Lost Reputations
In times of damaged corporate reputations, organizational values play an important role as the stable core of a company’s culture. On Friday afternoon, Dr. Geert Hofstede, from University Maastricht, elaborated on this process and on how values arise within an organization, not through statements, but through the actual behaviors of its employees.
His presentation explored themes around rating importance of wealth vs. reputation in certain countries, the role of culture and values in measuring reputation, and national vs. organizational cultures. In particular, Hofstede noted from his research:
- Part-time MBA students with day jobs in business organizations may be the best objective judges of their top managers’ goals available anywhere.
- As perceived by MBAs, the goals of business leaders varied significantly between countries
-In the U.S., Most Important is business growth, this year’s profits, and respecting ethical norms; Least Important is profit 10 years from now, family interests, business continuity
-In Germany, Most Important is responsibility toward society and employees, profit 10 years from now, creating something new; Least Important is power, business growth, this year’s profits
-In the U.K., Most Important is this year’s profits, staying within the law, responsibility toward society and employees; Least Important is business growth, power, profit 10 years from now
-In China, Most Importantis respecting ethical norms, power, honor, responsibility toward society; Least Important is this year’s profits, family interests, staying within the law - Comparing the importance of Reputation versus Wealth shows several key groupings by similarity or disparity
-Reputation was found to be more important than wealth in Denmark, Netherlands, Germany
China, Asians in Hawaii, and New Zealand
-Reputation was found to be equally important to wealth in India, Brazil, and Britain
-Personal wealth was found to be more important than reputation in the U.S., Australia, and Hong Kong
Dr. Hofstede concluded by stating that there is no such thing as a universal economic or psychological rationality, and that nationality constrains rationality within the context of country reputation.
In honor of Prof. Dr. Hofstede’s great contributions to academia and practitice in the field of Reputation over the course of his career, Reputation Institute, bestowed the 2009 RI Award for Best Scholar upon him and have entered Hofstede into the RI Hall of Fame. Prof. Dr. Geert Hofstede joins past RI Best Scholar Award winners Sir Wall Ollins, C.K. Prahalad, and Prakash Sethi.
Following the conference, members of Reputation Institute can login to download Prof. Dr. Geert Hofstede’s full presentation deck in PDF or view the video of his plenary session.
