Challenges in the Global Business Environment at Chevron - Case Study Example

Challenges in the Global Business Environment 08/07/14 Chevron is a multinational company that is based in the U.S as Chevron U.S.A Inc. As a multinational company the scope of operation is on a global scope. This call for the company to have a code of ethics to ensure its employees remain productive, effective and at the same time improve the image of the company to appeal to all (O. C. Ferrell, 2012). Chevron has adopted several code of ethics that are based on the role and responsibility of Chevron, Chevron employees, human rights, records and internal controls of the company, avoiding conflicts of interest, antibribery, international trade and antiboycott laws, government affairs and political involvement, operational excellence, competition laws, data privacy, information protection and intellectual property. The role and responsibility of Chevron include following the code of ethics. Chevron expects its employees and the whole Chevron community to be aware of their level of authority. This understanding helps everyone act within the limits. This approach helps to avoid conflicts over authority and hence improves the efficiency. In the event that any Chevron worker is not sure on what to do, it is at his or her mandate to seek guidance from the supervisors, managers or any other department within Chevron that has been mandated to provide guidance. Seeking guidance helps maintain Chevron high standards through making sure that employees are aware on their roles. Every employee of Chevron has a mandate to comply with Chevron codes of conduct (Chevron Corporation, 2014). Failure to do so leads to disciplinary actions. Discipline improves the image of Chevron as compliance with the law improves productivity and efficiency of workers. Within this code is the responsibility of every employee to report a possible violation. The reporting of a possible violation that could lead to damage of Chevron reputation helps avert this predicament and build on loopholes that may lead to a similar wake. Chevron undertakes the Non-retaliation policy. Chevron does not retaliate on information provided by any employee in good faith (Chevron Corporation, 2014). Similarly, Chevron adopts a code of ethics regarding employees in specific. Chevron has invested in many parts of the world. It employs employees from all lifestyles. As such, Chevron respects diversity and it values the diverse cultures presented by its employees. It also provides equal opportunities to all. As such, Chevron avoids any form of discrimination in its providence of work opportunities and working conditions. Chevron is committed to treating their employees equally. It also considers employee compensation and tenure. This consideration helps it review its workers salary to ensure it compensates them competitively. Rewarding its employees is also a culture Chevron has adopted to give incentive to its workers (Chevron Corporation, 2014). Chevron also considers substances and drug abuse and expects its employees not to use the controlled substances or be in possession such on its premises. Chevron also considers providing assistance for employees that have difficulties coping with alcohol. Chevron does not permit any violence or harassment in its premises such any threat by visitors, co-workers or any other person (Chevron Corporation, 2014). In the event that an employee is threatened or harassed, he or she should report this to the Global security of Chevron or to a local police department. Chevron has placed itself in the frontline to recognize and observe human rights. It works in close relation to observing the human rights as spelt out in the United Nations Human Rights. It observes universal human rights to its employees, communities they interact with, suppliers and security personnel. Company records and internal controls should be kept in place, and it’s the role of every employee of Chevron to keep this information honestly. Accuracy, validity, completeness and auditability of records in each transaction is crucial in the operations of the company. The company highly discredits fraud and any involvement in fraud leads to termination and prosecution. Chevron also considers avoiding conflicts of interests to keep its values of integrity and trust at a high notch. It expects its employees to avoid accepting gifts, fees, favours or any other advantages that may compromise their decision-making processes. Insider trading is a vice it highly prohibits. Bribery acts in Chevron are prohibited, as it is a violation of its policies. Chevron also commits itself in complying with international trade laws as it operates even outside U.S. Its understanding and complying with the laws helps to avoid violation of the countries laws. Chevron also tries to understand the antiboycott laws as they vary from country to country. Apple is a multinational company that is based in California USA (Miller, 2012, pp. 192-194). It deals with making of electronics and gadgets such as mobile phones, laptops and television sets. It adheres to code of ethics, and the fundamental ones have been; relations with the employees, shareholders and customers. It focuses on making employees feel in place through recognizing the role played by each employee. It seeks to respect the shareholders and involves in managerial efforts that the shareholders invest in. Similarly, customer satisfaction is the ultimate goal of the company as they are the direct users of the company’s product. Its role in the global scope makes Apple strive to comply with laws in regions they operate in and the business ethics that guide on the behaviour of the organisation at large. This realisation makes apple fit in the global scope and appeal in most regions. Sony is