Contemporary Issues in Management Essay

natur completelyy execute Header rag 179236-102 Course Coursework Tutor BUSI1475 Contemporary homecomings in Mngt Essay G Symon Course School/Level Assessment Weight Submission Deadline BU/UG 50. 00% 01/04/2011 Coursework is receipted on the brain that it is the students own work and that it has non, in whole or part, been presented elsewhere for pass judgmentment. Where strong has been physical exercised from other sources it has been properly acknowledged in accordance with the Universitys Regulations regarding swindle and Plagiarism.Tutors comments As agreed with Dr Symon Grade For Office Use Only__________ Awarded___________ Moderation unavoid subject yes/no Tutor______________________ Final Grade_________ go through _______________ The considerations of going global and direct in countries that sureness the use of nestling get the picture. Introduction As a happen minor bray is typically delineate as the abuse of churlren at heart a work environment (Payne, 2006). consort to Payne (2006) youngster fag out lot be recognised in numerous countries rough the world.In 2006 a key produced by the Inter rural beaal Labor Organisation (ILO) proclaimed that there were an estimated 166 million churlren between the ages of 5 and 14 years who were categorised as babe workers (Dinopoulos & Zhao, 2007). Payne (2006) asserts that there argon some(prenominal) motives ring the reason why tiddlerren work, with cardinal of the main reasons being p all overty. However it is assumed that pargonnts would just now expect their baby birdren to work in order to support the family financially (Luetge, 2005). Subsequently, Dinopoulos and Zhao (2007) render that tiddler jab is mainly deemed to be unacceptable.In umteen incidences this is due to the unhealthy and hazardous conditions that the sisterren atomic number 18 forced to work in (Dinopoulos & Zhao, 2007). Additionally and just as signifi notifytly the obvious obstruction of a nipper ? s path to an bringing up could be viewed as an unacceptable f proceedor of child labour (Dinopoulos & Zhao, 2007). Luetge (2005) views child labour from an economic standpoint, stating that as government activitys gutter afford to exchange child workers with adult workers, most easily true countries now regard child labour as unnecessary.Through the use of customer boycotts and the introduction of international labour standards to decrease employment opportunities, it arouse be viewed that attempts bear been made to allow the use of child workers (Edmonds & Pavcnik, 2005). However there is principally energy to mystify the eradication of the use of child workers in and around the world (Edmonds & Pavcnik, 2005). With this accede in mind, this rise get out seek to look at the concerns that managers make to consider when going global and manufacturing in countries that secondment the use of child labour.This establish leave alone firstly evaluate what impact globali zation has on poorer societies and whether this strategy has a negative or positive influence on the occurrence of child labour. by-line on from this, the essay will assess if the use of child labour is in fact ethical and overcompensateeousistic by using the utilitarist, relativist and imperialistic perspectives. After examining if child labour move be viewed as ethical, this essay will look towards evaluating to what level a corporation should be held friendlyly trustworthy.Finally, this essay will consider the ethnical differences that film to be taken into account when operational multi nationally. Globalisation If an arranging elects to take the business global, there atomic number 18 several issues that need to be considered. For example, when direct in a state that assurances the use of child labour, will the company have an impact on increasing or change magnitude the incidence of child labour (Sethi, 2006)? According to Page 2 come crossways 15. 04. 11 Sub mitted with Extenuating Circum spatial relationsDinopoulos and Zhao (2007) there is a substantial amount of belles-lettres surrounding the topics of economics and child labour. However there is only a limited amount of literature that links child labour right off to globalisation (Dinopoulos & Zhao, 2007). Subsequently, there has been much debate in regards to globalisation and its do on developing countries (Kis-Katos, 2007). More specifically questions groundwork be embossed into whether globalisation increases or decreases the incidence of child labour (Kis-Katos, 2007).According to Mullins (2007) globalisation is outlined as the integration of organisations that trade and contend in a general economy. It has been suppositious by Meyer (2000) cited Clegg et al (2008) that employees benefit from organisations going global. A strong argument has been put forward that globalisation leads to the creation of wealth and prosperity among the alive(p) nations (Sethi, 2006). Addit ionally, many economic experts consider that increases in trade can have an influential impact into eliminating child labour (Kis-Katos, 2007).Following on from this, Edmonds and Pavcnik (2005) state that globalisation generates a greater demand for adult labour in the participating countries and can increase families? salaries in a way that decreases the incidence of child labour. As outlined by Dinopoulos and Zhao (2007) children mainly work to countenance and support their families who ar living in impoverished conditions. With this in mind, Bratton and princely (2007) propose that through globalisation society? s benefit from heightser(prenominal) living standards and the eradication of poverty.Although there may be positive aspects of globalisation, many academics have put forward the argument that globalisation has negative outcomes for the participating societies. In contrast to the beliefs of Edmonds and Pavcnik (2005), Timlon (2011) states that globalisation increases t he incidence of child labour, by breeding the demands for obedients produced by children. Sethi (2006) concurs with this view and states that companies maximise their revenues and make use of cheap, unskilled and wide labour, often in the form of children.Following on from this, it is believed that poorer countries have to also struggle with environmental poverty through heightened industrial activity and a need of sufficient resources as a result of globalisation (Sethi, 2006). Overall, globalisation is tell to have a negative impact on poorer societies, through increase poverty, crime and the alienation of local businesses and trade (Clegg et al, 2008). Ethics After assessing the issues surrounding globalisation and its personal effects on the incidence of child labour, it is imperative to conciliate if he use of child labour is in fact unethical and immoral. According to Bratton and Gold (2007) ethical motive can be defined as the moral codes and principles that direct the behavior of groups or individuals in regards to what is right or wrong. Throughout literature there has been much debate surrounding the eye socket of ethics and child labour (French & Wokutch, 2005). Subsequently, many people have judged child labour to be an infringement of children? s rights and Page 3 visit 15. 04. 11 Submitted with Extenuating component believe that it is morally wrong (French & Wokutch, 2005).As a consequence child labour has progressed to be one of the direct topics in the area of international business ethics (French & Wokutch, 2005). As stated by Luetge (2005) although the structure of society has been transformed over the years, ethical concepts have remained the same. accordingly despite the disputes over the ethics of child labour, it is stillness imperative to pass on concepts to consider what is ethically right or wrong (Buller et al, 2000). To distinguish whether the use of child labour can be viewed as ethical and moral the utilitarist, relat ivist and the imperialist views of ethics will be assessed.The Kantian view of utilitarianism is establish around reason, intention and duty (Carrigan et al, 2005). It is supposed by Kant that businesses should exist to achieve the needs of society and organisations have an ethical responsibility to deliver benefits tush to the public (Carrigan et al, 2005 Zekos, 2004). With this view in mind, it could be perceived that organisations are playacting ethically as they are providing poorer societies with much needed employment. John Stuart loiter? s view of ethics is also categorised under the line of utilitarianism (Carrigan et al, 2005).This concept looks towards the greatest good for the greatest number, by increasing pleasance and decreasing the total amount of pain (Carrigan et al, 2005 Luetge, 2005). Therefore if the use of child workers means that the most people are receiving the most happiness, indeed this act can be viewed as ethically correct (Mullins, 2007). When look ing at the relativist standpoint it can be viewed that ethics are base around the social norms of the society that they are exercised in (Carrigan et al, 2005). According to Galbreath (2006) there are no sets of worldwide ethical tandards and there can be numerous interpretations of ethical beliefs and moral norms. As stated by Edmonds and Pavcnik (2005) and Payne (2006) the use of child labour in many poorer countries is seen as necessary and ethical. However if an organisation does choose to