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Chapter 12 –- Business Values Away from Home (pp. 459 – 487)
Chapter 12 begins with two case studies (pp. 459 – 462). The case studies deal with producing
chemicals that are outlawed in the Unites States but legal elsewhere, and with giving gifts to an
African elder (government official) which maybe culturally acceptable where he lives, but would be
criminal in the U.S.
Article: “International Business Ethics and Incipient Capitalism: A Double Standard?” by Richard T.
De George (pp. 463 – 476)
In this article, De George starts by explaining that business ethics is an area of applied ethics.
Therefore, since it is ethics applied to a certain type of activity (business), the cultural norms affecting
that activity where it is taking place are important in the consideration of business ethics. He gives
several examples in four case studies regarding capitalism in Russia after the fall of the Soviet Union.
In all of them, things take place that we would be hard-pressed to see happen in a typical business
setting in the United States. The question raised, of course, is: Does that make them wrong, or can
they be explained by the circumstances under which they occur?
Article: “Values Tension: Ethics Away from Home” by Thomas Donaldson (pp. 476 – 486)
Donaldson talks about the inadequacy of cultural relativism when cultural practices go beyond things
like gift-giving and petty bribery.
But what standard should we use? Donaldson gives us three guiding principles:
1. Respect for core human values, which determine the absolute moral threshold for all business
activities.
2. Respect for local traditions.
3. He believes that context matters when deciding what is right and what is wrong.
Among the values which can be considered as core human values are the right to good health, the
right to economic advancement, the “Golden Rule” (treat others as you wish to be treated yourself),
respect for human dignity, respect for basic rights, and good citizenship. Donaldson realizes that these
are not specific enough to guide managers through actual ethical dilemmas. He applauds those
companies who have set out codes of conduct along with statements of vision and values, however he
recognizes that even these types of statements do not provide enough guidance.
Within the moral free space that managers have (that gray area where they need to make their own
decisions), Donaldson recommends the following for developing a global ethical perspective among
managers:
• “Treat corporate values and formal standards of conduct as absolutes.”
• “Design and implement conditions of engagement for suppliers and customers.”
• “Allow foreign business units to help formulate ethical standards and interpret ethical issues.”
• “In host countries, support efforts to decrease institutional corruption.”