CHINA AND THE UNITED STATES: A COMPARISON USING HOFSTEDE’S CULTURAL
DIMENSIONS AND THE ETHICS POSISTION QUESTIONNAIRE
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Abstract
In my research I am examining the cultural differences between China and The United States. I
was looking for data that showed the causes of these cultural differences, and was curious as to
what cultural aspects caused the variances of ethical decisions in each country. The data showed
that the both China and The United States varied in both Geert Hofstede’s cultural dimensions
and Forsyth’s Ethics Position Questionnaire. These differences proved to have an impact on the
degree of ethical behavior in businesses of both countries. As businesses continue to globalize in
todays society, it is import for corporations looking to expand to understand these ethical
differences in different cultures. Because the ethical decisions made by corporate executives can
determine the success or failure of the company. In conclusion, the results from both Hofstede’s
and Forsyth’s prove to have a correlation with ethical values in both countries, and need to be
examined to understand the ethical values established in each countries.
Key Words: Hofstede, Forsyth, Ethics Position Questionnaire, Power Distance,
Individualism, Collectivism, China, The United States, Exceptionism, Subjectivism, Relativism,
Idealism
CHINA AND THE UNITED STATES: A COMPARISON USING HOFSTEDE’S CULTURAL
DIMENSIONS AND THE ETHICS POSISTION QUESTIONNAIRE
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Introduction
Ethical behavior is experienced and focused on in every society through out the world.
What is perceived as ethical and unethical is different from culture to culture, and will changed
based on the values put in place by that particular party. In the past, companies that were based
in their home countries did not have to worry about the ethical boundaries that other countries
put in place. However, now that globalization is at an all time high, and countries often have
headquarters based in multiple countries. Businesses have been forced to learn the ethical
boundaries that are put in place in different cultures if they want to succeed and not have any
legal issues to manage. There is a fine line between what is ethical and legal, what is ethical and
illegal, what is unethical and legal, and what is unethical and illegal. The right decision should be
ethical and legal, but it does not always end up that way. For a company to balance on these fine
lines, management must have a clear understanding of the ethics in the culture they are operating
it. This research paper will examine the ethical differences between the two world super powers,
the United States of America and China. As both increase in size and in the level of business
interactions they have between each other. It is necessary for companies to understand the ethical
differences in the culture in order for cross-country companies to succeed in both places. With a
cross-country comparison using Geert Hofstede’s cultural dimensions and Forsyth’s Ethics
position questionnaire, the differences in the United States and China’s culture will be studied
and examined to show how they view ethical behavior differently.
Geert Hofstede’s Cultural Dimensions
Geert Hofstede worked for IBM in Europe and was managed the Personnel Research
Department there for six years from 1965 to 1971. According to an interview of Geert Hofstede
done by Hoppe (2004) while Hofstede was at IBM he was “traveling around and observing the
CHINA AND THE UNITED STATES: A COMPARISON USING HOFSTEDE’S CULTURAL
DIMENSIONS AND THE ETHICS POSISTION QUESTIONNAIRE
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IBMers in different countries went about similar task”(Hoppe, 2004, pg. 75) This led him to
noticing different cultures having different effects on workers practices and ways of handling
conflicts. He later went on to develop a survey that was given to IBM workers around the world
and allowed him to quantify cultural differences between nations into different cultural
dimensions. At first Hofstede only studied forty cultures, and expanded to fifty-three as IBM
expanded into Asia. Hofstede modified his set of dimensions and ended up with six; Power
Distance, Individualism, Masculinity, Uncertainty Avoidance, Pragmatism, and Indulgence.
These six dimensions allowed him to easily compare the differences in cultural values in
countries across the world and put them in to easily understandable, quantitative, numbers. The
scores that the United States and China got in these dimensions will be compared with each other
and examined on how the ethical boundaries in these two countries have become so different.
This graph is taken from the Geert Hofstede’s official website, and is a country
comparison of the six demission’s between the United State and China.
