Working in a culturally diverse environment can produce unexpected encounters and interactions that may be viewed differently based on ethical differences and traditions. In such circumstances, avoiding disrespect and misunderstanding is the top priority. Gift-giving can serve as one such occurrence; being prepared for the possibility of it and knowing how to deal with it is essential for cross-cultural management. It is important to educate oneself on cultural differences to understand the motifs behind gift-giving and act accordingly, making sure not to disrespect or offend others. Furthermore, nepotism is another phenomenon that can often be noticed in the workplace. Cross-cultural management should be mindful and beware that such things might occur. Being transparent and fair is one way to dismantle favoritism in the workplace. Encouraging all workers to apply and participate and publicly informing about and announcing possible availabilities is essential.
Locus of control is the individual perception of oneself and one’s capabilities and the force behind them. Internal locus of control can improve ethical behavior. It fosters independence and confidence, which transfer to greater self-control, self-discipline, growth, and development. External locus of control may facilitate lower levels of ethical behavior due to social pressure and possible irresponsibility. Leaders with an external locus of control can prove to be inconsistent and thoughtless as they are more prone to be influenced by others and prioritize external opinions over their own. In contrast, leaders with a well-defined internal locus of control are self-sufficient and hold themselves accountable for their actions. While being more in control of themselves, they are able to manage the environment around them according to ethical responsibility and respect. Recognizing the consequences of their actions positively influences their decision-making and ethical behavior.