- Chapter 12: Globalization and Ethics
- 12.1 Introduction to Globalization and Ethics
- 12.2 Globalization
- 12.3 Cultural Relativism and Ethical Relativism
- 12.4 Relativism and Points We Can Agree On: Practical adviceThis is the current section.
- 12.5 Global Business Operations and Labor
- 12.6 Globalization and Other Ethical Issues
- 12.7 Technology Worldwide
12.4 Relativism and Points We Can Agree On: Practical advice
Cultural relativism and ethical relativism receive their names from the fact that the standards for judgment are relative to a particular culture. To say that a standard is relative to a certain culture or place means that the standard applies only to that culture, and that it can be judged only by the other standards of that culture.
The term “relative” with this meaning has several opposites: we have already seen the idea of universal ethical principles, or principles that apply everywhere to everyone. But we could also talk about “absolute” or “objective” ethical standards. As far as our analysis in this book goes, those terms mean the same thing as “universal.” They refer to standards or principles that apply to everyone, regardless of their cultural background.
In the previous section we considered the more theoretical question of whether these absolute or objective principles exist. Here we will focus on a more practical aspect of the issue, which is what to do in the face of globalization and relativism about norms and ethical standards.
First, let’s see a few points we can agree on. In his book Competing with Integrity in International Business,1 Richard DeGeorge offered the following ten norms as principles that we can apply across cultures, whether or not they represent truly universal ideas about morality:
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Do no intentional direct harm.
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Produce more good than harm for the host country.
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Contribute by their activity to the host country’s development.
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Respect the human rights of their employees.
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Respect the local culture and work with and not against it.
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Pay their fair share of taxes.
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Cooperate with the local government in developing and enforcing just background institutions.
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Recognize that majority control of a firm carries with it the ethical responsibility for the actions and failures of the firm.
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Make sure that hazardous plants are safe and run safely.
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When transferring hazardous technology to less-developed countries, be responsible for redesigning such technology so that it can be safely administered in the host country.
DeGeorge’s list is valuable because he has identified ten points that do seem to apply across cultures, and because all ten points are very practical. They are actionable pieces of guidance that many employees and corporate leaders could use in order to navigate different cultural and ethical norms.
Keep in mind, though, that DeGeorge’s ten points are explicitly for companies with global business operations—they are meant as guides for organizations that do a great deal of work in other countries, including production and manufacturing. That isn’t to say that these points can’t be helpful for others, and while they are practical, not all of them are relevant to every situation.
It may be more common, for example, to be in a situation like the following: suppose you have visited Japan for a business trip. Japanese cultural norms2 tend to be very different from those in western countries, and this is no less true for business. As a country, Japan tends to assume a greater difference than other countries between bosses and subordinates; it’s also a country whose business practices are “masculine” in the sense of being more male-dominated and aggressive. In addition, Japan is more collectivist, more accepting of authority and more deferential to it, and more accepting of force or forceful ways of behaving, at least compared to the United States.
These are definitely major cultural differences, and they lead to various differences in cross-cultural business communication.
Example: Business Customs in Japan
First, silence. Americans and other Western groups, especially upon meeting for the first time, tend to talk a lot in order to get to know each other. The exchange of ideas in meetings and other interactions is also thought to be a good way of working. This is not true in Japan, where it’s not customary for people to fill verbal space all the time.
Second, teams. As a more collectivist culture, Japanese business communication often involves praising an entire group or team, even when it’s known that a single individual made the crucial contribution.
Third, rank. Rank and seniority play a role in business life in the United States, but they’re often in the background. Not so in Japan. Clear and meaningful deference is shown to those with superior rank in Japan, and rank is often associated with age. The proper way to interact with someone of high status is different from how you’d interact with someone else.
Fourth, aggression. In keeping with the more subdued approach to business interactions between business organizations, aggressive sales or negotiating tactics will fail in Japan, even though more forceful ways of acting between individuals in an authority structure would be acceptable elsewhere. Some people in the United States would also find aggressive approaches distasteful, but Japan has a more wholesale rejection of those ways of doing business.