CHINA AND THE UNITED STATES: A COMPARISON USING HOFSTEDE’S CULTURAL
DIMENSIONS AND THE ETHICS POSISTION QUESTIONNAIRE
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Power Distance
Power Distance Index is the first dimension that Hofstede’s cultural dimensions that will
be focused on. The Power Distance Index reveals the “extent to which the less powerful
members of institutions and organizations within a country expect and accept that power is
distributed unequally” (Hofstede website). The power distance index allows the study to which
people understand their place in society. Countries with a high score on the power distant index
are generally accepting to a hierarchical order and do not expect that to change. Countries with a
low score on the power distance index have a tendency to believe that everyone has equal
opportunities and everyone has a chance to change the status of where they are in society. One
can believe this has a great impact on ethical behavior. Being that people in high power in high
scoring power distance countries can exhibit behaviors that are considered unethical but go
unchecked because of the power gap amongst society.
Power Distance: United States
The United States scores moderately low in the Power Distant Index on the Hofstede
scale. The country was built on the fact that everyone had the equal opportunity to succeed. In
fact, the first people that started the first revolution were sick of being oppressed and not having
enough voice in political situations due to the hierarchical set up put in place by the King of
Great Britain. After the American revolution of 1776 the declaration of independence was
formed and stated,
“We hold these truths to be self-evident, that all men are created equal, that they are
endowed by their creator with certain unalienable Rights, that among these are Life,
Liberty and the pursuit of Happiness. --That to secure these rights, Governments are
instituted among men, deriving their just powers from the consent of the governed, --That
CHINA AND THE UNITED STATES: A COMPARISON USING HOFSTEDE’S CULTURAL
DIMENSIONS AND THE ETHICS POSISTION QUESTIONNAIRE
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whenever any Form of Government becomes destructive of the ends, it is the Right of the
People to alter or to abolish it, and to institute new Government, laying its foundation on
such principles and organizing its powers in such a form, as to them shall seem most
likely to effect their Safety and Happiness.” (Declaration of Independence)
This statement, especially the first section referring to Life, Liberty and pursuit of Happiness, is
the foundation of the culture that is seen in America. People in this country feel entitled to their
opinions and their ability to have input society is being managed. This has been a key factor in
determining the moderate score of the United States on the power distance index scale.
Power Distance: China
The Chinese culture scores very high in the power distance index on the Geert Hofstede
scale. This is due once again to the government policies that have been put in place in that
society. The Communist Part of China, that supports socialism, currently runs the Chinese
government. They have put in place laws and principles that are meant to heavily regulate the
people, organizations, and society in general. Taking a look at the Chinese Governments website,
it is clear that the power is specifically placed in the hands of one party, and thus one group of
people. Here is the description of what the party wants to be accomplished
Under the leadership of the Communist Party of China and the guidance of MarxismLeninism and Mao Zedong Thought, the Chinese people of all nationalities will continue
to adhere to the people's democratic dictatorship and follow the socialist road, steadily
improve socialist institutions, develop socialist democracy, improve the socialist legal
system and work hard and self-reliantly to modernize industry, agriculture, national
defense and science and technology step by step to turn China into a socialist country
with a high level of culture and democracy. (Chinese Constitution Website)
CHINA AND THE UNITED STATES: A COMPARISON USING HOFSTEDE’S CULTURAL
DIMENSIONS AND THE ETHICS POSISTION QUESTIONNAIRE
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It is clear that the Chinese idea for government is very different then that of the United states
government. The people of China do not look to have equal opportunities as the people in power,
but are geared towards working to reach higher goals as a society. Which would explain the high
score of 80 on the power distance index.
The point that is being made is that the United State’s moderate score of forty and the
high score of eighty by China on the power difference index can be traced back to the principles
put in place by the government. According to Dennis A. Pitta many factors can affect the ethical
boundaries put in place in a society and they “include differences in the systems of laws across
nations, accepted human resource management systems, organizational culture, and professional
cultures and codes of conduct” (Pitta, 1999, pg 241). All of these factors have been managed in
the government of the United States and China, especially in law.
