Preview

Ethical Dilemma

Powerful Essays
Open Document
Open Document
1565 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
Ethical Dilemma
Ethical Dilemma
International OB: Managing across Cultures.
3M tries to make a difference Russia

Should 3M export its American ethical standards to Russia?

1. If 3M doesn’t like the way things are done in Russia, it shouldn’t do business there. Explain your rationale. I do not agree with this statement. From my marketing perspective, it is a challenge of 3M in order to go worldwide, and this is a challenge they should take. Russia is booming in oil and gas, mining, construction, IT, retail, and service sectors. (Klumov, 2006). 3M should realize its company is a world leader in a wide range of business areas industrial and office market telecommunication, traffic control materials, and many others (3M.com, 2008). Therefore, I don’t think it is a hard job for 3M to do business in Russia. A ton of 3Mproducts could supply to the Russia local market needs. According to the Organization Behavior (OB) concerns, American and Russia culture are different, but they have some similarities. Both countries are multi-ethnic, continental, great powers, expansionists, tamed a wilderness, and settled by a variety of diverse groups. The countries both think “Big” are energetic and inventive. (Richmond and Goehner, 1998). Another supporting that doing business in Russia is possible is the results of research of Mikhail Gratchev, 1996 CPE Ethics Fellow, (1999). He found, there were certain similarities in ethical perceptions regarding corporate activities. For example, in calling in sick in order to take a day off, in using company time for non-company benefits, and even in divulging confidential information to parties external to the firm. One third of Russian respondents and one-fifth of Americans mentioned it was ethical to use company services for personal use (p. 8). In short, 3M should do business in Russia. It will not be easy at the beginning, but in the long run, success is just around the corner. 2. 3 M should do business in Russia but not meddle in



References: 3M.com. (2008). Our company. Retrieved on January 28, 2008. Carlson, M. (2007). Hall humanities lecture 10 April 2007 7:30 pm. Woodruff Auditorium, Kansa Union. Lawrence: University of Kansas. Retrieved on January 28, 2008 from http://duscholarworks.ku.edu/dspace/bitstream/1808/1368/1/carlson _hall_lecture_10apro7.pdf. Fey, F., C. & Shekshnia, S. (2007). How to do business in Russia. Business Insight. Retrieved on January 28, 2008 from http://sloanreview.mit.edu/wsj/insight/global/2007/10/26/ Goehner, D., & Richmond, Y. Summarized by Goehner, D. (1998). Russian/American cultural contrasts. Mining Co. Retrieved on January 28, 2008 from http://www.goehner.com/russinfo.htm. Gorrill, R., J. (2007). Doing business in Russia/Russian social and business culture. Communicaid Ltd. 2007: Source: CIA the world factbook 2007. Retrieved on January 28, 2008 from http://www.communicaid.com/cross-cultural- training/culture-for-business-and-management/doing-business-in/Russian- business-and-social-culture.php Gratchev, M. (1999). CPE celebrates success with Rosenberg project “drama discussions”: Ethical Russian entrepreneurship: Does it exist? (vol. 1. n. 4). Western Reserve University: Center for professional ethics. Retrieve on January 28, 2008 from http://www. Case.edu/groups/cpe/issues/summer1999.pdf Klumov, G. (2006). Seal your deal in Russia’s economic boom. Australian Government Austrade. Retrieved on January 28, 2008 from www.austrade.gov.au/Article Documents/1418/GK-presentation-whn-Russia-web.pdf.aspx- Kreitner, R. & Kinicki, A. (2007). Organizational behavior. (7th ed.). New York: McGraw-Hill Irwin.

You May Also Find These Documents Helpful

  • Good Essays

    I. The world has wondered what to believe about Russia for centuries. The country has been known to have unbelievable riches, tyrants, great minds, beautiful ballets and indescribable poverty. St. Basil Cathedral, the Moscow Kremlin, the Red Square.…

    • 651 Words
    • 3 Pages
    Good Essays
  • Satisfactory Essays

    1. Why are Russia and Eastern Europe of interest to international managers? Identify and describe some reasons for such interest.…

    • 455 Words
    • 2 Pages
    Satisfactory Essays
  • Good Essays

    It is no secret that the Russian government is very different from the United States, which may be a bit intimidating for an American journalist entering into the unfamiliar political world of Bloomberg. Relocating from a completely individualistic society to a collectivist society will require major adjustments when collaborating in an intercultural environment. Since Russia is mainly collectivist, the power distance between power holders and society is very approachable. When compared to the United States, this may not always be the case; this is very different from the American way of life because power distance is obvious, while it may not always be in the Russian culture. “Power distance is defined as the extent to which less powerful members of society expect and accept that power is distributed unequally” (Jandt, p.168). Geert Hofstede explains this power distance and how it is measured in his cultural dimensions theory.…

