Ethics A Double-Edged Sword

THE QUALITY OF MERCY IS NOT STRAIND, IT DROPPETH AS THE GENTLE RAIN FROM HEAVEN, UPON THE PLACE BENEATH. IT IS TWICE BLEST : IT BLESSETH HIM THAT GIVES AND HIM THAT TAKES.
(Shakespeare, William, 16 Century. The Merchant of Venice.)
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Purpose: The purpose of this essay is to critically discuss the moral challenges faced by organizations while operating overseas. It analytically assesses the suggested moral codes and some of the poison pills.

Ethics A theory or system of moral values; principles of conduct governing an individual or a group; a guiding philosophy or a consciousness of moral importance. (Merriam-Webster). Ethics, in the business world, is essentially a critical and structured look into the functioning of, not only, the organization but individuals within. Critical because it critiques morals, norms and practices which, admittedly, is not always easy. It always starts with an understanding and acceptance of ones own beliefs for only then can a person go beyond his own means and open-mindedly accept others. There is a fine line between being judgmental and judging fairly. Critical because it deals with the omnipotent question regarding a persons decisions in situations wherein the norms, morals, bahaviours or practices are contradictory to what they consider their own. The structural component of Ethics comes from the fact that there has to be an attempt to establish some sort of a code or theory, which aims to unite peoples moral beliefs. If understanding is the beginning then attempting to rationalize and unify beliefs is the goal. This aim, thereby, makes ideas such as Corporate Social Responsibility or Global Corporate Citizenship fall within the threshold on Ethics. This, also, raises the question whether there is any true difference between a persons own ethical code and the ethical code of business; or is an ethical business an oxymoron. This leads us to discuss the three generally accepted ethical and moral codes or guidelines.

The first guideline is the concept of Ethnocentrism. This theory propagates the application of ones own ethical beliefs while operating in host countries as well. Since Ethnocentrism is sticking to ones own beliefs, it is, but obvious, that it does, to some extent, aide the person or business operating in a different nation by reducing morals dilemmas but to what degree is this applicable to employees from the host country is questionable. Ethnocentrism would work well when the people within a group come from the same or similar ethical backgrounds and, may infact, lead to better team work and innovation. However, Ethics should not be about being better or superior to others; it should be about what is the best that you can be. History has countless times proved, beyond doubt, that imposing ones beliefs and thoughts on others has not, essentially, worked out very well in the long run. The most extreme example of ethnocentrism would have to be Hitler and his Nazi party. Accepted that this is quintessentially the most extreme but the lessons are crucial. Ethnocentrism can often lead to a person feeling suppressed and this, sooner or later, will lead to some sort of an expression, maybe as a resistance. So Ethnocentrism can be an entry strategy but it has to progress from there on to become a more balanced policy. The second applicable guideline is the theory of Ethical Relativism which can be summed up in the quote: When in Rome, do as the Romans do. (St. Ambrose, 387 A.D.). This approach can aide an organization to overcome some of the resistance met with in the host nation. People always accept their own kinds easier than someone who is considered to be of a foreign origin. The theory of Ethical Relativism has been infact successfully adopted by organizations, especially in marketing. But, again, to what extent is this applicable to Ethics? What happens when a person runs into value conflicts which eventually do happen? Public opinion forms a major check guard when it comes to Ethical Relativism. A clash in the ethical norms

of the parent and the host country may lead to severe backlash from the public, as can be clearly seen in cases such as when child-labour was being utilized in Nikes factories in developing nations or the blatant human rights violations in China. At the end of the day, people always fall back on the familiar which defeats the appropriateness of this theory and it becomes irrelevant. The final conceptual guideline, and perhaps the most idealistic, is the concept of Moral Universalism (Bowie, D, 1990.). Bowie instigates the creation of a moral code which is acceptable by all cultures. How far are we from establishing a universal moral code and can such a code be actually created? Is Moral Universalism just a concept or can it come about in reality? Perhaps the answers to these questions lie in looking into the origin of Ethics. From where do Ethics originate and is there a possibility of having a similar, if not the same, basis for Ethical codes. The most likely answer to this would be that Ethics is a projection and derivative of religion. So, exactly how different are ethical norms and moral values of religions? A broader look at the ethical codes of most, if not all, religions would show that they are similar and based on certain fixed guidelines; of course, the nitty-gritties are different. All religions say the following: Do no evil Do not lie Do not cheat Do not steal Do not hurt others Do not murder Love thy neighbour

These are, but few, of the ethical codes of all cultures and religions. A translation of these ethical norms to the business environment is best summed up by Anne Marie Fray in her journal, Ethical behaviour and social responsibility in organizations: process and evaluation: Do not engage children in developing nations in work. Every child is entitled to a childhood Be just and fair to employees Do not hide potential risks arising from utilization of products and services Stay away from racial discrimination Stay away from corruption Do not be gender-biased Practice honestly and clarity with stakeholders Do not support any political ties

At the end of the day, Ethics is Ethics. There can be no compromise made to the moral values of a person or an organization. A moral value which is compromised ceases to be a moral value. So, perhaps, Moral Universalism is not just a concept but can actually come to be. The three critical questions; Is it legal? Does it work in the long run? Can it be talked about? as posed by Helen Deresky in her book, International Management: Managing Across Borders and Cultures; should form the basic principal for Moral Universalism. This begs us to ask ourselves how far are we willing to stick to our Ethical codes and should there be other aspects taken into account. Building up on the example provided by Helen Deresky in her book, International Management: Managing Across Borders and Cultures; Is paying the $100 to release computers

from customs wrong? Does one consider and strictly follow the ethical code and refuse to participate in bribery or should one take into account the bigger picture that getting the computers would help educate and better society? In such situations, one should differentiate between a harmless procedure and an actual case of bribery. When the greater good far outweighs the harmless practices, one should essentially be acceptable of certain practices, taking into account that this little gesture goes a long way in the development of society as a whole. Along with the acceptance of harmless procedures, one should also have the courage to take a stand when required. But, again, how far do you take this? Crying wolf in every situation would lead to a dilution of the issues that really matter. Public opinion is a crucial aspect and one should consider the fact that over-utilization of any resource leads to a depletion of it. Thus, it is important to remember that: Harmless practices can be overlooked when it outweighs the greater good but also important is taking a stand for crucial issues. It should always be remembered that a person is never alone when facing a value conflict. One should look to the organizations business ethical code or previous similar experiences or seek guidance from seniors. That being said, at the end of the day, all opinions and options considered, a person should look at their own moral values when nothing else answers the questions.

References

Bowie, D, 1990. Does Business Ethics Need 'Metaphysical Comfort'?. Journal of Business Ethics, 9, 192.

Deresky, H, (2011). International Management Managing Across Borders and Cultures. New Jersey: Pearson Education Inc. p47-71

Fray, A. M., (2007). Ethical bahaviour and social responsibility in organizations: process and evaluation. Emerald Insight. 45 (1), p78.

Merriam-Webster. Ethics Definition. [ONLINE] Available at: http://www.merriamwebster.com. [Accessed 20 November 11].