Translating Corporate Culture around the World: A Cross-Cultural Analysis of Whistleblowing as an Example of How to Say and Do the Right Thing

Abstract

In terms of ethical business practices, MNEs operating with trust and integrity in the global environment must have corporate cultures that demonstrate such values. The accomplishment of this objective, however, depends on recognition and integration of local cultural norms to create an organizational culture that is both consistent and sensitive to local traditions and social norms across nations (Park, Blenkinsopp, Oktem & Omurgonulsen, 2008). This awareness provides the means for accomplishing more effective ethical business practices worldwide.

The purpose of this article is to examine how these cultural factors can be integrated, particularly as connected to internal employee reporting mechanisms, i.e. whistleblowing. Whistleblowing emerges as an important area of inquiry in that it is through proper internal reporting that organizations are able to identify potential problems before they occur - often at a time when they are most effectively poised to prevent harm. As important as whistleblowing is, there has to date been no systematic scholarly attention paid to global policies on this topic (Tavakoli, Keenan & Crnjak-Karanovic, 2003; Keenan & Remington, 2002; Keenan, 2007). Arguably more important than the corporate culture in the context of issues such as whistleblowing are the policies emanating from culture, for it is the policies that have a direct impact on the people connected to the organization. Policies are revealing because they represent corporate culture and make it tenable to people; local culture informs the impact of policies at the individual level. Policies that are flexible to or infused with variations that adapt them to the local culture are more effective in achieving goals consistent with the corporate culture linked to those policies (Callahan, Dworkin, Fort & Schipani, 2002).