Question

What is ethical relativism and absolutism as related to international business? What are the solutions to this dilemma?   

Answer 1

Ethical Relativism:
If a certain company operates in the US where has the following way :
1. Men and women are equal. Equality persists.
2. Bribery is considered wrong.;:

If the same company now operates in another country i.e say Saudi Arabia but with the following way:
1. Men and women are not equal. Women are oppressed and considered to be subordinate to men.
2. Bribery is widelyaccepted and a part and parcel of the businesses there.

The above phenomena is called ethical relativism. It emphasis the quote "In rome, do as the romans do"
It seeks to explain that business must be conducted according to the situation in the host country.

Absolutism:
This means that the executives of the business would deploy the moral values of the country from where the business belongs.
For example in the above example of relativism the company would employ the moral values of the US in Saudi Arabia and work with Gender Equality and No-Bribe way.

The solutions to this dilemma involve carving out company policies internationally in a way that neither the company feels a cultural shock nor the country's people and its government is offended.
Everything should be peached with humanity as its ultimate basis because that is something which is common accross the whole globe.