A COMPARISON OF BRAZIL AND THE UNITED STATES 1

Ethics and Cultural Differences in the Business World

A Comparison of Brazil and the United States
University of Texas at Dallas





A COMPARISON OF BRAZIL AND THE UNITED STATES 2
Abstract
Purpose: This research paper discusses ethics and cultural differences seen in
Brazil and the United States. The purpose of this paper is to examine each of these topics
in the business world as it pertains to both Brazil and the United States. A comparison of
both countries was done to distinguish similarities and differences.
Methodology/Approach: Data about Brazil and the United States as it pertains to
ethics and culture was collected and compared by using two different questionnaires. The
Ethics Position Questionnaire of Forsyth (EPQ) was used to analyze different ethical
ideologies. One half of the questions calculate an idealism score and the other half
calculate a relativism score. Cultural differences were analyzed using the Hofstede
model. Six dimensions are examined in the Hofstede model. Those six are power
distance, individualism, masculinity, uncertainty avoidance, pragmatism, and indulgence.
Findings: Brazil had mean scores of 3.666 in idealism and 3.281 in relativism on
the EPQ. Whereas, the United States had means scores of 3.593 in idealism and 3.238 in
relativism on the EPQ. Both countries scored similar in terms of ethics ideologies. In
terms of the Hofstede model, Brazil and the United States tend to have opposite factors
that drive their culture. The highest score on the six dimensions in Brazil is uncertainty
avoidance whereas the highest score in the United States is individualism. However,
both, Brazil and the United States score moderately high in terms of indulgence.
Value/Contribution: The value of this research paper is to further inspect one of
the upcoming economic powerhouses of the world, Brazil, and comparison to the United
States in terms of ethics and culture.


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Introduction
Ethics
Ethics is defined by Merriam Webster as rules of behavior based on ideas about
what is morally good and bad. From this definition, one can gather that ethics vary from
country to country based on the history of the country and what they believe to be moral
and immoral. In the business world, ethics is something of extreme importance and is
valued very highly in most countries. Without ethics in place, corruption, stealing, lying
and cheating would run rampant throughout the world. That is not to say that those things
do not exist in the business world, but ethics certainly helps in keeping illegal and
immoral actions under control.
Culture
Geert Hofsteade defines national culture as the collective programming of the
mind distinguishing the members of one group or category of people from others.
Hofsteades definition shows the importance and value that culture has. Culture is what
defines a country and its population. Beyond that, national culture creates the images
that the world associates with other countries and this image is used to develop opinions
and make decisions in the business world.
Ethics and Culture
Ethics and culture have a great impact not only on a national level, but on a
business level as well. These two aspects of a country can help define the types of
countries they do business with. For example, a country with high ethical standards and a
well defined cultural background are more likely to be able do business with other
countries. On the other hand, a country with little to no ethical standards and a lack of
A COMPARISON OF BRAZIL AND THE UNITED STATES 4
culture are far less likely to find another country that would be willing to do business
with them.
Ethics and culture are both highly important topics to study regarding other
countries. Because of the differences in ethics and culture across countries, a simple
handshake could be completely misconstrued as an offensive action. Without studying
these characteristics of a country, business deals could be lost as well as respect for not
only a company, but the entire country.
Literature Review
Ethics
Ethics are commonly associated with legality due to the rise of importance that
they have established in the business world. Shinde refers to ethics as a code of conduct
that guides an individual while dealing with others (Shinde, 2013, p. 4). Ethics are often
determined by the cardinal values developed by customs, traditions, and prevailing
socioeconomic environment (Shinde, 2013, p. 4). Spence and Van Heekeren stated
ethics is a set of prescriptive rules, principles, values, and virtues of character, which
inform and guide both the conduct of people towards themselves, and the conduct of
people towards each other (Alsu, Alas, & Carneiro, 2012). Brazil has become an
emerging BRIC economy and has elected their first female president while becoming a
potential world power for the 21
st
century (Chilton & Gorlach, 2012, p. 697). Slavery is
and always will be an ethical issue that will haunt a countrys history but will also
influence a countrys ethical values. DaMatta stated that when the Portuguese colonized
Brazil, it received more African slaves than any other land in the Americas and
eventually accounted for 38.5% of all Atlantic slave trade (Alsua, Alas, & Carneiro,
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2012, p. 33). Brazil was even the last Western country to outlaw slavery (Alsua, Alas,
& Carneiro, 2012, p. 33). Slavery was so popular and necessary that slaves were owned
by the upper, the middle, the lower classes, and even by other slaves (Alsua, Alas, &
Carneiro, 2012, p. 33).
