute control.
o Communist totalitarianism
o Theocratic totalitarianism
o Tribal totalitarianism
o Right-wing totalitarianism
• Today we live in global economy where we use goods
manufactured in one country and packaged in another
• Businesses have cross boundaries of countries and
expanded themselves across the world, in search of
availability of raw materials, cheap labor, talent and
market for their goods.
• Doing business internationally is totally different than in
• Business people have to well aware of country's culture,
people’ behavior, country’s legal system, its political
environment and economical conditions.
Major Legal System:
• Developed in England in the 11th century – UK, Ireland,
USA (except Louisiana), Canada (except Quebec),
Australia, India, Hong Kong.
• The common law is more flexible than statutory law.
• Common law courts are not absolutely bound by
precedent, but can reinterpret and revise the law, without
legislative intervention, to adapt to new trends in
political, legal and social philosophy.
• It is a legal system inspired by Roman law.
• It is also known as Code law.
• Code law is based on an all inclusive system of written
rules of law. Under code law, the legal system is generally
divided into three separate codes: Commercial law, Civil
• This system is based on religious teachings, as they are
enshrined in the religious scriptures.
• Islamic law, Sharia, is the most widely practiced religious
legal system in todays world.
Mixed legal systems
• Mixed legal systems are mostly defined as the
Combination of civil law and common law.
• Examples - South Africa, Louisiana, Israel.
Indian legal system
• A unique feature of the India Constitution is the judicial
• A single integrated systems of courts administers both
union and state laws.
• The Supreme Court of India, seated in New Delhi, is the
highest body in the entire judicial system.
What is Culture?
• Culture is a system of values (abstract ideas about what a
group believes to be good, right, and desirable) and
norms (the social rules and guidelines that prescribe
appropriate behavior in particular situations) that are
shared among a group of people and that when taken
together constitute a design for living.
• A society is a group of people who share a common set of
values and norms.
The Determinants of Culture
• A society's social structure is its basic social organization.
Two dimensions to consider:
• The degree to which the basic unit of social organization
is the individual, as opposed to the group.
• The degree to which a society is stratified into classes or
Religious and Ethical Systems
• Religion is a system of shared beliefs and rituals that are
concerned with the realm of the sacred.
• Ethical system refer to a set of moral principles, or
values, that are used to guide and shape behavior.
• Religions with the greatest following are
o Christianity (1.7 billion adherents)
o Islam (1 billion adherents)
o Hinduism (750 million adherents)
o Buddhism (350 million adherents)
Individuals and Groups
• A group is an association of two or more individuals who
have a shared sense of identity and who interact with each
other in structured ways on the basis of a common set of
expectations about each other’s behavior.
• In societies where the individual is emphasized
• individual achievement and entrepreneurship are
• but, this can encourage job switching, competition
between individuals in a company rather than team
building, and a lack of loyalty to the firm.
• In societies with a strong identification with the group
• cooperation and team work are encouraged and life
time employment is common.
• but, individual initiative and creativity may be
Public Policy and Legal Framework
• Government Policies and legal systems of different
countries also reflected the culture values of the country.
These legal and policy frameworks influence business
practices in two ways:
• They determine the board framework for doing business in a
• They Influence and circumscribe management practices within
• Formal education is the medium through which individuals
learn many of the language, conceptual, and mathematical
skills that are indispensable in a modern society.
• The knowledge base, training, and educational opportunities
available to a country's citizens can also give it a competitive
advantage in the market and make it a more or less attractive
place for expanding business.
• Countries differ in terms of language or means of
• There are two forms language
• Language is one of the defining characteristics of
• Countries with more than one spoken language
often have more than one culture.
• Chinese is the mother tongue of the largest number of
people in the world.
• English is the most widely spoken language in the world,
and is becoming the language of international business.
• Unspoken language refers to nonverbal cues.
• Unspoken language such as facial expressions and hand
gestures can be important for communication.
• Employees who are motivated to work long hard are
generally more productive than those who are not. On an
aggregate basis, this will have a positive effect on
economic development and national competitiveness.