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JulyAugust2007

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"Is it right to use child labor or take bribes or engage in corruption, just because it's permitted in that part of the world? The idea of cultural relativism can be extremely harmful." —Ángel Cabrera, Thunderbird School of Global Management, Glendale, Arizona who could speak languages such as Mandarin, Arabic, and Russian. In response to this call, some business schools have begun to add language study to their curricula. Moreover, schools like Thunderbird have now made language study mandatory. "Our students must learn a second language, if they don't already speak a second language. Some learn a third or fourth language," says Cabrera of Thunderbird. He adds that, like any communication skill, foreign language profi- ciency is becoming an increasingly "soft skill" that can put business students ahead in the global business game. An Ethical Worldview Teaching ethics is difficult enough in a closed business system; in the global context, ethical complexities multiply. Business schools are now faced with the challenge of providing students a sense of direction through incredibly com- plex global ethical dilemmas. Different countries have different boundaries, and students will need to know the ethical score in a culture before they can work there effectively. As an example, Thunderbird's Cabre- ra points to the use of child labor in some regions. In Western countries, child labor is not just wrong—it's illegal. But a Western company may find that it wants to operate in a country where the use of child labor is commonplace. Busi- ness leaders, Cabrera argues, must be as creative in coping with such practices as they would be in managing their strategy or supply chain. "When people deal with ethical issues on an international scale, they often fall back on the idea of 'cultural relativism.' That is, they say, 'Well, things are different in this country. We can't impose our own values,'" Cabrera says. "But we can take that to the extreme. Is it right to use child labor or take bribes or engage in corruption, just because it's permit- ted in that part of the world? The idea of cultural relativism can be extremely harmful." However, the world is beginning to develop a shared sense of fair trade. For example, China, a country often perceived as fertile ground for corruption, is working to eliminate corrupt practices such as bribery and favoritism, says Jianmao Wang of the Chinese European International Business School (CEIBS) in Shanghai. He refers to the 48 BizEd JULY/AUGUST 2007 ousting last year of Chen Liangyu, secretary of the Shanghai Municipal Committee of the Communist Party, for his part in a social security fund scandal. That's an event that indi- cates an ethical shift, says Wang. Wang sees globalization pushing nations toward univer- sally accepted ethical practices, driven not only by honor but also self-interest. Executives in China are realizing that corrupt business practices ruin their brands and cost them in the long run, says Wang. "In the past, many multinational companies were eager to achieve quick success and quick profits, even if their actions hurt their reputations or brands. There is a saying in China: 'It does not matter if a cat is black or white. As long as it catches mice, it's a good cat!'" says Wang. "That's not the case anymore. I predict that companies will clean up their business practices and protect their brands. I teach students that the black cat is dead. Only the white cat will sur- vive in China." Business schools also have an ethi- cal responsibility to respond to global issues and lead by example, says Jorge Talavera, rector of the School of Busi- ness at Universidad San Ignacio de Loyola in Lima, Peru, and president of the Latin American Council of Manage- ment Schools (CLADEA). "Business schools must discuss issues such as pov- erty, hunger, injustice, and inequality, not only in Latin America but around the world. We have to call attention to sustainable development and global warming," says Talavera. "Our institutions have a great responsibility to create con- science about these issues. We have an obligation to search for solutions." Emerging Markets in Transition The continuing rise of emerging economies may be one of the most significant forces shaping business—and busi- ness education—over the coming years. Just like Kigali's SFB, other business schools in Africa, Latin America, and the Middle East are building strong local and regional reputations. The transition of these schools from local to global insti- tutions won't happen overnight, but it could happen more quickly than once may have been expected, says Talavera. Technological advances in communication, transportation,

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