What are the three international business ethics approaches and how do they apply to establishing a new subsidiary in Venezuela?
Option C, advertising the role to recruit a suitable candidate, aligns with ethical universalism. It allows the SME to select a candidate who possesses the necessary qualifications, cross-cultural competencies, and experience to navigate the ethical challenges in Venezuela while upholding the SME's ethical standards. This approach prioritizes integrity and ethical conduct while adapting to the host country's context.
Exploring the Three International Business Ethics Approaches
Ethical Relativism:
Ethical relativism argues that ethical principles vary across cultures and are subjective. This means that what is considered ethical in one culture may not be in another. In the context of business ethics, this approach emphasizes the importance of understanding and respecting the ethical norms and values of different countries or regions.
Ethical Universalism:
Ethical universalism, on the other hand, posits that there are fundamental ethical principles that apply universally, regardless of cultural differences. In the case of establishing a new subsidiary in Venezuela, ethical universalism would entail upholding ethical standards such as integrity, fairness, and respect for human rights, regardless of the challenges present in the host country.
Integrative Social Contracts Theory:
Integrative social contracts theory seeks to find a balance between ethical relativism and ethical universalism. It acknowledges the existence of universal ethical principles while recognizing the importance of specific social contracts in different contexts. This approach involves considering both global ethical principles and local norms when making ethical decisions.
Justifying the Use of Ethical Universalism in Venezuela
In the context of Venezuela, where corruption and organized crime are widespread, ethical universalism is the most justifiable approach for the SME to follow. By adhering to fundamental ethical principles that apply universally, such as integrity and transparency, the SME can navigate the ethical challenges present in the host country while maintaining its ethical standards from its home country. This approach also demonstrates a commitment to upholding ethical business practices in a challenging environment.
In conclusion, ethical universalism provides a solid foundation for the SME to establish a new subsidiary in Venezuela. By prioritizing integrity and ethical conduct, the SME can mitigate the risks associated with operating in a country with a history of corruption and political instability. By recruiting a suitable candidate through advertising the role, the SME can ensure that the chosen individual is equipped to uphold ethical standards while adapting to the local business environment.