Why are many business people perceived to be acting unethically? It may be that the involved
people are not even aware that they are doing something questionable. There is no worldwide
standard of conduct for business people. This is especially important given the global nature
of business activities. Cultural norms and values vary between countries and even between different
geographic regions and ethnic groups within a country. For example, what is considered
in one country to be a bribe to expedite service is sometimes considered in another country to
be normal business practice. Some of these differences may derive from whether a country’s
governance system is rule-based or relationship-based. Relationship-based countries tend to
be less transparent and have a higher degree of corruption than do rule-based countries.37 See
the Global Issue feature for an explanation of country governance systems and how they may
affect business practices
Another possible reason for what is often perceived to be unethical behavior lies in
differences in values between business people and key stakeholders. Some businesspeople
may believe profit maximization is the key goal of their firm, whereas concerned interest
groups may have other priorities, such as the hiring of minorities and women or the
safety of their neighborhoods. Of the six values measured by the Allport-Vernon-Lindzey
Study of Values test (aesthetic, economic, political, religious, social, and theoretical),
both U.S. and UK executives consistently score highest on economic and political values
and lowest on social and religious ones. This is similar to the value profile of managers
from Japan, Korea, India, and Australia, as well as those of U.S. business school students.
U.S. Protestant ministers, in contrast, score highest on religious and social values and
very low on economic values.38
This difference in values can make it difficult for one group of people to understand
another’s actions. For example, Michael Bloomberg, mayor of New York City has
pushed through regulations that changed the type of oil that fast-food companies could
use in their fryers, mandated calorie listings for all eating establishments, and in 2012
pushed through a plan that prohibited food-service establishments from selling sodas and
similarly sweet drinks in sizes larger than 16 oz. “Let the buyer beware” is a traditional
saying by free-market proponents who argue that customers in a free market democracy
have the right to choose how they spend their money and live their lives. Social progressives
contend that business people working in tobacco, alcoholic beverages, gambling,
and maybe now the soft drink industries are acting unethically by making and advertising
products with potentially dangerous and expensive side effects, such as cancer,
alcoholism, obesity, and addiction. People working in these industries could respond
by asking whether it is ethical for people who don’t smoke, drink, or gamble to reject
another person’s right to do so.