On Ethics : Hypothetically, your MNE is the largest foreign investor in (1) Viet

Question

On Ethics: Hypothetically, your MNE is the largest foreign investor in (1) Vietnam, where religious leaders are reportedly being persecuted, or (2) Estonia where ethnic Russian citizens are being discriminated against by law. As the country manager there, you understand that the MNE is being pressured by nongovernmental organizations (NGOs) of all stripes to help the oppressed groups in these countries. But you also understand that the host government could be upset if your firm is found to engage in local political activities deemed inappropriate. These alleged activities, which you personally find distasteful, are not directly related to your operations. How would you proceed?

Explanation / Answer

Mutual agreement between Company and governments

First of all, as a country manager being employed for an Multi National Enterprise in Vietnam and Russia, is accountable to the labor laws, regulations and policies of these countries and bound to operate in line with the interest of the governmental authorities of the two countries. These has been mutually agreed upon in the agreement by both the parties. Only then the company would be able to operate smoothly and efficiently in these countries.

There should be no vested personal interest or deviation from the policies that have been agreed between the government and the MNE. My company could enter in to Vietnam and Estonia only after signing a mutual bilateral agreement between the governments of these two countries and the company.

Company and Society (CSR)

At the same time as a huge investor in Vietnam and Russia, my company has got a moral and social obligation towards its people. The company should aim for the upliftment of the oppressed and downtrodden sections too. None of my personal interests or so called distasteful terms should not interfere. I should be representing the interest of my country rather than my personal interests.

Considering the social aspect, the company should develop interest to help the oppressed sections of the country. If Vietnam and Russia could aim for a better economic, political, social stature in the global platform, definitely a reformation would happen in all aspects. The government of Vietnam and Estonia have a vital role in this aspect. They have a moral obligation towards their citizens. Russian government should frame policies for uplifting the ethnic Russians along with other groups. The company and NGO’s could play an active role in this regard.

Though these activities are not directly related to the operational functions of the company and not in line with my personal interests, I should take a step forward considering the transformation it would bring to the face of the nation. My stand would be if such an initiative would uplift the helpless people and the company, it would become a CSR goal of the company. Further, these kind of activities would build the reputation and brand value of my company.

Role of Country Manager

Considering the CSR part of the company, I would take initiative in this regard. For that, I would arrange a talk with the governmental authorities, Industrial departments to help these so-called groups. Initiatives shall be taken to sign a mutual agreement with the government keeping in view the political, legal and social climate of these nations, where a consensus shall be agreed up on for generating employment opportunities for these people. Skill training, learning and development programs shall be organized with the support of NGOs, government and the company. Local political leaders and other influential people of these countries shall be involved. Once the initial plans are framed, I would build a company team in Vietnam and Estonia, where I would incorporate the public relations department, human resources department, CSR team and some of the other departmental staff along with the community leaders. The team would frame various development programs.

Endnote

These kind of initiatives may not seem highly rewarding from a business point of view. Considering the revenue generation and effort needed for such an initiative, it may not seem attractive to the government and the company. But in long –run it would improve the hostile situations of Vietnam and Estonia, reforming their social, economic and political climate. It would give life to the downtrodden sections. It would grant them financial independence. By and large, it would also build the image and reputation of the government. Moreover, these projects would start rewarding in the long run when these employees are qualified and adept in their work. They would turn into highly valuable pool of resources. It would also add value to the company in building the brand value and reputation, not only in Vietnam and Russia but globally too.

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