The culture generally endows ethical behaviour of different standards. This leads to different methods to handle unethical behaviour. Under such a situation, an organization taking an approach can be finding itself to make a catastrophic mistake. At a time, when a manager in an American organization producing specialty products in their operation in China caught an employee stealing, he pursued the standard practice of the organization by the turning the employee to the authorities. The authorities as per the Chinese regulations executed the employee (Watson 2003). It is impossible for a manager to be operating at a different culture without the awareness of the attitude of the culture towards ethics.
There is no answer to the companies that have not being able in adopting the ethics of the host country nor extending the standards of the home country. The conventional litmus test is a guide considered to be unreliable. This is because there is not yet any international consensus on the business conduct’s standard. The organizations must be assisting the managers in distinguishing the wrong practices with merely different practices (Guest 1999). The relativists consider nothing wrong and nothing sacred. The decision making of businesses in the real world is not illuminated by the extreme.
The ethical behaviour is shaped by three guiding principles. First, the core human values should be respected determining the business activities ‘moral threshold. Second, the local traditions should be respected. Finally, the context is important to decide the wrongs and the rights. For example, Japanese tradition calls for gift exchanges including the expensive ones by the individuals who do business together. When Europeans and Americans started to do business in Japan, they did not think it is a practice that is merely different; they thought it to be wrong. To the Europeans and Americans, this is equal to taking bribes. With greater familiarity with traditions, the western people doing business in Japan started tolerating the practice setting limits for gift giving practice.