According to integrative social contracts theory, the ethical standards a company should try to uphold should be determined by the company's moral managers utilizing the principles of ethical universalism should never be absolute but rather always provide some wiggle room according to the circumstances of the situation. are governed both by (1) a limited number of universal ethical principles that are widely recognized as putting legitimate ethical boundaries on actions and behavior in all situations and (2) the circumstances of local cultures, traditions, and shared values that further prescribe what constitutes ethically permissible behavior and what does not, however, universal ethical norms take precedence over local ethical norms. are governed by each country's Code of Ethical Business Conduct, which sets forth that each individual/group/business/organization has a binding contract with the country's citizens to observe the ethical and moral standards that the country has adopted. are governed both by (1) universal ethical principles and (2) the principles of ethical relativism; however, whenever these two sets of principles are in conflict, local ethical norms should take precedence over universal ethical norms.