look at child labour from a relativist viewpoint, they need to be aware that many people within the wealthier societies disapprove of this behaviour and in turn they can feel that the use of child labour is unethical (Luetge, 2005). These beliefs are generated because it is assumed that organisations can afford to exchange child labour with adult labour (Mullins, 2007).As a consequence of this, people from wealthier countries can afford to stop purchasing goods made by children and boycott c ompanies that sanction the use of child labour (Nielsen, 2005). According to Buller et al (2000) imperialism is when the host state? s ethical values and norms are applied to every country the company operates in. As it is wrong to even contemplate the use of child labour in the returnion of goods in many well developed countries, such as the UK, the host country would be seen to be operating unethically, if they were to sanction the use of child labour under the imperialistic stance (French , 2005).Page 4 Date 15. 04. 11 Submitted with Extenuating Circumstances Corporate tender accountability (CSR) After evaluating the ethics of child labour using the utilitarianist, relativist and imperialist perspectives, it is crucial to deduce to what length a company is socially responsible and to whom it is actually responsible for (Kanji & Chopra, 2010). Corporate social responsibility is a snappy bodied notion and in a world of heighten globalisation can be located among many large o rganisations within many countries throughout the world (Welford, 2005).According to Holmes and Watts (2000) cited Barrett (2009) CSR is defined as an obligation made by an organisation to act ethically to improve the economy alongside the property of family life and society as a whole. Additionally, CSR means that organisations must concentrate on on maximising profits, obeying the law and being aware of the ethics and usage of the individual societies (Demacarty, 2009). According to Kanji and Chopra (2010) CSR is also de statusine as corporate responsibility, corporate performance, corporate citizenship and sustainable responsible business.As outlined by Kanji and Chopra (2010) CSR can be seen to have many benefits for organisations and is now considered to be a crucial dick in promoting and enhancing the public image of some of the world? s leading organisations. Following on from this, Carbone (2008) states that by organisations displaying their corporate social responsibil ities they can prove up a good reputation and obtain devoted customers. In agreement Kanji and Chopra (2010) believe that by take a leaking a goal based on ethical values and shared beliefs organisations generate a loyal base of customers.However despite these benefits it is important to recognise to what limit individual organisations should be held socially responsible (Kanji & Chopra, 2010). Furthermore, stronger and classifyer roles and responsibilities need to be established for global organisations in relation to developing countries around the world (Payne, 2006). There are several issues surrounding the area of CSR and corporations individual responsibility (Clegg et al, 2008).In line with traditional views, the neo-classical economist Friedman states that the only responsibility a company has to its stakeholders is to avoid wound (Alzola, 2008). Accordingly, Friedman goes on to say that the firm should have no part in aiding or processing any other party, as the corp oration owes society nothing (Alzola, 2008 Clegg et al, 2008). Additional to this, followers of Friedman express that the firm? s only aim should be to make profit for its owners and only pay aid to their shareholders (French, 2007 Palmer & Hartley, 2006).When looking at the traditional view of CSR and child labour, it could be supposed that as long as the children are coming to no harm the organisation is upholding its social responsibility. In a more contemporary and improver view, Tonn (2008) argues that CSR should include factors such as ethics, environmental issues, corporate governance and employee and product safety. In line with this Kanji and Chopra (2010) declare that CSR should concern itself with fair trading and heavy(a) back Page 5 Date 15. 04. 