...CONTEMPORARY ISSUES IN MANAGEMENT WORD COUNT: 2568 Date of submission: 07/01/2013 Q. Referring to material from the unit, critically evaluate how the passage relates to issues concerning the business activities of MNCs and the concept of ethical leadership. ‘For however strong you may be in respect of your army, it is essential that in entering a new Province you should have the good will of its inhabitants. Hence it happened that Louis XII of France, speedily gaining possession of Milan, as speedily lost it; … For the very people who had opened the gates to the French King, when they found themselves deceived in their expectations and hopes of future benefits, could not put up with the insolence of their new ruler.’ ‘I conclude, therefore, that when a prince has the goodwill of the people he must not worry about conspiracies; but when the people are hostile and regard him with hatred he must go in fear of everything and everyone. Well-organized states and wise princes have always taken great pains not to make the nobles despair, and to satisfy the people and keep them content; this is one of the most important tasks a prince must undertake.’ (Machiavelli, 1513) A. The extract from Machiavelli’s, The Prince demonstrates a strong correlation to the issues involved in the business activities of modern day MNCs and the concept of ethical leadership. According to Resick, Hanges, Dickson, & Mitcheluson (2006), analysing data from the global leadership and...
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...ideas of the type of culture that you would want your organization to have. • Share the vision with everyone – after envisioning the type of culture suitable for the organization, the vision has to be shared with every member of the organization in order to have full participation in carrying forward the change. • Get support from leadership – ensure top management buys into the vision and get the needed support from them and gain power in order to help drive change. • Model the culture that was envisioned – the culture of a company reflects the behavior of its leaders. Therefore in bringing forward the change, it is best to have alignment with the leadership team. Question #2 Why would you endeavor or try to develop an ethical programme for...
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...What ethical issues faced by MNC's in their treatment of foreign workers could bring allegations of misconduct in their operation? Answer: The ethical issues faced by MNC's in their treatment of foreign workers are given below: a. Employing child labor b. Using workers overtime c. Paying unfair salaries d. Treating inhumanly with workers e. Providing poor working condition for the employees f. Women discrimination g. Unfair business with minorities such as older worker, religious minorities h. Unlawful business practice Would the use of the third party independent contractors insulate MNC's from being attacked? Would that practice offer MNC's a good defensive shield against charges of abuse of “their employees”? Answer: Human rights issues is one of the most important issues in this globalization era. There are no universal or International Standard of what is right or wrong because of the cultural differences among the countries. For example, some country appreciate child labor but some country has a strict law of child labor. So when a business organization conducts business in another country, they are trying to take advantage of that country. The reason for an organization to do business beyond the border is to maximize their profit. Sometimes some MNC does offshore or outsourcing to get the job done. So some MNC goes to the third world country to gain economies of scale. For example Apple Inc. Products are produced by a third party independent manufacturer...
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...1. What is the main concern of MNC’S with respect to social responsibility? 2. What are the specific l issues that continue to drive the conversation of social responsibility? 3. What are the forces and entities that push social responsibility? 4. If you are an American firm, what is it most likely way to say you meet social responsibility? 5. What is the difference between Moral Universalism, Ethnocentric Approach, and Ethical relativism? 6. Which area of the world most publicly cited for human rights violation? (Hint: Not Africa) 7. What is the primary problem when companies try to define ethics? Why it is hard to decide what is ethical? 8. What are the criticisms of MNC’s? Why are they criticized? 9. What are the dimensions of sustainability? 10. What are the factors that contribute to globalization? Lessening of trade barriers, increased flow of goods and services, capital, labor, and technology around the world. The rise of developing countries such as China and India and technological advances. 11. For small and medium businesses what is the most likely way they impact globalization? 12. What are the 3 dominating currencies in the world economies? 13. What are the three trade blocks that are doing the most business? 14. What does the book say for China exportation success? 15. In Chapter 1, what makes India attractive and competitive? (Hint: Infrastructure) 16. What are the biggest...