    • 1546 Words
    • 7 Pages
    Good Essays
  • Better Essays

    Everyone knows that the key to effective communication is knowledge. And cross-cultural communication is not an exception to the rule. Quite the contrary we have to know not only the basic data about our foreign partner, but also we ought to be acquainted with numerous rules and standards of behavior established in his or her country. To negotiate with our partner we should possess both the minimum personal information about him or her and the maximum information about his or her country. In this essay I’d like to examine differences and common points in styles, traditions and etiquette of the US and Russian negotiations. I believe that present relations between the United States and Russia are quite good. The two countries still have differences, but they increasingly work together on a wide range of political, economic, cultural issues. Despite the fact that we can still destroy each other with our nuclear weapons, our businessmen and entrepreneurs work very closely, and Russian-American enterprises and firms develop with increased speed nowadays. Naturally I reckon it makes no sense to have all those warheads. The Cold War is over, and the best thing our countries can do is to be reconciled and to get along well with each other. And business partnership is one of the factors to establish friendly bilateral relations in all aspects of cooperation. However, sometimes it is very difficult to build relationships with people of different cultures, mentalities and customs. And this point concerns both our peoples too, because the Russians utterly differ from the Americans. In fact I consider that actually we also have much in common. So further in this essay I’m going to compare our countries’ negotiation styles and traditions, and to define how much differences we have and how much we have in common.…

    • 1258 Words
    • 6 Pages
    Better Essays
  • Good Essays

    Dti in Russia

    • 2471 Words
    • 10 Pages

    Lesson 2~Granum learned from the analyses of the GLOBE indicators and rankings for Russia that there where some cross-cultural differences that could create serious obstacles for developing an organizational culture for the Russian subsidiary. That most Russian managers’ willingness to launch large-scale projects, decisiveness, and ability to make decisions and assume responsibility, ability to react quickly and operate in an unstable environment were conveyed through the comparison of the Russian and American Globe profiles. But with the recent changes, Granum feels that these are examples of positive corporate cultures.…

    • 2471 Words
    • 10 Pages
    Good Essays
  • Powerful Essays

    Many reports, studies and TV programs are stating that corruption is a way of life for Government officials in Russia and bribe-taking is a routine practice throughout the Russian bureaucracy. There are many cases of government officials demanding bribes, also of their connections and even partnership with criminals and others covert business groups. Solving difficulties by bribing officials became some kind of natural policy for doing business for Russian businessmen and for foreign investors, even for the ordinary people too. According to a poll conducted in early 2010, 15% of Russians…

    • 3378 Words
    • 14 Pages
    Powerful Essays
  • Satisfactory Essays

    Interventionist, merchantilism, PLC theories do not apply, because Russia doesn’t intend to intervene, nor to encourage export/discourage import, neither is there something like a product life cycle.…

    • 390 Words
    • 2 Pages
    Satisfactory Essays
  • Satisfactory Essays

    Russia is currently involved in several forms of international economic integrations, and is also trying to gain access to new ones in the future. Russia is a member of the Asian-Pacific Economic Cooperation(APEC), Black Sea Economic Cooperation(BSEC), Eurasian Economic Community, and is currently petitioning to join the European Union, as well as, the World Trade Organization.…

    • 414 Words
    • 2 Pages
    Satisfactory Essays
  • Better Essays

    There are many cultural differences between France and Russia that a businessman should know before he goes to Russia in order to adapt himself and limit the risk of an intercultural issue. First, it is important to consider the past of Russia, who was part of the former Soviet Union. People who experienced this regime do not have the same mindset as younger people. The same phenomenon can also be observed with companies. Corporate culture can be totally different depending on its historical background. For example, companies who are less than ten years old usually have a low distance with hierarchy, whereas older ones are much more vertical and bureaucratic. Russia is in fact a very fragmented country and it is important to get a maximum of information about your interlocutors before you meet them. One of the main differences between France and Russia is certainly the importance of relations as a success factor in business. It is crucial to develop and keep alive a strong network of contacts in Russia. Without the help of a Russian, it is almost impossible to do business there. This point can be explained by the fact that Russians do not trust their legal system to solve conflicts. For example, reforms can be taken anytime and two laws can be contradictory. That is why they value human relations much more and need to trust the person they are…

