Cross Cultural Business Practice | Report

Running head: MANAGEMENT
Management
Name of the student
Name of the university
Author note

1MANAGEMENT
Introduction
Ethics has become the complex practice in especially for the Asian countries. Analyzing the
current business scenario, it has been identified that following the ethical practice has become
quite challenging for the managers (Powell, 2017) . In the recent years, the ethical failure and
wide spread of leadership in some of the most profitable companies in Asia has become the
burning topic. It has it has been identified that while focusing on the business goals the ethical
practices are being ignored by the companies. The principle of business ethics get developed
based on the moral philosophy of the leaders (Rohati, Norlida & Jamal, 2016). Analyzing the
Asian workplace environment, it has been identified that managing the moral management mode
of leadership is quite challenging. From the last few decades, ethical management has become
the vital concern as lack of acceptance towards the management ethics, the situation has turned
into this in Asian region. Market competitiveness has become an important factor that is creating
challenge for the managers to continue the ethical practice (Xu, Loi & Ngo, 2016). Therefore,
due to competitiveness and survival, maintaining the consistency of ethical leadership approach
in the workplace has become challenging. The purpose of this study is to critically analyze the
challenges faced by the organizational leaders to implement the ethical practice in the workplace.
Discussion
Cross cultural business practice is quite dominant in the Asian countries, which significantly
dominates the organizational culture (Oh, Chom & Lim, 2018). Analyzing the situation in
Malaysian government agencies, it has been identified that corporate scandals and the poor
performance have become the common practices in the workplace. By continuing this, Crane et

2MANAGEMENT
al., (2019) stated that unethical practices as well as lack of transparency have become common
after the global financial crisis in 2008 (Abidin et al., 2019). In this situation managing the funds
of the companies, rather than focusing on the ethical behavior, the managers have shifted their
attention from ethical practice top business profitability. Weak corporate governance in the
institutional level occurs due to the lack of understanding of the society regarding ethical norm.
by supporting this Oh, Cho & Lim (2018) stated that in the Diversified working culture,
discrimination and the harassment have become the common concern for the managers in terms
of maintaining the ethical codes. Unrealistic as well as conflicting goals make the workplace
culture toxic. In the year 2014, the ASEAN governance score board has reported improper
ethical practice and MCCG compliance statement (Abidin et al., 2019). Manipulation in sales
figures and high bullying culture has influenced such situation. Analyzing the Asian companies,
it has been identified that the large portion of the workforce comes from the developing and
underdeveloped countries. In that case, low wages and cultural harassment have become the
common practices in the workplace. In this situation hiring process has become influenced by the
cultural fit approach, which is the main reason behind discrimination. In this situation, allowing
the employees to maintain their personal values and promoting the moral approach become
challenging. Therefore, analyzing the situation in Asian countries, it can be said that lack of
monitoring and employee approach are the major reason behind negative workplace culture.
The concept is ethics is highly related to the corporate governance. The concepts such as anti-
corruption, transparency and integrity are the ethical concepts, which are being emphasized with
the codes of corporate governance (Crane et al., 2019). In order to integrate the ethical practices,
code of ethics, whistle-blowing policy and ethics training are being included in the companies
ethical governance practice. In the year 2017, the report has been published, where it has been

3MANAGEMENT
identified that only 28% of the companies in Asia have the anti-corruption policy. In the year
2016, the implementation of code of ethics has dropped 38% and in the year 2017, it reached
26% (refer to appendix 1). Analyzing the five years trends of corporate governance on the
Malaysian companies, it has been identified that in between the year 2012 to 2018, the overall
corporate governance score has been increased, however, the implication of ethical practice
awareness is still low (Crane et al., 2019). It is true that lack of disclosure related to the corporate
ethical conduct, the unethical operational practices are still an important concern in the Asian
corporate culture. It is true that improper ethical commitment towards building the ethical
indicator, the disclosure measuring process has got affected. The ethical commitment of the
company can significantly influence the level of ethics towards the stakeholders that helps to
reduce the cost. With the variety of measures, ethical programs have become the instrument for
measuring the ethical dimensions in the workplace. As an example it can be said that Lembaga
Tabung Haji and Malaysia Development Berhad (1MDB) have faced recent financial losses
reported by Khazanah National Berhad. The evidences have been provided by the authority,
where it has been mentioned that despite sound corporate governance initiatives by the
regulators, the unethical conduct as well as mismanagement by managers is still important
concern (Abidin et al., 2019).
Analyzing the ethical practice in the South Korean organizations like POSCO, it has been
identified that in order to attract the stakeholders, the ethical practices have become an important
strategic tool adopted by managers in the company (Christensen, Lægreid & Rovik, 2020). In
order to get create value towards the stakeholders, the ethical commitment is being followed.
Code of ethics can be defined as the disciplinary action against the unethical behavior. It is true
that the code of ethics includes the employee appraisal program, ethics commitment and ethical