Multinational Companies and Ethical Theories:
Human rights issues in the global supply chain are one of the major challenges that multinational companies face in their operations. While these firms try to support human rights through various initiatives, the also violate these rights through other practices that characterize their operations (Arnold, 2010, p.371). The human rights paradigm has extended to incorporate emerging actors to an extent that the debate on these rights is no longer limited to individual states. Multinational companies have been included in the human rights paradigm in the global supply chain is because they are holders of human rights. egulations for human rights protection are particularly important to these firms because of their organizational structure, total influence, and mode of operation (Deva, 2004).
One of the major concerns for governments, scholars, and non-governmental organizations is how to influence the human rights behaviors of multinational companies. This concern is mainly fueled…...
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References:
Arnold, D.G 2010, "Transnational Corporations and the Duty to Respect Basic Human Rights,"
Business Ethics Quarterly, vol. 20, no.3, pp.371-399.
Bishop, J.D 2012, "The Limits of Corporate Human Rights Obligations and the Rights of For-
Profit Corporations," Business Ethics Quarterly, vol. 22, no.1, pp.119-144.
Multinational Success
The author of this report has been asked to speak to a hypothetical company that is ramping up global production of a selected product. For the purposes of this report, the author will focus on consumer electronics. The different facets and issues within the business that will be answered to will include a list of best practices, the key benefits of creating such policies, the major ramifications that could be faced if those policies are not created and followed, the significant ways in which the long-term sustainability of the company will be served by the policies and whether or not the practices will create a competitive advantage for the company. When it comes to the last of that list, an example company will be given to prove the point. While some companies do fine without a list of best practices and similar policies, having everything in writing, communicated to…...
Still, what has to be mentioned at this state is that the productivity is increased at the level of repetitive team tasks. In other words, when the tasks of the team are less repetitive, when they are new and involve creativity, the productivity of the team decreases. This is explained by the fact that the members in a homogenous team are alike and tend to have the same reaction to a change, and this reaction can be one of resistance.
In the context of managing an international project, the team will often be confronted with the need to reshape the team tasks in order to meet changing needs and features, such as changing legislations, changing customer needs, intensifying competition and so on. All in all then, the more important disadvantage of the homogenous team is that it is more rigid.
The homogenous teams tend to be less inclined to accept change,…...
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References:
Aamodt, M.G. (2012). Industrial / organizational psychology: an applied approach. Cengage Learning. ISBN 1111839972
Bartel-Radic, a. (2006). Intercultural learning in global teams. Management International Review. December edition.
Beck, C.S. (2012). Communication yearbook 32. Routledge. ISBN 1135859612
Caligiuri, P.M., Stroh, L.K. (1995). Multinational corporation management strategies and international human resources practices: bringing IHRM to the bottom line. The International Journal of Human Resource Management. Vol. 6. No. 3.
Globalisation
By their nature, multinational companies have culturally diverse social capital, and need to adopt strategies to maximize the benefit that this capital has to the business. The field of human resource management plays a significant role in unlocking this social capital. Job descriptions and benefits programs provide motivation for employees that fits with their individual and cultural needs, in addition to meeting the needs of the organization. This paper will outline some of the issues with respect to unlocking social capital within the multinational corporation.
Social Capital
Taylor (2007) notes that social capital can be created within organizations. In particular, the relationships within the organization and the relationships that the organization has with external groups and individuals can be critical to success. There are many cultures where social capital is critical to success. The human resources department should be able to understand when crafting job descriptions where social capital is most valuable,…...
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Works Cited:
Taylor, Sully. (2007). Creating social capital in MNCs: The international human resource management challenge. Human Resource Management Journal. Vol. 17 (4) 336-354.
Merz, M., He, Y. & Alden, D. (2008). A categorization approach to analyzing the global consumer culture debate. International Marketing Review. Vol. 25 (2) 166-182.
Human esource Challenges Facing Multinational Entities
Human esource Challenges American Companies in Venezuela Encounter
To remain competitive, U.S. firms, and indeed other global firms, have found it necessary to venture to other markets. Although, there are numerous benefits to be reaped from such a move, global companies often have to contend with a number of challenges. Some of these challenges have got to do with the hiring of both local and expatriate talent. This text highlights some of these challenges -- in the Venezuelan context.
