1. Culture and Corruption: A Vicious Cycle Lessons From Project GLOBE
Presented by Mansour Javidan
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2. The impact of culture
Max Weber ( ) theorized that the work ethic associated with Protestantism was largely responsible for the differences in wealth between Northern and Southern European countries (1904/1930; 1904/1998).
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3. The impact of culture
Banfield (1958) provided a cultural explanation of poverty and authoritarianism in Southern Italy.
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4. The impact of culture
Myrdal (1968), in a ten year study of South Asia concluded that cultural factors are the principal obstacles to modernization.
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5. The impact of culture
Kahn (1979) and Hofstede and Bond (1988) argued that the impressive economic growth experienced in South East Asian countries during the period was mainly due to the region’s Confucian cultural roots.
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6. The impact of culture
Harrison (1992) asks the question: “Why do some nations and ethnic groups do better than others?”
His answer: “The overriding significance of culture is the paramount lesson I have learned in my thirty years of work on political, economic, and social development”
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7. The impact of culture
Landes (2000), in a review of the evidence, concluded that “Max Weber was right. If we learn anything from the history of economic development, it is that culture makes almost all the difference”
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8. The impact of culture Even Michael Porter agrees:
“Attitudes, values, and beliefs that are sometimes collectively referred to as “culture” play an unquestioned role in human behavior and progress. This is evident to me from working in nations, states, regions, inner cities, and companies at widely varying stages of development.” (Porter, 2000)
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9. THE GLOBE RESEARCH PROGRAM
160 social scientists and management scholars from 62 cultures representing all major regions throughout the world are engaged in this long-term programmatic series of cross-cultural leadership studies.
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10. 2/27/2019

11. Participating GLOBE countries
Cluster
Countries
Latin America
Argentina
Bolivia
Brazil
Colombia
Costa Rica
Ecuador
El Salvador
Guatemala
Mexico
Venezuela
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12. Participating GLOBE countries
Cluster
Countries
Latin Europe
France
Switzerland (French-speaking)
Israel
Italy
Portugal
Spain
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13. Participating GLOBE countries
Cluster
Countries
Confucian Asia
China
Hong Kong
Japan
Korea, Republic
Singapore
Taiwan
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14. Participating GLOBE countries
Cluster
Countries
Anglo
Australia
Canada (English-speaking)
Ireland
New Zealand
South Africa (White Sample)
United Kingdom
United States
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15. Participating GLOBE countries
Cluster
Countries
Southern Asia
India
Indonesia
Iran
Malaysia
The Philippines
Thailand
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16. Participating GLOBE countries
Cluster
Countries
Germanic Europe
Austria
Germany-East (former GDR)
Germany-West (former FRG)
The Netherlands
Switzerland
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17. Participating GLOBE countries
Cluster
Nordic Europe
Denmark
Finland
Sweden
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18. Participating GLOBE countries
Cluster
Countries
Middle East
Egypt, Arab Rep.
Kuwait
Morocco
Qatar
Turkey
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19. Participating GLOBE Countries
Cluster
Eastern Europe
Albania
Georgia
Greece
Hungary
Kazakhstan
Poland
Russian Federation
Slovenia
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20. Participating GLOBE countries
Cluster
Countries
Sub-Saharan Africa
Namibia
Nigeria
South Africa (Black sample)
Zambia
Zimbabwe
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21. The Theoretical Definition of Culture
Shared motives, values, beliefs, identities, and interpretations or meanings of significant events that result from common experiences of members of collectives and are transmitted across generations.
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22. GLOBE measures both cultural practices (as is) and cultural values (should be).
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23. Over middle managers from over 900 corporations in food processing, finance, and telecommunications industries in 62 cultures participated in GLOBE surveys.
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24. Culture Construct Definitions
Power distance:
The degree to which members of a collective expect power to be distributed equally.
Specific Questionnaire Item
Followers are (should be) expected to obey their leaders without question.
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25. Culture Construct Definitions
Family Collectivism
The degree to which individuals have strong ties to their small immediate groups
Specific Questionnaire Item
In this society, children live with parents until they get married.
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26. Culture and Trust
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27. Trust in Public Institutions
Contracts and Law sub index:
Judicial independence
Property rights
Favoritism in decisions of government officials
Organized crime
Corruption sub index
Irregular payments in exports and imports
Irregular payments in public utilities
Irregular payments in tax collection
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28. Culture and Economic Performance
Power Distance
Family
Collectivism
Average GDP/Capita,
-0.49
-.75
Average Economic Performance Rankings 98-05(IMD)
0.36
0.42
Average Competitiveness Rankings (IMD)
0.65
Economic Productivity (average GDP/P,98-04, WB)
-0.46
-0.69
Average Annual Growth in GDP/capita, (WB)
-0.45
-0.65
GINI (UN Human Development Report, 2004)
0.34
Share of Income or Consumption by the Top 20% (World Development Report)
0.32
Share of Income or Consumption by the Bottom 20% (World Development Report )
-0.29
-0.28
Extent to which government policies are conducive to competitiveness (IMD index, 2005)
-0.56
%of GDP spent on education (UN Human Development Report, 2004)
-0.35
-0.48
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29. Culture and Individual Health
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30. WHY?
The micro approach: Culture as a lens (Javidan et al, 2006; Hofstede, 2001; Lindsey, 2000)
Rather well developed by age 16
Shapes of way of interpreting the world
Shapes how we make decisions
Shapes how we behave and relate to others
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31. WHY? The macro approach: Institutions (Redding, 2005, North, 1990)
Culture underlines and drives the country’s institutional framework
The institutional framework underlines its political, administrative, and business systems
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32. Is it Hopeless? Not necessarily!
Cultural values are in the right direction for Power Distance
Many countries have young populations
Individuals are not cultural robots
Leaders can make a difference
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33. Thank you! Visit GLOBE at:
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