What are the differences between the school of ethical universalism and the School of ethical relativism?

What are the differences between the school of ethical universalism and the School of ethical relativism?

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The school of ethical universalismAccording to the school of ethical universalism, the same standards of what’s ethicaland what’s unethical resonate with people of most societies regardless of localtraditions and cultural norms; hence, common ethical standards can be used tojudge the conduct of personnel at companies operating in a variety of countrymarkets and cultural circumstances.The school of ethical relativismAccording to the school of relativism different societal cultures and customs havedivergent values and standards of right and wrong – thus what is ethical or unethicalmust be judged in the light of local customs and social mores and can vary from oneculture or nation to another.The thesis is that whatever a culture thinks is right or wrong really is right or wrongfor that culture. Consider the following examples.The use of underage laborMany countries have passed legislation forbidding the use of underage labor or, at aminimum, regulating the employment of people under 18. However, in India,Bangladesh, Botswana, Sri Lanka, Ghana, Somalia, Turkey and 100 – plus othercountries, it is customary to view children as potential, even necessary, workers.The payment of bribes and kickbacksIn many countries in Eastern Europe, Africa, Latin America, and Asia, it is customaryto pay bribes to government officials in order to win a government contract, obtain alicense or permit, or facilitate an administrative ruling.Ethical relativism equates to multiple sets of ethical standards54

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The strength of ethical universalism is that it draws upon the collective views of multiple societies and cultures to put some clear boundaries on what constitutes ethical and unethical business behavior, regardless of the country or culture in which a company's personnel are conducting activities. Thus a multinational company can develop a
code of ethics that it applies more or less evenly across its worldwide operations. It can avoid the slippery slope that comes from having different ethical standards for different company personnel depending on where in the world they are working.
Among its weaknesses we can say that, although undoubtedly there are some universal moral prescriptions, there are also observable variations from one society to another as to what constitutes ethical or unethical behavior. Indeed, differing religious beliefs, social customs, traditions, core values, and behavioral norms frequently give rise to different ethical standards. In a world of ethical relativism, there are few absolutes when it comes to business ethics, and thus few ethical absolutes for consistently judging the ethical correctness of a company's conduct in various countries and markets.

Apart from the "business of business is business, not ethics" kind of thinking, the three other main drivers of unethical business behavior that stand out are:
· Faulty oversight, enabling the unscrupulous pursuit of personal gain and self-interest: People who are obsessed with wealth accumulation, power, status, and their own self-interest often push ethical principles aside in their quest for personal gain. Driven by greed and ambition, they exhibit few qualms in skirting the rules or doing whatever is necessary to achieve their goals.
· Heavy pressures on company managers to meet or beat short-term performance targets. The pressure to "never miss a quarter"—so as not to upset the expectations of analysts, investors, and creditors—prompts nearsighted managers to engage in short-term maneuvers to make the numbers, regardless of whether these moves are really in the best long-term interests of the company.
· A company culture that puts profitability and business performance ahead of ethical behavior. When a company's culture spawns an ethically corrupt or amoral work climate, people have a company-approved license to ignore "what's right" and engage in any behavior or strategy they think they can get away with.

The five good actions companies can choose in crafting social responsibility initiatives, environmental sustainability, and a good corporate citizenship strategy are:
· Striving to employ an ethical strategy and observe ethical principles in operating the business.
· Making charitable contributions, supporting community service endeavors, engaging in broader philanthropic
initiatives, and reaching out to make a difference in the lives of the disadvantaged.
· Taking actions to protect the environment and, in particular, to minimize or eliminate any adverse impact on the
environment stemming from the company's own business activities.
· Creating a work environment that enhances the quality of life for employees.
· Building a diverse workforce with respect to gender, race, national origin, and other aspects that different people
bring to the workplace.

Sets with similar terms

What is school of ethical relativism?

Ethical relativism is the theory that holds that morality is relative to the norms of one's culture. That is, whether an action is right or wrong depends on the moral norms of the society in which it is practiced.

What is the difference between relativism and universalism in human rights?

In universalism, an individual is a social unit, possessing inalienable rights, and driven by the pursuit of self interest. In the cultural relativist model, a community is the basic social unit. Concepts such as individualism, freedom of choice, and equality are absent.

What is the basic difference between ethical universalism and utilitarianism?

While the Universalist approach emphasizes consistency at all times through its universalizability underpinning, the Utilitarian approach supports flexibility and thus, different decisions are based on the needs and circumstances at hand. Yet, there are some foundational similarities in these two theories as well.

What is the difference between ethical relativism and moral relativism?

While ethical relativism holds that there are no universal or objective moral principles that apply to everyone, and that moral principles vary based on individual or cultural preference, ethical nihilism holds that there are no valid moral principles at all – effectively, that morality does not exist.