POLITICAL-ECONOMY-AND-ETHICS-WRITTEN-REPORT-GROUP-6 (1).pdf

The Cultural Environment of one's own, commonly experienced by 3.Perceptions of Time International Business expatriate workers. Time has a strong influence on business. It C...

The Cultural Environment of one's own, commonly experienced by 3.Perceptions of Time International Business expatriate workers. Time has a strong influence on business. It Culture is like an iceberg – above the affects people’s expectations about planning, I. Culture and Cross-Cultural Risk surface, certain characteristics are scheduling, profit flows, and promptness in Culture visible; below the surface is a massive arriving for work and meetings. The values, beliefs, customs, arts, base of assumptions, attitudes and ✓Monochronic - A rigid orientation to time and other products of human values that strongly influence in which the individual is focused on thought and work that characterize the decision-making, relationships, conflict, schedules, punctuality, time as a resource, people of a given society and other dimensions of business. time is linear, “time is money”. For example, Cross-Cultural Risk people in the U.S. are hurried and A situation or event where a II. Dimensions of Culture impatient. cultural miscommunication puts some ✓Polychronic - A flexible, non-linear human value at stake. 1. Values and Attitudes orientation to time in which the individual takes a long-term perspective; time is What Culture Is not Values represent a person’s judgments elastic, long delays are tolerated before Not right or wrong. Culture is relative. about what is good or bad, acceptable or taking action. Punctuality is relatively There is no cultural absolute. Different unacceptable, important or unimportant, unimportant. Relationships are valued. nationalities simply perceive the world and normal or abnormal. Values are the Examples: Africa, Latin America, Asia. differently. basis for our motivation and behavior. 4.Perceptions of Space Not about individual behavior. Culture Our values guide the development of our Cultures also differ in their perceptions of is about groups. It refers to a collective attitudes and preferences. physical space. We have our own sense of phenomenon of shared values and Attitudes are similar to opinions but are personal space and feel uncomfortable if meanings. often unconsciously held and may not be others violate it. Not inherited. Culture is derived from based on logical facts. Prejudices are 5.Symbolic Productions the social environment. We are not rigidly held attitudes, usually unfavorable A symbol can be letters, figures, colors, or born with a shared set of values and and usually aimed at particular groups of other characters that communicate a attitudes; we learn and acquire as we people. meaning. grow up. Symbols can represent nations, 2. Manners and Customs religions, or corporations, and they can help Culture is Learned Manners and customs are ways of behaving to unite people. Socialization: The process of learning and conducting oneself in public and 6.Material Production and Creative the rules and behavioral patterns business situations. Some countries are Expression appropriate to one's given society, i.e. characterized by informal cultures; people Material productions are artifacts, objects, cultural learning. treat each other as equals and work together and technological systems that people Acculturation: The process of adjusting cooperatively. In other countries, people construct to function within their and adapting to a culture other than tend to be more formal; status, power, and environments. respect are relatively more important.  Education Idiom is an expression whose symbolic Almost every culture is underpinned by Education takes place in various ways, meaning is different from its actual or religious beliefs. especially through lessons and behavior literal meaning. Religion influences culture and, acquired from parents, family, and peers; Example: therefore, managerial and customer behavior participation in groups (social, business, "To roll out the red carpet" is to in various ways. Although there are and religious); and formal schooling. extravagantly welcome a thousands of distinct faith groups Literacy, the ability to read, is an guest; no red carpet is actually used. worldwide, four major religions dominate: important indicator of education level ✓ Christianity with roughly 2 billion and varies substantially around the NONVERBAL COMMUNICATION adherents, world. Nonverbal communication is unspoken ✓ Islam with about 1.5 billion followers, and Social Structure and includes facial expressions and ✓ Hinduism with around 1 billion Social structure refers to the pattern of gestures. In fact, nonverbal messages adherents. social arrangements and organized accompany most verbal ones. ✓ Buddhism, with around 1 billion relationships that characterize a society. These include facial expressions, body adherents. movements, eye contact, physical distance, ✓ Other belief systems include III. Language as a Key Dimension of posture, and other nonverbal signals. Confucianism and Judaism Culture Nonverbal communication frequently can The “mirror” or expression of culture; lead to confusion and misunderstandings Christianity divided into 3 major groups essential for communications; provides because of cultural differences. ✓ Catholic insights into the culture. Linguistic Certain facial expressions and hand ✓ Protestant proficiency is a great asset in international gestures have