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In countries where corruption is part of culture norms, to bribe or not to bribe could be a question (or a challenge) for business

Economics Sep 16, 2020

In countries where corruption is part of culture norms, to bribe or not to bribe could be a question (or a challenge) for business. Some U.S. managers argue that not to follow local norms may reduce U.S. businesse's competitive advantages in foreign countries. What is your take on this statement? Can you think of any alternatives to paying bribes in international markets?

Expert Solution

- It is try that some U.S. managers argue that not to follow local norms may reduce U.S. businesse's competitive advantages in foreign countries. They say this basis the principle of cultural relativism. As per cultural relativism, no culture's morals are better than any other's; subsequently there are no worldwide rights and wrongs. On the off chance that the individuals of Indonesia endure the bribery of their public authorities, so what? Their mentality is no preferable or more regrettable over that of individuals in Denmark or Singapore who will not offer or take hush-money. Similarly, if Belgians neglect to discover insider exchanging ethically offensive, what difference does it make. Not authorizing insider-exchanging laws is no pretty much moral than implementing such laws. The cultural relativist's ideology—When in Rome, do as the Romans do—is enticing, particularly when neglecting to do as local people do implies relinquishing business openings. The deficiency of cultural relativism, nonetheless, becomes evident when the practices being referred to are more harming than trivial bribery or insider exchanging.

- However we do not agree with this view. At the opposite finish of the range from cultural relativism is moral imperialism, which guides individuals to do wherever precisely as they do at home. Once more, a naturally engaging methodology yet one that is obviously insufficient. Consider the enormous U.S. PC items organization that in 1993 presented a seminar on inappropriate behavior in its Saudi Arabian office. Under the flag of worldwide consistency, educators utilized similar way to deal with train Saudi Arabian directors that they had utilized with U.S. chiefs: the members were approached to talk about a case in which an administrator offers explicitly express comments to another female representative over beverages in a bar. The teachers neglected to consider how the activity would function in a culture with exacting shows administering connections among people. Accordingly, the instructional courses were silly. They perplexed and outraged the Saudi members, and the message to stay away from pressure and sexual segregation was lost.

- The hypothesis behind moral imperialism is absolutism, which depends on three hazardous standards. Absolutists accept that there is a solitary rundown of certainties, that they can be communicated uniquely with one lot of ideas, and that they call for the very same conduct the world over. The main case conflicts with numerous individuals' conviction that distinctive cultural customs must be regarded. In certain societies, steadfastness to a network—family, association, or society—is the establishment of all moral conduct. The Japanese, for instance, characterize business morals as far as steadfastness to their organizations, their business organizations, and their country. Americans place a higher incentive on freedom than on unwaveringness; the U.S. convention of rights accentuates correspondence, decency, and individual opportunity. It is difficult to presume that fact lies on one side or the other, yet an absolutist would have us select only one.

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