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Universalism - Business Ethics, Entrepreneurship & Small Businesses | Entrepreneurship & Small Businesses - B Com PDF Download

Determining the most ethical choices can be extremely difficult. Numerous formally identified approaches to decision-making are available. A universal approach to ethics is based on the concept of moral absolutism: the idea that if something isn't right in one place or for one person, it is not right for anyone, anywhere. The universal approach is typically used in cross-cultural situations, but it may also be used in any situation where one party operates outside of culturally accepted norms.

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The universal approach simplifies the decision-making process. The ethical choice has essentially been predetermined, so lengthy reflection and debate may not be necessary. Moreover, national laws and global regulations may make certain choices compulsory, or at least highly preferred. Oversight becomes far easier when the "right" and "wrong" choices are clearly denoted. Thus, the universal approach can help to ensure equal standards for all employees, business associates and others affected by a business's activities.

Criticism

Critics have called the universal approach "ethical imperialism," as John Schermerhorn discusses in "Exploring Management." This particularly poses a problem in cross-cultural business interactions. A business person may not wish to be perceived in the international community — or at home — as having a rigid ethical stance. Such an approach could make her seem discriminatory toward those with other beliefs.

Examples

A CEO deciding whether to partner with an overseas firm that refrains from promoting women to higher positions must decide whether the partnership would be an ethical choice for him. A company operating in a country with lax pollution standards must decide what precautions to take in order to avoid harm to local communities and ecosystems. A manager might consider whether an employee with an introverted personality — when compared with people of his own culture or another — is being uncooperative or simply doesn't prefer to engage in lengthy debate.

Alternatives

The cultural relativism approach provides an alternative to the universal approach. Cultural relativism holds that what is ethical varies depending on local norms and values. It has great respect for the validity of different cultures and viewpoints. However, business people who subscribe to cultural relativism may still identify broad ethical standards that tend to apply across boundaries, such as workers' rights regarding safety and fair pay. In other words, cultural relativism need not be used as an excuse to accept cultural norms of poor working conditions, lack of educational opportunities or lax environmental regulations. The Integrated Social Contracts Theory follows this logic, offering a creative approach based on shared ethics and respect for local norms.

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FAQs on Universalism - Business Ethics, Entrepreneurship & Small Businesses - Entrepreneurship & Small Businesses - B Com

1. What is universalism in business ethics?
Ans. Universalism in business ethics refers to the belief that certain ethical principles and values are applicable to all individuals and organizations, regardless of cultural or societal differences. It promotes the idea that ethical standards should be consistent and universally accepted, rather than being subjective or dependent on personal or cultural perspectives.
2. How does universalism impact entrepreneurship and small businesses?
Ans. Universalism in business ethics has a significant impact on entrepreneurship and small businesses. By adhering to universal ethical principles, entrepreneurs and small business owners can build trust and credibility with customers, investors, and other stakeholders. This can lead to enhanced reputation, increased customer loyalty, and improved long-term sustainability.
3. What are the key challenges in implementing universalism in business ethics?
Ans. Implementing universalism in business ethics can pose several challenges. One challenge is navigating cultural differences, as ethical standards may vary across different countries and regions. Another challenge is the potential conflict between universal ethical principles and local laws or customs. Moreover, some individuals or organizations may resist adopting universal ethical standards due to a perceived loss of autonomy or cultural identity.
4. How can small businesses promote universalism in their operations?
Ans. Small businesses can promote universalism in their operations by adopting and enforcing a clear code of ethics that aligns with universal ethical principles. This code should serve as a guide for employees, outlining expected behaviors and values. Additionally, small businesses can actively engage in ethical decision-making processes, considering the potential impact of their actions on various stakeholders and striving to make choices that uphold universal ethical standards.
5. Are there any potential benefits for small businesses that embrace universalism in business ethics?
Ans. Yes, there are several potential benefits for small businesses that embrace universalism in business ethics. Firstly, they can build stronger relationships with customers, suppliers, and investors based on trust and ethical behavior. This can lead to increased customer loyalty, repeat business, and positive word-of-mouth referrals. Secondly, embracing universal ethical principles can attract socially conscious consumers who prioritize ethical practices. Finally, small businesses that promote universalism in business ethics may be more attractive to potential employees who value a positive work culture and ethical standards.
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