The difference in their power index score can affect the way that people behave ethically,
how people behave in the workplace, and job performance (Farh, 2007, 720). According to
Morrison, “individuals from the United States reported more newcomer feedback inquiry than
individuals from Hong Kong” (Morrison, 2004, pg. 1). Newcomer’s asking for feedback isn’t
what should be focused on. The focus should be focused on the fact that individuals in the United
States feel more comfortable and willing to confront their superiors. Confrontation can be about
anything; whether its guidance, review of job performance, or giving them recommendations
(Morrison). It is clear that the lower the power distance the more interaction there is between the
lateral levels in a business. This is where ethical behavior can be affected. With more
interactions happening between upper level management and lower level employees more
information is being distributed around companies. When information is being circulated, there
is a greater responsibility to act ethically and morally being held to anyone in the company. The
CHINA AND THE UNITED STATES: A COMPARISON USING HOFSTEDE’S CULTURAL
DIMENSIONS AND THE ETHICS POSISTION QUESTIONNAIRE
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high power distance in china is the a major contributor to what Xiaohe Lu said about the issues
China faces with corruption, labor rights, and distributive justice (Lu, 2009, 455). The seniors in
both government and corporate officials do not have anyone to answer to but themselves and
other people of their social status. Leading to unethical decisions going unchecked and officials
being able to act in favor of only bettering themselves.
This does not mean that with a moderate score of forty on the power dimension index that
the United States employees are always going to behave ethically. There was a study done
comparing the ethical responses of undergraduate college students at universities in the United
States, New Zealand, and Germany. All three countries that score between moderate, the United
States at forty, and low, with New Zealand at twenty-two. The students were given scenarios
where a boss asked them to perform an unethical action and were asked how they would
respond. The results were astonishing in that the students from the New Zealand, which has the
lowest score, always asked their boss to explain what they had them do and why (Fredricks,
2014, pg. 11). While students from the United States and Germany usually preferred to go back
to their normal duties and not question their authority.
This supports the idea that it doesn’t take much power distance to affect ethical behaviors
in the work place. The United States with a score of forty still has ethical problems in the
business world caused by upper level management, examples can be seen in the classic case of
the famous Enron scandal. So, if the United States can have corruption problems with a moderate
score, it makes sense to see that with a high score on the power distance index China faces major
corruption problems in their upper level of society.
Individualism vs. Collectivism
CHINA AND THE UNITED STATES: A COMPARISON USING HOFSTEDE’S CULTURAL
DIMENSIONS AND THE ETHICS POSISTION QUESTIONNAIRE
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Individualism is the second dimension from Hofstede’s cultural comparison between
China and the United States that will be focused on. Individualism and collectivism are the two
extreme sides of this dimension. According to Tyson Chug, “The continuum from collectivism to
individualism describes how people relate to others in the environment” (1998, pg. 340) Parties
who find themselves in a individualist society often tend to look after themselves and the
immediate people around them that they are responsible for. Parties of a collectivism society rely
on groups to perform and achieve goals in society. People in a collectivism society also feel “that
the group is entitled to know and regulate what the individual does and thinks in private matters”
(Chug, 1998, pg. 340). This is not portraying the idea that everyone in the society feels this way
at all times. But that generally it portrays how the people in a society will interact with each
other. Refer to the graph taken from the country comparison of China and the United States and
it is clear that these two are examples of the extreme cases in the world.
Individualism: The United States
With a score of ninety-one on the individualism vs. collectivism scale it is clear that the
United States is a very individualistic society. The reasons for that can once again be linked to
the foundation of the country and rules and regulations put in place by government. There is no
sort of collective language in the Constitution of the United States. I consist of language that
supports individuals being responsible for their own success and failure. However, according to
Joseph A. Vandello, unlike power distance, individualism varies in the different regions of the
United States seen in the graph map of the united states bellow.