also a multinational company that deals with electronics just like Samsung and Apple. Similar to Samsung, Sony seeks to comply with laws, internal rules and policies. It also has in its mandate to foster relationship with their stakeholders and environment conservation. Sony ensures the respect of shareholders, employees and customers by appreciating that Sony’s business has a direct or indirect impact on the business. It seeks to make decisions that take consideration of shareholders, employees and the customers (Quigley, 2008, p. 487). Samsung makes a priority to customer’s satisfaction; focus on management based on the value of shareholders (Sustainability Report, 2009). It strives to improve employee’s quality of life. Compliance of laws and ethical standards is both adhered in Samsung and Sony. Samsung and Sony recognize the diversification of individuals and respects their dignity. In their provision, they also involve in business complying with business ethics and face competition. Finally, both companies have environmental, health and safety principle that ensures their products are used correctly to avoid harm and have limited effect on the health of both consumers and employees. They involve in environmental conservation as this benefits both the communities they interact with and them as well. These three key issues, when looked into, can lead to tremendous benefits. Respect of employees leads to improved productivity and efficiency. Shareholders will consider investing more in a company that respects them and customers would engage in a company that considers their satisfaction. This approach increases the overall productivity of Sony and Samsung (Andrew Crane, 2010). Likewise, complying with laws and business ethics for both companies has allowed it to expand and grow beyond. This growth to other countries cannot be achieved without compliance of laws and business ethics. When these two policies are ignored, the companies may lose a lot of customers and employees if they fail to respect them. Similarly, shareholders would not invest more on a company that fails to meet good profits. In legal grounds, if the companies ignore complying with the laws and business ethics, they may be denied the chance to expand their business to other regions and also may lead to closure on regions they are currently operating in. Apple has considered learning about the emerging issues through its research team. As such, it asks its employees to review and send feedback on its code of conduct, and this helps it make adjustments to fit in current business world. It also seeks developing new technologies early that helps it to provide new products that change with changes in the taste of their consumers. This is geared towards improving customer’s satisfaction. Apple has an environmental obligation, and it has taken stands to involve in conservation measures. Due to an increase in e-waste, Apple has considered involving in awareness of dumping e-waste effectively and even it has considered in recycling this wastes to cut on the amount of e-waste that is dumped. Subsequently, it has supported various environmental conservation projects like being actively involved in tree planting through schools in African states, and it has been in the frontline to support measures that improve the environment. Apple is highly dependent on technological advances. It has made an online platform to sell its products overseas. This approach has made its influence reach a larger audience. Similarly, it has an online support system and provides an educational platform on its website. However, it has been challenged by the fact that some of its potential customers are unable to access its online services due to lack of awareness or even resources to connect to the internet. The large nature of the business has limited its interaction with the consumers directly has they have to look into thousands and thousands of issues making the response to this issues be slow. They make high sophisticated devices that most consumers are unfamiliar with, and this makes a drop on the sales of their devices. The company may consider simplifying their online services and make sure that they advertise their products more frequently to the unaware groups. Apple has been involved in a series of lobbying. It the last US elections, it funded both the Democrats and Republicans campaigns. Through this, they were able to spell out issues they would like addressed and which affects their business. The approach was commendable as they did not take sides by supporting two presidential candidates. It bore fruits as taxes were reviewed in their favour. Apple Company gives equal opportunities to all races and gender. It avoids any form of discrimination and seeks to respect the diversification of people they are in contact. This makes their face globally identified, and their products are appealing to everyone. It adheres to global human rights and seeks to respect the communities they meet. References Andrew Crane, D. M. (2010). Business Ethics: Managing Corporate Citizenship and Sustainability in the Age of Globalization. New York: Oxford University Press. Chevron Corporation. (2014).Business Conduct and Ethics Code. Retrieved from http://www.chevron.com/documents/pdf/chevronbusinessconductethicscode.pdf. Miller, R. (2012). Business Law Today, Standard: Text & Summarized Cases. New York: Cengage Learning. O. C. Ferrell, J. F. (2012). Business Ethics: Ethical Decision Making & Cases. New York: Cengage Learning. Sustainability Report. (2009). Corporate Ethics. Retrieved from http://www.samsung.com/us/aboutsamsung/sustainability/sustainablemanagement/download/SamsungValueCode_ofConduct.pdf. Quigley, M. (2008). Encyclopaedia of Information Ethics and Security. New York: Idea Group Inc (IGI). Read More