Managerial behavior is influenced by the society in which the company operates.
• Activities that are acceptable in one culture may be unacceptable in another (such as conspicuous consumption).
• Executives in a country that values “individualism” may be more likely to take self-interested actions than executives in a country that values “collectivism,” because they do not risk the same level of scorn for their behavior.
• Societal values will also influence whether the company takes a more shareholder-centric or stakeholder-centric approach.