International Business: Hofstede's Cultural Dimensions and CSR

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ASSESSMENT 1 AND 2: INDIVIDUAL ESSAY AND
INDIVIDUAL REPORT
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Table of Contents
ASSESSMENT 1: INDIVIDUAL ESSAY.....................................................................................3
Introduction......................................................................................................................................3
The significance of the Hofstede's cultural dimensions..................................................................3
Importance of Hofstede’s cultural dimensions on the international business.................................4
Suggestions for enhanced cultural dimensions................................................................................6
Conclusion.......................................................................................................................................6
ASSESSMENT 2: INDIVIDUAL REPORT...................................................................................8
Executive Summary.........................................................................................................................8
1. Literature review and its achievements.......................................................................................8
2. Literature review on “Corporate Social Responsibility”.........................................................10
Introduction................................................................................................................................10
Conceptual framework...............................................................................................................10
Definition of corporate social responsibilities (CSR)................................................................10
Role of CSR to attract consumers..............................................................................................11
Stakeholder theory of CSR........................................................................................................12
Triple Bottom Line approach (TBL) of CSR.............................................................................14
Impact of CSR on business organizations..................................................................................14
Literature gap.............................................................................................................................15
Conclusion.................................................................................................................................15
Reference list.................................................................................................................................16
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ASSESSMENT 1: INDIVIDUAL ESSAY
Introduction
The essay has evaluated cultural dimensions of Hofstede, the significance of the Hofstede
cultural dimensions on international business and suggestions for its enhancement. The cultural
dimension theory helps an individual to behave and think specifically. There are different
elements of culture in the society and the elements include symbols, rituals, values, thoughts, and
beliefs. Cultural values generally influence the functioning of a business organisation to a great
extent. The work environment of an organisation is mainly determined by the existence of a type
of culture. The four cultural dimensions of Hofstede such as individualism/collectivism,
masculinity/femininity, uncertainty avoidance, and power distance have a deep impact in the
functioning style of the business organisation. Ultimately, the essay has argued that Hofstede's
cultural dimension has a profound influence on the modern business organisation.
The significance of the Hofstede's cultural dimensions
Hofstede's cultural dimensions have provided significant suggestions to the business organisation
in the world. The four cultural dimensions have provided guidance for the effective and
successful running of the business organisation. The dimension of individualism/collectivism is
considered to be related to self-oriented behaviour of the members of a specific cultural
(Hofstede, 2010). The individualistic culture focuses on high self-interest and individual value.
The value of collectivism culture influences group harmony and collective goals. Both aspects
are important in cultural perspectives.
Figure 1: Hofstede's cultural dimensions
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(Source: Hofstede, 2010)
Power inequality between subordinates and superior is considered to be the mode of power
dimension (Maleki and de Jong, 2014). Uncertainty avoidance is considered to be the way
society responds to ambiguity or uncertainty. Thus, a particular culture can be scored based on
this dimension of uncertainty. It would be easy for business organisations worldwide to
determine organisational cultural ambiguity and avoid potential risks such as financial, cultural
and social. With the utilisation of the cultural dimension, business organisations can successfully
understand the behaviour of consumers. Thus, it would be easier for the management of the
business organisation to formulate effective strategies.
Importance of Hofstede’s cultural dimensions on the international business
Four cultural dimensions of Hofstede have influenced international business significantly. The
collectivism/individualism dimension influences the behaviour of members of the culture. The
US can be referred to the practitioner of individual culture, as it avoids collective efforts in
achieving an organisational goal. The business organisations in the US thrive on the basis of
individualism. On the other hand, the value of collective culture tends to achieve goals through
collaboration and cooperation. Mexico and several Asian countries focus on the principles of
collectivism culture. The collectivism dimension is more acceptable in comparison to the
individual culture, as it takes diverse opinions into account. The principles of individualism
cannot be agreed for its focus on self-interest and individual achievement.
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Figure 2: Importance of Hofstede’s cultural dimensions
(Source: Influenced by Hur et al. 2015)
As recommended by Hur et al. (2015), the aspect of power distance dimension evaluates power
inequality between subordinates and superior. In US, there is a combination of the lower and
higher culture of power distance. In recent times, business organisations in the US have been
focusing on the elimination of power distance and bringing gap of inequality between supervisor
and subordinates. In terms of power distance dimension, Arab countries score higher and it has a
more complicated hierarchical system. The low power distance culture is acceptable for society,
as it promotes a healthy relationship between employees and management. As suggested by
Samaha et al. (2014), promotion of appreciative leadership style is required for elimination of
power distance dimension from the organisational culture.