Challenges in Attracting and etaining Local Talent
Skill Barrier
To begin with, one of the most significant challenges American multinationals encounter in Venezuela is skills gap. Unlike their counterparts in the U.S. not many Venezuelans possess the skills necessary to run or manage specialist functions of a U.S. multinational subsidiary. Indeed, this is one of the key reasons that could motivate American companies to 'export' talent from their home country.…...
The Performance of Expatriates in Multinational Organizations
An expatriate is defined as an individual living in a foreign nation working in a foreign nation. With the rise of global multinationals there has been a corresponding rise in the number of expatriate workers (“Expatriate,” 2018). There are many reasons that individuals might wish to work and live abroad, including the desire to experience a new culture and career advancement. Multinationals can benefit by sending trusted and experienced workers with experience in the company culture into emerging markets. If the expatriate has a personal connection to the emerging market (for example, personal knowledge of the government structure and culture), this may ease the ability of the company to effectively break into the marketplace. But integrating one’s self into the emerging market is not always easy for the expat.
Strategies to Improve Performance of Expatriates
Expatriates, regardless of their familiarity with the culture of the emerging…...
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Bibliography
Black, J. & Gregersen, H. 1999. The right way to manage expatriates. HBR. Accessed 15 Jul 2018. right-way-to-manage-expatsExpatriate. 2018. Investopedia. Accessed 15 Jul 2018. https://www.investopedia.com/terms/e/expatriate.aspFlannery, R. 2017. Starbucks makes its biggest acquisition buying China JV stakes for 1.3b.Forbes. Accessed 15 Jul 2015. https://www.forbes.com/sites/russellflannery/2017/07/27/starbucks-makes-its-biggest- acquisition-buying-china-jv-stakes-for-1-3b/#719ceeb14386Owen, J. 2014. India’s corruption culture: A dangerous game for businesses. Forbes. Accessed 15 Jul 2015. https://www.forbes.com/sites/riskmap/2014/06/25/indias-corruption-culture- a-dangerous-game-for-businesses/#aa0094513349https://hbr.org/1999/03/the-right-way-to-manage-expatshttps://hbr.org/1999/03/the-
Globalisation has presented business organisations with an opportunity to do business internationally. Today, multinational corporations (MNCs) are prevalent, with many commanding immense power in the global marketplace. Nonetheless, operating in the global scene is usually not a straightforward undertaking. The global business environment presents numerous complexities, which MNCs must effectively deal with if they are to be successful (Noorderhaven and Harzing, 2003).
One of the major complexities MNCs face relate to human resource management (HRM). Indeed, managing human resources in the international context can be a daunting task. This is particularly because of considerable cultural, institutional, economic, and political differences across countries (Thite, Wilkinson and Shah, 2012). National (country-of-origin) characteristics tend to influence how MNCs behave in the host country. They influence not only corporate strategy, but also the kind of HRM practices MNCs adopt in the host country (Sethi and Elango, 1999; Yu, Park and Cho, 2007; Cox, 2014; Chung…...
In managing a multinational company in the food products industry, it is essential to implement a solid knowledge management system to ensure that as much relevant information as possible is handled in the most effective manner. Issues that must be addressed to ensure the safety of the product and that optimum delivery to consumers is possible include: sanitation, where workers may eat and drink, conflict resolution, how in-house teams will conduct business, how online teams will facilitate the organization, security, and emergency evacuation procedures. This paper will discuss the key benefits of creating a best practice policy on each of these described issues and will speculate on the major ramifications if such policies are not created. This paper will also predict the significant ways in which the best practices policy created here will contribute towards the long-term sustainability of the company. Finally this paper will determine whether or not the…...
Expatriate Remuneration in a Multinational Organization
The purpose of this study is to determine the extent to which the regime that is adopted for the process of remunerating expatriates in Coca Cola Company is effective. Coca Cola is a very large multinational company and therefore the study is going to focus on how its expatriate enumeration policy is effective in the process of remunerating its expatriates who span all parts of the globe while having different positions. The study is going to concentrate on the general effectiveness of the different foreign remuneration regimes on the company's turnover and the corresponding effect of the remuneration policing in maintaining a perfect professional image of the company. The effectiveness of the expatriate remuneration is gauged using a variety of methods that are all geared towards the succinct and exact determination of the extent to which the policies of remunerating the expatriates is the…...
