Question

Compare and contrast the ethical relativism theory as it applies to western (U.S) and global business practices.

Velasquez, 7th edition business ethics , business and Relativism

Answer 1

The entire basis of relativism is that nothing is absolute. When it comes to moral truth, the same arguments hold valid there as well. While some individuals or cultures or societies or geographies find right to do, the others might have extremely radical views about. Which goes on to say that there cannot exist a universal code of conduct.

Morality and being ethical doesn’t go hand in hand. Ethical truths are often seen as very individualistic in nature and mind-dependent. Two of the most common ethical relativism examples can be

a.      Slavery

b.      Pre-marital sex

There are and have been opposing views on these two social questions. While the magnitude of debate is higher on Slavery as compared to pre-marital sex, it can't be denied that in the 19^th and early 20^th century, the Europeans and US mindset was of the view that slavery is an accepting norm. The thought-process was given life by the logic that the economy was a highly barter system based during those times and humans were another form of commodities that can be transferred/purchased with gold or money. So, there was one section of the society which felt it was perfectly normal to support the idea of slavery, while another section which was against it. Similarly, while talking about pre-marital sex, the bulk of Asian countries (especially South-East Asia and Asia-Pacific) are of the view that pre-marital sex is no less than a taboo while the western counterparts hold it as an individual's choice and decision.

In the business scenario, the most common ethical relativism happens in the gender equality area. When we talk about Oil and Gas industry, the companies in that arena are continuously working towards enabling methods for more involvement of women in the workforce. The Western countries are to some extent even achieving that. But when the same company opens its subsidiaries or extend its business to Middle East countries, they have their hands tied. They can't uphold the same logic and morals in these countries to succeed as they can do in their homeland.

The same goes for bribery in the business set up. While some Eastern countries like in India, bribery is a way of getting business done, in other countries like USA this is a major breach of law.