    • 1853 Words
    • 8 Pages
    Better Essays
  • Powerful Essays

    Russian Jv

    • 10856 Words
    • 44 Pages

    Russian law currently does not provide a specific definition of ‘joint ventures’.2 In broad terms, a joint venture is a structure involving two or more independent entities that decide to work together on a specific project. Both contractual (i.e. based solely on a co-operation contract) and incorporated joint ventures are customary in Russia. However, contractual joint ventures (especially in relations between Russian and foreign partners) are relatively rare, partly due to the unfavourable taxation regime of partnerships.3 Russian law generally does not provide any limitations on the types of economic activity that can be pursued in a joint venture.4 However, some industries are subject to special governmental regulation that may directly prohibit or restrict foreign investment, as the section below shows.…

    • 10856 Words
    • 44 Pages
    Powerful Essays
  • Powerful Essays

    Doing Business in Russia

    • 5062 Words
    • 21 Pages

    CIA – The World Factbook Suutari, Vesa., International Journal of Human Resource Management, Apr98, Vol. 9 Issue 2, p235, 24p [4176324] Roemer, C., Garb, P., Neu, J., & Graham, J. (1999). A Comparison of American and Russian Patterns of Behavior in Buyer-Seller Negotiations Using Observational Measures. International Negotiation, 4(1), 37-61. doi: 10.1163/15718069920848363. A Country Study: Russia (Federal Research Division, Library of Congress) Russian/American Culture Contrasts - Research by Duane Goehner and Yale Richmond Gilbert, Kate. In Search of Russian Culture: the interplay of organisational, environmental and cultural factors in Russian-Western partnerships. University of Wolverhampton. Working Paper Series 2001 Naumov A, Puffer S. Measuring Russian Culture using Hofstede 's Dimensions. Applied Psychology: An International Review [serial online]. October 2000;49(4):709. Available from: Business Source Complete, Ipswich, MA. Accessed September 26, 2010. Bollinger, D. (1994). The four cornerstones and three pillars in the 'House of Russia ' management system. Journal of Management Development, 13(2), 49-54. Veiga, J.F., Yanouzas, J.N., and Buchholtz, A.K. (1995). Emerging cultural values among Russian managers: What will tomorrow bring? Business Horizons, July-August: 20-27. "Russia Country Insight". globalEDGE. Accessed 3 February 2010. Ivanchuk, Sergei . "Russia - ExecutivePlanet.com." Main Page - ExecutivePlanet.com. Accessed 3 February 2010. http://www.clamart.net/cross-culture/Pages/well2eng.html http://www.worldbusinessculture.com/Business-in-Russia.html…

    • 5062 Words
    • 21 Pages
    Powerful Essays
  • Powerful Essays

    Besides huge research costs and different/complicated diversions you are facing when investing in Russia, it would definitely be worth taking it in consideration in my opinion.…

    • 2378 Words
    • 10 Pages
    Powerful Essays
  • Satisfactory Essays

    We, Russians, may drive to work in a car designed in Europe, assembled in Korea, manufactured in China, and shipped by a Middle Eastern company. We may wear clothes and shoes made in China, and sometimes depending on your dining preferences eat Italian, Japanese, Chinese, or Georgian food. And as for entertainment flat screen televisions manufactured in China, the Sony PlayStation, the Apple iPod and iPhones, which have become more and more popular gadgets in the Russia.…

    • 319 Words
    • 2 Pages
    Satisfactory Essays
  • Better Essays

    An important part of international exchange is to understand the foreign culture of a country in terms of background, practice and business protocol of the country. In their book Morrison and Conway (2006, p. viii) demonstrate how a simple mistake could have irreversible consequences in international trade. As they explain , every country has a different background which influences businesses behaviour. For example, Belarus proclaimed its independence in 1991. Morrison and Conway (2006, pp. 29, 31) state that even though Russia still influences its education and media interest, it is important to consider its own identity. In fact, Belarusians could be intransigeant for some minor mistakes made about their culture. Then, all businesses need to know the overseas companies practice which are indispensable to create and maintain a good…

    • 1446 Words
    • 5 Pages
    Better Essays
  • Good Essays

    Russia Legal System

    • 448 Words
    • 2 Pages

    The business culture of Russia stems around superiority. Firm handshakes are a sign of power and coincide with their dictatorship attitudes. They are resistant to the western civilized ways which is a measure of…

    • 448 Words
    • 2 Pages
    Good Essays