11 Submitted with Extenuating Circumstances o the community, as well as safeguarding and sustaining the global environment. Overall, with the concerns of globalisation and its effects on poorer societies, organisations must s how that they are acting responsibly and are accountable to all of their stakeholders including child workers (Payne, 2006). Echoing this belief, Mullins (2007) goes on to state that in order for organisations to satisfy their goals and sustain profit they need to consider their outside(a) environment. It has been proposed that organisations inadvertently have an effect on the quality of life and the offbeat of society (Mullins, 2007).As a result of this, businesses have an economic responsibility to all of their stakeholders including investors, employees and customers (Kanji & Chopra, 2010). Cultural Differences If a company does decide to operate in a country that sanctions the use of child labour, it is still vital to look at the cultural differences within that society to ensure that the workforce culture is understood and workers are managed effectively (Banfield & Kay, 2008). Culture can be best explained as the divided beliefs, principles and discretions that determine o ne group from another (Banfield & Kay, 2008).Schein (1997) cited Clegg et al (2008) define organisational culture as the basic principles and norms that are shared by the company? s affiliates. According to Palmer and Hartley (2006) organisational cultural values are a combination of factors such as how work is planned and practiced how laterality is distributed how people are compensated and managed and the roles and expectations of employees and employers. Additionally, national culture is the referral of one nation? s features to another (Capon, 2004).According to Pitta et al (1999) it is essential for managers to understand the ethics of the cultures when operating and managing in unfamiliar societies. Janssen (2007) cited Timlon (2011) states that managers need to take into account factors such as the law, families, religious beliefs, cultural influences and national culture overall. Additional to these beliefs, Adler (1983) proposes that managers need to be aware of the diffe rences across cultures. These aspects can include concern for time, displays of emotion and an unfitness to cope with irresolution (Alder, 1983).A continuation of this view was generated by Hofstede, who formulated and identified five different dimensions of culture (Mullins, 2007). The five dimensions are power distance, uncertainty avoidance, individualism/ collectivism, masculinity and long term verses short term druthers (Mullins, 2007). As outlined by Ararat (2008) power distance is defined as the level in which power is distributed. For example, people within a high power distance culture will accept that power is unevenly distributed (Ararat, 2008).Additional to this, individualism focuses on the proposition that individuals are self-orientated (Moorij & Hofstede, 2010). Whilst collectivism interests itself with people who are mindful of others and care for their team in an exchange for loyalty (Moorij & Hofstede, 2010). Following on from this, masculinity concerns itself with principles such as performance and accomplishment and womanhood looks at intellects such as the value of life (Moorij & Page 6 Date 15. 04. 11 Submitted with Extenuating Circumstances Hofstede, 2010). According to Migliore (2011) uncertainty avoidance is defined as people? s adverse feelings to change.For example, within a high uncertainty avoidance culture there will be a large preference towards formality and rigid structures (Migliore, 2011). Finally, long term verses short term orientation looks at the level of future orientation of the culture and their fondness for tradition and short term points of view (Moorij & Hofstede, 2010). creation aware of cultural differences can have positive effects on organisations, as it allows for the effective vigilance of diverse employees (French, 2007). According to Rosenblatt (2011) if cultural differences are managed correctly organisations can obtain a competitive advantage over their opponents.Furthermore, through globalisation a nd cultural awareness, multinational organisations (MNOs) have been able to moderate various value systems and develop shared global work ethics to produce an environment where employees are able to connect and organise their activities in order to meet the aims and objectives (Erez & Drori, 2009 cited Rosenblatt, 2011). Finally, Pitta et al (1999) believes that by appreciating the cultural deviations, westernised organisations are able to forecast what worldwide stakeholders expect.If companies choose to ignore the cultural differences of the different societies then this could have a negative impact on the organisation (Pitta et al, 1999). It has been supply by Pitta et al (1999) that conflict can occur if companies do not understand and respect the cultural differences of the participating countries. Furthermore, Migliore (2011) expresses that the lack of knowledge and understanding for individual and group social norms can have a damaging effect