When the Portuguese colonized Brazil, slavery was not the only thing that they
brought. Catholicism, which is still the predominate religion in Brazil, is one of the
biggest influences of ethics that permeates from Brazil. With the strong religious backing,
one would assume that Brazilians would tend to exhibit Mediterranean ethics with an
absolutist (high idealism, low relativism) moral philosophy (Alsua, Alas, & Carneiro,
2012, p. 33). Due to the combination of a long history of slavery and Catholic religion,
Brazils moral philosophy could be theorized at a low idealism and mid-range relativism
(Alsua, Alas, & Carneiro, 2012, p. 33).
In comparison to Brazils history with slavery and influence of Catholicism, the
United States, as well, had two major influences of its history, expansion and Puritanism
(Alsua, Alas, & Carneiro, 2012, p. 34). Both of these influenced the individualistic
culture seen even today in the United States. Society in the United States prides itself on
equality and the idea that you determine the outcome of your own life. With this self-
interested view, the concepts of idealism and relativism are low in society.
An empirical study done across five countries measured the philosophies and
ethics, including Brazil, using Ethics Position Questionnaire (EPQ) developed by
Forsyth. The study included 1203 questionnaires: 751 from the USA, 58 from Brazil, 236
from China, 94 from Chile and 62 from Estonia (Alsua, Alas, & Carneiro, 2012). EPQ is
used to determine the moral philosophies of idealism and relativism using a 5-point
A COMPARISON OF BRAZIL AND THE UNITED STATES 6
Likert-type scale ranging from 1 (strongly disagree) to 5 (strongly disagree) (Alsua,
Alas, & Carneiro, 2012, p. 36). Respondents were asked to endorse, 10 items measuring
relativism and 10 that measured idealism, using the Likert-type scale.
Relativism focuses on concern for principles and the importance of rules and
ethical norms, therefore a high relativism would suggest that ethical variety exists in
different situations and societies (Alsua, Alas, & Carneiro, 2012, p. 36). The
measurement of idealism focuses on the concern for human welfare ( (Alsua, Alas, &
Carneiro, 2012, p. 36). A high idealism would then suggest that one should never
psychologically or physically harm another person, and one should not perform an action
that might threaten the dignity and welfare of another individual (Alsua, Alas, &
Carneiro, 2012, p. 36).
After using the measurements of idealism and relativism, the study showed fairly
consistent data throughout each of the countries. The end results of the study using the 1-
5 scale determined that Brazil had a 3.666 mean in idealism with a standard deviation of
0.589, and a mean of 3.281 in relativism with a standard deviation of 0.594 (Alsua, Alas,
& Carneiro, 2012, p. 37). This data meant that Brazil had slightly lower relativism then
the United States, which had a mean of 3.238 (Alsua, Alas, & Carneiro, 2012, p. 37).
While the data for idealism showed that Brazil was less then 0.1 difference in mean when
compared to the United States, 3.593 (Alsua, Alas, & Carneiro, 2012, p. 37).
The data collect from the study was consistent with the theoretical expectations
of a Catholic absolutist (high idealism/low relativism) tradition, moderated by the
historical influence of a slavery morality (Alsua, Alas, & Carneiro, 2012, p. 38). With
the historical markers of Brazil as well as the potential of becoming a new world power,
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the ethical values measured by EPQ proved the theory of a low idealism and mid-range
relativism.
