Social and Ethical Values of Teamwork and Diversity: The Benefits of Diverse Teams Organizational development between diverse teams gives the MNC the opportunity to enter new markets and develop new products, in ways that they would not have been able to if they did not have a diverse, multicultural perspective. The benefits to individuals and society are profound. There are ethical implications for being a good corporate sponsor: by this I mean that there is a potential for a win-win situation that benefits both parties, when a substantial goal can be agreed upon and realized. Sometimes, entering a new market with team players from that region gives them a perspective that they would not considered. A good example of this is the GE ultrasonic ultrasonic imaging machine that has been developed for third world markets {particularly OBGY patients}. This particular product was given the green light after engineers from India were able to express their ideas. To begin with, the device was developed with simple, rugged, and cheap parts. This was done to keep costs down. It can function in a dirty, dusty, third world environment with little or no service. Second, the machine is lightweight, and easily transportable, so that a travelling physician could carry the device on a backpack, using public transportation. This was an important consideration in third world countries, because not all users of the device would be physicians, and more importantly, not all health care providers have private vehicles for house calls: public transportation is the norm. Next, the printer is ink jet, and the paper common, less expensive grade. Last, the device is easily hooked up to the internet, and is rugged, but not nearly as sophisticated as the $500K to $1.5 million machines that are sold to large urban hospitals and clinics. This machine, however, only costs $25k-$50k. Fielding this product allows GE to enter third world markets with a much lower price point product that will fulfill the medical needs of lesser developed countries. Is there an ethical component to this development? Perhaps, if you consider that approximately one third to one half of the world’s population is still very poor (depending on how you measure the statistic), and does not have regular, immediate access to health care, and that number is still daunting when you consider the fact that we are talking about billions of people across the globe. Could this device and other low cost devices change the quality of medical care that is provided to LDCs on a global basis? Perhaps, and it could be argued that since the manufacturer could take the process one step further by setting up local assembly or manufacturing for these devices, where local markets could employ labor that would benefit, too. However, in summary, the American side of the GE engineering house would have never considered this product because they don’t see anything beyond the US, Canada, Europe and rich Asian countries as their market. Probably another good example of the need to develop products from diverse engineering talent is small utility vehicles and trucks. The Ford Transit comes to mind. Developed exclusively in Turkey, it is a light truck with a lot of expensive electronics and features designed for the commercial customer: yet is surprisingly small, well constructed with a very efficient power train, but only costs around $22,000. Marketed primarily with third world customers in mind, it has now come to the US where it is a favorite of the small business hauler and transporter. It competes with a Mercedes Benz diesel powered vehicle that is taller and about $10K more. With a large cargo space and removable back seats, it is perfect for urban environments where there is precious little room to park, maneuver, and the need to save on gas is foremost. The closest vehicle that Ford made to compare to this was the Econoline van (discontinued after early 1970s), or the Ford Courier that was built for third world use from 1972-1982, and imported into the US from Japan. This vehicle would probably have never been built in the US because of the myopic view of the world and the product solution that we would have developed. Ford, GM and Chrysler all use European and Asian based engineering entities to develop global products (Ford in Germany, England, Brazil, Japan and Australia; GM in Germany, Japan and Australia; Chrysler in Italy). Both Ford and GM are now in China, designing vehicles, Ford just built an Indian factory. Ideas germinate from different perspectives, and surely smaller, efficient power trains from Europe and Asia are part of that equation. These are real world examples of the need for products that are designed and built around the world, yet tailored for local markets by making the best talent available to collaborate on products, that, when built, will satisfy the needs of customers on a global basis. What theories or models address these specific needs of social and ethical values from a teamwork or diversity perspective? One could say that globalization after WWII accelerated the need for incorporating local needs into new products and services. Knowledge Wharton reports that having a strategic partner in Latin America is crucial to success. In fact, it could be argued that to address one of the largest Spanish bloc speaking markets in the world (South America) requires an understanding of local cultures, as they all do not speak the same Spanish, but do have similarities in their needs. For example, MNCs attempted to get the International Monetary Fund and World Bank to liberalize lending in the 1960’s and 1970’s as a means of expanding into new markets. According to Strategy+business.com, alliances, rather than acquisitions are the best way to enter a market in South America because it a)minimizes risk for the MNC, and b) it accelerates the market penetration of a country, yet, at the same time, allows for local hire employment opportunities. It insulates the MNC from political turmoil and state interferences, where bureaucracy and government approval are required before FDI occurs, and an MNC footprint in the form of a headquarters occurs. So, from a theoretical and practical standpoint, this is a better strategy from a successful perspective. Another way to measure social and ethical values from a teamwork and diversity perspective is from a needs perspective. Years ago, IBM CEO Gerstner went to India to talk to local software companies to try to get them to purchase more IBM services, as the story goes. He received a very detailed briefing on why IBM needed to establish an engineering and programming center, because the Indians were a)loyal users of the IBM product, and b) were closer to the market in terms of software service and support that was so critical to further penetration of the Indian market. He established a center for technical excellence in India, requiring an initial $400 million investment. IBM-India is now a major back office and service support center for IBM in Asia. It is a powerhouse for programming, and yet, is now one of many operations that “germinated” in India once IBM made a capital investment. This would never have happened if Gerstner, an avowed cost cutter (improving IBM cash flow $11 billion in little more than one year after he took over IBM) did not heed the advice of local Indian executives, and did not recognize the cost advantage of a talented, educated, English work force in Asia. What is even more surprising is that other companies have followed suit and sought out and hired Indian talent for programming and computer services.