Assignment onBusiness ethics

Submitted by

JOB THOMAS#10, MBA (PT)

Semester – 3SMS, CUSAT

Date of submission: 11/10/2011

1. Identify some realistic and universalistic issues in each functional area of management

The subject of ethics in business management is complex. Fair-minded people have significant differences of opinion regarding whether realistic and universalistic approach is to be adopted in functional areas of the management. Relativism is the concept that points of view have no absolute truth or validity, having only relative, subjective value according to differences in perception and consideration. Universalism is a concept that has absolute truth or validity and have universal applicability. In realitivistic approach, one has a tendency to make choices only on the basis of what looks right or reasonable according to one's own belief or value. In universalistic approach, one has to take decision based on universally acceptable solutions. Some of the important realistic and universalistic issues in functional areas of management are discussed below

Sl. No.

Realistic issues Universalistic issues

Functional Area : Human Resources1 Recruitment of persons based on the

personal choice Recruitment of best suited candidate

2 Retention of subordinate based on personal choice

Retention of subordinate who is capable do the work

3 Training the subordinate based on the choice of management

Training the subordinate based on the preference of the candidate

4 Ignoring health and safety at worksite Design based on health and safety at worksite

Functional area: Customer service1 Hiding information that is important

for the recipient but may be harmful to management

Providing all information without looking into the future aspects.

2 Providing customer support to privileged customers only

Providing customer support to all customers equally.

3 Providing after-sales support to privileged customers only

Providing after-sales support to all customers equally.

4 Providing customer advice in a way beneficial to management

Providing customer advice stating absolute pros and cones

Functional area: Marketing and sales1 Conducting market research in a way

beneficial to management for publicityConducting market research based on true representative sample

2 Using different market strategy (price/product) for different regions

Using same strategy for all regions

Functional area: research and development

Sl. No.

Realistic issues Universalistic issues

1 Improving existing product in comparison with the competitor’s product

Improving existing product based on the true demand

2 Imitating ideas of the competitor Experimenting with new ideasFunctional area: Administration/IT support1 For improving the business in global

market, adopting IT technology such as SAP for clerical works

As the part of continuous improvement, adopting modern technologies and services in administration

Functional area: Production / operation1 Introducing modern equipments for

the production to compete with the major competitor

For improving the production, introducing new technologies and equipments in the operation

2 Introducing quality control for the sake of competition

Adopting ISO 9001 guidelines for quality control as the part of continuous improvement

Functional area: Finance and accounts1 Fixing the wages, based on the

performance of the workerFixing the wages, based on the standard norms. Same wage for same type of work

2 Doing adjustments in accounts like window dressing for local interest

Providing the correct accounts without any adjustments

SummaryThe universalistic approach is good for solving issues related to functional areas of management. The relativistic approach is sometimes probabilistic but useful for solving certain issues that have a span within the locality. It is appropriate to incorporate intuitions and commitments of a manager without buying ideas from relativistic approach.

2. Interview a friend who believes in relativism and another friend who believes in universalism. Conclude who is more rationale and justifiable. Why and how?

Absolute and unique solution for a particular issue, irrespective of the micro or macro environment is the theme of universalism. Identifying persons who believes in universalism is a difficult task. Most of the people around us believe in relativism and they change their thoughts and ideas based on the pressure from local environment. The response of the person believes in the universalism and relativism is given below.

Sl No.

Questions Response by person believes in Universalism Relativism

1 Are you a believing in universalism or relativism?

universalism relativism

2 Is it necessary to have different law of the land for different countries?

No, Same rule must be made applicable for all human being

Yes, depending upon the local culture, different law is to be framed for different countries

3 Why is prostitution authorized in some country?

Prostitution is a sin must be banned in all countries.

According to Indian culture, prostitution is a sin. However, prostitution is legal in Canada, most all of Europe including England, France, Wales, Denmark, etc. Perhaps, they may be thinking that sex is a physical enjoyment need not be restricted.

4 Do you believe in freedom to speech

Yes, freedom to speech must be given to all so that constructive suggestions can be picked up.

No, certain norms or code of conduct must be followed in all conversation. The way one speaks to president of a country (or chairman of the business firm he works) should be different from the way the same person speaks to his subordinate.

5 Are you supporting democracy?

Yes, democracy is the need of the day. See what happens in Bahrain these days

Democratic country is a good concept. However, there are countries successful under dictatorship. For example, Arabian countries like Muscat, Dubai etc. Getting consensus for all proposals would not be possible. Most of the expectorates adjust with the customs and don not exercise the speech democracy when they join for a job at Dubai like countries

Sl No.

Questions Response by person believes in Universalism Relativism

6 What do you think of secularism?

Secularism is the only system that protects all faiths equally without allowing any to dominate

A systematic approach would help us to improve the performance. For initiating new ventures, secular structure would not be available to follow initially and secularism must evolve over the time.

7 What is your opinion about environmental pollution?

The pollution standards must be kept same in all countries. Freedom to live should be legally supported by the enforcing pollution standards.

Environmental pollution and human health hazards are sensitive issues of the day. Restricting the functioning of a power plant in the name of pollution without looking into the fact that it supplies energy at industries around would not be acceptable. The cost-benefit ratio present project or feasibility of alternate projects shall be evaluated before blocking the functioning of any industry due to pollution control law

8 Do you believe in ‘survival of the fittest’?

Yes. The meritorious candidate should get opportunities and should be recognized.

No. The ‘right to survive’ should also be considered for the class of less privileged people.

9 Do you think ‘everyone has the right to be selfish’

No, There is only one right, which is the absolute right

Yes, person who steals bread to satisfy hunger will find his own right in his action.

10 Do you agree the fact that ‘right or wrong depends on individual viewpoints’

No, right or wrong is absolute

Yes, the culture determines right or wrong

ConclusionConsidering the responses delivered by the person who believes in universalism and relativism, the relativist seems to be more flexible than the person believes in universalism. The thoughts of the relativist are seems to be more practical and justifiable. Hence in my opinion, a relativist would succeed as a manger in the business environment.

03. Examine yourself whether you are predominantly a relativist or Universalist

Based on my self assessment, I am a relativist because of the following reasons

1. I believe that ‘the wrong’ depends on the environment one work and there is no absolute wrong for any of human actions.

2. I understand that there are questions in ethics which have no correct answers.3. I realize that it is always wrong to judge for another person what is good or bad.4. I have experienced that an action can be right in some situations but wrong in

other situations5. I change my decisions based on the micro and macro environment