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...the main criticisms that have been levelled at the above three MNC's In the case of Nestle, it became evident that no formal research into the emerging market was carried out. No approached to local authorities or government agencies was made; who may have had great knowledge/insight into feeding practice within the region or problems/issues that Nestle may be faced with. They simply tried to implement existing 'western' aspirational marketing practice into a region that they knew nothing about. Their communications with the target market were poor & unclear which led to the misconception that formula was a good way to replace breast milk and other forms of nutrition vital to child development. The company did not play its role in educating the public as to the proper methods of using the product and indeed the danger of it's misuse, and also did not consider the different living conditions as a factor in which could lead to such misuse. Their aggressive marketing approach ignored or de-emphasized breast feeding & much of their promotional efforts were misleading in encouraging poor & illiterate mothers to bottle-feed rather than breast feed their infants. Advertising portrayed breast-feeding as primitive and inconvenient. Free gifts & samples were supplied by sales reps dressed as quasi-medical staff known as 'milk nurses'; which were viewed as 'endorsements by association'. Quality control was also an issue for Nestle in other far-flung plants, which resulted in 134 deaths...
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...people, organizations and the nature of work. The traditional methods of IR are disturbed in several ways through the increasing international economic interdependence. Initially the IR arrangements are confined to the situations created by the national markets but the globalization has expanded the boundaries of the market place. The amount of information flows with the help of the latest technology is constructing the interconnected enterprise networks around the world, thereby doing away with the current IR arrangements. The primary drivers of change are the MNC’s. They are associations that take part in FDI and own or control profitable resources in more than one nation. The MNC’s, as producers of the universal goods and services have an influence extending beyond the urban places in the countries in which they are located. The individualism is growing in the organizations as many local enterprises in addition to the MNC’s are using the information technology to focus on the demands of the international and domestic markets. The globalization has also clearly shown the difference between the “capital” and the “labour” in all countries i.e. capital is more mobile in an open international environment while labour means it is relatively immobile. This places the “labour” at a comparative disadvantage because the “capital” can employ the “labour” in various other countries at lower cost and on basis of the continuous employment of workers in the countries. The globalization has an...
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...HEAD: Nestlé: The Infant Formula Controversy Nestlé: The Infant Formula Controversy CASE 4 April VanRivers Adv. International Marketing March 24, 2013 1. What are the responsibilities of companies in this or similar situations? Domestic companies and multinational companies have responsibilities that portray their corporate and social stance as an organization. Many of these responsibilities are indicated in the vision or mission statement. Ethical and socially responsible conduct should be the cornerstone of any organization’s core values and strategic management process (Godiwalla & Damanpour, 2006). For an MNC, ethical and social responsibility charge becomes an imperative because it is globally conspicuous, and, its activities have global impact and ramifications (Godiwalla & Damanpour, 2006). An MNC’s activities whether they are the pursuit of rapid growth, increased market share and profits, and competitive performance, should emanate its core ethical values and socially responsible vision. A MNC’s responsibility should stem beyond financial targets and in addition focus on the well being of people, communities and the environment. A company that has a strong social responsibility statement is Diageo. Diageo is one of the top ten MNCs and is the world's largest producer of spirits and a major producer of beer and wine (SiliconIndia, 2012). Diageo's brands include Smirnoff, Johnnie Walker, Baileys and Guinness (SiliconIndia, 2012). It is also the exclusive...
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...1. Discuss the concept of corporate social responsibility. What role does it play in the relationship between a company and its host country? (Course objective 1) International social responsibility is the expectation that MNCs concern themselves with the social and the economic effects of their decisions regarding activities in other countries. An MNC’s stance on international social responsibility determines how harmonious and productive its long-term relationships with host countries will be. By taking an open-systems perspective on CSR it is more likely that the MNC will be taking the right action relevant to all stakeholders. 2. Discuss the criticisms which have been levied against MNCs in the past regarding their activities in less-developed countries. What counter-arguments are there to those criticisms? (Course objectives 1, 2) MNCs have been criticized for disrupting the social, technological, and political climates in host nations. Governments often have a “love-hate” relationship with MNCs because they want the economic advantages produced by the presence of MNCs, but they regret the negative impacts MNCs often have on the political and social environments. MNCs can defend themselves by pointing out that, without their presence, host nations would not have as many jobs or trade opportunities, as well as opportunities to appropriate technology. MNCs have also been accused of destroying local culture through globalization. Although MNCs have increased the degree...