different meanings in different ✓ Eastern Orthodox business cultures, and a lack of awareness of the Islam Language has both verbal and nonverbal meanings of these gestures in the local ✓ Islam is based on Qur’an (unspoken, facial expressions and gestures). culture can lead to negative consequences Hinduism VERBAL LANGUAGE ✓ It is a traditional way of life and an The world has nearly 7,000 active IV. RELIGION open hearted faith that fully accepts languages, including more than 2,000 in Religion is a system of common beliefs or others faith each of Africa and Asia. attitudes concerning a being or a system of Buddhism National languages, dialects, and thought that people consider sacred, divine, ✓ Based on the teaching of prophet translation tend to complicate verbal or the highest truth and includes the moral Buddha communication. codes, values, institutions, traditions, and Sometime business jargon rituals associated with this system. can cause communication Religious concepts of right and wrong V. CULTURE’S EFFECT IN problems have played a major role in the development INTERNATIONAL BUSINESS of ethical values and social responsibility. Culture can differ sharply, even between neighboring countries. Effective handling of the cross-cultural interface is a Teamwork. What should managers do Anthropologist Edward T. Hall critical source of firms’ competitive if foreign and domestic nationals don’t get classified cultures as low context and high advantage. Cross-cultural proficiency is along? context. paramount in many managerial tasks, Lifetime Employment. Workers in Low-context cultures rely heavily on including: Japan often expect to work for the same spoken words and detailed verbal ✓ Managing employees firm throughout their careers; How explanations. These cultures use specific, ✓ Communicating and interacting with should a foreign firm handle this? legalistic contracts to conclude agreements. foreign business partners Pay For Performance System. In High-context cultures emphasize ✓ Negotiating and structuring China and Japan, a person’s age is nonverbal messages and view international business ventures important in promoting workers. Yet how communication as a means to promote ✓ Developing products and services do such workers perform when merit smooth, harmonious relationships. They ✓ Preparing advertising and promotional performance-based measures are used? prefer an indirect and polite style that materials Organizational Structure. Preferences emphasizes mutual respect and care for ✓ Preparing for international trade fairs for centralized, bureaucratic structures others and exhibitions may deter information sharing. ✓ Screening and selecting foreign Union-Management Relationships. Hofstede’s Six Independent Dimensions distributors and other partners Workers in European firms enjoy a more of National Culture ✓ Interacting with current and potential equal status with managers. customers from abroad Attitudes Toward Ambiguity. If you’re 1. Individualism Versus Collectivism- Examples of how cross-cultural uncomfortable working with minimum refers to whether a person functions differences may complicate company guidance or taking independent action, primarily as an individual or as part of a activities you may have difficulty fitting into some group. ✓ Developing products and services cultures. In Individualistic Societies, each person ✓ Communicating and interacting with tends to focus on his or her own foreign business partners VI. MODELS AND EXPLANATION OF self-interest, and ties among people are ✓ Negotiating and structuring CULTURE relatively loose. international business ventures 1. Cultural Metaphors In Collectivist Societies, ties among ✓ Interacting with current and potential Martin Gannon offered an insightful individuals are highly valued. The group is customers analysis of cultural orientations. all important because life is a cooperative ✓ Preparing advertising and promotional In his view, a cultural metaphor refers experience. materials to a distinctive tradition or institution that is strongly associated with a particular society. 2. Power Distance describes how a society Cross-Cultural Differences may Create It is a guide to deciphering people’s deals with inequalities in power that exist Challenges attitudes, values, and behavior. among people. High Power Distance Societies exhibit 2. High- and Low-Context Cultures big gaps between the weak and powerful; in firms,top management tends to be and women are assertive, focused on career typically use contracts, and want to just “get autocratic, giving little autonomy to and earning money. down to business.” lower-level employees. Examples: USA, Australia, Japan. In Relationship-Oriented Cultures, Examples:Guatemala,Malaysia,Philippine Feminine Cultures emphasize nurturing managers value affiliations with people, China and several Middle East countries. roles, interdependence among people, and rapport, and getting to know the other party Low Power Distance Societies have small women. in business interactions. Relationships are gaps between the weak and powerful. Firms Examples: China, Scandinavian countries, more important than individual deals; Trust tend toward flat organizational structures, where welfare systems are highly developed, is much valued in business agreements. with relatively equal relations between and education is subsidized. managers and workers. For example, VII. MANAGERIAL IMPLICATIONS OF Scandinavian countries instituted various 5. Long-Term Vs. Short-Term