interconnected and interdependent world, propelled by international trade; technology; investment and finance; risk taking and harnessing opportunity for growth. Factors Promoting Globalization
1. The end of the cold war and the rise of the
emerging economies inAsia, Latin America, Europe, Russia, Africa, and Middle East. 2. The emergence of China as a global manufacturer and expansion of Indian market. 3. The information technologies and internet facilitated expansion in trade and productivity. 4. Free trade and trading agreements-European Union (EU), North American Free Trade Agreement (NAFTA), World Trade Organization (WTO) Factors Promoting Globalization- Cont. 5. The Bretton Wood Institutions-World Bank and International Monetary Funds activities promoted capital flow to different part of the globe, creating new markets. 6.Global Terrorism has affected how business is conducted. After 911 the global economy was significantly affected. For example the airline industry suffered losses, which impacted the global economy. 7.Emergence of Multinational enterprises (MNE). For example Coca-Cola, GM, Ford among others in many countries. Importance of Ethics in Global Business Mitigate reputational risk of an organization: Making payments to get contracts and business is a common practice in developing countries. For example, in 2007, Siemens, a German company paid over 2 billion in bribe leading to the disgraceful exit of its CEO. BAE Systems also paid 2 billion bribe to a Saudi prince which was investigated by US government. This scandals can damage the reputation of companies. Importance of Ethics in Global Business Ethics Create Shareholder Value: Ben Heineman, former CEO of GE in an Article in Harvard Business Review posited that there is causal relationship between business performance and ethics. Global business thrives on integrity, making good business good ethics Importance of Ethics in Global Business Cultural Variation: Multinational organizations are confronted with the challenge of managing different types of employees and stakeholders with diverse ethical expectations. Companies also have integrity to demonstrate in order to form partnerships and collaborations with other global companies. Piracy and Intellectual Property Protection: 250 billion is lost to Piracy and Intellectual Property Protection. To cure this situation ethics must be embraced. Gift vs. Bribery Bribery is considered counter-productive to fair international commerce. The valid question often asked is what is the line between gifts and bribes? President of Transparency International in Nigeria, Narayan Manandhar attempted a distinction. He asserts that a bribe becomes extortion when it is demand-driven. A bribe could turn into a gift when it is supply-driven. OECD in 2003 states that gift mean any exchange that is Genuine, independent, free, and transparent (GIFT). Workplace discrimination in global context Factors causing change at workplace After 911 many workplaces changed because of government and industry regulations to deal with terrorism-stringent background checks among others. Also difference in culture and values affected the way the workplace functions. For example in some countries such as Belguim, Brazil and Chile centralized decision making is cherished whiles in countries like Italy and South Africa decision-making is preferably decentralized. Workplace discrimination in global context Dimension of Global Workplace Discrimination Gender- Glass ceiling exist at the global workplace. Dukes vs. Wal-Mart case exemplifies gender discrimination by a multinational corporation. Not all countries have sexual discrimination laws. For example France, Venezuela, and Taiwan have no laws prohibiting employment discrimination. Ukraine, South Africa, and Russia have no laws prohibiting sexual harassment. Workplace discrimination in global context Dimension of Global Workplace Discrimination Racial discrimination-In a global survey, about 19% of employers believe there should be discrimination in making employment decisions. The complex nature of global recruitment process makes it difficult to prevent racial bias in hiring process. There has been increase in workplace bullying; moral harassment; and mobbing in many countries. Managing Multi-cultural Workforce
Managers should understand and avoid
contravention of laws and regulations of a host country. Must respect the rights of employees to join unions and collectively bargain. Should adopt non-discriminatory employment practices and promote equal job opportunities. Should provide equal pay for equal work. Should produce more good than harm to the host nation. Managing Multi-cultural Workforce
Respect the human right of employees.
Provide favorable work conditions-limited working hours, holiday pay, and job security. Balance job opportunities, conditions of services, job training, and safety. Pay taxes and obey laws of host countries. Corporate with local law enforcement. Undertake corporate social responsibility to empower stakeholders. Managing Multi-cultural Workforce
Should comply with host countys consumer
protection laws. Safeguard the health and safety of customers Should operate within national and international environmental laws and regulations. Should not pay bribe. Should not interfere with the politics of the host country.
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