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...Assessing the Environment & Managing Interdependence, Social Responsibility, Ethics and Sustainability 30/09/2014 Dr Nick Papageorgiadis The notion of a firm with a unique national identity is quickly fading. A Bermuda-incorporated, Paris-headquartered firm, listed on the NYSE with US style investor protections and disclosure rules, a chief information officer in Bangalore, a chief finance officer in Brussels and a chief operating officer in Beijing may not sound nearly so fanciful in the near future. Desai, M. A. (2009). The decentering of the global firm. The World Economy, 32(9), 1271-1290. What is International Management? The process of developing strategies, designing and operating systems, and working with people around the world to ensure sustained competitive advantage The Global Manager’s Role Contents Assessing the Environment: • • • Understand the global business environment and how it affects the strategic and operational decisions which managers must make. Critically assess the developments, advantages, and disadvantages of globalization. Develop an appreciation for the ways in which political, economic, legal, and technological factors and changes impact the opportunities that companies face. Appreciate the complexities involved in the corporation’s obligations toward its various constituencies around the world. Understand the changing perceptions and demands of corporations doing business in other countries, in particular the responsibilities...
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...“How Personal Can Ethics Get?” Assignment 1: Business 520 How personal differences and preference can impact organizational ethics Individuals’ ethical development is established before entering a company. The influence of family, church, community, and school will determine individual values. Companies are dealing with individuals whose value base has already been established. When choosing a company to work for, one of the things that a person should look for is whether the company has like ethics or values. This makes working for a company a much better fit for your career. Most organizations have a code of conduct which describes its core values and code of ethics. People live in environments that affect them in many ways. They have their own religion, their own point of view toward an issue. While individuals values of are important, the organization has a major impact on the behavior of its members, and can have a positive or negative influence on their values. Business ethics can be defined as written and unwritten codes of principles and values that govern decisions and actions within a company.” For example, for catholic people, when your company forces the staff to work in Christmas day, what are they supposed to do? Work or go to the church? Another example, let’s say that your company harms the environment. As a manager, would you accuse the company? Or keep your work and continue receive salary. There are a lot of situations when your personal preferences...
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...Moral Philosophies Consequentialist theories. The morality (right vs wrong) of an action is judged entirely by its on consequences. Right and wrong are determined by the outcome of an action. “The end justifies the means” -Egoism -Utilitarianism Non consequentialist theories Based on inputs and intentions Actions are intrinsically good or bad by themselves. The right or wrong of these actions is not determined by their consequences. Utilitarianism Actions are judged by how much they benefit the majority. The greatest good for the greatest number of people. It is ethical to make the minority unhappy or suffer to create the greatest good The various ways of defining the greatest good should be taken into consideration. Promulgated by John Stuart Mill and Jeremy Bentham Act Utilitarianism Every act has an individual moral obligation. Rule Utilitarianism Apply utilitarianism to a set of rules that will benefit the majority. Kantian Ethics Intention based The categorical Imperative contains three maxims. Universality: You should only do something if you think it would be ok if everyone did it all the time. E.g. cheating in business, if everyone did it the economy would collapse. Every human should be treated as an end not a means to an end: So you can’t manipulate people to achieve an end. Contrasts to consequentialism which is based on ‘the greater good’. Means you cannot lie, (example about com101 being fav class) Act as if you were...
