Corporate Governance and Ethics Discussion 2022

Corporate Governance and Ethics

Executive Summary
Ethical relativism is a term that is given to the concept that propagates the idea of no absolute
right or absolute wrong. Right and wrong will vary based on the perspective. This has become
relevant to the business world because the now businesses are global and a company functions in
several countries. Here, each of the country has a corporate law which varies from the other. In
that case, the concept of ethical relativism has gained prominent position. In this essay the main
aim is to argue for the topic which reads ‘In a globalised world is it ethical and still possible to
practice ethical relativism?’
The essay is divided into several sub-parts so that the understanding can be clear with relevant
theories, researches applied successfully.

Introduction
Globalization has a universal implication and the world is now going through interconnected
manifesting of social, cultural as well as political integration. While there is a cultural exchange
there is also a change that in the world value status quo. While interconnectedness is increasing
with complexity, universal ethics is not a possibility. It is an imperative.
Here, a very important phenomenon that requires a detailed observation is globalization. The
end and the growth path of globalization are not possible to predict at this moment. The question
still remains to be answered whether the ethical relativism is ethical.
While this can be easily applied to individuals, its application becomes more complex once the
concept is applied to organizations and businesses. Some theorists are of the opinion that moral
and ethical notions cannot be applied to organizations and it is a machine and not a living being.
Others differ on this opinion and claim that same as individuals, the companies have mission,
goals and plans. Moreover, the decisions that are made by the organization which are deemed
ethical or unethical is practiced by human beings like the management board members and other
vital departments which may include the CEOs and other chief position holders. In the year
2002, Arthur Andersen firm was charged with the case of obstruction of justice. The critics later
argued that it was Arthur Andersen the person who was guilty and should be charged of the
obstruction of justice and the not the firm (Crane et al, 2019).
Discussion
If we take case of USA, there are about five hundred firms that are functioning in a number of
countries. These countries that are functioning in more than one country have to face ethical
dilemmas. The main ethical questioning comes up because of the law that is in action in
different countries. Since the countries range from developed, developing and under-developed,
there are changes seen in labour marker, raw materials, corporate laws, human resource and the
entire operations management. There is a great change of taste and preferences in the consumers
too. All these combined make ethical relativism quite a strong concept and as a whole the
business firms can make use of ethical relativism. While ethical relativism is something that is
bound to come into action, its acceptance by keeping the morals at a greater compromise is not to