Cultural Diversity and Ethics

Chapter 2: Future of Work, Cultural Diversity, and Universal Principles for Business

• The previous chapter introduced ethical approaches throughout history, applicable to business contexts
• Businesses operate within historical and social contexts, impacting decisions
• The Fourth Industrial Revolution is significant in the globalized business environment
• Cultural diversity is a key aspect of business ethics, with varied cultural practices and norms
• Cultural practices may be difficult for external parties to understand or accept
• Business ethics face challenges from cultural diversity, particularly in differing values and practices

Cultural Diversity and Business Ethics

• Cultural diversity is a reality in international business contexts
• Globalization increases complexities in cultural diversity
• Certain cultural practices might be hard to understand from an external perspective
• Adapting to such practices could be deemed unethical
• Two areas of cultural diversity challenge ethical business practice
• Melé (2009) states that business ethics are challenged by cultural differences in differing values or customs
• Examples of questionable local customs include discrimination against women or minorities, lack of environmental respect, etc.

Cultural Relativism

• Relativism posits that ethical principles are relative to specific cultures
• The theoretical position has practical limitations, implying no universally wrong actions or unjust practices
• Cultural relativism rejects the existence of universal values
• Cultural diversity does not demonstrate the veracity of cultural relativism
• The principles of cultural relativism are susceptible to biases and cultural misunderstandings
• Cultural relativism prevents ethical progress

Cultural Imperialism

• Cultural imperialism is the opposite of cultural relativism—the imposition of a powerful culture on others
• A concept for the exercise of cultural dominance/control of other cultures
• Some cultures attempt to impose their practices on other cultures (a form of neo-colonialism)

Moral Pluralism and Universalism

• Cultural relativism and cultural imperialism are polarized views, with intermediate viewpoints needing consideration
• A way of considering cultural diversity by acknowledging diverse cultural values alongside shared universal principles
• Ethical pluralism accepts different moral convictions but seeks consensus on fundamental principles
• Ethical pluralism can become merely pragmatic without theoretical justification for the principles
• Universalism advocates for universally applicable moral principles

Exploring Universal Principles

• All decisions involve principles consciously or unconsciously
• Universal principles transcend cultural differences to guide conduct
• The notion of human dignity emphasizes the inherent worth of each individual
• Kant's categorical imperative highlights the importance of treating individuals as ends in themselves, not just means to an end.
• Human dignity emphasizes the inherent value of each individual
• Universal principles like human dignity influence business decisions

Golden Rule

• The golden rule emphasizes treating others as one would want to be treated, or not doing to others what one does not want done to oneself
• This aligns with the concept of respect for human dignity

Stewardship for the Environment

• The global concern for environmental care is emphasized, with a focus on its preservation for future generations
• The environment is a shared resource needing protection

International Standards for Business

• The need for shared principles across businesses is acknowledged, with the UN Global Compact among those discussed
• These standards help apply international principles to real-world business practices

United Nations Global Compact

• A call for companies aligned with universal principles on human rights, labor, the environment, and anti-corruption
• The Ten Principles of the United Nations Global Compact are derived from the Universal Declaration of Human Rights, the International Labour Organization's Declaration, the Rio Declaration, and the UN Convention Against Corruption.
• The Ten Principles are divided into four areas: human rights, labor, environment, and anti-corruption

Principles for Responsible Management Education

• The PRME is a set of initiatives to incorporate principles of social and environmental responsibility into business management education.
• PRME involves 800 signatories from the UN. It aims to enhance business and management education sustainability

International Labour Organization (ILO)

• This organization promotes standards for ethical labor practices, including freedom of association, anti-forced labor, anti-child labor, and anti-discrimination