Chapter 16: Culture and Diversity in Business

Culture in Business

Culture in a Global Economy

In general, $culture$ is the beliefs, customs, and attitudes of a distinct group of people. * The global economy creates a diverse culture for business.
As companies trade worldwide, they must be aware of different cultural and business practices
In business, culture has two important meanings. * In the broad sense, it refers to the customs of other countries with which companies do business. * A custom is a practice followed by people of a particular group or region. * Business culture refers to the standards of a particular company.
To market products successfully in another country, companies must research the country’s languages, customs, and tastes.
Companies doing business in other countries must be aware of cultural differences that affect the workplace.
$Business etiquette$ is conduct that is considered socially acceptable in business.
Many companies avoid cultural problems by hiring local managers in other countries.

Corporate Culture

A company’s $corporate culture$ is its shared values, beliefs, and goals. * A company’s founder can influence its culture. * Region and tradition can also play big parts.
A company’s culture affects the way it is organized and does business.
A formal business culture may have a strict $hierarchy$ , or chain of command. * A hierarchy usually has one person at the top who makes all the decisions.
There might be several levels of management below. * This is known as a $bureaucracy$
At a company with an informal culture, employees are encouraged to make decisions on their own

Diversity in the Workplace

Cultural Diversity

Companies tend to thrive when they have $diversity$ , a variety of employees with different backgrounds and identities. * People are diverse in terms of age, gender, ethnicity, and individual needs.
Some people stereotype others who are different from them. * To $stereotype$ people is to identify them by a single trait or as a member of a certain group rather than as individuals.
As the population becomes more diverse, so does the workplace. * There are greater numbers of women, Asians, Hispanics, and African Americans in management positions.
The 76 million babies born in the United States between 1946 and 1964 are called the $baby boom generation$ . * Many members of this generation are reaching retirement age and developing specific needs.
$Discrimination$ is unfair treatment of a person or group, usually because of prejudiced attitudes about race, ethnicity, age, religion, or gender. * For example, in the past, workers over the age of 40 were often fired or denied jobs in favor of younger workers. * This form of discrimination is called $ageism$ . * To protect older workers, the U.S. government passed the Age Discrimination in Employment Act. * It prohibits discrimination against workers because of their age * The Equal Employment Opportunity Act was passed to strengthen laws that protect workers from discrimination based on race, ethnicity, religion, or gender. * In 1990, the Americans with Disabilities Act (ADA) was passed. * ADA prohibits discrimination against qualified people who have disabilities.