The response of members in society to ambiguity or uncertainty is an important cultural aspect
and it is called the uncertainty avoidance dimension (Cateora et al. 2011). Great Britain scores
higher in this dimension. On the other hand, Canada scores low in this dimension. The culture of
high uncertainty avoidance of business organisations in Britain helps them to avoid risks. The
employees in this type of organisations tend to maintain standard culture. On the other hand, the
business organisations in Canada are exposed to higher risks in the market, as the organisations
score poorly in uncertainty avoidance performance. A balance between low and high uncertainty
avoidance is acceptable. The balanced uncertainty avoidance dimension helps in both elimination
of risk and also promotes innovation. According to Goodrich and De (2014), uncertainty
avoidance helps the business organisations to focus on innovation and it ultimately leads to
successful business.
The masculinity/femininity cultural dimension determines the involvement of gender in the
culture of the organisation. In developing countries, high masculinity/femininity is a serious
problem. A balance between the culture of masculinity and femininity is acceptable for bridging
the gender gap in the culture.
Determination of consumer behaviour is the key concept of Hofstede's framework. Business
organisations of different countries such as France, US, and Japan determine the purchasing
decisions of consumers with the utilisation of this framework (Ferrell and Fraedrich, 2015).
Successful business of a lot of companies such as McDonald's, KFC, and Subway in many
countries is analysed through the framework of this Hofstede model. The employee success rate
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can be easily determined by this technique of business orientation and description of cultural
value. According to Khan (2014), leadership in the business organisation is the main responsible
promotion of cultural dimensions such as specific norms, behaviour, and values.
Suggestions for enhanced cultural dimensions
Figure 3: Suggestions for enhanced cultural dimensions
(Source: Influenced by Khan, 2014)
The cultural dimension theory of Hofstede needs to be utilised by the business organisation
worldwide for influencing business organisations. Business organisations can focus on the
promotion of collectivism culture to avoid risks and improve collaboration. The aspect of
uncertainty avoidance needs to be monitored by the business organisations. There is a serious
need for organisations worldwide to bridge the gap between masculinity and femininity aspects,
as it creates an unethical behaviour. Promotion of low power distance dimension needs to be
implemented in the organisation for the elimination of communication gap between employees
and management.
Conclusion
It can be finally argued that the four cultural dimensions of Hofstede have provided a guide to
international business organizations. The uncertainty avoidance culture can be given a lot of
importance by the business organisations, as it helps in the promotion of innovation and
elimination of risks such as financial, cultural and social. Innovation is an integral part of the
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FocusonthepromotionofcollectivismcultureMonitoringofuncertaintyavoidanceBridginingthegapbetweenmasculinityandfemininityaspects

business organisations for gaining competitive advantage. The essay has finally argued that
Hofstede’s cultural dimension has a profound influence on the modern business organisation.
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ASSESSMENT 2: INDIVIDUAL REPORT
Executive Summary
The present report defines the purpose of writing literature review and its importance in
academic research documentation. The role of writing literature review has been discussed in
detail in this report along with inclusion of the corporate social responsibility. The attribute of
equality at the workplace was identified a significant and much effective corporate social
responsibility which has to be used in developing the performance of the business firms. A direct
relation between this corporate social responsibility and the driving firm was identified in this
report as well.
1. Literature review and its achievements
A literature review presents the idea as derived from available literature in a chosen topic of
interest. It is used for documenting the previous studies and findings which can be used for
understanding the topic in future. As mentioned by Hart (2018), writing a literature review a\has
the sole purpose of expressing in-depth grasp of the researcher on the topic and it proves that the
research is based on feasible knowledge of historical authors. A literature review can also be
used for presenting previous literature in an organised manner and it also critically analyses the
current knowledge and contradicting opinions and findings of previous researchers. The purpose
of the literature review is also to summarise the vast ranges of information on the topic into a
smaller version which is easily understandable by the reader.
In academic research work, it is essential to develop a better grasp of the chosen topic in order, to
begin with, the personal research. Exploring knowledge of the previous authors allows the
researcher to gain a better understanding of the prevailing situation of the problem and how it has
been addressing to date. Writing down all the information gathered from previous studies also
allows the student to establish as rationale and identify the gaps in the research which can, in
turn, be attempted by the researcher. According to Kirkwood and Price (2014) Opinions of
various researchers and ambiguous studies can be evaluated and discarded during the writing of a
literature review based on the amount of evidence provided in each study. Personal critical
statements about the previous researches can also be presented in literature reviews which
provide the reader with an idea about the aim of the researcher and justification based on
evidence.
