Importance of Cultural Relativism Versus

Cultural Imperialism in Ethical Decision

making
 Cultural Relativism

… holds that appropriate behavior in a

country or culture is determined by its laws
and customs. That is, what is moral is
defined by the customs within individual
countries.

© 2006 Prentice Hall, Inc. 22-2

 Cultural Imperialism

… means that in operating internationally a

firm maintains the standards of its home
country and judges others by those
standards.

© 2006 Prentice Hall, Inc. 22-3

 Relevance of Cultural Relativism

• Helps avoid cultural stereotypes and sweeping

generalizations
• Facilitates adaptation by taking a dynamic rather
than a static view of cultures
• Helps to identify universal values like human dignity,
respect for basic rights, and good citizenship , which
determine the absolute moral threshold for all
business activities in all cultures .
• Enables understanding the context when deciding
what is right and wrong.
© 2006 Prentice Hall, Inc. 22-4
Philosophical Systems

Western Perspective
Islamic View
Confucian Thought
Indian Systems
 WESTERN PERSPECTIVE

• TELEOLOGICAL THEORIES
• DEONTOLOGICAL- NORMATIVE THEORIES
• CONTEMPORARY VIEWPOINTS
 Teleological Theories

• Utilitarianism – Jeremy Bentham & J.S.Mill

• Distributive Justice – John Rawls

FOCUS ON ENDS
 Deontological Theories

• Kantian Philosophy – Immanuel Kant

• Ten Commandments –Biblical Philosophy
• Aristotle’s virtue ethics

FOCUS ON MEANS
 CONTEMPORARY VIEWPOINTS

• Objectivism- Ayn Rand

• Intuitionism-Henry More, GE Moore, Samuel
Clark
• Humanism-Kubasek, Brenan , Huang
• Meta ethics- epistemology and ontology of
actions
• Applied Ethics
 Differences
• Teleological, systems define the rightness of an action in
terms of end result that is the good its consequences yield.-
End Over Means

• Deontological ethics systems hold that moral right takes

precedence over the good and can be evaluated by
considerations independent of, or in addition to
consequences. Means over End

• Contemporary theories reflect on individual freedom ,

innate goodness of human beings and application
orientation
Teleological and Deontological Ethics Systems

© 2006 Prentice Hall, Inc. 20-11

 Utilitarianism : Basic Tenets
• Utilitarianism is committed to the maximization of
good and minimization of harm and evil. Means to
achieve this is :
– Cost and benefit analysis
– Risk assessment
– Efficiency is key
– Intensity of effect is important
– Focus on consequences rather than intentions
 What is “Good”?

Involves the fulfillment of at least one of these:

– Pleasure : hedonistic view

– Happiness : realization of goals: personal vs individual ?
– Ideals : maximize ideal values – majority vs minority
– Preferences : satisfaction of hybrid of values & goals
 Problems with Utilitarianism

• Not always possible to calculate utility

• Quantification of happiness, love, pleasure
• No common definition of what is ‘good’
• Focus on “greater good” over “smaller good”
 Utilitarianism is most appropriate for policy
decisions, as long as a strong notion of fundamental
human rights guarantees that it will not violate
rights of small minorities
 CASE
• You have a small business with thirty
employees. Five of them are of strong
adherents of a religion that a minority
practices in India. They have put a petition
that to be given holidays on days prescribed
by their religion , and this because , others
have holidays on theirs .
• Should you concede?
• A utilitarian response will be denying the
request simply because it does not serve the
interest of the larger group
 John Rawls’ : Distributive Justice
Starting point: “The Original Position”

– self-interested men and women

– maximizing personal welfare
– seeking agreement and cooperation
– People are free and rational
– Correct inequality if they exist
 Veil of Ignorance
Ethical justice is measured by the capacity to act to
enhance cooperation among members of a society-
that which is determined behind the Veil of Ignorance.

• Formulate rules as if we know nothing about

personal circumstances like social class, natural
abilities and wealth of people BUT we know enough
about human welfare and human behavior
 Case
• Your business is industrial chemicals . Some of
the countries you are exporting to have little
concern for safe disposal of industrial waste and
this has put the health of citizens at serious risk.
Claims of rival companies and environmental
activist has further complicated the situation.
One group says that disposal of waste is a
legislative matter ; while the other holds
everyone responsible . The media is also active in
reporting such matters and you fear this will
tarnish your image . What should you do ?
• According to Distributive Justice the
company should continue its business in the
country ( under the veil of ignorance ) , and
assume that this country knows and wants to
solve its problems in its own way.