Fifth, meishi. A meishi is a Japanese business card. Many business professionals in America have cards, but these items are much more important in Japan and are accompanied by special rituals for their exchange. In meeting someone for the first time in a business context, it’s not only customary but expected that you will exchange business cards. This is done with the lower-ranking person offering their card first. They extend the card to the recipient with both hands. After a moment the recipient will then extend their card, which you are expected to receive with both hands. You’re then expected to review the card, noting the rank and title. If a meeting follows this exchange, you do not put the card away but instead place it on the table between you and your conversation partner. If you receive more than one card, you are to arrange them in a certain order on the table, preserving the rank relationships among the people to whom you are speaking.
Sixth, bowing. Outside of curtain calls at the end of performances, Americans almost never bow. But bowing is an important part of greeting and showing deference to authority in Japanese culture, and shows an awareness of the power differences between two people.
These are only six aspects of Japanese business culture; there are others. But these are enough to get an idea for how different the communication norms will be when dealing with Japanese audiences. Someone without thorough knowledge of these differences and norms would almost immediately offend Japanese communication partners and torpedo any chance of success with them. Successful business communication in this situation would require both awareness of the cross-cultural differences and a willingness to adapt to another way of doing things.
And, indeed, some of these differences may lead to ethical issues as well. The ten points of agreement may not help us navigate all ethical and cultural issues. To do that we would need the practical wisdom of experience and a knowledge of how ethical principles can change in different contexts.
What ethical problems have you noticed resulting from differences in cultural norms? What points of agreement might we find between different cultures? What underlying ethical principles could guide the way we deal with these differences?
You’ll have a chance to consider these questions and others in the following case study.
Diego Gutierrez, a mid-level manager from an American tech company, is sent to Japan to negotiate a partnership with a Japanese electronics firm, NishiTech. Aware of some cultural differences, Diego takes a crash course in Japanese customs. However, Diego soon discovers that even with preparation, navigating Japanese business culture involves unexpected ethical and moral challenges.
On the first day, Diego attends a meeting with NishiTech executives. The meeting begins with the customary exchange of business cards. Nervous about getting it right, Diego hands over the card with both hands but quickly slips the cards received into a folder, unaware of the importance of leaving them visible. This oversight raises eyebrows on the NishiTech team.
Throughout the negotiation, Diego struggles with the Japanese preference for indirect communication and long silences. Growing impatient, Alex pushes for a direct answer to the proposal. The lead executive politely defers, saying they need more time to consider. Feeling frustrated, Diego interprets the delay as indecision and suggests moving on to another topic. This inadvertently disrupts the hierarchical flow of the discussion, offending senior executives.
Later, during a team dinner, Diego notices that junior employees avoid voicing opinions in front of their superiors, even when asked directly. Diego finds this troubling, suspecting it stifles innovation and is an inappropriate use of power dynamics. Diego’s attempt to challenge this norm—by encouraging juniors to speak openly—creates discomfort and further distances Diego from the group.
Diego values open communication and merit-based recognition but struggles with Japan’s hierarchical business culture. Should he prioritize respecting the local customs or advocate for practices that align with personal ethical standards? Diego also feels conflicted about conforming to practices that seem overly formal or inefficient, such as long silences and indirect communication. How far should Diego go in adapting to these norms when doing so would be considered objectively wrong by the standards of his normal business communities? Even more broadly, Diego grapples with an internal bias, questioning whether the Japanese practices are unnecessarily rigid and even unethical. How can Diego avoid imposing American norms as superior while maintaining a constructive dialogue about differing practices?
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To what extent should Alex adapt to Japanese business customs, even when they conflict with personal or organizational values?
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How should Alex balance cultural sensitivity with the need to achieve business goals? At what point do cultural differences cross over to become ethical differences, or ethical problems?
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Should Alex challenge hierarchical norms to promote innovation, even if it risks offending the Japanese team or doing something that is unethical according to Japanese norms?
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How can Alex navigate the tension between respecting authority and empowering junior employees?
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What strategies can Alex use to recognize and mitigate ethnocentric attitudes during interactions?
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How can Alex advocate for different approaches without appearing dismissive of Japanese traditions?