Page 245 - DMGT548_GLOBAL_HRM

Global HRM

Notes 8. Performance appraisals, compensation programmes and regular trips home are important
instruments in developing and maintaining ethical cultures.
9. The HR department must also offer ongoing support to expatriates throughout their
assignment. This is made relatively that an expatriate faced with a dilemma might have
ready access to mentors at home or expatriates in other countries via these technologies.

10. Those involved in the management of HR would do well to consider these issues when
developing organisational strategies and selecting, training and developing expatriates.

Notes Managing Diversity at Procter & Gamble
Procter & Gamble (P&G) was founded in 1837 by two brothers-in-law, William Procter –
a British candle maker and James Gamble – an Irish soap maker. Today, the firm touches
virtually every household in the industrialised world. Its global presence is demonstrated
by 60 overseas plants sales operations in 140 countries.
P&G has a long track record of zealous attention to product quality, long-term perspectives,
and social responsibility. The latter includes a corporate commitment to the diversity of
its world force. It adheres to the philosophy that workforce diversity is not just a matter of
social responsibility – it is simply good business. P&G promotes from within, so it places
a premium on recruiting the best of the available job applicants.
In May 1988, P&G formed a Corporate Diversity Strategy Task Force to clarify the meaning
of diversity, to articulate its importance to the survival of the firm, and to develop long-
term strategies for the successful management of a diverse workforce in a diverse
competitive environment. American consumers seem to approve of this and other P&G
programmes, as documented by the 1995 Fortune Corporate Reputations survey which
found P&G to be the seventh-most admired corporation in American.

Ethics across Cultures

International managers must expect managers from other cultures to apply different criteria in
making ethical decisions and that such choices are heavily influenced by each one’s culture.

Example: In 1985, when Reader’s Digest (US) decided to close its loss-making Japanese
subsidiary, it encountered savage opposition from the Japanese union and part of the press.
They portrayed the parent company as being guilty of neglect and abandonment in the face of
unswerving loyalty. The union placed ads in the New York Times saying that the company had
dumped its Japanese readers and its own employees and that the company’s behaviour was
unfair, unscrupulous and irresponsible. The interests of shareholders and workforce did not
correspond. Whereas the Japanese recognised the interest of workforce, the Americans prioritised
the shareholders’ interests. Each side appears to have behaved in accordance with its own ethical
norms. Because cultures differ, behaviour considered appropriate in one culture may be
interpreted differently in some other.

13.2.3 Global Developments on the Criminalisation of Bribery

Bribery and corruption are the most frequent ethical problems encountered by international
managers. The World Bank estimates that about US $80 billion annually goes to corrupt
government officials.

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