1. Assignment on
Business ethics
Submitted by
JOB THOMAS
#10, MBA (PT)
Semester – 3
SMS, CUSAT
Date of submission: 11/10/2011

2. 1. Identify some realistic and universalistic issues in each functional area of
management
The subject of ethics in business management is complex. Fair-minded people have
significant differences of opinion regarding whether realistic and universalistic approach
is to be adopted in functional areas of the management. Relativism is the concept that
points of view have no absolute truth or validity, having only relative, subjective value
according to differences in perception and consideration. Universalism is a concept that
has absolute truth or validity and have universal applicability. In realitivistic approach,
one has a tendency to make choices only on the basis of what looks right or reasonable
according to one's own belief or value. In universalistic approach, one has to take
decision based on universally acceptable solutions. Some of the important realistic and
universalistic issues in functional areas of management are discussed below
Sl. Realistic issues Universalistic issues
No.
Functional Area : Human Resources
1 Recruitment of persons based on the Recruitment of best suited candidate
personal choice
2 Retention of subordinate based on Retention of subordinate who is capable
personal choice do the work
3 Training the subordinate based on the Training the subordinate based on the
choice of management preference of the candidate
4 Ignoring health and safety at worksite Design based on health and safety at
worksite
Functional area: Customer service
1 Hiding information that is important Providing all information without
for the recipient but may be harmful to looking into the future aspects.
management
2 Providing customer support to Providing customer support to all
privileged customers only customers equally.
3 Providing after-sales support to Providing after-sales support to all
privileged customers only customers equally.
4 Providing customer advice in a way Providing customer advice stating
beneficial to management absolute pros and cones
Functional area: Marketing and sales
1 Conducting market research in a way Conducting market research based on
beneficial to management for publicity true representative sample
2 Using different market strategy Using same strategy for all regions
(price/product) for different regions
Functional area: research and development

3. Sl. Realistic issues Universalistic issues
No.
1 Improving existing product in Improving existing product based on
comparison with the competitor’s the true demand
product
2 Imitating ideas of the competitor Experimenting with new ideas
Functional area: Administration/IT support
1 For improving the business in global As the part of continuous improvement,
market, adopting IT technology such adopting modern technologies and
as SAP for clerical works services in administration
Functional area: Production / operation
1 Introducing modern equipments for For improving the production,
the production to compete with the introducing new technologies and
major competitor equipments in the operation
2 Introducing quality control for the Adopting ISO 9001 guidelines for
sake of competition quality control as the part of continuous
improvement
Functional area: Finance and accounts
1 Fixing the wages, based on the Fixing the wages, based on the standard
performance of the worker norms. Same wage for same type of
work
2 Doing adjustments in accounts like Providing the correct accounts without
window dressing for local interest any adjustments
Summary
The universalistic approach is good for solving issues related to functional areas of
management. The relativistic approach is sometimes probabilistic but useful for solving
certain issues that have a span within the locality. It is appropriate to incorporate
intuitions and commitments of a manager without buying ideas from relativistic
approach.

4. 2. Interview a friend who believes in relativism and another friend who believes in
universalism. Conclude who is more rationale and justifiable. Why and how?
Absolute and unique solution for a particular issue, irrespective of the micro or macro
environment is the theme of universalism. Identifying persons who believes in
universalism is a difficult task. Most of the people around us believe in relativism and
they change their thoughts and ideas based on the pressure from local environment. The
response of the person believes in the universalism and relativism is given below.
Sl Questions Response by person believes in
No. Universalism Relativism
1 Are you a universalism relativism
believing in
universalism
or relativism?
2 Is it necessary No, Same rule must Yes, depending upon the local culture,
to have be made applicable different law is to be framed for
different law for all human being different countries
of the land for
different
countries?
3 Why is Prostitution is a sin According to Indian culture, prostitution
prostitution must be banned in is a sin. However, prostitution is legal in
authorized in all countries. Canada, most all of Europe including
some England, France, Wales, Denmark, etc.
country? Perhaps, they may be thinking that sex is
a physical enjoyment need not be
restricted.
4 Do you Yes, freedom to No, certain norms or code of conduct
believe in speech must be must be followed in all conversation.
freedom to given to all so that The way one speaks to president of a
speech constructive country (or chairman of the business
suggestions can be firm he works) should be different from
picked up. the way the same person speaks to his
subordinate.
5 Are you Yes, democracy is Democratic country is a good concept.
supporting the need of the day. However, there are countries successful
democracy? See what happens under dictatorship. For example,
in Bahrain these Arabian countries like Muscat, Dubai
days etc. Getting consensus for all proposals
would not be possible. Most of the
expectorates adjust with the customs and
don not exercise the speech democracy
when they join for a job at Dubai like
countries

5. Sl Questions Response by person believes in
No. Universalism Relativism
6 What do you Secularism is the A systematic approach would help us to
think of only system that improve the performance. For initiating
secularism? protects all faiths new ventures, secular structure would
equally without not be available to follow initially and
allowing any to secularism must evolve over the time.
dominate
7 What is your The pollution Environmental pollution and human
opinion about standards must be health hazards are sensitive issues of the
environmental kept same in all day. Restricting the functioning of a
pollution? countries. Freedom power plant in the name of pollution
to live should be without looking into the fact that it
legally supported supplies energy at industries around
by the enforcing would not be acceptable. The cost-
pollution standards. benefit ratio present project or feasibility
of alternate projects shall be evaluated
before blocking the functioning of any
industry due to pollution control law
8 Do you Yes. The No. The ‘right to survive’ should also be
believe in meritorious considered for the class of less
‘survival of candidate should privileged people.
the fittest’? get opportunities
and should be
recognized.
9 Do you think No, There is only Yes, person who steals bread to satisfy
‘everyone has one right, which is hunger will find his own right in his
the right to be the absolute right action.
selfish’
10 Do you agree No, right or wrong Yes, the culture determines right or
the fact that is absolute wrong
‘right or
wrong
depends on
individual
viewpoints’
Conclusion
Considering the responses delivered by the person who believes in universalism and
relativism, the relativist seems to be more flexible than the person believes in
universalism. The thoughts of the relativist are seems to be more practical and justifiable.
Hence in my opinion, a relativist would succeed as a manger in the business environment.

6. 03. Examine yourself whether you are predominantly a relativist or Universalist
Based on my self assessment, I am a relativist because of the following reasons
1. I believe that ‘the wrong’ depends on the environment one work and there is no
absolute wrong for any of human actions.
2. I understand that there are questions in ethics which have no correct answers.
3. I realize that it is always wrong to judge for another person what is good or bad.
4. I have experienced that an action can be right in some situations but wrong in
other situations
5. I change my decisions based on the micro and macro environment