Business Ethics and the Global Dimensions of Business
The management of any organizations has the sole responsibility of making decisions in organization or companies. Different business units are deemed to be unique and well established if they carry out well informed decisions that will not cost them anything. That is; it is necessary and sufficient for the management of any business that intends to make structural and investment changes to adopt a collaborative strategy (Carroll & Buchholtz, 2011). They are supposed to be keen and ready to make sure that both success and inter-personal relationship is well monitored. One of the decisions that an organization’s management team cannot carry out without substantial consultations is the dynamic movement of an organization from being just a local enterprise to being a global (international entity).
Ideally, the manner in which an organization is run in the domestic environment is different from the manner in which the firm is supposed to conduct its business outside the border (in the global world) (Kochan, 2003). There are some key management and ethical factors that are deemed essential in the whole process of transmission. This paper aims at describing the necessary and sufficient issues that the XYZ Construction Company should consider before entering the global market, precisely the Chinese border.
It is clear that the organization’s management team has an objective of busting the IPO status in 12 months in a country that is foreign in terms of investment. The movement of an organization from a local to a global perspective demands that the organization conducts a reconnaissance study to ensure that the predicted success outside the border is feasible. For instance, global managers who have ample knowledge and skills are easily considered to be the best tools for the businesses that need to go globally (Carroll & Buchholtz, 2011). It is important to understand that management outside the domestic country from which the company is founded is quite different from that which the company enters. The distinct diversity in the cultural and ethical character traits that are found within the foreign country should be understood. Perfect comprehension of these attributes could be the limelight to the success of the company. In our case, the company that intends to enter the global market is XYZ Construction Company. The target country is Asia
The ethics of any market are identified to the accepted and practiced norms and believe that have to be followed by any investor to register a successful endeavor in the market. XYZ Company should have an idea of the market structure in Asia. First, the construction industry in Asia has also established outstanding traits that can rule out a foreign company if it is not careful. Ideally must one analysis the portfolio of ethical, as well as, social aspects that may encourage or discourage the company from investing within Asia. A modernized concept that is referred to as the Corporate Social Responsibility (CSR) is deemed to have been initiated by some of these activities such as globalization. It is important to have awareness the tools that one can use to protect him or herself from getting hurt.
The Asian market has some ethical challenges:
First, the level of transparency that is indicated by the government is identified to be close to null. A statistical index analysis implies that the Asia has a very high rate of inconsistency in their operational activities with reference to the expectation of such a continent. For instance, any objective to invest in the Chinese territory is easy to effect (Hill, 2007). However, the results that can be expected could be possibly impossible. That is; the level of corruption is outstanding. Statistics carried out in a member state in the Asian continent stipulate that most of the organizations that have been founded in the country have collapsed due to the excessive corruption. In Asia, businesses and organizations are the most corrupt entities. That means that only the domestically and well established firms survive the torture. The political figures are also dearly corrupt. In addition, the public officials are great law defaulters. This is one of the factors that the management to the company should focus on before proceeding with the installation of their plants.
Secondly, it is also deemed important that the foreign investment companies and the proposed companies to take control of their decisions not to make a hasty decision. For instance, the management team should know the culture of the state’s influence the market power of the global companies. A perfect example can be evolved from the Chinese territory which is found in Asia. Ideally, there are minimal chances for the companies that have foreign roots to establish themselves and win over the state owned firms (Carroll & Buchholtz, 2011). That is; they are not permitted to challenge the SOEs in an even state. The same case may apply for our subject construction company. It may have a hard time if it does not strategize its entry and performance methodology in the global market. Suitable management strategies that can enable the personnel to have a long-term position in the global market are by applying the collaborative strategy.
Additionally, the Asian countries have a history of ratification of the internationally instituted human rights agreements. Precisely, the manner in which the nations within the Asian continent address some of the international allied counter partners is quite inhuman. Democracy is duly denied to the global investors. Some of the stipulated treaties include the ‘International Covenant on Economic, Social and Cultural Rights’ treaty. The intensive ignorance and lack of consideration for appropriate treatment of international investors are dominant.
The government is quite unstable in terms of regulating the frequent at which the investors face risks. The poorly strategized portfolio of governments in the Asian continent has proved that they are incapable of harboring internationally based companies has led to the continued diversion of the global market intensity to other preferable centers in the world.
Cultural diversity considerations for the company relative to establishing field offices in Asia.
Any company that intends to go global expects to find different culturally grouped persons. That is; may the company is established in an area where the residents have a differently structured culture. In china, the XYZ Construction Company is likely to find people who are of different cultures (Kochan, 2003). Ideally, these are the people that the company expects to hire. The XYZ Construction Company should consider the cultural diversity before its ventures into the Asia continent in a bid to establish its offices, as well as, premises (Hill, 2007). Ideally, managing a culturally diverse Asian-country is one of the most complex situations in life. The country found in Asia continent have own cultures, languages and ideas. The people have different perspectives and mental comprehension of some events that should take place in the initialization of the company within their locality. Therefore, it becomes quite a challenge for an incoming company toe experience simplified management endeavors.
Essentially, the awareness of the cultural characteristics will be important for the structural and situational analysis of the global investment status in Asian countries. This analysis is essential for the company since the management is in a position to comprehend the employees and the nature of their responses (Carroll & Buchholtz, 2011). Analytically, when the company institutes its offices in the continent, it means that the management will gave put into place with Confucianism. The environment is capable of initiating a serious system encompassed by norms, as well as, propriety.
One of the supportive aspects of the Asian culture is that they believe in the power index. That is; they consider the essentiality of having an inequality index. Ideally, this means that the people are suitable for hiring. The people do not have any greed for power since they believe that there has to be a hierarchy of societal powers and roles (Hill, 2007). Essentially, these people are deemed to give the company’s human resource management an easier task of staffing and coordinating. Particularly, people who consider being members of a hierarchy society have a reputation of not challenging the decisions made by the seniors in the management. This may ease the operational activities within the organization.
Additionally, the Asian society has a reputable trait of being persistent. One of the constructive character traits of people who can easily perform in the company is situated in the Asian global market is that the people are goal oriented. Particularly, the people are predetermined to acquire long term advantage of the market. They are able to hold on to different situations that are discouraging and demoralizing. Management and investment principles dictate that most of the successful investment gurus accommodate the hardworking and tolerant personnel in the society. One discouraging factor about the Asian culture is that it has been affected by the governmental policies that are associated to demolishing of the most global investment. The government hides under the nil allowance for global investment to be carried out in the short term.
The ideal to invest in the Asian countries requires someone or a management team that is wise. That is; they should be wise enough to put into place surveillance strategy to monitor the trends of the society. It may seem complicated for the XYZ Company to install its office in the Asian countries. Most countries are affected by the heavy influence by the government. Ideally, the government has a restrictive strategy where it bars all other willing investors to have a market share. At times, they reinstate to ensure that the company acts as the sole state owned property (Hill, 2007). Additionally, the Confucian values local investment than it does for global investment. For any company to have a chance in investment within the Asian continent, the management has to honor and consider the cultural and ethical behaviors before taking any other step. In addition, the global companies are expected to maintain a minimum competitive edge. Particularly, the Asian global market involves enemas bureaucratic decision making and consideration.
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Kochan, T., Bezrukova, K., Ely, R., Jackson, S., Joshi, A., Jehn, K., & Thomas, D. (2003). The effects of diversity on business performance: Report of the diversity research network. Human resource management, 42(1), 3-21.
Hill, C. W., & Jain, A. K. (2007). International business: Competing in the global marketplace (Vol. 6). New York, NY: McGraw-Hill/Irwin.