Orientation CULTURE systems to ensure socioeconomic equality. describes the degree to which people and Cultural Orientation organizations defer gratification to achieve Ethnocentric Orientation: Using our own 3. Uncertainty Avoidance refers to the long term success. culture as the standard for judging other extent to which people can tolerate risk and Long-Term Orientation emphasizes the cultures. uncertainty in their lives. long view in planning and living, focusing on Polycentric Orientation: A mindset in High Uncertainty Avoidance Societies years and decades. which the manager develops a greater create institutions to minimize risk and Short-Term Orientation is typical in the affinity for the country in which he or she ensure security. Firms emphasize stable United States and most other Western works than for the home country. careers and regulate worker actions. countries Geocentric Orientation: A global mindset Decisions are made slowly. Examples: in which the manager is able to understand China, Belgium, France, Japan 6. Indulgence Versus Restraint describes a business or market without regard to In Low Uncertainty Avoidance Societies, the degree to which people in a society national boundaries. Managers should strive managers are relatively entrepreneurial and attempt to control their impulses and for a geocentricorientation. comfortable with risk. Firms make decisions desires. quickly. People are comfortable changing Members of Indulgent Societies allow Managerial Guidelines for Cross-Cultural jobs. relatively free gratification of their basic and Success Examples: Ireland, Jamaica, U.S.A natural human desires related to having fun Acquire factual and interpretive knowledge and generally enjoying life. about the other culture; try to speak their 4. Masculinity Versus Femininity refers to Restrained Societies believe that such language. a society’s orientation based on traditional gratification should be curbed and regulated Avoid cultural bias. male and female values. by strict norms. Develop cross-cultural skills, such as Masculine Cultures value perceptiveness, interpersonal skills, competitiveness, ambition, assertiveness, 3. Deal vs. Relationship Orientation adaptability and the accumulation of wealth. Both men In Deal-Oriented Cultures, managers focus on the task at hand, are impersonal, Personality Traits for Cross-Cultural Proficiency Tolerance For Ambiguity: Ability to tolerate uncertainty and lack of clarity in the thinking and actions of others. Perceptiveness: Ability to closely observe and comprehend subtle information in the speech and behavior of others. Valuing Personal Relationships: Ability to appreciate personal relationships; which are often more important than achieving one-time goals or “winning” arguments. Flexibility And Adaptability: Ability to be creative in devising innovative solutions, be open-minded about outcomes, and show “grace under pressure”. One way for managers to determine the skills they need to approach cultural issues is to measure their cultural intelligence. Cultural Intelligence (CQ) is a person’s capacity to function effectively in situations characterized by cultural diversity. It focuses on specific capabilities important for high-quality personal relationships and effectiveness in culturally diverse settings and work groups. POLITICAL ECONOMY - It is the belief that only individuals Political economy is the study of how and private groups should control a nation’s PLURALISM a country manages its affairs by using its political activities. - It is the belief that both private and political, economic, and legal systems. The A cluster of doctrines and attitudes public groups play important roles term political economy is derived from the centered on the belief that government is in a nation’s political activities. Greek polis meaning “city” or “state”, and both harmful and unnecessary. Anarchist Pluralism assumes that diversity is oikonomos which means “one who manages thought developed in the West and spread beneficial to society and that autonomy a household or state”. Any nation’s political throughout the world, principally in the should be enjoyed by disparate functional or economy reflects how its people put their early 20th century. Derived from the Greek cultural groups within a society, including preferred political, economic, and legal root anarchos meaning “without authority,” religious groups, trade unions, professional theories into practice and the institutions anarchism, anarchist, and anarchy are used organizations, and ethnic minorities. they create. to express both approval and disapproval. Pluralistic political systems include An anarchist views public government as democracies, constitutional monarchies, and I. POLITICAL SYSTEMS unnecessary and unwanted because it some aristocracies A political system includes the tramples personal liberties. II. ECONOMIC SYSTEMS structures, processes, and activities by A country’s economic system consists which a nation governs itself. A country’s TOTALITARIANISM of the structure and processes that it uses to political system is rooted in the history and – It is the belief that every aspect of allocate its resources and conduct its culture of its people. Factors such as people’s lives must be controlled for a commercial activities. Every economy population, age and race composition, and nation’s political system to be effective. It is displays a tendency toward individualist or per capita income influence a country’s a form of government