Culture
The Brazilian culture is complex due to the extreme differences in income levels
throughout the country; however, society is typically close-knit and generally concerned
with order and structure in their government. The culture in the country can be explained
through the Hofstede model which rates countries based on six dimensions: power
distance, masculinity or femininity, individualism or collectivism, uncertainty avoidance,
pragmatic or normative, and indulgent or restrictive. Describing these dimensions as they
apply to Brazil will show the general culture throughout the country.
Power Distance
The Hofstede model shows that Brazil has a high level of power distance. The
high score reflects the idea that citizens with greater incomes or higher professional
positions should be placed in higher social rankings leaving the lower ranking citizens to
live in poverty. Throughout the country, greater social distanceamong citizens..appear
to heighten feelings of unfairness and inefficacy (Hunter, 2009). Power distance is
shown through the appalling poverty to which millions of people in Latin
Americanare subjected, in sharp contrast with the enormous wealth with which a tiny
minority live (von Sinner, 2007). Power distance greatly affects the culture in Brazil by
cutting a clear line between the rich and the poor.
Individualism
Individualism is fairly low in Brazil. Because of the low incomes of many
millions of citizens in the country, society tends to be more closely knit. Family is what is
A COMPARISON OF BRAZIL AND THE UNITED STATES 8
important to them and they rely on family to support them and be by their side through
the difficult times. An idea of citizenship theology is widely represented in Brazil by the
poor population. In Brazil, it can be said that citizenship is about the right to have
rightsthis may sound obvious, but it is not in a society with millions of people
struggling for mere survival (von Sinner, 2007). This idea brings the people of the poor
communities together and creates a close bond between them. The culture in Brazil is
very much centered on trust and reliance on others.
Uncertainty Avoidance
The dimension of uncertainty avoidance is high in Brazil showing that they are
not interested in taking risks and that society wants decisions to be made for them by
their government. The Brazilian culture relies heavily on their government to bring about
safe conditions within the country by putting restrictive laws in place. Even though these
laws are in place, the crime and violence rate is astronomical. In 2007, 12.5% of all
deaths were caused by violence[and] the prison population in Brazil grew faster than
any other American country (Murray, 2013). The need for government aid in this
country is high, however, it is clear that the laws put in place are not always followed
resulting in high violence rates.
Masculinity vs Femininity
According to the Hofstede model, Brazil is somewhere between masculine and
feminine in culture. This means that Brazilians are not extremely interested in proving
themselves as far as competition is concerned, but the desire to win or succeed is still
within them. This is shown in their passion for football throughout the country. Known to
be one of the greatest countries for soccer, their competitive side certainly comes out on
A COMPARISON OF BRAZIL AND THE UNITED STATES 9
the field. Society is also interested in spending time enjoying themselves in their
everyday activities as opposed to constantly trying to prove that they are the best at what
they do.
Pragmatic vs Normative
Brazil is somewhere between pragmatic and normative meaning that society is
somewhat concerned about the unexplainable; however they are not completely
consumed by it. They do not have a strong desire to prove the impossible or to solve the
mysteries of the world; however, they tend to be driven to live a moral life. What those
morals are based on could be religion, a strong belief in the government and what they
are trying to achieve, or simply an inner desire to do good. Of course, not everyone is
driven by the desire to do well, which is evident, by the high rate of crime and violence
throughout the country.
Indulgence
Indulgence, seemingly the most visible and obvious trait of the country, is high
which the world sees every year during Carnival. Society in Brazil enjoys indulging
themselves in having a good time. Carnival is such a representation of Brazil that
indeed, many would argue that it is impossible to understand the society without
accounting for that celebration (Lewis, 1999). This event is a clear representation of
Brazils level of indulgence. Work is halted throughout the country and festivities
continue on for several days.
Brazil is a complex country with several layers of dimensions. The poor
population in the country greatly outweighs the rich population in society, therefore we
should be much more concerned with the culture that is represented by the lower income
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population. This part of the population is the face of Brazil and without them; the
countrys dimensions would look completely different on the Hofstede model.