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...What, if anything can trade Unions’ do to challenge the employment strategies of multinational strategies of multinational companies? In the 1990’s globalization took the world by storm, it overcame into the way businesses were run, the products and goods we use and employment used. Globalization allowed good to be traded at an international level, increased the level of Foreign Direct Investment (FDI), increased the number of international transactions and trade barriers decreased, making it easier and cheaper to buy goods from abroad (Ferner, 2003). Not only has globalization seen the increase of migrants workers but has also increased the number of Multinational Companies (MNC) and many of them have moved production from their home country to less developing countries, for cheaper labour and looser regulations. The deregulation of working conditions, demographics and labour markets as well as cheaper labour will lead to companies moving their work away from the UK and damage the economy (Williams and Adam-Smith, 2010). As Moody (1997) states “It will increase pressure to cut costs in order for businesses to stay competitive...pressure on labour costs”. Globalization has caused an increase in the number of mergers and acquisitions and has in affect created and introduced more MNC, it has allowed companies to move labour and production to where labour is cheaper. Trade Unions’ have been at the forefront of the debate of whether globalization is a good thing. Due to MNC operating...
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...multinational corporations. It is incumbent upon these businesses to ensure that they operate ethically and by so doing avoid these dilemmas. Businesses are also expected to actively participate in upholding human rights. The Global Compact proposes presents the framework and guiding principles that can help these MNC’s navigate past these dilemmas as they enter new growth environments. This paper will report on the issues raised on the Bloomberg Interview and the Four Corners Program on Apple. The Global Compact (GC) is a proposal from the United Nations, which asks companies, MNCs included, to embrace and inculcate universal principles in their company operations and partner with the UN to ensure that human rights violations are not perpetuated in the business world (Rasche, et al., 2012). The UN GC has grown to become a crucial platform through which the UN gets to engage and interact constructively with the numerous enlightened global businesses. The GC’s primary goal is to encourage businesses to engage in businesses as forces of good and not evil. Multinational corporations are impacted by the GC which expects them to conduct their businesses is ethical manners. The Global Compact is alive to the fact that the different MNCs it seeks to partner with are at varying stages of their corporate sustainability and performance. That is why the GC employs a wide range of approaches in engaging these MNCs. These approaches include the development of overarching frameworks...
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...International Management, 7e (Deresky) Chapter 1: Assessing the Environment Political, Economic, Legal, Technological 1) Which of the following is characterized by networks of international linkages that bind countries, institutions, and people in an interdependent global economy? D) globalization 2) All of the following factors contribute to globalization EXCEPT ________. C) higher number of trade restrictions 3) Which of the following is the most highly globalized in regards to economic integration, technological connectivity, personal contact, and political engagement? A) Singapore 4) Most small and medium-sized enterprises (SMEs) are ________. C) contributing to their national economies through exporting 5) Gayle Warwick Fine Linen owes its success as a global business primarily to the firm's ________. B) labor outsourcing in Vietnam 6) Which of the following are the three dominant currencies in the world today? C) Euro, Japanese yen, U.S. dollar 7) Most of today's world trade takes place in which three trade blocs? C) European Union, Asia, and the Americas 8) The European Union currently consists of how many nations? B) 27 9) Which of the following is NOT one of the Four Tigers? D) Thailand 10) Which of the following best explains China's success in exporting? A) low costs and steady stream of capital 11) Which of the following is NOT a true statement about India? A) India's biggest contributor to growth is its excellent infrastructure. 12) India's economic boom is most likely...
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...honest decision making and dissuades any form of cheating. (Birch, 2010). Google entered China in the year 2000 with the introduction of the Chinese version of Google. It was at this time that the internet era is China was beginning to gain momentum and the government was building the infrastructure that allowed information sources to be controlled. Google had to extensively depend upon the translation systems to make a success of Google in China but the hostile environment in 2005 made Google think otherwise .It is pertinent to state that all internet operations in China are controlled by state through some form of regulation .The following represents the presence of some MNC’s in China. Source: http://www.globalbydesign.com/wp-content/uploads/blog/china_search_cnnic.jpg Issues: I feel that Eric Schimdt Executive chairman of Google and Larry Page CEO of Google should seriously consider leaving china due to the various blockades that the government has put up for internet users .The way the Chinese government had interfered with the Gmail email system. This has been considered as a very important decision making process for Google to stay back in china or withdraw its operations in China. The loss of opportunity for Google in China would be huge considering the number of internet users and hence Google should stay back in china and tackle the Chinese dragon the way it deserves to be. The Chinese government had tampered with the Gmail email system and...
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