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The initial role of a literature review is to review the dimensions of the research topic which have
been explored in the past. Before the commencement of the research study in academic work, it
is essential to identify the drawbacks and areas not visited by previous researches which can be
focused in the present research. This allows the researcher to create unconventional new research
which is not much popular in the specific field. This can ultimately lead to discovery f
completely new observations which in turn increase the overall value of the research. Literature
reviews in academic research paper also act as valuable guides to researchers for avoiding
mistakes and problems encountered by previous researchers. This enables the creation of much
more acceptable research (King et al. 2014). Identification of relevant theories is also facilitated
through the writing of a literature review considering and analysing all the strengths and
weaknesses in the previous studies.int he topic. Literature reviews also play an important role in
the identification of relatable topics which are also needed to be considered while conducting
research. The literature review, therefore, helps to guide the researcher towards establishing a
suitable rationale for the research. It even allows the researcher to justify the requirement for the
present work and provides valid reasons for conducting research.
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Utilization of
stakeholder theory
Triple Bottom Line
approach
Implementation of
CSR policy
Promotion of
equality
2. Literature review on “Corporate Social Responsibility”
Introduction
The literature review is helpful for analysing corporate social responsibility or CSR in an
effective way. This review would help the business organisations to understand the importance
of CSR in regards to equality. The scope of this review further involves providing a framework
for business organisations to implement CSR. Secondary sources such as relevant journals,
websites, and book have been used for the literature review. The topic would discuss on the
definition of CSR, its role for attracting consumers, stakeholder theory, triple bottom approach
and finally impact of CSR on business organisations.
Conceptual framework
Figure 4: Conceptual framework
Definition of corporate social responsibilities (CSR)
In the present business world, corporate social responsibility or CSR has become a dominant
theme. It is determining success of business in a significant way. The equality in terms of gender,
age and community need to be assessed for enhancing effectiveness of business environment.
This is further considered to be a business model that is self-regulating and it is helpful for
improving social accountability of the business organisations. In order to practice CSR in the
business organization, it is necessary to focus on various aspects of society. The societal aspects
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include environmental, economic and social perspectives of the business organisation. It is
further vital to engage in a meaningful way of business. Improvement in the engagement process
can be further evaluated for the enhancement of environmental and societal aspects.
The major implications of CSR include improvement in the process of business the business
organisations have certain responsibility towards society. The responsibility of organisations
includes providing an effective and innovative framework based on which an organisation can
run effectively and efficiently. The activities of social responsibilities are helpful for evaluating
the present situation in a more perfect and accurate way. Introduction of effective environment
for business organisations can be implemented to get the desired framework. Integration of social
contribution is believed to be associated with improvement in a positive relationship with
business organisations.
Role of CSR to attract consumers
Equality is considered to be a major part of CSR policy, as consumers are attracted to the
business organisations that offer aspect of equality to everybody. The perspective of equality can
be applied to society, business environment and in every sphere of life. A policy of
encouragement can be introduced in this aspect for the process of better evaluation. The equal
opportunity for every individual helps in the promotion of an effective and collaborative
environment. The process of community support offers the concept of equality an added
advantage.
The essential process of empowerment is a part of equality. However, the equal representation of
every stakeholder in the society helps in to bring a collaborative and enhanced organisational
procedure. Promotion of CSR in the business organisation is associated with improvement in
brand recognition, customer loyalty, improved financial performance, the attraction of talent.
Business organisations can help improve the aspect of talent management by focusing on
equality in society.
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Figure 5: CSR policies to attract consumers
(Source: Influenced by Dharmapala, 2014)
Promotion of equality in a business environment is believed to contribute to the process of
increased communication. According to Dharmapala (2014), the environment of equality in the
business organisation is considered to be helpful for the promotion of collaboration. Thus, the
performance of employees is related to communication and collaboration of the organisation. It
is vital for the organisation to make the focus on the process of effective and enhanced
collaborative environment. Responsibilities of the business organisation are highly dependent on
its ability to implement corporate social responsibility. On the one hand, Cheng et al. (2014),
CSR companies are prone to achieve success with the utilisation of collaborative business
environment. The utilisation of business opportunity is aligned with the process of corporate
responsibilities. On the other hand, Tai and Chuang (2014) suggested gender equality for
creating an effective business environment. The organisational growth can be enhanced through
the promotion of this gender-neutral approach. It further helps in improvement of brand
reputation. Brand reputation and customer attraction are considered to be interrelated, as both of
these help in fostering an efficient correlation of business. Implementation of CSR policy in the
business organisation is believed to enhance the identification process of the employees and it is
associated with the process of employee retention and the introduction of organisational
commitment.
Stakeholder theory of CSR
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