Ethics and the Global Economy

Examine two of the major HR ethical issues multinational corporations face when operating globally.
Recommend two preventative actions that HR departments can take in order to lessen the occurrence of these ethical issues. Provide a rationale for your response.

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Sample Answer

here are two of the major HR ethical issues multinational corporations face when operating globally:

  • Compensation: Multinational corporations often have to deal with different compensation levels in different countries. This can lead to ethical issues if employees in one country are paid significantly less than employees in another country for doing the same job.
  • Labor practices: Multinational corporations may be tempted to use unethical labor practices in countries with less stringent labor laws. This could include things like child labor, forced labor, or unsafe working conditions.

Full Answer Section

Here are two preventative actions that HR departments can take in order to lessen the occurrence of these ethical issues:

  • Create a global code of conduct: A global code of conduct is a set of ethical principles that all employees of a multinational corporation are expected to follow. This code should clearly state the company’s stance on issues such as compensation, labor practices, and environmental sustainability.
  • Provide training on ethical issues: HR departments should provide training to all employees on the company’s global code of conduct and on the ethical issues that the company may face in different countries. This training should help employees to understand the company’s expectations and to make ethical decisions in the workplace.

Rationale:

Creating a global code of conduct and providing training on ethical issues are two important steps that HR departments can take to lessen the occurrence of ethical issues in multinational corporations. These actions can help to ensure that all employees are aware of the company’s expectations and that they are equipped to make ethical decisions in the workplace.

In addition to these two actions, HR departments can also take other steps to promote ethical behavior in multinational corporations. These steps could include:

  • Establishing an ethics hotline: An ethics hotline is a confidential way for employees to report ethical concerns. This can help to ensure that employees feel comfortable reporting ethical issues without fear of retaliation.
  • Encouraging whistleblowing: Whistleblowing is the act of reporting unethical behavior to the appropriate authorities. HR departments should encourage whistleblowing and should protect employees who blow the whistle from retaliation.
  • Creating a culture of ethics: A culture of ethics is a workplace environment where ethical behavior is valued and rewarded. HR departments can help to create a culture of ethics by promoting ethical behavior, by providing training on ethical issues, and by holding employees accountable for their actions.

By taking these steps, HR departments can help to ensure that multinational corporations operate in an ethical manner.

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