• There is no need to impose sanctions or trade

barriers
 Deontology : Kant’s Metaphysics of Morals
• Moral theories tell us that lying & homicide are wrong &
helping those in need is a good thing – virtues and vices

• The theories explain WHY these things are right or wrong.

And give REASONS for believing in them.

• They illuminate “grey areas,” clarify difficult problems, and

resolve conflicts.

• Kant draws from what is applicable universally and ,from

religious authority .
 “Supreme Principle” of Morality

• An action has “moral worth” if it conforms to the

requirements of duty and is done for the sake of duty.

• A person is morally good if he/she can be counted on to

do duty, motivated by a respect for moral law

• Eg Shopkeeper keeping honest prices as a duty and a

sense of morality and not for attracting customers.
 KANT’S CATEGORICAL IMPERATIVE
(Three Formulations of the Categorical Imperative)

CI (1) CI (2) CI (3)

Does it
treat could the
Maxim Could it People maxim be
become as an ends willed by PASSES
universal And not you and
Law? simply agreed to by
As a everyone to
be the moral
means?
laws for the
community

No No No
Fails the Categorical Imperative
IT IS NOT MORALLY RIGHT!
 CASE
• You are the CEO of a small manufacturing company in
Pondicherry( 15 employees). It has come to your
notice that that a rival company has gained illegal
access to one of your engineering secrets and intends
to use it for commercial gain. The use will have an
adverse effect on your commercial viability. Your legal
advisors tells you that recourse to litigation will be
laborious , expensive and not stop the rival from going
ahead with use. senior management advises you to
hire a private investigator engaged to find out
information that can be used as a leverage
( blackmail)to restore the equity in power .
• Can hiring a detective be made a universal
law? ( C1)

• When we engage in espionage we use people

as means against the other . ( C2)

• Will every one agree to this kind of law ( using

detectives) to gain power equity ? ( C3)
THE TEN COMMANDMENTS
Law of Christ depends on 2 precepts – loving GOD and loving the
neighbor. God, in delivering the law to Moses, gave him Ten
Commandments written upon two tablets of stone

•Forbid people from worshipping demons, heavenly bodies,

ancestors, lower elements like, fire and wind, etc.
•Prevents the misuse of any idols prepared primarily for worship-
SACRILEGE
•It is an insult to God because, when you swear by God, it is nothing
other than to call Him to witness; and when you swear falsely, you
either believe God to be ignorant of the truth and thus place
ignorance in God

•God’s name can be taken for an oath, sanctification, expulsion of

adversary, confession, defense, make the work complete
•God created all things in six days, and rested on the
seventh.Encourage kindness to people for some are so
cruel to themselves and to others that they labor
ceaselessly all on account of money
•We receive nourishment from our parents in childhood,
we must support them in their old age

•Rewards for this is Grace and Glory,- A long life with

grateful and pleasing children
Execution of Criminals, suicide ,slander is prohibited
•Related to day to day routine activities as well as being
infidel. Any person who commits such a sin is liable for
punishment in future
•Treachery or stealing is considered to be a sin
•Types of theft could be: by taking something stealthily,
not paying wages, fraud in buying and selling,
•Lying is prohibited because it likens one to the devil .
•Covetousness destroys peace of heart
•Covetousness renders his riches useless both to himself and to
others, because he desires only to hold on to them
CONTEMPORARY THEORIES
 Ayn Rand’s Objectivism
• We should be free to pursue our self interest as long
as it does not infringe on another's.

• The government is an agency to protect the

individual’s rights

• Business is free enterprise that brings wealth to the

nation and should not be controlled
• Is unbridled freedom and liberty to act good
for business ? Will this benefit the society?
 Intuitionism

• Good is an indefinable notion. The basic moral

truths are objective irrespective of how
anyone feels . We should pick our own moral
principles based on innate sense of right and
wrong. Existential philosophy is very close to
this .
• Individualistic approach to ethics - relativism
 Humanism

• Humanists theorize that ethics is an inherent

part of human condition ; that critical
thinking ,reason and intelligence helps in
setting values and decisions about is right
and wrong. An offshoot of positive psychology
.
 Applied Ethics
• Create a code of ethics that can be applied
( normative)
• Create an office to monitor its adherence
• Conduct training programs to teach ethics
• Create structural arrangements to help people
stay out of ethical dilemmas
 Deontological approach in designing ethical codes
• Rights perspective - Fundamental rights are accorded to human beings of
all circumstances and backgrounds, such as the right to life, liberty,
security of person, and freedom from enslavement.

