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Over the last decade, the topic of social responsibility and ethics in business has been of significant interest to scholars. However, few studies have been cross-cultural in content, even though existing theoretical models recognize the importance of this factor (e.g., Ferrell and Gresham, 1985; Hunt and Vitell, 1986 and 1992). Bartels (1967) was one of the first to note the importance of the role of culture in ethics decision-making identifying cultural factors such as values and customs, religion, law, respect for individuality, national identity and loyalty (or patriotism), and rights of property as influencing ethics.
In their general theory of marketing ethics, Hunt and Vitell (1986, 1992) incorporated cultural norms as one of the constructs that affect one's perceptions in ethical situations. The influence of cultural and group norms/values on individual behavior was also noted by Ferrell and Gresham (1985) in their contingency framework for understanding ethical decision making within a business context. However, neither these theoretical conceptualizations of ethical decision-making nor subsequent empirical investigations tell us how culture influences ethics and ethical decision-making.
In the present paper, the authors provide a conceptual framework as to how culture influences one's perceptions and ethical decision-making in business. In order to accomplish this task, the authors have adopted the cultural typology proposed by Hofstede (1979, 1980, 1983, 1984) regarding the differences between countries based on certain cultural dimensions. With respect to business ethics, the authors have adopted the revised model proposed by Hunt and Vitell (1992). Our overall objective is to develop research propositions that involve the relationship between the cultural component and other elements of decision-making in situations involving ethical issues.
THE CULTURAL TYPOLOGY
Hofstede argues that societies differ along four major cultural dimensions: power distance, individualism, masculinity, and uncertainty avoidance. This cultural typology is based on the findings of several studies (i.e., Hofstede, 1979, 1980, 1983, 1984). According to Hofstede (1984), power distance is the extent to which the less powerful individuals in a society accept inequality in power and consider it as normal. Although inequality exists within every culture, the degree to which it is accepted varies from culture to culture. Hofstede defines individualist cultures as being those societies where individuals are primarily concerned with their own interests and the interests of their immediate...