Cultural Relativism In International Business

Cultural relativism distinguishes that different nations uphold distinct moral codes from one another; therefore, it describes the cultural ideological perspectives of a particular culture. Cultural relativism is a concept based on ideals within every country, rather than a universal approach. This notion suggests that each culture develops a distinctive code of ethics apart from any other nation; therefore, international corporations must uphold the moral values and cultural differences when dealing with a particular nation. On the other hand, ethical imperialism is quite the opposite; when conducting business in a distinct country, ethical imperialism means to do and act exactly as one would in their home nation. Thomas Donaldson compares …show more content…
One simply cannot change their corporate laws and customs to the host country’s standards like cultural relativism suggests. Likewise, if you are not aware of the cultural norms and ethics of the country that you’re dealing with, it could result in a negative outlook of your company and possibly damaging the company’s future position in the international business market. Thomas Donaldson suggests three vital principles when handling ethical manners on a global scale. First, we must treat all people equally and with respect, after all we are all human beings no matter where our cultural perspectives differ. Second, Donaldson states that both the community and the people individually need to regard to basic human rights when dealing with one another. Lastly, we must all work together for the betterment of the …show more content…
When providing these companies there are numerous valuable codes of ethics which unlike most other corporations worldwide, have useful insights and clear cut requirements for international business dealings. For instance, Johnson & Johnson did an outstanding job when introducing their ‘Credo Challenge’, where administrators all throughout the company exchange views with regards of their cultural business concerns and are able to suggest different perspectives based on their experience and understanding of the difficulties; ultimately the suggestions proposed are sent over to senior management. Furthermore, Motorola’s code of conduct seems apparent and well thought out. The company states that constant respect for people and the host-country's community is absolutely critical for their business, likewise they make it clear that individual judgement is imperative in many situations