Saudi Arabia Business Ethics Essay Example | Topics and Well Written Essays - 2250 words

Saudi Arabia Business Ethics - Essay Example It is noteworthy to mention that organisational culture plays a very important role in organisations in the aspect that it can become a strategic resource that leads to sustainable competitive advantage through the promotion of learning, risk taking, and innovation (Blunt, 1991). It is also suggested that organisational culture is linked to performance at the individual level (Scott et al., 2003), thus pointing out on the importance of culture in business transactions. Culture has been described as â€Å"the way of life for an entire society† and includes codes of manners, dress, language, religion, rituals, and norms of behaviour such as law and morality as well as systems of belief. Hofstede and Hofstede (2005, p. 4) defines culture as â€Å"the collective programming of the mind that distinguishes the members of one group or category of people from others.† Human behaviour is often characterised as complex and unpredictable, adding to the influence of culture on it, which affects how managers work through and with people. Thus, the tasks of the managers influence individual behaviour. A manager who transacts business in a global manner needs to understand the culture of people with whom business is carried out. This indicates the importance of understanding culture as a key factor in competition that relies on knowledge-based assets and processes and depends heavily on learning and innovation (Levitt, 1983). From this standpoint, it is clear that the main target of the organisation today for sustaining organisational success and competitive advantage includes gaining knowledge, skills, and abilities. Additionally, distinctive elements between successful and unsuccessful firms include crucial factors such as the culture, values, attitudes, and commitments of employees and the organisation itself (Piper, 1990). In today’s era of globalisation, the importance of