that attempts to assert collectivist economic values that reflects the political system. There are three political total control over the lives of its citizens. It is nation’s culture. There are three types of ideologies: Anarchism, Totalitarianism, and characterized by strong central rule that economic system: a Centrally Planned Pluralism. attempts to control and direct all aspects of Economy, Mixed economy and Market individual life through coercion and Economy. THREE POLITICAL IDEOLOGIES repression. Totalitarian political systems include authoritarian regimes such as ANARCHISM communism and fascism. CENTRALLY PLANNED ECONOMY  A centrally planned economy, also rises, resulting in economic recessions or resources are rather equally split between called a command economy, is an economic depressions. private and government ownership. In a system in which the government or central mixed economy, the government owns fewer authority makes all decisions regarding the Focus On Equality economic resources than does the production, distribution, and consumption – The government can ensure that basic government in a centrally planned economy. of goods and services. In this system, the needs like healthcare, education, and Yet in a mixed economy, the government determines what goods and housing are provided universally, promoting government tends to control the economic services will be produced, how much will be social equity. sectors that it considers important to produced, and at what price they will be national security and long-term stability. offered to consumers. Central planning DISADVANTAGES OF A CENTRALLY Both private individuals and the government agencies specify production goals for PLANNED ECONOMY own and control resources in the mixed factories and other production units, and economy. The private sector operates they even decide prices. The primary goal is Lack of Innovation: businesses, while the government may own to allocate resources in a way that meets the – Without competition or profit incentives, or regulate key industries, especially those collective needs of society, often emphasizing there is often little motivation for innovation providing essential services like healthcare, equity, social welfare, and stability over or improving efficiency. transportation, and utilities. market-driven competition. Shortages and Surpluses: ADVANTAGES OF MIXED ECONOMY ADVANTAGES OF CENTRALLY PLANNED – Because production and distribution are Balance Between Efficiency and Welfare: ECONOMY centrally controlled, it can lead to – A mixed economy leverages the efficiency Economic Stability mismatches between what is produced and and innovation of the private sector while – A centrally planned economy can what consumers need or want, resulting in using government intervention to promote potentially avoid the volatility and cycles of shortages of goods or excess supply. social welfare, reduce poverty, and provide boom and bust seen in market economies. essential services. Booms, where high demand drives up MIXED ECONOMY Consumer Freedom and Choice: production and prices, often leading to over-investment. Busts, where demand A mixed economy is a system in – Consumers enjoy a wide variety of goods drops, businesses fail, and unemployment which land, factories, and other economic and services offered by the private sector. At the same time, they benefit from public produce, how to produce, and for whom to Market economies can lead to significant goods and services provided by the produce. Supply is the quantity of a good or income disparities, as individuals with more government. service that producers are willing to provide resources, skills, or access to capital can at a specific selling price. Demand is the accumulate wealth, while others may DISADVANTAGE OF MIXED ECONOMY quantity of a good or service that buyers are struggle. Economic Instability: Tax Burden: willing to purchase at a specific selling price. – To fund public services and social welfare In this type of economy government has a Market economies are susceptible to programs, mixed economies often rely on limited role and they intervene when it economic cycles, including periods of boom taxation. High taxes can discourage comes to property rights, contracts, and also and bust, leading to recessions, investment and reduce the disposable to ensure fair and competitive environment. unemployment, and inflation. income of individuals and businesses. – Government intervention can sometimes ADVANTAGES OF MARKET ECONOMY III. LEGAL SYSTEMS lead to excessive bureaucracy and Innovation: inefficiency. For example, heavily regulated – The competition and profit motive A country’s legal system is its set of industries may face slow decision-making encourage businesses to innovate, leading to laws and regulations, including the processes and administrative costs. the development of new products, services, processes by which its laws are enacted and and technologies that can improve the enforced and the ways in which its courts MARKET ECONOMY standard of living hold parties accountable for their actions. A In a market economy, the majority of Consumer Choice: country’s political system also influences its a nation’s land, factories, and other – A market economy offers consumers a legal system. Political systems and legal economic resources are privately owned, wide variety of goods and services. systems, therefore, are naturally interlocked. either by individuals or businesses. This Consumers