Free Essay

Business Financial Systems

In: Business and Management

Submitted By renj1976
Words 1214
Pages 5
In today’s economy, members in the U.S. market, in addition to, competing within the national boundaries, also compete for business in

the global market. There is a need for high productivity at lower costs and employers compete through a myriad of situations such

as hiring preferences, compensation, promotions or layoffs (Prempeh, 2013). Many factors affect a company’s decision to expand its

business and its ability to succeed internationally. An in-depth analysis of overseas political and legal environments, as well as corporate

and ethical policies must be examined prior to negotiations occurring in the global business market. Each country have different laws

addressing the treatment of employees in the workplace. Standards that may be unethical in the United States may prove to be an

opportunity for laborers in other countries, making it more difficult to establish and build business relations. This paper will

describe and analyze employment and labor laws in the domestic and international markets, and the impact those laws may have on the

XYZ Construction Company.

Employment and labor law initially arose out of the desire to protect the employee from unethical and immoral practices in the workplace

and combat preferential and bias treatment towards specific groups of people. The establishment of the employment and labor laws was

set in place to provide redemption and equality for employees. There are four categories dealing with employment law. Employment at will

is a contract of employment for an indeterminate term, is terminable at will by either the employer or the employee; the traditional American

rule governing employer–employee relations. One of the first laws to restrict the employer’s right to freely terminate employees was the

National Labor Relations Act, which has reduced the number of employees covered by the employment-at-will doctrine ("Executive

Concepts", 2011). In the global market, employers constantly seek cheaper and more efficient labor. However, employers must confine their practices to the

domestic laws of the jurisdiction where they operate. The U.S. labor standards are not dependent on conditions in other countries and

have very stringent laws against mistreatment of their workers (Donaughey et. al, 2014). There are three major pieces of legislation that

govern labor–management relations in the United States today: the Wagner Act of 1935, the Taft–Hartley Act of 1947, and the Landrum

–Griffith Act of 1959, all of which are known as the National Labor Relations Act (NLRA). The NLRA guarantees the rights of workers to

organize and bargain collectively and forbids employers from engaging in specified unfair labor practices ("Executive Concepts", 2011).

In some countries, child labor and inhumane treatment of laborers are common. Safety standards are ignored to produce cheap goods.

Because some countries do not enforce child protections or human rights, the government pays little or no attention to this type of

treatment. Some high powered distance countries accept inequality, in these areas women remain disadvantaged in many areas of life

such as education, employment, health, and civil rights.

Child labor including indentured servitude and child slavery, have existed throughout American history for quite some time. Economic

development motivated workers to move from farms and home workshops into urban areas and factories where children were often

preferred, because they were less threatening, more manageable and unlikely to strike. Due to the opposition of child labor in the North,

many factories migrated to the South where the practice was more accepted. Most child labor occurs because children and families are

poor and lack options and opportunity for education and income. Many factors affect poverty, but international agencies are increasingly

paying attention to trade policy as a key factor.

Additionally, discrimination against workers have been an ongoing issue in labor relations both domestically and globally. With many U.S.

firms having operations overseas, the question of the extent to which U.S. laws prohibiting discrimination apply to foreign countries

naturally arises. The Civil Rights Act of 1991 extended the protections of Title VII and the Americans with Disabilities Act (ADA) to U.S.

citizens working abroad for U.S. employers. Amendments to the ADEA in 1984 had already extended that act’s protection in a

similar manner. The provisions of these acts also apply to foreign corporations controlled by a U.S. employer ("Executive Concepts",

2011).

Another ongoing issue in labor relations is ethics. Individuals recognize that a countries perception is influence by culture (De George,

2006). A collectivist culture, people pay more attention to social relationships than behavior. A New York executive explained to Asian

students that his wife and him went to prison for conspiracy. Their nephew was living with them and he was selling drugs from their house.

His wife and him were accused and sentenced to jail time for many years. When Asians students heard this, they were horrified. To the

Asian culture, they believe that family relationships are more important than the crime. Whereas the American culture, we see nothing

wrong with the punishment. This is an example of differentiation of cultures ethical perception (De George, 2006). In other countries in

Asia, it is customary to socialize while conducting business. Negotiations are conducted and relationships are formed over drinks or dinner,

this custom is not readily practiced or welcomed in Western cultures because the act of socializing while conducting business transactions

can be perceived as unprofessional. It is a fact that in most Asian cultures, business executives do not base their investment solely on the

economy, factors such as networking and business relationships are vital.

The business world can be a very complex world, especially in terms of domestic and global relations. There are many aspects to

consider especially in international relationships. Most countries have stringent guidelines while others do not and for some building

relations through social interactions are vital to business transactions. Some country have no child labor laws, while the United States has I

implemented measures to ensure such practices do not go unpunished. Business relations involves in-depth research not only to

understand the business relations of the country where the interest lies but also to ensure culture is understood.

The United States, unlike other countries, has many laws in place to protect against child labor, unfair treatment of laborers,

Americans with disabilities and discriminatory practices.

References
Donaghey, J., Reinecke, J., Niforou, C., & Lawson, B. (2014). From Employment Relations to Consumption Relations: Balancing Labor Governance in Global Supply Chains. Human Resource Management, 53(2), 229-252. doi:10.1002/hrm.21552

Larion, A. P. (2014). Regulating Domestic Work by the International Labour Organization. USV Annals Of Economics & Public Administration, 14(1), 238-243.

Prempeh, J. H. (2013). The Impact of Globalization of Globalization Standards: The ADEA and a need for more legislative protection. Labor Law Journal, 64(4), 198-204.

Convention and Recommendation concerning Decent Work for Domestic Workers. (2011).
International Labour Review, 150(3-4), 439-454. doi:10.1111/j.1564-913X.2011.00128.x

De George, R. T. (2006). Business Ethics (6th ed.). Upper Sadle River, NJ: Prentice Hall, Inc. A
Pearson Education Company.

The Levin Institute . (n.d.). Globalization 101. Retrieved from http://www.globalization101.org/issue/english/

Trevino, L. K., & Nelson, K. A. (2007). Managing Business Ethics. Straight Talk About How To
Do It Right. [University of Phoenix Custom Edition e-Text]. : John Wiley & Sons. Retrieved from , website.

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