Final answer:
Basil is practicing cultural relativism by deciding not to reprimand his chief engineer for actions that align with local customs, despite them being illegal in the United Kingdom.
Step-by-step explanation:
Cultural Relativism in Business Ethics
In the scenario provided, Basil, the general manager of a large hotel, is practicing cultural relativism. This is evident as Basil decides not to reprimand his chief engineer for bribing a local official to secure a building permit, despite knowing such an action would be illegal in the United Kingdom. He justifies his decision by reasoning that the action adheres to local customs where the hotel is situated. Cultural relativism is the ethical stance which posits that moral codes and ethical decisions are contingent upon cultural context. This view holds that no one set of ethics is superior to another and that each culture's beliefs should be respected within the context of that culture.
The choices Basil does not choose are: ethical absolutism, which would maintain that bribery is wrong regardless of local customs; utilitarianism, which would consider the greatest good for the greatest number; and deontology, which would require adherence to a set of moral rules, such as not engaging in bribery, irrespective of outcomes or local practices.