International Dimensions of Organizational Behavior 5th Edition by Nancy Adler ,Allison Gundersen

Exercise 17

M. Urgin, a native of a non-Western country, is a devoted family man with three young children. He recently left his senior management position with a local telecommunications company and joined Prestige, a North American-based global company, receiving a raise commensurate with his new, more senior position. I.M. felt thrilled to work for a truly global company.
The new position required I.M. to leave his native country in order to live and work in another country in the region that has a religion, values system, and overall culture quite different from his own. I.M.'s home culture, for example, does not consider it bad to frequent prostitutes. Some wives even encourage their husbands to go to prostitutes on occasion, as is the case with I.M.'s wife. By contrast, the new host country holds quite different cultural values concerning prostitution. Prostitution is illegal, although the host country officials often overlook the law.
After arriving in the host country, I.M. continues his previous habits, although on a more limited basis than previously. One of I.M.'s associates at Prestige, a native of the host country, becomes deeply concerned about the legality and morality of I.M.'s actions, and suggests that he stop. I.M. becomes irate. He rigorously defends himself by stating that North American expatriate managers from Prestige living in I.M.'s home country actually form romantic liaisons with local women, including with local Prestige women. I.M. angrily contends that these romantic liaisons create a much more serious problem than going to prostitutes, because the North American men might eventually leave their wives as a result of such relationships. I.M.'s colleague further argues that in addition to North American culture frowning upon such behavior, it might also upset the local people, with consequent bad effects on the morale of local Prestige workers. I.M. heatedly concludes that "having fun with prostitutes" is much better, and certainly less undesirable, than the North Americans' behavior.
Who is to judge the morality here? Must I.M. adhere to the host country's ethics?