Business Ethics in Latin America
20.05.2013
Essay on: The business ethics climate in Latin America
Written by Florian H.
International Business
Semester 2013
Course: Business Ethics
The business ethics climate in Latin America
A problem for international companies, taking Peru as an example!
The Spanish saying: “El que no tranza no avanza.” (One that doesn`t act unethical will not proceed), unfortunately describes best the prevailing immoral way of doing business in the Latin American region. Despite various approaches to achieve a mutual acceptance of those values among society, attempts were carried out neither with economies of scope, nor state support. The efforts stayed in vain and even were adumbrated by corruptive example and bribery which are still considered as a form of remuneration.
Though in Latin America business might follow different moral principles, ethics can be defined as a rigorous analytical business tool which applies ethical reasoning to business situations and activities as an attempt to resolve or at least clarify those moral issues which typically arise in business (E. Sternberg; 1995).
When going abroad, those distinct ethical values often blur and suddenly are inclined to appear as values in tension. For Donaldson, the key of acting ethical, when doing business outside your country`s borders, is a balancing act somewhere in between “cultural relativism” and “ethical imperialism”, always heeding human values.
Considering the first extreme, no culture`s ethics is better than any other and accordingly a relativist would always adapt the society´s habits in which he currently operates. However this liberal attitude stumbles once the issue becomes more crucial. A cultural relativist would even accept a business action which violates human values. In 2010 Peru for instance was plagued by a major flooding. Especially the region around Machu Picchu, an area with a high proportion of tourists was
Essay on: The business ethics climate in Latin America
Written by Florian H.
International Business
Semester 2013
Course: Business Ethics
The business ethics climate in Latin America
A problem for international companies, taking Peru as an example!
The Spanish saying: “El que no tranza no avanza.” (One that doesn`t act unethical will not proceed), unfortunately describes best the prevailing immoral way of doing business in the Latin American region. Despite various approaches to achieve a mutual acceptance of those values among society, attempts were carried out neither with economies of scope, nor state support. The efforts stayed in vain and even were adumbrated by corruptive example and bribery which are still considered as a form of remuneration.
Though in Latin America business might follow different moral principles, ethics can be defined as a rigorous analytical business tool which applies ethical reasoning to business situations and activities as an attempt to resolve or at least clarify those moral issues which typically arise in business (E. Sternberg; 1995).
When going abroad, those distinct ethical values often blur and suddenly are inclined to appear as values in tension. For Donaldson, the key of acting ethical, when doing business outside your country`s borders, is a balancing act somewhere in between “cultural relativism” and “ethical imperialism”, always heeding human values.
Considering the first extreme, no culture`s ethics is better than any other and accordingly a relativist would always adapt the society´s habits in which he currently operates. However this liberal attitude stumbles once the issue becomes more crucial. A cultural relativist would even accept a business action which violates human values. In 2010 Peru for instance was plagued by a major flooding. Especially the region around Machu Picchu, an area with a high proportion of tourists was
References: Donaldson, T. 2003. Values in tension: Business Ethics away from home Harvard Business Review on Corporate Ethics