Ethical Issues in International Business
In the present scenario, due to the international nature and exposure of every business concerned, companies are nowadays deputing a lot of employees for the purpose of performing overseas assignments. Due to diversity in relation to beliefs, traditions and cultural values and practices from the country of their origin, sometimes the employees may have to experience culture shock and have problems of coping in the country where they are sent for fulfilling foreign assignments. And at times, the attitudes with regard to the professionals in the particular country are such to the extent that it tends to harm the employee to a considerable amount.
Career advancement of employees is affected in such a situation and the employee's morale goes down. The Bank has the responsibility to make sure that its personnel are not harmed limiting their career advancement chances by the social customs of the host nation. Certain practices of the host country might be demeaning to the employee in which case he might feel embarrassed to put in the best. The Bank as the employment giver bears special responsibility towards its employees as regards professional advancement of the employees so that as per the individual merit and competence the employees are promoted to higher grades in the value chain. Since the industry rolls into the stream of knowledge management, defining concepts, sharing and imparting of industry and role specific important information, the HR professionals are dealing with knowledge and empowered associates in the present era. (Chapter by Rajesh B. Iyer)
This requires the HR professional to be proficient on the personal and professional spheres needing to possess proper business knowledge, practicality and being innovative. Managing change and diversity have come to be first priority in the function of HR practices. The cross cultural and team which is coming to be more evident and common, HR often assumes a consulting role inside the organization facilitating to create an employee oriented culture and climate. Fighting with the severe attrition widespread inside the knowledge industry, the HR professionals are enforced to contemplate something new to get the success of their attrition prevention strategies. As the responsibility of building an employee branding facilitating the corporation to draw the potential talents, the HR functions reinforces a value proposal of the corporation. (Chapter by Rajesh B. Iyer)
Question: 2
There is a moral common sense or a thumb rule which states as such (a) Avoid harming others (b) Respecting the rights of others (c) Not to lie or cheat (d) Sticking to promises and contracts (e) Obeying the law (f) Preventing harm to others (g) Helping the people in need (h) Showing fairness (i) Strengthening these essential things in others. (Leisinger, 1994)
The Bank has of course violated when William Vitam started projecting his female colleague as a showpiece by referring her as 'my cute assistant' and 'our lady banker' much to the opposition of Sara Strong. Her complains were not at all heeded by Vitam, and he went ahead in offering an explanation that he was only acting as per the customs of the host country -- Mexico where they do not acknowledge the competence of a women. Vitam defended his actions saying that since it is next to impossible to change that attitude of the Mexican bankers, it is just a game plan going on and asked Sara to toe the line and not object in the interest of the company. Vitam even went on to the extent of asking Sara to shun her professional image and try to be more 'flexible' & 'feminine' much against the personal wishes of Sara. (Taken from the Case Study)
Here the bank has acted in an audacious manner and has tried to tamper with the personal freedom of a lady employee. This amounts to making use of the female colleague indecently in front of other clients which does not amount to good...
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