Page 242 - DMGT548_GLOBAL_HRM

Unit 13: GHRM Trends and Future Challenges

 Different political climate Notes
 Different stage(s) of technological advancement
 Different values and attitudes example, time, achievement, risk taking
 Roles of religion example, sacred objects, prayer, taboos, holidays, etc.

 Educational level attained
 Social organisations example, social institutions, authority structures, interest
groups, status systems

Self Assessment

State whether the following statements are true or false:

1. Finding and retaining quality talent is not very necessary to business sustainability.
2. International ethics is a major challenge in GHRM.
3. Barrier to women is permitted in GHRM, in international scenario.

4. Most industries and countries are to experience a widening talent gap mainly for highly
non-skilled labours.
5. In global scenario companies should reform their HR function and boost resources devoted
to HR.

13.2 Ethics in International Business

When business conducted across national and cultural borders, the operationalisation of an
enterprise’s ethics programme takes on added layers of complexity. Especially, when
multinationals operate in host countries that have different standards of business practice and
are economically impoverished, whose legal infrastructure is inadequate, whose governments
are corrupt and where human rights are habitually violated.
The question of ethical relativity arises where human rights are habitually violated. The question
of ethical relativity arises not only in the context of different home- and host-country employment
practices but also in the central operations and policies of multinationals. So, now we will
understand the developments of international business ethics and the challenges they raise for
HR professionals.

13.2.1 Global Values

If a multinational has assigned a PCN to manage its operations in a host country where bribery
is common, child labour is used and workplace safety is wanting, then it is difficult to determine
whose standards should prevail i.e. those of the multinational’s parent country or the host
country?

!

Caution There are three main responses to this:
1. Ethical relativism
2. Ethical absolutism
3. Ethical universalism.

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