DEEP Insight
Learning to Navigate the Rough Seas of Ethics 
Unmasking the Myths
Authors: Kusyk, Sophia
Date: Second Quarter 2010
Tags: culture, ethics, bribery, etiquette, moral value system
Is our reasoning sound when we justify using sweatshops in Asian countries, paying bribes to secure contracts, and tolerating social and environmental degradation based on the argument that everyone else is doing it, and if we don’t, a competitor will? Doing business across borders presents a minefield of ethical dilemmas that many managers are ill-equipped to deal with. This article tackles three main myths surrounding cross-cultural management: the appeal to local etiquette over moral considerations; the idea that tolerance based on relativism and subjectivism will solve cross-cultural dilemmas; and the belief that profit justifies dubious means. By weighing and analyzing the arguments from an ethical perspective, using logic and reasoning, the author reveals how decisions made even with the best of intentions can lead to unethical behavior. She points to some universally accepted values and timeless notions of the common good as the better basis for constructing an ethical framework. The article includes some dilemmas for readers to consider for themselves, all aimed at helping international managers formulate sound approaches to deal with the questionable behaviors they face across cultures.
Tools and Frameworks:
> “More in Common Than You Might Think” lists the basic common values and norms of the world’s major religions and wisdom traditions, which transcend cultural differences and make sustained business relationships possible.
> “A Guide to Reasoning” summarizes the false logic that would distract managers from making arguments that are relevant, adequate and true.
> “U.N. Global Compact Principles” states the 10 universally recognized principles that serve as an international code for business conduct.
> “What Would You Do? Dilemmas to Consider” poses three moral dilemmas for readers to reflect on what they would do if confronted with such questionable behavior.
Examples Cited:
Google, Siemens, the apparel industry that has stood accused of using child labor and operating sweatshops in Asian countries
Research Basis:
Based on the author’s research on how corporate social orientation influences social issues management, in which she proposes a broad approach to corporate social responsibility, integrating moral duty, and links it to best-practice corporate social performance.
About the Author:
Sophia Kusyk is assistant professor of Business Ethics at IESE.
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