Question

Some argue that because ethical standards are lax in many countries, Siemens and other firms must pay bribers to obtain new business. Do you agree with this view? Stated differently, when doing business around the world, is it generally better to emphasize normativism or relativism? Justify your question.

Answer 1

Ethical standards may be lax in some countries, but it does not entitle our MNCs to become unethical, take the undue benefits of the limitations of the societies not doing enough to implement ethical standards and inability of the government to do it as well, and give bribes to obtain the business. Hence, I do not agree with the view that our MNCs should give bribe to do the new business. Rather, these MNCs should set an example of doing ethical business conduct and communicate the benefits to the government regarding the projects, delivering to the society and their people. While doing so, they should be assertive and can exhibit the past benefits delivered to them. It will help them get new business if their projects are good and sound enough. MNCs also have the responsibility to set a right ethical conduct, that can be an example for the other to follow.

In other words, there should be a balance between normativism and relativism. MNCs should start with the normativism and try to bring the best ethical practices. But, they should customize it according to the social norms and it brings relativism. But, there should be no compromize on ethical practices even if it is not valued in the given culture, as most of the right norms are common and held in high regards in most of the culture.

It is the reason for the implementation of foreign corrupt practices act (FCPA) by the US government.