can choose products that best Legal systems are frequently influenced by means that who produces what and the meet their needs and preferences, which political moods and upsurges of prices of products, labor, and capital in a drives producers to continually improve nationalism— the devotion of a people to market economy are determined by the their offerings. their nation’s interests and advancement. interplay of two forces which are supply and demand. Private sectors are the one who DISADVANTAGES OF MARKET ECONOMY Common Law making decisions when it comes to what to Income Inequality:  - It is a legal system based on a - A legal system based on religious recognized in the Paris Convention for the country’s legal history (tradition), past teachings. Protection of Industrial Property (1883) cases that have come before its courts - It is a form of government which (Paris Convention) and the Berne (precedent), and how laws are applied defers not to civil development of law, but to Convention for the Protection of Literary and in specific situations (usage). an interpretation of the will of a God as set Artistic Works (1886) (Berne Convention) - Common law is a body of unwritten out in religious scripture and authorities. The Convention Establishing the World laws based on legal precedents Law in a theocracy must be consistent with Intellectual Property Organization (1967) established by the courts. Common religious text the ruling religion abides by. In provides the lists of protected by IP rights: law influences the decision-making a theocracy, the courts are usually presided process in unusual cases where the over by religious officials, who are taken as literary, artistic and scientific works; outcome cannot be determined based more versant in the applicable legal texts. performances of performing artists, on existing statutes or written rules of phonograms and broadcasts; law. Islamic Law inventions in all fields of human – Commonly referred to as Shariah, endeavor; Civil Law. governs interpersonal conduct and regulates scientific discoveries; - A legal system based on a detailed set the ritual practices of Muslims. In some industrial designs; of written rules and statutes that constitute countries it is also the governing law, while trademarks, service marks, and a legal code. other countries apply Islamic law to specific commercial names and designations; - Civil law defines the rights and areas, such as personal status or finance. protection against unfair competition; responsibilities of individuals, government and all other rights resulting entities and private or non-government IV. GLOBAL LEGAL ISSUES from intellectual activity in organizations in their interactions with each Key legal issues facing companies that are the industrial, scientific, other. A breach of a civil law right or active in international business. literary or artistic fields obligation does not usually lead to criminal processes and sanctions. ▪ INTELLECTUAL PROPERTY — is a World Intellectual Property Organization property that results from people’s (WIPO) Theocratic Law intellectual talent and abilities. The importance of protecting IP was first  – is an international organization Distinguish the products or services others for damage, injury, or death caused dedicated to promoting creativity and of one company from those of other by defective products. innovation by ensuring that the rights of companies. creators and owners of intellectual property Distinguish products or services from TAXATION are protected worldwide, and that inventors a given source from identical or Income and sales taxes and authors are recognized and rewarded for similar products or services from Consumption taxes their ingenuity. other sources. Value added tax (VAT)—a tax levied on each Refer to a particular quality of the party that adds value to a product ▪PROPERTY RIGHTS — is the legal rights to product or service for which a mark is throughout its production and distribution. resources and any income they generate. used Industrial Property — it includes patents Promote the marketing and sale of ANTITRUST REGULATIONS — Antitrust and trademarks, which are often a firm’s products, and the marketing and laws try to provide consumers with a wide most valuable assets. The broad provision of services. variety of products at fair prices. It has long application of the term “industrial been recognized as a primary tool for property” is set out in the Paris Copyrights — give creators of original works ensuring openness of markets to new Convention. the freedom to publish or dispose of them as competitors, so that prices for consumers o Patent is a right granted to the they choose. A copyright is typically denoted will remain as low as possible, with easy inventor of a product or process that by the well-known symbol ©, a date, and the entry of new competitors to markets. excludes others from making, using, or copyright holder’s name. selling the invention. Patents are the most V. ETHICS AND SOCIAL RESPONSIBILITY widespread means of protecting technical PRODUCT SAFETY AND LIABILITY Ethical behavior is personal behavior inventions. Once it expires, the protection in accordance with guidelines for good ends and the invention enters the public Product safety laws in most countries set conduct or morality. Ethical dilemmas are domain. standards that manufactured products not legal questions. When a law exists to o Trademarks are words or symbols must meet. guide a manager toward a legally correct