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Sources of Data Used
The main data types to be acquired in this study are the monthly income, benefits and allowances that the Coca Cola expatriates receive while on their duties abroad. The data sources in this case would be Coca Cola monthly enumeration reports that can be requested from the head office and the internet.
3.5. Data Collection Methods
Various data collection methods are to be employed. They include interviews, use of questionnaires, use of abstracts and articles from various sources, information from Coca Cola head office in Atlanta and use of internet to search and collect the necessary data.
Ethical Challenges Faced by Multinational Businesses Ethical Challenges Faced by Multinational BusinessesI. Introduction: Ethical challenges faced by Multinational businessesA business organization that expands internationally does not only need to understand the organizations goals, vision, strategies, policies, or missions but must also take into consideration various ethical and legal issues in the international business (Kline, 2010). Companies that organize for expansion into the foreign markets must also handle severe ethical and moral challenges to ensure success (Gurnani, 2015). The most prevalent concerns in international business include human rights, the political arena, religion, the environment, supervisory oversight, trust and integrity, bribery and corruption, equal opportunity and workplace diversity, outsourcing, child labor, and working standards and conditions.Cultural consideration also contributes to breaking or building companies businesses globally. Every country has its historical culture, traditions, customs, and code of ethics. In some countries where women are not given the same rights as men, gender…...
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ReferencesAl-Khatib, J., Rawwas, M. Y., Swaidan, Z., & Rexeisen, R. J. (2005). The ethical challenges of global business-to-business negotiations: An empirical investigation of developing countries’ marketing managers. Journal of Marketing Theory and Practice, 13(4), 46-60.Gurnani, R. M. (2015). Globalization and ethical challenges. The Business & Management Review, 5(4), 116.Hamilton, J. B., & Knouse, S. B. (2001). Multinational enterprise decision principles for dealing with cross-cultural ethical conflicts. Journal of Business Ethics, 31(1), 77-94.Hill, C. W., & Hernández-Requejo, W. (2006). Global business today.Kline, J. (2010). Ethics for International Business: Decision-making in a global political economy. Routledge.Kolk, A., & Van Tulder, R. (2004). Ethics in international business: multinational approaches to child labor. Journal of World Business, 39(1), 49-60.Parboteeah, K. P., & Cullen, J. B. (2009). International business: strategy and the multinational company. Routledge.Schaffer, R., Agusti, F., & Dhooge, L. J. (2014). International business law and its environment. Cengage Learning.Schermerhorn, J. R. (1999). Terms of global business engagement in ethically challenging environments: Applications to Burma. Business Ethics Quarterly, 9(3), 485-505.Van Cranenburgh, K. C., & Arenas, D. (2014). Strategic and moral dilemmas of corporate philanthropy in developing countries: Heineken in Sub-Saharan Africa. Journal of business ethics, 122(3), 523-536.
These claims are virtually all based on the concept that corporations - particularly multinationals -- should be held accountable for their actions within their sphere of operations. "Corporations, for their part, have responded in numerous ways, from denying any duties in the area of human rights to accepting voluntary codes that could constrain their behavior" (atner, 2001, p. 436). In fact, this very point is echoed throughout the literature; for example, "At the turn of the 20th century, corporations tended to disregard the public interest willy-nilly. And even as recently as one-half century ago, corporations had so much power over the marketplace and so little responsibility to society" (Sriramesh & Vercic, 2003, p. 450). Despite these trends, things are changing, though, as atner points out: "The last decade has witnessed a striking new phenomenon in strategies to protect human rights: a shift by global actors concerned about human rights from…...
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References
Blackburn, V.L., Doran, M., & Shrader, C.B. (1994). Investigating the dimensions of social responsibility and the consequences for corporate financial performance. Journal of Managerial Issues, 6(2), 195.
Cable, V. (1995). The diminished nation-state: A study in the loss of economic power. Daedalus, 124(2), 23.
Casmir, F.L. (1997). Ethics in intercultural and international communication. Mahwah, NJ: Lawrence Erlbaum Associates.
