Exam 1: An Introduction to Consumer Behaviour

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This is really an open-ended question for the students to answer.They could draw on the definition of business ethics and point out that many unethical actions are legal.In addition,laws and norms around ethical behaviour can differ cross-culturally.
Business ethics are essentially rules of conduct that guide actions in the marketplace-the standards against which most people in a marketplace judge what is right,wrong,good,or bad.These universal values include honesty,trustworthiness,fairness,respect,justice,integrity,concern for others,accountability,and loyalty.
Notions of right and wrong do differ among people,organizations,and cultures.Some businesses,for example,believe it is all right for salespeople to persuade customers to buy even if it means giving them false information,while other firms feel that anything less than total honesty with customers is terribly wrong.Because each culture has its own set of values,beliefs,and customs,ethical business behaviours are defined quite differently around the world.For example,one recent study found that because of differences in values,Mexican firms are less likely to have formal codes of ethics and more likely to bribe public officials than are American or Canadian companies.On the other hand,different attitudes about work and interpersonal relationships mean that Mexican companies are also more likely to treat lower-level employees better than do their NAFTA partners to the north.
These cultural differences certainly influence whether business practices such as bribery are acceptable.In Japan,it's called kuroi kiri (black mist); in Germany,it's schmiergeld (grease money); Mexicans refer to la mordida (the bite); the French say pot-de-vin (jug of wine); and Italians speak of the bustarella (little envelope).They're all talking about baksheesh,the Middle Eastern term for a "tip" to grease the wheels of a transaction.Giving "gifts" in exchange for getting business from suppliers or customers is common and acceptable in many countries,even though this practice may be frowned upon in Canada.Recently,more than 800 business experts were asked to identify the countries where this practice is most flagrant.Russia and China emerged at the top of the list,with Taiwan and South Korea close behind.The "cleanest" countries were Australia,Sweden,Switzerland,Austria,and Canada.