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Business Ethics and Corporate Governance

TOPIC

ETHICAL RELATIVISM
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
So why think that relativism about morality is true?
 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.
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
Theory Application

MD from Japan
Reputable Film

• Having good impression
• Having good experience
• Had been cooperate
with company before

Work experience
• Certify & qualify of service
• High capability to perform
•

Assistant Manager
& committees

Finance &
Administrative
Manager
• Price & cost sensitive
• Good relationship
• Familiar the agency

• Build good rapport
• Hinted more gifts & dinner
• Best value for money

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 shortterm.
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
CSGB6102 Business Ethics and Corporate Governance

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business ethics,Relativism

  • 1. Business Ethics and Corporate Governance TOPIC ETHICAL RELATIVISM Prepared by: Alireza Khosroyar CGA110033 CSGB6102 Business Ethics and Corporate Governance
  • 2. 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
  • 3. 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
  • 4. 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
  • 5. So why think that relativism about morality is true?  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. CSGB6102 Business Ethics and Corporate Governance
  • 6. 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
  • 7. 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
  • 8. Theory Application MD from Japan Reputable Film • Having good impression • Having good experience • Had been cooperate with company before Work experience • Certify & qualify of service • High capability to perform • Assistant Manager & committees Finance & Administrative Manager • Price & cost sensitive • Good relationship • Familiar the agency • Build good rapport • Hinted more gifts & dinner • Best value for money CSGB6102 Business Ethics and Corporate Governance
  • 9. 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 shortterm. CSGB6102 Business Ethics and Corporate Governance
  • 10. 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
  • 11. 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 CSGB6102 Business Ethics and Corporate Governance