CHINA AND THE UNITED STATES: A COMPARISON USING HOFSTEDE’S CULTURAL
DIMENSIONS AND THE ETHICS POSISTION QUESTIONNAIRE
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Vandello performed a survey that “asked about collectivism in the more political sense of
libertarianism and big government versus individual autonomy,” and found that the ”collectivism
index was consistently associated with the survey items” (Vandello, 1999, 285). This, like power
distance, has an impact on how people interact with each other in the workplace. When people
are essentially only looking out for themselves. They are willing to step up and say something if
actions are happening that can jeopardize their careers and life outside of work.
Collectivism: China
Unlike the United States, China scored extremely low on the individualism scale with a
20. Making China a country with a society heavily focused on Collectivism. This completely
changes the way people interact with each other in the work force and in communities.
CHINA AND THE UNITED STATES: A COMPARISON USING HOFSTEDE’S CULTURAL
DIMENSIONS AND THE ETHICS POSISTION QUESTIONNAIRE
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According to Zhang Zigang, “The Chinese depend more on groups or institutions to determine
what they should do and emphasize loyalty to the group” and “Their value systems appreciate
duty to the group and harmony among its members while pursuing personal goals is
viewed rather negatively in China” (2004). They believe that, “group cohesion is highly
valued, and group consensus is paramount” (Tsai, 2009, pg. 957). Because of this no one is
focused on their personal advancement a lot of attention is paid to the accomplishments of the
institution they work for. This has an impact on how actions are judged in their society.
Employees are willing to have blind loyalty if it means the company’s success is an outcome.
Individualism vs. Collectivism: Ethics Impact
Now that the differences between individualism in the United States and collectivism in
China have established, it is important to look at how these variances can make an impact the
moral and ethical values that each country believes in. Because the level of individualism vs.
collectivism can change the way people interact with each other in the work place, it also
changes the level at which people are willing to express their personal beliefs to others in the.
According to research done by Bryan W. Husted
In individualist cultures, personal beliefs are more important in decision-making than are
group norms (Iwao and Triandis, 1993; Oyserman et al., 2002). In collectivist cultures,
people may hold personal beliefs (private self) that differ significantly from the group
norm (public self), but will behave in accordance with the group norm (Chen et al., 1998;
Triandis, 1995). (Husted, pg. 9)
This is where the differences in ethical behavior start to be seen. The Chinese culture is set up to
allow for actions to take place and decisions to be made that may be unethical, and because it is
expected for people to agree with the group no one stands up for what is right. That is different in
CHINA AND THE UNITED STATES: A COMPARISON USING HOFSTEDE’S CULTURAL
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the United States, people are expected to take care of their own situation and express their values
and beliefs without being punished or frowned upon. When people are willing to express their
values, it means that upper level management will be held accountable for any actions made.
Meaning, “people are more likely to behave in accordance with judgments formulated as a result
of moral reasoning than will their collectivist counterparts” (Husted, pg. 9)
China vs. United States: Ethics Position Questionnaire
The Ethics Position Questionnaire was developed by Donelson R. Forsyth to measure
individual’s differences in moral thought. According to Mark A. Davis, “Forsyth argues for
relativism and idealism as key concepts capable of parsimoniously describing individual
differences in moral philosophy” (Davis, 2001, pg. 1). Using these two concepts Forsyth set up a
four-fold classification that are based on these two dimensions. The four categories established
from this were Absolutists, Situationists, Exceptionists, and Subjectivists. Absolutists are low in
relativism and high in idealism. Situationists are high in relativism and high in idealism.
Exceptionists are low in relativism and high in idealism. Subjectivists are high in relativism and
CHINA AND THE UNITED STATES: A COMPARISON USING HOFSTEDE’S CULTURAL
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low in idealism (Forsyth). Here is a graph provided by Forsyth for a cross-cultural comparison.
