According to the school of ethical relativism, whether certain business-related actions or behaviors are ethically right or wrong depends on the ethical standards prevailing in each country where it operates. standards of what is ethically right and ethically wrong in business organizations are subjective and flexible, thus allowing room for ethical standards to vary from one business organization to another. individuals and businesses have a basic right to "moral free space"; hence it is inappropriate to specify ethically permissible and ethically impermissible actions and behaviors. concepts of ethically right and ethically wrong in business situations are always a function of each company's own set of values, beliefs, and ethical convictions (as stated in the company's code of ethical conduct). concepts of ethically right and ethically wrong are relative across occupations and functional areas in each company.