Organizational Justice, Ethics, and Corporate Social Responsibility

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CHAPTER 2 • ORGANIZATIONAL JUSTICE, ETHICS, AND CORPORATE SOCIAL RESPONSIBILITY 63 ethical relativism The belief that no culture’s ethics are better than any other’s and that there are no internationally acceptable standards of right and wrong (the opposite of ethical imperialism). ethical imperialism The belief that the ethical standards of one’s own country should be imposed when doing business in other countries (the opposite of ethical relativism). Ethical Relativism: Nothing Is Sacred. To some, the matter of how to conduct oneself when doing business abroad is as easy as, “when in Rome, do what the Romans do.” This calls for adopting the ethics of whatever country in which one does business—an approach, known as ethical relativism. The rationale is that no culture’s ethics are better than any other’s, and that there are no internationally acceptable standards of right and wrong. The problem with this approach is that it may lead to condoning acts that violates one’s own sense of morality. 53 Consider this example. Some time ago, several European pharmaceutical companies and tanneries were looking for places where they could dispose of toxic chemical waste. Government officials from most countries they approached said no, fearing the health risks to their people. Nigeria, however, agreed to the business even though local workers, who didn’t have any protective clothing, had a good chance of coming into contact with deadly substances as they moved the barrels that contained them. Despite the fact that the practice was permitted in Nigeria, it’s easy to see how the risks to the workers make the practice ethically questionable. Ethical Imperialism: What Is Different May Be Wrong. Given that following ethical relativism may lead to moral transgressions, then how about the opposite approach? That is, what if, wherever they are, people use their own country’s ethical standards? In other words, they do everywhere whatever they consider to be right while at home. This approach, which is the opposite of ethical relativism, is known as ethical imperialism. It too has limitations. Highly absolute in its approach, ethical imperialism asserts that there is only a single set of rules regarding right and wrong—one’s own. Thus, whatever is different is wrong. Obviously, this is very limiting because it fails to recognize cultural and situational differences that may influence ethical behavior. For example, North American–type training in avoiding sexual harassment (see Chapter 5) likely would be questioned in Middle Eastern countries, where the treatment of women is highly regulated by social and religious customs. Likewise, in parts of the world where people are dying from ETHICAL RELATIVISM ''When in Rome..." No internationally acceptable standards of right and wrong GUIDING PRINCIPLES OF GLOBAL ETHICS Show respect for core human values. ETHICAL IMPERIALISM What is different may be considered wrong The ethical standards of one's own country are considered most appropriate Demonstrate sensitivity to local traditions. FIGURE 2.13 Recognize that context matters when distinguishing between right and wrong. Approaches to Global Ethics: Two Extremes and a Middle Ground Too often, people attempting to make ethical decisions in international settings follow one of the two ill-advised, extreme approaches identified here—ethical relativism and ethical imperialism. By adopting qualities of both approaches, a middle ground can be found in which people can be guided by three principles of global ethics. Source: Based on suggestions by Donaldson, 1996; see Note 53.
64 PART 1 • INTRODUCTION TO ORGANIZATIONAL BEHAVIOR malnutrition, it may be ill-advised to impose standards for the use of agricultural chemicals that make sense in more developed countries, where lower crop yields are not problematic. Given that the two extreme approaches to global business ethics are problematic, you may be thinking that the best approach lies somewhere in between. So too do most of today’s experts in business ethics. Three Guiding Principles of Global Ethics It has been recommended that company officials doing business abroad should adopt a stance between the extremes of ethical relativism and ethical imperialism. In this connection, they may be guided by three key principles: (1) show respect for core human values, (2) demonstrate sensitivity to local traditions, and (3) recognize that context matters when distinguishing between right and wrong. 54 Show Respect for Core Human Values. Certain practices, considered core human values, constitute the minimum ethical standards for organizations to follow. Although everyone might not agree with all values that might be included in this list, few would argue against the idea that the right to safe working conditions, the right to be free, and the right to be treated with dignity and respect are moral values that should guide all behavior in the business world (and elsewhere too, of course). To be ethical, company officials must use their “moral compasses” to guide people toward acceptable practices and away from intolerable ones. For example, taking steps to promote a healthy workplace, one that is free from physical danger and psychological abuse, is ethically appropriate. At the same time, companies should refuse to do business with suppliers, such as those in the garment industry, who use sweatshops. These are factories, often located in developing countries, in which people are required to work long hours under dangerous conditions for extremely little pay and often live in squalid company-owned housing. After all, most would consider it highly unethical to condone such practices by hiring the companies that follow them (see Figure 2.14). 55 Demonstrate Sensitivity to Local Traditions. Being ethical requires following local traditions, so long as these don’t violate core human values, of course. As a case in point, consider the practice of gift-giving among business partners in Japan. Although many American companies frown on such acts because they fear that the giving of gifts might be a way of unfairly influencing someone by cultivating his or her favor, this is not the case in Japan. This is not to say that bribery is condoned there. Such acts are not meant to be bribes. Rather, the act of giving small gifts is a customary ritual that connotes politeness and trust between the parties. To not accept a gift from a business partner would be considered highly impolite and insulting. These days, because American companies conduct so much business in Japan, officials are coming to accept this practice as acceptable. After all, when you understand precisely what the act means in Japanese culture, it hardly can be considered unethical. It is important to note that demonstrating sensitivity to local traditions does not equate to moral relativism. A moral relativist would accept all actions as ethical in a country if they are deemed ethical there. The case of dumping hazardous waste in Nigeria, mentioned earlier, is a good illustration. Doing that surely violates core human values because it endangers people. Merely showing awareness of another country’s cultural norms and adapting one’s behavior accordingly, by contrast, may be a highly effective way of promoting ethical behavior. Recognize that Context Matters when Distinguishing Between Right and Wrong. Ethical rules are not hard and fast. Sometimes what’s right in one context may be considered wrong in another. Being ethical requires taking into account the nature of the setting in which acts occur. In the United States, for example, it would be considered unethical (and potentially illegal) to hire one’s own relatives instead of a more qualified non–family member. Such blatant nepotism is frowned upon. By contrast, conditions in India are such that such a practice
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