Diversity, Corporate Social Responsibility and Ethical Issues - Essay Example

Diversity, Corporate Social Responsibility and Ethical Issues Name: University: Course Title: Instructor: Date of Submission: Executive Summary With reference to business imperative, research has shown that workplace diversity enables employees to perform better. However, workplace diversity needs close attention from the organization management to facilitate this performance. Racial diversity for instance, is associated with the better business performance in organizations with keen interest in integrating and leveraging diverse perspectives as an essential asset for the delivery of products and services. Diversity in terms of background, ideas, opinions, personality, experience, education and uniqueness forms assets that enable organization to generate diverse policies, business strategies and operational processes and procedures. This report considers diversity issues for a Company with subsidiaries located in Australia, China and India. Moreover, the report recommends what steps each subsidiary needs to take to address the issues. The report is outlined in six sections. The first is introduction that gives a general overview and the direction the paper adopts. The second is a brief discourse and interrogation of diversity management at work place. The third, fourth and fifth section examines the situation in each country in relation to diversity and recommendations. The sixth section gives concluding remarks. Key words: cultural diversity management, subsidiaries of multi-international company Table of Contents Executive Summary ii Table of Contents iii 1.0 Introduction 1 2.0 Concept of Diversity 1 3.0 Australia 2 3.1 Diversity in Australia 2 3.1.1 Current Situation 2 3.1.2 Recommendations 3 4.1 Diversity in China 4 5.0 Diversity in India and Current Situation 6 5.1 Recommendation 6 6.0 Conclusion 7 References 9 Diversity, Corporate Social Responsibility and Ethical Issues 1.0 Introduction Globalization has great influence on how international organizations conduct their business in the contemporary world. As a result many global organizations find themselves in environments that are full of cross cultural ethical considerations (Sims & Gegez, 2004). Such cross cultural ethical considerations or perspective affect how global organizations transact business and interact at international arena. Cross cultural ethical issues such as ethical leadership, integrity, social community responsibility and ethical awareness affect the interaction and operation of such organizations in the international business environment (Resick et al., 2006). Diversity, corporate social responsibility and ethical issues are one of the principal tenets of organisation behaviour and managing people. To achieve the later statement, it calls for greater leadership in the organisation. This report considers diversity, corporate social responsibility and ethical issues relevant to Company with subsidiaries located in Australia, China and India. Moreover, the report recommends what steps each subsidiary needs to take to address the issues. 2.0 Concept of Diversity As globalization continues to take its toll around the world and fierce market competition continues to exist among business organizations, the workplace continues to be more diverse (Horwitz & Horwitz, 2007:988). The management of organizations is mandated with the responsibility of ensuring their workforce operates in an environment that is conducive and enhances their performance. Achieving this mandate in a diverse workplace is not easy and requires the management’s leadership commitment in walking the talk. This will enable them win the trust of the diverse workforce. Leadership in this case involves mentoring and coaching diverse workforce, educating the workforce diversity and inclusion as an important business value. Culture is a significant determinant of work place diversity and can be a major source of conflict in our work places if not understood and dealt with appropriately. Cultural diversity of people at work places arises from their belief systems, social relationships, languages, institutions and organizations as well as their material possessions such as cloths, machines, buildings, food among others. Kochan and colleagues (2003:4) point out that work place diversity is also determined by gender and race issues. These determinants of cultural diversity have to be considered and properly addressed if a work place has to be productive and free of cultural conflict (Schermerhorn et al., 2012:42). 3.0 Australia 3.1 Diversity in Australia Australia is a multi racial nation and this is entrenched in into the anti discrimination act & equal opportunities act and thus all are equal. Discrimination includes any form of distinction, restriction, exclusion or preference made in relation to a person’s particular attribute such as race, impairment, gender, age, religious beliefs and body shape & size (ocpe.nt.gov.au). The country has diversity council that advice on issues pertaining diversity. The Australian Government, Department of Immigration and Citizenship argue that workplace diversity is based on the principles of equal employment opportunity. These principles are those that seek to include the diverse characteristics of the workforce such as ethnicity, race, gender, intellectual or physical abilities, age and cultural background. The department also recognizes that diversity entails other ways in which the workforce may differ. These may include education, life experiences, personality, marital status, family obligations, socio-economic backgrounds and religious beliefs among others. The Australian Government, Department of Immigration and Citizenship regard workplace diversity as a concept that enables them to recognize uniqueness, promote inclusion and look into the future. This is based on the notion that at the workplace everyone’s ideas, thoughts, views, opinions and contribution matters (The Australian Government, Department of Immigration and Citizenship, 2011). 