The report discusses the limitations of the ethics away from home approach for international corporations. It explores the challenges faced by companies in implementing universal ethical values in non-western cultures and offers recommendations for balancing cultural relativism and absolutism.
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Running Head: ETHICS AWAY FROM HOME Ethics Away From Home Limitations Name Institution
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ETHICS AWAY FROM HOME2 Executive Summary The report will go in depth to introduce key introduction points on the international ethics subject. It will try to launch the basic understanding of relativism and absolutism both at an individual and corporate level. Companies operating away from home have a hard time understanding and implementing universal cultural values. The body will explain limitations the global corporate brands have in observing universal ethics in some countries. The paper will attempt to offer recommendations for the above limitations and ensure there is a balance between cultural relativism and absolutism. Introduction We live in a world where international corporations are expanding their operations across the globe (Javalgi & Russell 2018). Big brands are globalizing their products to different countries and cultures. Smooth globalization requires a clear understanding of cultures and values in different regions. Human societies are different meaning the general knowledge of human right and principle is different. The debates seem to revolve between adopting a western culture in non-western culture and adopting present cultural values. The international organizations running businesses in these countries are in a dilemma whether to stand by their universalism or relativist beliefs. Relativism is the belief that there is no defined truth and way while absolutism is a general understanding that there are an absolute right and wrong. When a firm is operating in a nonwestern culture, it has to decide on specific policies; when to adopt a relative attitude or absolute way on controversial issues. It has to draw the line when to intervene in the specific
ETHICS AWAY FROM HOME3 conflict and how to balance the two ideas. From hiring, management, operations to corporate social responsibilities organizations must be prepared to handle all this (de George,2017). How does a human resource manager operating in Middle East judge the role of a female employee? Based on his cultural understanding or the culture he is operating in? Different human resource managers would handle situations differently. One manager may choose to hire an excellent female driver in Saudi Arabia based on his universal ethical conscience while another may decline that based on his respect toward the environment he is operating in. Limitations to Ethics Away from Home Approach Ethics away from home means maintaining universal values and understanding in all regions of operation. Companies that decide to use this approach in nonwestern regions are always met with challenges and cultural dilemma. Cultural absolutism seems to be the human way to treat people, whether employees or customers but this may be counterproductive in some regions. Workers in some countries like Japan believe in hard work and loyalty to their employers. They believe and love in staying loyal through hard times; this is however different in Western Europe and the USA where people are more about freedom and career advancements. Ethics away from home idea may meet challenges for the following reasons; •Different countries have different histories; different history backgrounds make different ethical interpretation. What might seem inhumane and unethical may be ethically allowed and accepted. •Cultural diversity-it means that a corporation that does not understand and understand cultural diversity will have a hard time trying to implement its universal ethical ideas.
ETHICS AWAY FROM HOME4 The difference in political atmospheres and leadership cultures may limit the ethics away from home practice. •A country law and regulation that encourage observance of culture will restrict corporations from acting differently. •Ethics away from home philosophy does not consider all circumstances where ethical decision should be made and cultural values ignored. Some situations require pragmatic approach to problems. •There is no absolute definition of what is moral and ethical since we all come from different cultural backgrounds. In countries like Yemen and Pakistan, hundreds of women get killed every year for disobeying purity and cultural laws. It is regarded as punishment in these regions and accepted by their citizens. A foreign company operating in this country that attempt to discourage or condemn such practices would be met by stiff rebellion from the locals who feel their tradition is attacked. As indicated earlier the human resource managers always have a hard time making moral decisions in these countries. Some cultures cannot imagine women in top leadership positions. Oil-rich countries in the Gulf seem to be attractive to huge companies trying to expand their products and services. These companies have concerns in hiring female managers due to the cultural perceptions about female positions (Koehn, 2016). Western companies operating in non-western areas have been criticized and condemned for adopting nonwestern culture. Western big restaurants operating in Gulf countries have been accused of denying entry to women not accompanied by their husbands. These companies have responded to the accusations by indicating that they have to observe the cultural laws in the
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ETHICS AWAY FROM HOME5 country. The above circumstances limit an international company from making ethical and human right oriented decisions. Limitations range from cultural differences to government laws that discourage universal principles and human rights. Some governments support strict cultural discipline, hence limiting the international corporations from promoting free will and human rights. A company is an independent body, going against government cultural policies can be counterproductive. Situations and circumstances such as conflicts limit a company from taking an ethical position. Conclusion Ethics away from home principle is both a technical and controversial issue for private corporations. As organizations expand, the question of whether to operate on universal or cultural relativism will come up. Organization operations ranging from hiring of human resources to service providers must pay into account the environment they work around. What seems unethical and inhuman in western culture might be contrary in other regions. Dilemmas will always come up whether to respect beliefs and cultural values or assume them. Human resource department must understand the cultural expectations in some country before adopting an absolutism policy (Healy, 2016). An organization that chooses to handle affairs based on what their home moral understanding, will likely meet rebellion. From historical differences , cultural diversity, religious expectations, and government policies. Recommendations It is not the sole goal of a foreign company to solve all the cultural wrongs in a foreign country. A firm may decide to develop soft policies that promote human rights and ethical treatment of all people. An organization will be successful in promoting human rights and ethics if they do it
ETHICS AWAY FROM HOME6 strategically and moderately . Trying to tackle firm cultural foundations might not work if done in a hard and straightforward way. A company should only take a severe stand if the situation put their workers at grave risk. Google decided leave Chinese market when they felt they could not work on an environment based on their cultural cores. A private organization may choose to adopt this approach or adapt and blend in with present beliefs. As a general recommendation, a corporate body should accept the difference between western and nonwesternbeliefs on ethics and human right. A company should take a contrary stand if the values put their workers in extreme danger or pose a threat to their brand name.
ETHICS AWAY FROM HOME7 References De George, R. (2017). Rethinking Global Business Ethics: The North-South Paradigm.Business & Society Review (00453609),122(1), 5–25. https://doi.org/10.1111/basr.12106 Healy, L. M. (2016). Universalism and cultural relativism in social work ethics.International Social Work,50(1), 11–26. https://doi.org/10.1177/0020872807071479 Javalgi, & Russell, L. (2018). International Marketing Ethics: A Literature Review and Research Agenda.Journal of Business Ethics,148(4), 703–720. https://doi.org/10.1007/s10551- 015-2958-9 Koehn, D. (2016). East Meets West: Toward a Universal Ethic of Virtue for Global Business.Journal of Business Ethics,116(4), 703–715.https://doi.org/10.1007/s10551- 013-1816-x