Final answer:
The first step to avoid errors influenced by the self-reference criterion in business decisions is to isolate the SRC influence in the problem and carefully examine how it affects the situation before proceeding with culturally sensitive analysis.
Step-by-step explanation:
To avoid errors in business decisions influenced by the self-reference criterion (SRC), the first step should be to recognize the presence and impact of one's own cultural biases. Therefore, the correct answer is C. Isolating the SRC influence in the problem and examining it carefully to see how it complicates the problem. This approach involves an understanding of one's own cultural assumptions and how they might affect the interpretation of behaviors and responses in a different cultural context. It is a critical step before one can redefine the problem without the SRC influence and aim for an optimum business goal situation.
Engaging in cultural relativism is essential in cross-cultural analysis because it allows individuals to understand other cultures on their own terms, which is vital when making business decisions that involve multiple cultural perspectives. By isolating the influence of one's own culture, the individual or researcher can then proceed to define the business problem with a fresh perspective, untainted by unconscious biases, which in turn promotes more effective and culturally sensitive decision-making processes.