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3 Review
CHAPTER SUMMARY
3-1 Explain globalization and its impact on socially responsible. Sustainability has become an important
organizations. societal issue for managers and organizations.
3-3 Discuss the factors that lead to ethical
Organizations are considered global if they exchange goods
and services with consumers in other countries, if they use and unethical behavior in organizations.
managerial and technical employee talent from other countries,
or if they use financial sources and resources outside their Ethics can be viewed from the utilitarian view, the rights view,
home country. Businesses going global are usually referred to or the theory of justice view. Whether a manager acts ethically
as multinational corporations (MNCs). As an MNC, they may or unethically depends on his or her morality, values, personal-
operate as a multidomestic corporation, a global corporation, ity, and experiences; the organization’s culture; and the ethical
or a transnational or borderless organization. When a busi- issue being faced. Managers can encourage ethical behavior
ness goes global, it may start with global sourcing, move to by hiring employees with high ethical standards, establishing a
exporting or importing, use licensing or franchising, pursue code of ethics, leading by example, linking ethical behavior to
a global strategic alliance, or set up a foreign subsidiary. In job goals and performance appraisal, providing ethics training,
doing business globally, managers need to be aware of differ- and implementing protective mechanisms for employees who
ent laws and political and economic systems. But the biggest face ethical dilemmas.
challenge is in understanding the different country cultures.
Two cross-cultural frameworks that managers can use are 3-4 Describe how the workforce is changing
Hofstede’s and GLOBE. and its impact on the way organizations
are managed.
3-2 Discuss how society’s expectations are
influencing managers and organizations. The workforce continues to reflect increasing diversity.
Types of workforce diversity include age, gender, race and
Society expects organizations and managers to be responsible ethnicity, disability/abilities, religion, and sexual orienta-
and ethical. An organization’s social involvement can be from tion and gender identity. Organizations and managers are
the perspective of social obligation, social responsiveness, or responding to the changing workforce with work-life balance
social responsibility. After much analysis, researchers have programs, contingent jobs, and recognition of generational
concluded that managers can afford to be (and should be) differences.
DIsCussION QuesTIONs
3-1 How does the concept of a global village affect 3-6 Describe how a manager would approach ethical
organizations and managers? decisions according to each of the three views on
3-2 How do companies take advantage of local and global ethics.
opportunities by building suitable organizations? Pro- 3-7 How can organizations encourage ethical behavior?
vide an example from your country. 3-8 What is workforce diversity, and why is it an important
3-3 What are the managerial implications of Hofstede’s re- issue for managers?
search on cultural environments? The GLOBE study? 3-9 Describe the six types of diversity found in
3-4 Using clear-cut examples, illustrate three ways in which workplaces.
a business serves society. 3-10 Describe and discuss the three ways that organi-
3-5 The marketplace is competitive. In this context, zations and managers are adapting to a changing
explain business sustainability in the current market workforce.
environment.
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