California Management Review

Abstract

Ethical differences between U.S. and Japanese corporations and individuals often emerge during the course of normal business transactions and are a source of considerable mutual tension. This article looks at four common cases of ethical misunderstandings, each of which yields a particular type of issue: family exclusivity, gray areas, loyalty, and commitment. It then evaluates the standard dualistic interpretations for such ethical differences-for example, American individualism versus Japanese group orientation-and presents a more dynamic and interactive model based on the linked ideals of the "Entrepreneur" and the "Elite Course" to explain both persistent ethical differences and a variety of countertrends.

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