CSGB6102 Business Ethics and Corporate Governance

TOPIC

ETHICAL RELATIVISM

Business Ethics and Corporate Governance

Prepared by:

Alireza Khosroyar CGA110033

CSGB6102 Business Ethics and Corporate Governance

Defining relativism Some things really are relative:

Preference for chocolate or vanilla Fashion Humor Being large

Different cultures have different moral codes For example some Eskimo culture:

• Men had more than one wife

• less regard for human life :– infanticide was common – female babies in particular were likely to be killed.

CSGB6102 Business Ethics and Corporate Governance

Defining Ethical relativism Relativism is a view that there is no absolute moral truth

Or alternatively that what count as right or wrong is relative to the individuals, groups, cultures and societies.

Relativism resists universal moral norms.

CSGB6102 Business Ethics and Corporate Governance

Relativism problem for ethic There are only various cultural codes and nothing more.

It has persuaded people to be skeptical about ethics.

It challenges our belief in the objectivity and universally of moral truth.

CSGB6102 Business Ethics and Corporate Governance

By far the most compelling reason for relativism is what is called the cultural differences argument.

This argument goes as follows

i. If there were an absolute truth about morality then cultures would not vary in their morality.

ii. Cultures do vary in their morality believe.

iii.Therefore , there is no absolute truth about morality.

So why think that relativism about morality is true?

CSGB6102 Business Ethics and Corporate Governance

Arguments for Ethical Relativism Argument No.1

“Since cultures and individuals differ in certain moral practices, there are no objective moral values.”

Objections on this argument:- There is a right answer

- Difference in practices not values

- Difference in appearance

CSGB6102 Business Ethics and Corporate Governance

Arguments for Ethical Relativism Argument No.2

“Since ethical relativism promotes tolerance of certain cultural practices, ethical relativism is a good thing.”

Objections on this argument:- Tolerance is absolute value!

- Tolerance is not virtue here!

CSGB6102 Business Ethics and Corporate Governance

Reputable Film• Work experience

• Certify & qualify of service• High capability to perform

MD from Japan• Having good impression• Having good experience

• Had been cooperate with company before

Assistant Manager & committees

• Build good rapport• Hinted more gifts & dinner

• Best value for money

Finance & Administrative

Manager• Price & cost sensitive

• Good relationship• Familiar the agency

Theory Application

CSGB6102 Business Ethics and Corporate Governance

Corruption VS Relativism(Corruption is seen as a way to anticipate in the development of the country that

already enhances such social phenomenon)

High level of social responsibility tend to perceive that ethics and social responsibility are really important for corporate

profitability

Idealistic attitude tend to perceive that ethics and social responsibility are important for long-term profits.

Relativistic individuals tend to perceive that ethics and social responsibility can only have benefits in the short-term.

CSGB6102 Business Ethics and Corporate Governance

Corruption VS Relativism Two factorial subscales (Forsyth’s typology of ethical ideologies):

(1) ethics and social responsibility are very important in business, both in principle and for corporate profitability and survival; and

(2) the fact that ethics and social responsibility are subjected to the achievement of organizational effectiveness actually reveals that ethics and social responsibility could be discarded when they are not favoring organizational effectiveness in terms of profitability, efficiency, or survival.

CSGB6102 Business Ethics and Corporate Governance

Corruption VS Relativism Reduce the corruption phenomenon

political and economic decisive factors political will and commitment + international financial

institutions & the commercial banking industry Code of conduct (scope of corruption & corrective action) Zero tolerance policy

To reduce the pace of corruption in organizational culture