Global CSR and IHRM

Question 1

which ethical decisions do firms often handle?

Answer 1

1. human rights
2. corruption
3. environmental pollution
4. employment practices

Question 2

what is the ethical dilemma?

Answer 2

the fact that there is no universal worldwide agreement about what constitutes accepted ethical principles

Question 3

friedman vs porter

Answer 3

1. friedman - shareholder view
2. porter - stakeholder view: obligations extend beyond the economic responsibility of a firm

Question 4

what is the pollution haven hypothesis? what is the race to the bottom?

Answer 4

because of heavier regulations in developed economies, multinationals may have an incentive to shift pollution-intensive production to developing countries with lower environmental standards

to attract investments, developing countries may enter a race to the bottom by lowering environmental standards

Question 5

what is the race to the top?

Answer 5

most MNEs outperform local firms in environmental management due to:

1. worldwide CSR pressures
2. CSR demands by customers in developed economies
3. requirements of MNE HQS for worldwide compliance

Question 6

what should firm do to ensure ethical employment practices?

Answer 6

1. establish minimal acceptable standards
2. audit foreign contractors and subsidies regularly
3. take corrective actions when necessary

Question 7

what is the Foreign Corrupt Practices Act?

Answer 7

the FCPA is a law aimed at preventing the bribery of foreign officials

Question 8

who stresses the most on ethical behaviour compliance? Individualistic of collectivist cultures?

Answer 8

cultures that emphasize individualism and uncertainty avoidance are more likely to stress ethical behaviour than cultures where masculinity and power distance are emphasized

Question 9

list a firm’s stakeholders

Answer 9

1. shareholders
2. suppliers
3. communities
4. employees
5. nature
6. governments

Question 10

Expand on the topics covered by Environmental, Social, and Governance measures

Answer 10

Environmental:
1. climate change
2. pollution
3. resources use

Social:
1. community impact
2. labour standards

Governmental:
1. tax transparency
2. risk management (think of fin crises)
3. legal practices

Question 11

what are the 4 approaches to social responsibility, ranked from least responsible to most responsible?

Answer 11

1. obstructionist / reactive
   avoid responsibility!
2. defensive
   do what is required and nothing more (cigarettes labels)
3. accomodative
   some extra effort
4. proactive
   strongest support of social responsibility, always seeking for opportunities to contribute

Question 12

what are the five steps in human resource management process?

Answer 12

1. recruitment
2. training
3. performance evaluation
4. compensation
5. relationship management

Question 13

what are the three views in international staffing policy? What is the international integration stategy behind each of them?

Answer 13

1. ethnocentric approach: sending management from the HQs to the local branches. This is appropriate for firms that need high controlling of their branches and for those firms using an INTERNATIONAL or GLOBAL strategy. Costs are higher and expats may face problems adapting.
2. polycentric approach: local management is authorized, appropriate with MULTIDOMESTIC strategies, saves costs but effective communication with HQ is more difficult
3. geocentric approach: appropriate with TRANSNATIONAL strategies, fully takes advantages of existing resources without concern of race or nationality

Question 14

what are the expat manager selection criteria?

Answer 14

individual level:
1. technical knowledge

2. leadership
3. experience and past performance
4. family requirements
5. language

cross cultural adaptability:
1. interest in overseas work

2. relational abilities
3. cultural empathy

context level factors:
1. country requirements (maybe some passports are better for VISA)

2. company requirements

Question 15

explain the culture shock cycle and adaptation process

Answer 15

1. initial euphoria
2. irritation and hostility
3. adjustment
4. re-entry

Question 16

what is an alternative for a manager expat whose family cannot relocate?

Answer 16

1. short term assignment
2. commuter assignment (basically working from home and commuting every once in a while)
3. finding a job for the spouse leveraging intra-company networking and intra-company employment

Question 17

which cost factors does a company need to look at when estimating the expat package?

Answer 17

1. income tax
2. housing expenses
3. general level of prices
4. services

and an additional incentives sometimes is required

Question 18

is there anything HR should consider when evaluating performance of an expat manager?

Answer 18

the hr should keep in mind the host country context, the economic situation, and the difficulty of doing business in the other country. basically it should have a host country perspective