• Justice perspective -Demands respect for the dignity of every individual

through the application of objective and impartial decisions, or actions;
benefits, and punishments are allocated by society based on equality of
rights among all human beings. Includes distributive, retributive, and
compensatory types of justice.

• Virtue ethics- Actions flowing from the disposition and internal qualities
of individuals who consistently strive to lead a moral life (e.g., ethical
behavior via honesty, courage, modesty, compassion, integrity, and
charity). Core of Buddhist, Confucian, and many Native American ethical
traditions.
United Nations Universal Declaration of Human
Rights

• Adopted in 1948, proclaims the rights of

peoples worldwide to freedom, protection,
security, just working arrangements, and a
reasonable standard of living.
 CERES Principles:
• Ten voluntary principles that commit signatories to
protection of the biosphere, sustainable use of
natural resources, conservation, reduction of wastes,
production of safe products, timely informing of the
public regarding any health or safety dangers, and
other environmental goals.
 The Caux Principles
• Formed by an organization of business leaders
from Europe, Japan, & the United States in
1986, these principles promote the
sacredness of each person (human dignity)
and the value of working together for the
common good.
• The Caux Round Table’s Principles for Business have at
their core two basic ethical ideals: kyosei and human
dignity.

• The Japanese concept of kyosei refers to living and

working together for the common good, while concept of
human dignity refers to the sacredness of each person as
an end, not as a means to the fulfillment of others’
purposes.

• The Caux Principles combine elements of the ethic of care

(between participant countries) and those of both human
rights and virtue ethics.
 The Global Sullivan Principles
Originally developed in the 1970s, eight principles for corporate
social responsibility related to justice, human rights,
tolerance,& equal opportunity in global operations to support
economic, social, and political justice by companies where
they do business; to support human rights and to encourage
equal opportunity at all levels of employment, including racial
and gender diversity on decision making committees and
boards; to train and advance disadvantaged workers for
technical, supervisory and management opportunities; and to
assist with greater tolerance and understanding among
peoples; thereby, helping to improve the quality of life for
communities, workers and children with dignity and equality.
• (Sullivan, 1997, para. 1)
 International Labour Organization’s (ILO) Core
Labor Conventions
Adopted in 1982, seven core conventions have
been ratified by varying numbers of ILO
member-nations. These include freedom of
association & protection of the right to
organize, equal pay for equal work, abolition
of forced labor, elimination of discrimination
in access to employment, and the abolition
of child labor.
 Corporate Code of Ethics
• Standards for vendors, contractors, manufacturers,
and employees, usually in the form of ethical
standards or codes of ethical conduct. These
standards cover issues including a safe and healthy
workplace, absence of forced or compulsory labor,
nondiscrimination, absence of coercion and
harassment, working conditions, fair wages, banning
of child labor, protection of the environment, and
ethical conduct
Ethical Decision Making

© 2006 Prentice Hall, Inc. 19-52

The Parable of the Sadhu

Parallels with Corporate Life

• Did the Sadhu survive?

• What is the nature of Stephen’s conflict?

• Is there a difference between an ethical

conflict and other types of conflict?

• What are the parallels with corporate life?

 Parallels with Organizational Life
• High stress situation
• Quick decision has to be taken
• Short term gain versus long term gain
• Lack of clear guidelines about what should be
done
• Difficulty in obtaining consensus and group
support
• Dealing with diversity
• Good Leaders – formal & informal
 Ethical people
• Can take risks because of conviction that comes
from clarity
• Can act quickly because they “ know “ what is
right and wrong
• Have a larger vision beyond the self
• Can deal with ambiguity and stress
• Respond to spirit rather than rush of adrenaline.
• Courage and conviction to walk alone if
necessary - leadership
• Ultimately Ethics is about knowing the full scope
of our responsibilities in every situation and
acting on them.

• Responsibilities embody our relationship and

interdependence with our inner self, family ,
organization , community and environment and
none of these dilute the importance of the other
• Apply the four western frameworks of ethics
to discuss your answers