Class 6: Donaldson & Chowdhury

What is Donaldson arguing?

Multinational workers face situations where local practices differ from home-country norms. He argues for the need to understand and navigate these cultural differences to ensure ethical practices and effective management.

moral relativism

is the belief that ethical standards are shaped by cultural context, leading to different moral judgments across societies; “When in Rome”

cultural imperialism

the practice of promoting one culture over others, often resulting in the erasure of local cultures and values; “When in Rome”

universal ethical norms

grounded in basic human rights and dignity

culturally variable ethical norms

shaped by local customs and practices, i.e. business customs, gift-giving, negotiating styles

Distinguish between universal and culturally variable ethical norms.

universal ethical norms are grounded in basic human rights and dignity; culturally variable ethical norms are shaped by local customs and practices.

What two-part “test” do multinationals use to navigate conflicts between home and host country norms?

a) Is this practice a violation of a fundamental international human right? If yes, do not comply REGARDLESS of local norms.
b) Does the practice merely reflect a different cultural tradition or lower economic development level? If yes, accommodate, but ask whether the practice would be acceptable if your home country were at the same economic stage.

Why is this two-part “test” important?

This two-part test is important because it helps multinationals navigate ethical dilemmas by ensuring they do not compromise fundamental human rights while respecting cultural differences in host countries.

moral free space

refers to a range of practices where reasonable cultural variation is legitimate— outside that space, universal norms apply.

Why do these tensions arise?

When host country standards for environmental pollution, workplace discrimination, or salary schedules appear inadequate from a home country perspective, leading to potential conflicts in ethics and practices.

While global companies are __________ in their business operations, they are often __________ in composition.

multinational; uninational

Who supports Donaldson’s perspective?

Cragg; both argue that universal human rights provide a non-negotiable floor for business conduct internationally.

Who challenges Donaldson’s perspective?

Chowdhury; Donaldson’s framework still operates from a Western liberal perspective. Determining what counts as “universal” vs. “culturally relative” is itself a political act that can perpetuate colonial power dynamics.

minimal duties

one whose persistent failure would deprive the corporation of its moral right to exist

enlightened duties

praiseworthy but not mandatory

James Sterba identifies that….

persons in Third World countries enjoy welfare rights to satisfy ‘basic needs,’ which are those necessary to protect health and sanity.

Henry Shue defines a basic right as…

something the deprivation of which is a standard threat to rights generally— this includes the right to physical security, such as safety from harmful chemicals.

What is Chowdhury arguing?

Social and economic rights are essential to ensure a dignified life and that these rights should be recognized and protected globally.

marginalized stakeholders (MSs)

individuals who experience social, institutional, or organizational exclusion based on social class, gender, race, sexuality, etc.

Marginalized Stakeholder Theory (MST)

a normative foundation for decolonization, enabling firms to overcome colonial legacies and reject neocolonial logics embedded in instrumental approaches.

Mainstream research often relies on the stakeholder saliency model, where…

management pays attention to those possessing power, legitimacy, and urgency.

The saliency model ________ the prioritization of powerful actors at the ________ of MSs, violating the possibility of decolonial social contracts.

incentivizes; expense

bottom of the pyramid (BoP)

a superficial strategy that views poor consumers as business opportunities without addressing their systemic challenges.

creating shared value (CSV)

a business strategy that focuses on generating economic value in a way that also produces value for society by addressing its challenges.

epistemic obfuscation

the practice of overlooking or coopting the work of scholars to deny their right to be acknowledged, particularly regarding MSs.

Du Bois was systematically excluded from the sociological domain for a century despite foundational contributions to American sociology.

This highlights the impact of racial bias in academic recognition and the importance of acknowledging diverse contributions to sociology.

meta-fallacy

scholars believe that firms or powerful stakeholders can ‘make’ MSs competitive; in reality, MSs often develop their own political imagination to force firms to engage with them, ex. TAC in South Africa

To implement MST, firms must reconceptualize traditional engagement approaches— ________, ________, ________— through a decolonial lens.