The red arrows mark the United States and China and their position on the four-fold. The United
States seemed to be on the exceptionism side however lie relatively close to the center of
idealism on the graph. Exceptionists are “principle pragmatists who endorse moral rules as
guides for actions, but admit that following rules will not necessarily generate the best
consequences for all concerned” (Forsyth). China however, lies on the subjectivist side and are
also close to the center of idealism on the graph. Subjectivists are “pragmatic relativist who base
their ethical choices on personal consideration, such as individualized values, moral emotions, or
an idiosyncratic moral philosophy” (Forsyth).
This can explain why the research done by Abdul Ghani Tabish, comparing four
countries, the United States, China, Pakistan, and Jamaica, yielded the results that it did. When
asking employees if they would pay money to a third party for business, Tabish found that,
“46.9% of the Chinese … respondents rationalized their decision by stating that making such a
payment is not unethical and is just the price paid to do business, when only 13.6% of the
CHINA AND THE UNITED STATES: A COMPARISON USING HOFSTEDE’S CULTURAL
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American respondents agreed with this justification” (Tabish). Tabish goes on to say that these
numbers correlate with the state of development in the countries, economic conditions, and
financial conditions. This is supported by research done by Kit-Chun Lam, which compares
Mainland China and Hong Kong, and suggest “managers from more industrialized areas scored
higher in moral idealism, suggesting that they would put more emphasis on humanitarian and
altruistic concerns when making ethical decisions” (Lam, 2007, 466). Indicating that there is a
correlation between industrialization and changes in idealism. Meaning countries positions on
the four-fold created by Forsyth can change and will not always be held constant.
Directions for Research
The research done in this paper uses data that is in no way outdated, but datat that comes
from the 2004 – 2009 time period. It would be useful to reexamine a lot of the work that has
already been looked at due to the recent advancements in technology in the world. In the past
five years there has been so many advancements and changes to the way the world
communicates, and I feel this can have a major impact on the way business ethics is conducted.
All the information collected is important to understand how different aspects of cultures can
impact the ethical decisions that upper level management makes in China and The United States.
It is important to understand how the ethical and moral values have changed with the rapid
globalization, especially when China has continued to emerge as a major super power in the
world.
With this change, businesses have been globalizing as well. Many of which see the
United States and China as a prime location to expand to. In order to do that effectively they
must understand the different cultures they will be operating it, especially the business ethical
values of each country. These ethical decisions that are made by companies can affect not only
CHINA AND THE UNITED STATES: A COMPARISON USING HOFSTEDE’S CULTURAL
DIMENSIONS AND THE ETHICS POSISTION QUESTIONNAIRE
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the way companies are viewed by the public eye, but also the way the country is viewed by
investors. For example in the United States, business executives have seen a decline in trust
levels of the American citizens (Stevens, 2012, 368). So it is important to research what aspects
of people’s lives effect the ethical decisions they make. When that is understood, companies can
then change their organization rules and expectations to actively change the ethical standpoint in
different cultures.
The last recommendation I would make for research would be to examine the effects of
proper organizational behavior techniques and strategies have on ethical decisions being made by
managers in a company. With more focus being put on organizational behavior in the recent
years it would be interesting to see how much of an impact it has on ethics. The results can might
be shocking and show that although ethical values are correlated with the culture of the
surrounding society, the right implementation of organizational behavior can have a great impact
on the ethical decisions being made in upper level management.
Conclusion
In conclusion, based on the comparison of China and the United States using Geert
Hofstede’s cultural dimensions and Forsyth’s ethics position questionnaire. It is expected that
there would be ethical differences between the two super powers. This is important to examine
because of the level of business interactions happening between the two, and companies need to
understand the different expectations when operating in multiple countries. Although the two
differ in ethical values, it does not mean that the United States is a perfect model for how
business ethics should be conducted. In fact, both of these countries fall victim to major
corporations being involved in scandals, and this hurts their economies greatly. Research being
done on what characteristics of a person impacts the ethical decisions allow companies to try and
CHINA AND THE UNITED STATES: A COMPARISON USING HOFSTEDE’S CULTURAL
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manage the decisions made; decisions that can determine the success or failure of a company on
a multinational level.
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DIMENSIONS AND THE ETHICS POSISTION QUESTIONNAIRE
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