What should managers working abroad do when they encounter business pr
actices that seem unethical? Should they, in the spirit of cultural re
lativism, tell themselves to do in Rome as the Romans do? Or should th
ey take an absolutist approach, using the ethical standards they use a
t home no matter where they are?According to Thomas Donaldson, the ans
wer lies somewhere in between. Some activities are wrong no matter whe
re they take place. Dumping pollutants for unprotected workers to hand
le is one example of a practice that violates what Donaldson calls cor
e human values: respect for human dignity, respect for basic rights, a
nd good citizenship. But some practices that are unethical in one part
of the world might be ethical in another. What may feel like bribery
to an American, for example, may be in keeping with Japan's longstandi
ng tradition of gift giving. And what may seem like inhumane wage rate
s to citizens of developed countries may be acceptable in developing c
ountries that are trying to attract investment and improve standards o
f living. Many business practices are neither black nor white but exis
t in a gray zone, a moral free space through which managers must navig
ate. Levi Strauss and Motorola have helped managers by treating compan
y values as absolutes and insisting that suppliers and customers do th
e same. And, perhaps even more important, both companies have develope
d detailed codes of conduct that provide clear direction on ethical be
havior but also leave room for managers to use the moral imagination t
hat will allow them to resolve ethical tensions responsibly and creati
vely.