Brazil Compared to the United States
When compared, Brazil and the United States tend to have opposite factors that
drive their culture. Brazil (69) has about a 30-point higher power distance score than the
United States (40). When looking at the world as a whole, the average score for power
distance using the Hofstede model is 55. The United States, being below the world
average indicates that there is less willingness to accept injustice and power gaps in
relationships (Boonghee, Donthu, & Lenartowicz, 2011). As a country, the United States
tries to decentralize and distribute power equally (Altaf, 2011). This coincides with the
United States strive for equality.
On the dimension of individualism, the United States is at a score of 91. That is
more than double Brazils score. The United States has the highest score in this category
compared to any other country in the world. Individualism is focused on the individuals
goals and interests rather than of a group or community. Previous studies have shown that
people in the United States have more negative emotions when group tasks are assigned
(Tosi, 2011, p. 232). Americans highly value their identity, personal responsibility, and
self-achievements whereas Brazilians are more accepting of working together to get
things done. The United States has recently been putting more emphasis on the group
mentality so it is possible that over some time, the United States could eventually lean
more towards the score of Brazil when it comes to individualism.
Brazil has a high uncertainty avoidance score meaning they prefer predictability
and their interest in taking risks is low. The United States has a score of 46, which is
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generally low compared to Brazil and the rest of the world. The United States is not
afraid to take risks and that is shown by the countrys high level of innovation. Without
risk-taking, innovation would be a much less common occurrence. Low uncertainty
avoidance cultures are more adaptable to change. Tolerance for different beliefs is also
higher among low uncertainty avoidance societies.
Masculinity scores are slightly higher in the United States (62) than in Brazil (49).
This dimension can be related to the United States drive for individualism. Masculine
societies are more focused on wanting to be the best rather than lik[ing] what [they]
do (Hofstede, 2001). The characteristics of masculinity are usually described as
assertive, competitive, and dominant.
The United States scored low on the pragmatism dimension making them more
normative. This means most strive to know as much as they possible can. The United
States has a history of wanting to be the first to accomplish tasks to prove that they are
the best country. For example, the United States was the first to go to the moon and that
is something that will never be forgotten. The United States is very concerned with
making history and being as innovative as possible. As previously stated, Brazil does not
pose a strong desire to know all or even prove what seems impossible.
On the last dimension, indulgence, the United States (68) scores slightly higher
than Brazil (59). The United States has a strong belief that if a person does their work,
they should be rewarded. The common saying, work hard, play hard is a reflection of
the indulgence that is supported in the United States. Society in the United States enjoys
their days off by relaxing and doing whatever they please. Indulgence is a reflection of
how culture is within a country and is a good representation of all six cultural dimensions
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on the Hofsteade model combined.
Conclusion
Ethics and culture are the main things that society looks at to determine a
countrys status. Those characteristics also allow companies to determine if a particular
country is one that they may want to do business with. After reviewing these items in
reference to Brazil, it can be said that although Brazil has had a difficult past, not only
economically, but also with respect to ethics and culture. Even though their past will
always be a part of the countrys history, they are well on their way to being a well-
developed and respected country. Brazil is currently one of the four main countries in the
world that is rapidly growing economically as a part of BRIC. This economic growth will
eventually lead to power within international business.
Ethics in Brazil have developed and transformed over time to bring the country to
a point on par with the rest of the world. Ethical issues involving slavery and religion
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have had a major influence on ethics in the country. Ethics is something that will
continue to develop over time and eventually be a top priority in the country. Even in the
United States, ethics is a work in progress and it is next to impossible for everyone to be
ethical.
The culture throughout Brazil also has a large impact on the economy. Current
culture shows that poverty rates are extremely high while resistance to risk-taking is
relatively low. Independence is fairly low while indulgence is somewhat high. The
country is somewhere between pragmatic and normative and somewhere between
masculine and feminine. All of these traits show that Brazil is a country that is in need of
development and is well on their way to doing so by being a part of BRIC. Society enjoys
celebrating life and enjoys doing so with family. They do not feel like they have to prove
themselves to be better than others and also they do not have a strong desire to prove the
impossible. Brazils culture is one that the world will eventually come to know very well
since they are well on their way to being an economic world leader.


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