on performance levels. Ultimat ely, if cultural factors and differences are not onsidered, this can lead to the failure of an organisation (Pitta et al, 1999). Recommendations When looking to make recommendations to managers it is important that they are aware of the positive and negative effects that globalisation can have on poorer societies and the incidence of child labour. According to Sethi (2006) organisations need to ensure they take for the internal and external environments of societies. It could be supposed that by taking these concerns into account, organisations can reduce the negative effects that globalisation has on poorer societies.From viewing the bear witness consolidated in this essay, a strong argument has emerged that even if companies are acting ethically by condoning the use of child labour, wealthier countries will still disapprove of these acts (Luetge, 2005). This is turn can have negative impacts on organisations (Nielsen, 2005). In regards to CSR, recommendations could be made for C SR to include all stakeholders in all of the operating countries. Carbone (2008) states that CSR can aid the organisation? s reputation and can help Page 7 Date 15. 04. 11 Submitted with Extenuating Circumstances to build a loyal base of customers.Subsequently, CSR has been seen to have positive effects on poorer societies through the reduction of poverty, child labour and environmental pollution (Payne, 2006). According to Timlon (2011) managers need to take many factors into account when managing across different cultures. It could be recommended to managers that in order to manage effectively and succeed they need to understand and respect cultural differences (French, 2007). To accomplish this, managers could apply Hofstede? s five dimensions of culture to identify the cultural preferences and differences across the operating countries.Conclusion In conclusion this essay has assessed the aspects that need to be considered when going global and operating in countries that sanctio n the use of child labour. This essay discussed the key arguments surrounding the topics of globalisation and child labour. It was discover that there were contradictory views on whether globalisation increases or decreases the incidence of child labour. Following on from this, the essay examined if child labour could be deemed to be ethical and moral using the utilitarianism, relativism and imperialism perspectives. Although the rguments are not clear cut, modern wealthier societies would have us believe that any use of child labour is unethical and unnecessary (French & Wokutch, 2005 Luetge, 2005). This essay also deliberated to what level a company should be held socially responsible and who should be covered by CSR. It could be believed that organisations CSR should include all stakeholders, and go beyond the traditional perspectives, by looking to safeguard and improve employee? s well-being as well as the global environment. Furthermore, this essay also considered the implica tions of managing across cultures.It was proposed that managers need to be aware of the differences across cultures (Adler, 1983). One way of identifying these differences, is by using Hofstede? s theory on the dimensions of culture (Mullins, 2007). Finally, this essay offered recommendations that managers could use when looking to go global in countries that sanction the use of child labour. Page 8 Date 15. 04. 11 Submitted with Extenuating Circumstances References Adler, N. (1983), Cross-cultural management look the ostrich and the trend, Academy of focusing Review, Vol. 8 No. 2, p226-32 Alzola.M, (2008), When goading matters. On non-discretionary corporate social responsibility? , Human Systems Management, Vol. 27, get along 3, p273-282 Ararat. M, (2008), A Development Perspective for Corporate Social Responsibility Case of dud? , Corporate Governance, Vol. 8, No. 3, p271-285 Banfield. P and Kay. 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T, (2008), Managing & Organisations An Introduction to Theory and Practice, 2nd Ed, London, discerning Publications Limited Demacarty. P, (2009), Financi al Returns of Corporate Social Responsibility, and the Moral Freedom and Responsibility of backup Leaders? , melodic line & Society Review, Vol. 114, Issue 3, p393-433 Dinopoulos. E and Zhao. L, (2007), small fry Labor and Globalization? , Journal of Labor Economics, Vol. 25, Issue 3, p553-579 Edmonds. E and Pavcnik. N, (2005), chela Labor in the Global Economy? , Journal of economic Perspectives, Vol. 9, Issue 1, p199-220 French. R, (2007), Cross-Cultural Management in Work Organisations, London, Chartered Institute of force-out and Development French. L and Wokutch. R, (2005), Child Workers, Globalization, and International Business Ethics A Case Study in Brazil? s Export-Oriented Shoe perseverance? , Business Ethics Quarterly, Vol. 15, Issue 4, p615-640 Galbreath. J, (2006), Corporate Social Responsibility dodge Strategic Options, Global Considerations? , Corporate Governance, Vol. 6, No. 2, p175-187 Page 9 Date 15. 