Child labor is permitted and widely employed in Country X. A multinational company entering Country X decides to employ minors i
n its subsidiary, even though it is against the multinational's home-country ethics. Which of the following approaches to business ethics would justify the actions of the multinational company? A. Rights Theory
B. Righteous moralist
C. Cultural relativism
D. Justice Theory
Cultural relativism is an idea that an action should be viewed in the context of the socio-cultural environment in question. If child labor is permitted in Country X, it implies that rival companies and competitors who use child labor will experience cheaper production cost and unless the multinational company does same, it may face the need to pul out of the market.
Many companies make other goals a priority over profit maximization. Additionally, some aspects of running a business that meets social and environmental obligations take away from the sole focus of profit maximization.
