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Ethics is a system of principles that guide human behavior and help us understand what is "right" and"wrong" in a situation where there is no absolute law or policy which applies. An ethical dilemma is one in which the individual must decide on the most appropriate choice to make based upon a framework other than law or explicit organizational policy. In other words, ethics begin where laws and policies end.
Global Business Ethics is a set of principles that help us understand what is "right" and "wrong" in the specific context of global commerce. These principles of global business ethics are often communicated by governments or organizations (in the form of Codes of Conduct, legislation, ethics training, company values statements, etc.) in an attempt to guide the actions of employees and other stakeholders across the globe, specifically insituations where a codified legal framework is unable to dictate the best course of action.
When looking at the spectrum of approaches to global business ethics, there are two extreme constructs which frame the breadth of options:
• Cultural relativism, which suggests that noculture's ethics are better than any other's. In this model, there are no such things as right or wrong because everything is shifting and relative.
• Ethical imperialism is at the other end of thespectrum from cultural relativism, and directs peopleto do everywhere exactly as they do at home. This model focuses on imposing an absolute according to a single articulated standard under which the 'right' behavior would be the same everywhere. The absolutes in this construct are derived from the dominant culture's values, which in a business context would be that of a headquarters' culture.
Both of these constructs have their usefulness and their limits when applied in a global context, and leave professionals looking for more. Surveys of Global Compliance and Ethics Officers reveal that the biggest challenge they face in implementing and ensuring quality in their global programs is navigating the range of cultural norms inwhich their employees operate, i.e. relativism of the values represented by their global workforce. Ethical business dilemmas are found in 'gray areas' wherewhat is ethical is open to different interpretations by reasonable and well-meaning employees.
Cultural Detective®: Global Ethics is a new construct that seeks to build on the strengths ofthe two above, by providing a third way that is rootedin leveraging the perspectives or 'lenses' of both theglobal business entity and the local culture involvedto determine a better solution to an ethical dilemma.
Look for it in October or November 2007!