Dalton, D.R., & Metzger, M.B. (1996). Seeing the elephant: An organizational perspective on corporate moral agency. American Business Law Journal, 33(4), 489-576.
Human esource Management in Multinational Enterprises
Similarities and Differences between domestic and international HM
HM assumes a strategic role in almost all business organizations. It is the core of an organization's corporate strategy because it helps enhance their performance, create a sustainable competitive advantage and guides through enterprise management. This leads to the two similarities between domestic and international HM. Basic functions such as allocation, procurement, motivation, and utilization are similar whether in the home or foreign country. Both international and domestic HM serve same functions and activities in H recruitment, planning, training and development, performance management, industrial relations and compensation. Another aspect is linked to environmental forces, which drive the function of HM. These external drivers include economical, political, and cultural and legal have a significant impact on H activities in both domestic and international environment (McDonnell, 2011). In addition, they have similar fundamental human resource goals. First, they seek to…...
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References
Dowling, P., Festing, M., & Engle, A.D. (2008). International human resource management: Managing people in a multinational context. South Melbourne, Vic: Thomson.
McDonnell, A. (2011). A profile human resource management in multinational enterprises operating in Australia. Melbourne: Victoria University.
Tempel, A. (2011). The cross-national transfer of human resource management practices in German and British multinational companies. Mu-nchen: Hampp.
Tayeb, M. (2010). International human resource management: A multinational companies perspective. Oxford: Oxford University Press.
Another factor that must be taken into consideration is represented by the business etiquette in China. Business etiquette in this country is significantly different than that of Western countries, but it is similar to other Asian countries. The analysis of business etiquette is based on the cultural dimensions that characterize the Chinese population. Same as in the case of other Asian cultures, China has a high long-term orientation, which means that the country's population has a strong attitude on persevering. Also, there is a high level of power and wealth inequality within the society. The Chinese culture is a collectivist one, and businessmen should refer to this fact in their meetings with Chinese partners (International Business Center, 2008).
The differences between the business etiquette in China and those in other countries refer to aspects like the appearance and clothing style, the behavior at meeting, offering and receiving gifts, and communications. The…...
Often knowledge transfer faces the most significant threats in globally distributed MNCs, as the core part of their international property is included in the knowledge they are sharing across networks (Caelli, 2002). Knowledge transfer however is critical for being able to compete effectively on a global basis, as customers increasing a re buying expertise, not just products. This requirement is often exacerbated by local governments in foreign nations who often require disclosure of the data being transmitted in and out of their countries, with China being one of the most aggressive on this issue (Cohen, 2000).
Conclusion
The development of effective security strategies for MNCs needs to be predicated on the legacy, 3rd party and enterprise systems' integration requirements of companies as they grow quickly through mergers, acquisitions and global expansion strategies. Being able to unify the entire complex of systems in an MNC and making sure the integration points don't…...
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References
Caelli, W.J. (2002). Trusted...or...trustworthy: The search for a new paradigm for computer and network security. Computers & Security, 21(5), 413-420.
Cohen, E.A. (2000). International relations and security network. Foreign Affairs, 79(3), 167-167.
Lesser-Known but Engaging Essay Topics on Global Strategy and Sustainable Activities of Multinationals
Topic 1: The Role of Emerging Markets in Shaping Multinational Strategies
Focus: Explore how the rise of emerging markets influences the global strategies of multinationals. Discuss factors driving this shift, such as market potential, cost advantages, and political risks.
Possible Outline: Introduction: Global reach and the importance of emerging markets Section 1: Market opportunities and growth potential Section 2: Cost advantages and sourcing strategies Section 3: Political risks and their mitigation Conclusion: Implications for multinational competitiveness
Topic 2: The Impact of Climate Change on Supply Chain Management
Cultural differences can have a significant impact on decision-making in global strategic management in the following ways:
1. Communication styles: Cultural differences can lead to misunderstandings and misinterpretations in communication, which can affect decision-making. For example, some cultures may value direct communication while others may prefer indirect communication styles.
2. Decision-making processes: Different cultures may have varying approaches to decision-making, such as consensus-based decision-making versus hierarchical decision-making. This can result in challenges when trying to reach a consensus or implement decisions in a global context.
3. Values and beliefs: Cultural differences in values and beliefs can influence the priorities and objectives of different....
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