There are meaningful variations in what societies generally agree to be right and wrong in the conduct of business activities. Ethical relativism holds that when there are cross-country or cross-cultural differences in what is deemed fair or unfair, what constitutes proper regard for human rights, and what is considered ethical or unethical in business situations, it is appropriate for local moral standards to take precedence over what the ethical standards may be elsewhere.
Core Concept
According to the school of ethical relativism different societal cultures and customs have divergent values and standards of right and wrong—thus what is ethical or unethical must be judged in the light of local customs and social mores and can vary from culture or nation to another.