Ethical Norms

Ethical Norms in International Business Student’s Name Institution of Affiliation Course Date Ethical Norms in International Business Ethical standards are societal rules of conduct that differ in every culture. In international business, managers can encounter ethical issues when a particular country's standards differ from those of the home country. These differences pose key issues concerning which ethical code the managers should adhere to, especially when regional conducts are inapplicable to the ethical norms of a manager's culture or organization. To what extent is it appropriate for a manager to uphold the ethical standards of the home country, or is it right for the manager to bend the rules a bit and conform to the new environment's standards even if it violates the home country's set ethical standards? This issue shall be discussed in this essay, as well as the implications of the problem and how to handle such an ethical dilemma. The Impact of Cultural Differences on Ethical Norms A business's ethical standards reflect the cultural standards in a society and differ from country to country. For instance, while controllable factors such as labor relations, environmental impacts, and corruption may be deemed unethical in one country, they may not be regarded in another. Hofstede's cultural dimensions theory shows that ethical expectations are influenced by the level of individualism or collectivism, power distance, and uncertainty avoidance across countries (Vitolla et al., 2021). Managers need to operate in such cultural terrains while at the same time ensuring that they uphold the standards of their organization. For example, in the business environment, gift-giving is acceptable in Japan, and it may be seen as a form of courtesy, while in the United States, it may be seen as a form of bribery. This opens up an ethical dilemma for international managers who are left with the dilemma of either maintaining the local cultural norms or the ethical norms of their home country. Ethical Relativism versus Ethical Absolutism Ethical relativism and ethical absolutism are some of the fundamental concepts that are used to explain such issues. Ethical relativism posits that ethical norms are relative to cultures and that what is considered ethical or unethical is relative to the context of the action (Jalsenjak, 2023). Managers using this logic would say they must abide by the host country's rules because not doing so might cause misunderstandings, strained relations, or outright business failure. However, this approach becomes dangerous because it is likely to encourage practices that may be unethical in the manager's home country, such as being involved in corrupt practices or ignoring labor laws. On the other hand, ethical relativism holds that some right and wrongs should be done irrespective of the culture in place (Jalsenjak, 2023). Managers adopting such a stance would be more inclined to decline participating in unethical activities prohibited in their home country. For instance, a business firm would not be willing to indulge in brib...