Docstoc

Strategy Manager Jobs in Europe with Company Info

Document Sample
Strategy Manager Jobs in Europe with Company Info Powered By Docstoc
					Chapter 2

Managing Interdependence – Social
Responsibility
and Ethics
ADMINISTRIVIA




    CRITERIA FOR AREA CULTURE STUDY
      Social Responsibility


                    The two extreme opinions related to social
                         responsibility – Domestic firms




The only responsibility                                   Business should anticipate
of a business is to                                       and try to solve problems
make a profit                                             in society
Social Responsibility of Multinational Corporations


 –Economic development
 –Cultural issues
 –Legal issues

Social Responsibility – Integrated Approach

Organizations agree what should constitute moral and ethical behaviour

Emerging because of the development of a global corporate culture
Provide a basis of judgment regarding decisions and situations
    Moral Universalism

Unlikely to become a reality
     Ethnocentric
     Relativism
Human Rights

•What constitutes „human rights‟?
 –Perceptions of people
 –Priorities of people

•Canada may say wages, education, freedom
•Other countries may say safety and shelter


Codes of Conduct

•SA 8000‟s Proposed Global Standards
  –Do not use child or forced labour
  –Provide a safe working environment
  –Respect workers‟ rights to unionize
  –Do not regularly require more than 48-hour work weeks
  –Pay wages sufficient to meet worker‟s basic needs
Codes of Conduct

 •SA 8000‟s Proposed Global Standards
   –Do not use child or forced labour
   –Provide a safe working environment
   –Respect workers‟ rights to unionize
   –Do not regularly require more than 48-hour work weeks
   –Pay wages sufficient to meet worker‟s basic needs

Ethics in Global Management

•The term international business ethics refers to the business conduct or morals of
MNCs in their relationships with individuals and entities

Based on
  –cultural value system
  –generally accepted ways of doing business in each country or society
•Globalization has multiplied the ethical problems facing organizations
•Business ethics have not yet globalized
•Difficult to reconcile consistent and acceptable behaviour around the world
Ethics in Global Management

 •Approaching ethical dilemmas varies among MNC‟s
   –Canadian approach is based upon general rules
   –Japan and Europe make decisions on shared values, social ties, and perception
   of their obligation

 Questionable Payments

 •Payments in question are political payments, extortion, bribes, sales commissions,
 or “grease money” – payments to expedite routine transactions

 •Also called: tokens of appreciation, „la mordida‟, „bastarella‟, and „pot-de-vin‟


 The Foreign Corrupt Practices Act

 •The Foreign Corrupt Practices Act (FCPA), enacted in 1977, prohibits U.S.
 companies from making illegal payments or other gifts or political contributions to
 foreign
Three Tests of Ethical Corporate Actions

•    Is it legal?
•    Does it work (in the long run)?
•    Can it be talked about?

Ethical Behaviour and Social Responsibility Guidelines Developed by MNCs

•    Develop worldwide codes of ethics

•    Consider ethical issues in strategy development

•    Consider withdrawal from the problem market

Making the Right Decision
•    How is a manager operating abroad to know what is the “right” decision ?
      – Consult the laws of both the home and the host countries
      – Consult the company‟s code of ethics
      – Use your own moral code of ethics
      – Follow your own conscience

Host-Country Interdependence

•    Focus should be interdependence rather than independence
      Criticisms of MNC Subsidiary Activities (contd.)


 •MNCs usually reserve the key managerial and technical positions for expatriates.
 As a result, they do not contribute to the development of host-country personnel.

 •MNCs do not adapt their technology to the conditions that exist in host countries.

 •MNCs concentrate their R&D activities at home, restricting the transfer of modern
 technology and know-how to host countries.

 •MNCs give rise to the demand for luxury goods in host countries at the expense
 of essential consumer goods.
 •MNCs start their foreign operations by purchasing existing firms rather than
 developing new productive facilities in host countries.
 •MNCs are not accountable to their host nations but only respond to home-country
 governments

Comparative Management in Focus
NAFTA
   Brought together three largely different economies
   Promised that it would create millions of jobs
   Promised that it would curb illegal immigration
   Promised that it would raise living standards
Comparative Management in Focus


  •NAFTA – United States               •NAFTA – Mexico
    –Overall has enjoyed a growth in     –Promised to close wage gaps
    exports                              and lower illegal immigration
    –Companies have moved to             –Gap in wages has increased
    Mexico for cheaper labor             –Companies are moving to China
    –Increased unemployment in           for lower wages
    many areas
      Comparative Management in Focus

  •NAFTA – Canada
    –Has had mixed results
    –Businesses are more export-oriented
    –Created 500,000 new jobs last year
   •We went from a Canadian company with a 30 million population market
     to a 300 million market. - John Scarsella President and CEO Durham
                                    Furniture

Ethnocentric vs. Relativism


   •Ethnocentric                        •Relativism
     –Company applies the morality        –Company adopts the local moral
     used in its home country –           code in whatever country it is
     regardless of the host country‟s     operating – companies run into
     system of ethics                     value conflicts with this approach

				
DOCUMENT INFO
Description: Strategy Manager Jobs in Europe with Company Info document sample