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IHRM and Ethical and Moral Leadership - Case Study Report - Essay Example

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IHRM and Ethical and Moral Leadership - Case Study Report Table of Contents Table of Contents 2 Part (i) 3 Part (ii) 5 Part (iii) 7 Part (iv) 9 References 13 Part (i) In the present business scenario, the concept of globalisation is seemed to be adopted by the companies belonging to this modern day context with the intention of executing their business operations in the worldwide market segments effectively…
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In this respect, labour flow is considered to be an important factor making the development of global economy at large. It has been perceived that the labour forces on a global context are recognised to be facing inequality problem with the development of technologies as well as ‘foreign direct investment’ (FDI). Companies in the worldwide market segments are seemed to be demanding more skilled labour in order to develop their overall business or operational performance (Bowles, 2009). In this modern era, it can be viewed that companies normally seeks employing low-paid skilled labour forces for lessening operational costs which resulted in raising the problem of unemployment in various business market segments.

Additionally, with this concern, the problem of inequality in income has also been raised in the worldwide context. In this regard, migration of labour forces is recognised to be the imperative factor which is accountable for loss of jobs as well as inequality of wages amid developed countries (The IMF, 2008). With growing aspect of globalisation, multinational corporations (MNCs) are observed to devise policies as well as principles with the objective of enhancing labour standards. Companies formulated ‘corporate social responsibility’ (CSR) related policies with the aim of performing business activities in a legal as well as ethical manner.

The CSR policies of companies also ensure that they are quite able to meet and accomplish the expectations of the stakeholders. MNCs seek that the policies and principles for the CSR are formulated in accordance with the national as well as international labour standards. Moreover, labour forces are required to be provided with better human rights principles as well as working environment. There are certain provisions on the basis of which companies are required to acquire labour forces. In this respect, MNCs with better CSR and business codes will be facilitated with the opportunity of executing business operations effectively with minimised inequality in relation to wages and culture among others (UNCTAD, 2012).

In this similar context, ‘International Labour Organisation’ (ILO) has formulated as well as implemented policies and principles with the objective of promoting enhanced labour standards with the assistance of international contracts. The standards as well as policies that formulated by ILO are required to be adopted by MNCs with the intention of offering better working environment and rights to labour forces. The standards of ILO signify that MNCs should not acquire labour forces in a forced manner.

MNCs should ensure that children under the age of 14 or 15 are not employed. MNCs are also required to ascertain that employees are not discriminated and are provided with the right of collective bargaining. There should not be any abuse as well as harassment in the working environment. The employees should be provided with better healthcare facilities and must be offered with equitable and minimum wages (Xiaoyong, 2006; ILO, 2003). Part (ii) MNCs are observed to adopt three main strategies which include multinational, transnational and global strategy.

Multinational Strategy Multinational strategy implies that a business organisation execute activities in numerous countries or market segments. This strategy is adopted by companies with the aim of

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