International Dimensions of Organizational Behavior 5th Edition by Nancy Adler ,Allison Gundersen

Exercise 6

A major North American company operating in Asia discovered one of the local employees stealing company property of minimal value. The senior managers at the location, all of whom were expatriate Americans, had little doubt about the employee's guilt.
Following the company's standard worldwide procedure, the North American managing director reported the case to the local police. Similar to many other North American companies, this company believed that it was best to let officials from the local culture deal with theft and similar violations in whatever way they found most appropriate, rather than imposing the system of justice from their home culture. The local police arrived at the company, arrested the employee, took him to the police station, and interrogated him according to local procedures. The employee confessed. The police then took the employee outside and shot him dead.
The North American managing director was devastated. For months, he was haunted by the fact that his action, taken because he thought it was culturally appropriate and fair, had led to the murder of an employee.
Should companies review their policies on the prevention of theft and the promotion of personal honesty in the light of cultural differences? In which situations, if at all, can companies use worldwide standards and procedures? Must companies define integrity issues differently in each country or region of the world?