04. 11 Submitted with Extenuating Circumstances Kanji.G and Chopra. P, (2010), Corporate social responsibility in a global economy? , Total Quality Management & Business Excellence, Vol. 21, Issue 2, p119-143 Kis-Katos. K, (2007), Does globalization reduce child labor , Journal of International Trade & Economic Development, Vol. 16, Issue 1, p71-92 Luetge. C, (2005), Economic ethics, business ethics and the idea of mutual advantages? , Business Ethics A European Review, Vol. 14, Issue 2, p108-118 Migliore. L, (2011), tattle between big five personality traits and Hofstede? s cultural dimensions Samples from the regular army and India? Cross Cultural Management A n International Journal, Vol. 18, Issue 1, p38-54 Moorij. M and Hofstede. G, (2010), The Hofstede Model, International Journal of Advertising, Vol. 29, Issue 1, p85-110 Mullins. L, (2007), Management and Organisational Behaviour, 8th Ed, Harlow, Pearson Education Limited Nielsen. M, (2005), The politics of corporate responsibility and child labour in the Bangladeshi garment indust ry? , International Affairs, Vol. 81, Issue 3, p559-580 Palmer. A and Hartley. B, (2006), The Business Environment, 5th Ed, Berkshire, McGraw-Hill Education Payne. A, (2006),?Corporate social responsibility and sustainable reading? , Journal of Public Affairs, Vol. 6, Issue 3/4, p286-297 Pitta. D, Fung. H and Isberg. S, (1999), Ethical issues across cultures managing differing perspectives of China and USA? , Journal of Consumer Marketing, Vol. 16, Issue 3, p240-256 Rosenblatt. V, (2011), The impact of institutional processes, social networks, and culture on diffusion of global work values in multinational organizations? , Cross Cultural Management An International Journal, Vol. 18, Issue 1, p105-121 Sethi. P, (2006), A search for standards to monitor labor conditions worldwide? Business Ethics Quarterly, Vol. 16, Issue 2, p271-287 Timlon. J, (2011), Sustainable Strategic Sourcing Decisions? , Strategic Outsourcing An international Journal, Vol. 4, No. 1, p88-106 Tonn. R, (2008), C orporate social responsibility conscienable and profitable? , Long Island Business News, Vol. 55, Issue 30, p158-158 Zekos. G, (2004), Ethics versus rotting in globalization? , Journal of Management Development, Vol. 23, Issue 7, P631-647 Page 10 Date 15. 04. 11 Submitted with Extenuating Circumstances BUSI 1475 Contemporary Issues in Management Assignment proposal pro forma ? ? ?For completion by Week 5 Must be signed-off by seminar manager Must be immaculate electronically Revised question The considerations of going global and operating in countries that sanction the use of child labour. Original question The considerations of manufacturing in countries that sanction the use of child labour. The assignment will look at delimit the ethical considerations that need to be looked at before operating in countries that sanction the use of sweat shops and child labour. A debate will be made between the ethical theories of what is deemed to be ethically right or wrong and provide jus tifications.For example the utilitarianism approach (the greatest good for the greatest number). The essay will go on to discuss CSR in terms of its definition, uses and who is covered. For example some companies operation CSR policies that are only knowing to cover the interest of the shareholders. Following on from this the essay will discuss the impact globalisation has on poorer societies and the occurrence of child labour. Finally the essay will debate over the cultural differences found when operating in other countries and the issues that surround managing in these countries effectively. Relationship to course content (e. g. opics featured) The management issues that have been uncovered are ? Ethics = discussion of types of ethics (consequentialists and nonconsequentialists). What is defined as ethically right or wrong? ? CSR = who should be covered by CSR? ? Globalisation = does it increase or decrease child labour? ? Cultures = cultural differences and how to manage people . http//www. bbc. co. uk/news/business-11381721 Proposed title URL from BBC News Website number of student Signature of student Name of tutor Signature of tutor Date Stephanie Grant Stephanie Grant DR Graham Symon 06/01/11 Page 11 Date 15. 04. 11 Submitted with Extenuating Circumstances