Page 236 - Foundations of Marketing

Reaching Global Markets | Chapter 8 203

Ethical and Social
Responsibility
Protestors gather in the
Philippines, opposing geneti-
cally modified foods that raise
health concerns.

AP Images/Aaron Favila

Differences in ethical standards can also affect marketing efforts. In China and Vietnam,
for example, standards regarding intellectual property differ dramatically from those in the
United States, creating potential conflicts for marketers of computer software, music, and
books. Pirated consumer goods, according to the International Anti-Counterfeiting Coalition,
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cost $ 600 billion annually. Even the widely admired company Apple is not immune. As
Apple expands into China, it has had to contend with knock-offs of its Apple stores. Some of
these knock-offs are so close to official stores in their design and product mix that consumers
26
mistake them as being authentic. The enormous amount of counterfeit products available
worldwide, the time it takes to track them down, and legal barriers in certain countries make
the pursuit of counterfeiters challenging for many companies.
When marketers do business abroad, they often perceive that other business cultures have
different modes of operation. This uneasiness is especially pronounced for marketers who
have not traveled extensively or interacted much with foreigners in business or social settings.
For example, a perception exists among many in the United States that U.S. firms are different
from those in other countries. This implied perspective of “us versus them” is also common in
other countries. In business, the idea that “we” differ from “them” is called the self-reference
criterion (SRC). The SRC is the unconscious reference to one’s own cultural values, experi-
ences, and knowledge. When confronted with a situation, we react on the basis of knowledge
we have accumulated over a lifetime, which is usually grounded in our culture of origin. Our
reactions are based on meanings, values, and symbols that relate to our culture but may not
have the same relevance to people of other cultures.
However, many businesspeople adopt the principle of “When in Rome, do as the Romans
do.” These businesspeople adapt to the cultural practices of the country they are in and use the
host country’s cultural practices as the rationalization for sometimes straying from their own
ethical values when doing business internationally. For instance, by defending the payment of
bribes or “greasing the wheels of business” and other questionable practices in this fashion, some
cultural relativism The con-
businesspeople resort to cultural relativism —the concept that morality varies from one culture
cept that morality varies from
to another and that business practices are therefore differentially defined as right or wrong by one culture to another and that
particular cultures. Table 8.2 indicates the countries that businesspeople, risk analysts, and the business practices are therefore
general public perceive as the most and least corrupt. Because of differences in cultural and differentially defined as right or
ethical standards, many companies work both individually and collectively to establish ethics wrong by particular cultures

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