that distinguish a product and its Product liability is the responsibility of action, that path must be followed. In an manufacturer. It perform (4) four main manufacturers, sellers, individuals, and ethical dilemma, there is no right or wrong functions: decision. There are alternatives, however, that may be equally valid in ethical terms – A company should adopt local depending on one’s perspective. Corporate ethics wherever it operates because social responsibility (CSR) is the practice of all belief systems are determined going beyond legal obligations to actively within a cultural context. It says that balance commitments to investors, a company’s sole responsibility is to customers, other companies, and maximize profits for its owners (or communities. shareholders) while operating within the law. Ethical Behavior – Ethical behavior involves personal actions CSR THREE LAYERS OF ACTIVITY CULTURAL RELATIVISM VIEW aligned with guidelines for good conduct and 1. Traditional philanthropy, whereby a – Recognizes that what may be morality. Ethical dilemmas involve choices corporation donates money and, perhaps, acceptable behavior in one culture may be with no clear right or wrong; alternatives are employee time toward a specific social considered unethical or inappropriate in valid depending on perspective cause. another. Embracing cultural relativism helps 2. Risk management, whereby a businesses adapt their products, services, Business Ethics company develops a code of conduct that it and marketing strategies to specific cultural – Moral principles and values that guide will follow in its global operations and agrees contexts. Recognizing and respecting ethical behavior in the business context. to operate with greater transparency. cultural preferences, values, and traditions 3. Strategic CSR, in which a business can enhance product acceptance, customer Corporate Social Responsibility (CSR) builds social responsibility into its core satisfaction, and brand loyalty. – Corporate Social Responsibility means operations to create value and build going beyond legal obligations to balance competitive advantage. RIGHTEOUS MORALIS VIEW commitments to investors, customers, other – The Righteous Moralist states that a companies, and communities. PHILOSOPHIES OF ETHICS AND SOCIAL company’s home-country standards RESPONSIBILITY of ethics should be followed globally. It claims that a multinational’s FRIEDMAN VIEW home-country standards of ethics are the appropriate ones for companies to follow in belief that every aspect of people’s lives must be Theocratic law is a system based on religious foreign countries. controlled for a nation’s political system to be teachings. effective; Pluralism—the belief that both private Firms must work hard to protect their UTILITARIAN VIEW and public groups play important roles in a property rights and intellectual property against nation’s political activities. violations of patents, trademarks, and – Its approaches to ethics hold that the A country’s economic system consists of copyrights. Companies must know product moral worth of actions or practices is the structure and processes that it uses to liability laws and taxation requirements wherever determined by their consequences. A allocate its resources and conduct its commercial they operate. Businesses need to know how company should behave in a way that activities. There are three types economic antitrust laws influence operations. maximizes “good” outcomes and minimizes system: a Centrally Planned Economy in which a Legal systems set clearly defined “bad” outcomes wherever it operates. In nation’s land, factories, and other economic boundaries for lawful individual and corporate other words, utilitarian thinkers say the resources are owned by the government; Mixed behavior, however, they are inadequate for right behavior is that which produces the economy in which land, factories, and other dilemmas of ethics and social responsibility. greatest good for the greatest number economic resources are rather equally split Although businesses can create policies between private and government ownership; regarding ethics and social responsibility, issues Market Economy where the majority of a nation’s arise on a daily basis that can cause problems ETHICS AND SOCIAL RESPONSIBILITY land, factories, and other economic resources are international managers such as: bribery and KEY ISSUES privately owned, either by individuals or corruption, working conditions and human businesses and is determined by the interplay of rights, fair-trade practices and environment Bribery and Corruption two forces, supply and demand. protection. Labor Conditions and Human Rights A legal system is a country’s set of laws Fair Trade Practices and regulations, including the processes by Environment which its laws are enacted and enforced and how its courts hold parties accountable. Common law SUMMARY is legal system based on a country’s legal history A political system includes the (tradition), past cases tried in the courts structures, processes, and activities by which a (precedent), and how laws are applied in specific nation governs itself. There are three political situations (usage). Civil law is a system based on ideologies: Anarchism—the belief that only a detailed set of written rules and statutes that individuals and private groups should control a constitute a legal code, from which flows all nation’s political activities; Totalitarianism—the obligations, responsibilities, and privileges.