International Business Ethics: Limitations of 'Ethics Away From Home'

This essay delves into the complexities of applying universal ethical standards in international business, specifically examining the 'Ethics Away From Home' approach. It introduces the concepts of cultural relativism and absolutism, highlighting the dilemmas faced by global corporations in balancing their own values with local customs and laws. The essay identifies limitations such as differing historical backgrounds, cultural diversity, political atmospheres, and legal regulations that can hinder the implementation of universal ethical principles. It also addresses the challenges human resource managers face in making ethical decisions in culturally diverse environments. The essay concludes by offering recommendations for companies to navigate these challenges, suggesting a balanced approach that respects cultural differences while upholding fundamental human rights and ethical standards, particularly when worker safety or brand reputation is at risk. Desklib offers this essay as a resource, alongside other past papers and solved assignments, for students studying international business ethics.

Running Head: ETHICS AWAY FROM HOME
Ethics Away From Home Limitations
Name
Institution

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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

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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.

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 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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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

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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 nonwestern beliefs 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.

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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