3.1.1 Current Situation Currently, Australia is one of the diverse countries. In ethnic approach, most Australians trace their origins from diverse indigenous population, British colonial past and extensive migration from different parts of the world. Majority of the population are born there. However, many of them identify with their ancestry lineage. According to their 2006 census, it is indicated that 2% comes from indigenous backgrounds, 41% with one parent born overseas and 22% born outside the country with the major contributing countries being New Zealand, England and China. Moreover, 14% of the population were born in non English speaking countries. The astonishing fact about this diversity is that out of these 20 million people, they are able to speak over 200 languages. In a broken down statistics, 16% speaks language other than English and 56, 000 people speaks indigenous languages. In addition, other common languages are Chinese, Italian, Greek and Arabic (NSW Department of Education and Training, 2010). Apart from the above, in religious perspective, the country is still diverse. At 64% Christianity is the religion with largest following. This group has over 70 religious groups with the dominant ones being Catholic, Anglican, Uniting Church, Presbyterian and Eastern Orthodox. Other religious groups include Buddhism at 2.1%, Islam at 1.7%, Hinduism at 0.8% and Judaism at 0.5%. In addition, about 5400 Australians observe aboriginal religious traditional practices and 19 % claims to have no religion (NSW Department of Education and Training, 2010). This means that most organisations are likely to have diverse work force. Thus, the need for diversity management at all cost. 3.1.2 Recommendations Post (1979:616) post argues that it is becoming difficult for business organizations to identify environmental variables that influence their operations. Therefore, it becomes difficult for business organizations to formulate and implement timely and appropriate management plan of actions. Organizational interrelations and interdependence is on the rise due to globalization of business activities. A highly diverse and efficient workforce with the capabilities of handling these challenges seems to be the only way that business organization must embrace. These challenges can only be best managed by a diverse workforce that will inject diverse solution to these problems (Richard et al., 2004:260). Australia being a diverse country with people of diverse background has been able to manage well its diversity issues. The only challenge that had tainted their image at a national level is the aborigines’ policy. Australia being a diverse country in terms of beliefs and ethnicity among others, organisation must embrace the following factors. Leadership commitment must be demonstrated in conflict management in a constructive manner, reinforcing diversity of work, thought, and employment practices among the employees (Coffey, n.d:29). The senior management of business organizations must demonstrate commitment and accountability if the performance of a diverse workforce is to achieve organizational success. It is important that the management carries out a comprehensive assessment of needs of the workforce, job descriptions and the organization. This will enable the management in appropriately framing and addressing workplace diversity issues through the identification of the right interventions (DeAnca & Vazguez, 2007:121). For instance, due to diverse religious beliefs, employees can be given leave depending on their religious calendar. The respect of others differences in the work place is an important strategy in managing a diverse workforce. Organisation’s management should exemplify by respect and appreciation of the differences in their workforce that arise from both primary and secondary dimensions of diversity. This will create a conducive work environment that will enable employees contribute to their fullest with regard to their duties and work responsibilities (McGrath & Berdah, 1995:17). It is recommended that the management establishes an inclusive and welcoming work environment that diverts attention of the workforce from their differences. In this way the workforce groups will be able to interact within themselves and at the organization level without focusing on their differences. To achieve the above, the organisation should have internal mechanisms and also work with diversity advisory council. This can be achieved by having zero tolerance to racism and having policies on appropriate work place behaviour. 4.0 China. 4.1 Diversity in China The significant and unique outstanding observation about china is the broad and extended cultural history. The Chinese people ranks as one of the societies that have long cultural ties than any other in the globe (Dillion and Dillon, 2008:10). China has a centrally planned economy. This means that the state is highly and actively involved in shaping major processes in the country. This is even evident in industrial relations. In international perspective, for long period the country was isolated. It is until 1979 towards 1990s that they decided to open up (Yu, Zhong and Liao, 2010:343; Fu and Kamenou, n.d:11). However, this country has a principle called Confucianism that can be used to strengthen diversity. This concept advocates for a framework where people are responsible towards one another at different levels. These include ruler and subject, husband and wife, parents and children, brothers and sisters and friend to friend. This concept outlines the need for duty, sincerity, respect for age and seniority, honour, loyalty and filial petty. 4.1.1 Current Situation Fu and Kamenou (n.d:4) notes that most of diversity concerns in china are geared towards gender equity. Moreover, diversity management has not been promoted at the same level with economic development (Fu and Kamenou, n.d:6). They posit that in past the country did not focus on ethnicity, disability, religion and cultural diversity. In relation to internal analysis of diversity based on 2000 census report, Han ethnic group form majority of the population at 91.59%. The remaining 8.41% is occupied by 55 minority ethnic groups. The ethnic minorities enjoy some autonomy as stipulated in the 1953 constitution. In realisation for need of harmony, the government has been at the forefront to advance a paradigm shift in terms of mainstreaming (Fu and Kamenou, n.d:5). It is also reported that 16.7% of China population engage in different religious beliefs. This means that employers have to carter for their unique requirements (Religious in China cited in Fu and Kamenou, n.d:6). In addition, it is reported that 6.34% of the population are disabled and therefore forms a critical mass (protecting the rights and interests of disabled people, 2008 cited in Fu and Kamenou, n.d:6). Thus, the subsidiary should put in measures to protect the minority interests and vulnerable groups at work place. 4.1.2 Recommendation One area that the subsidiary should work on in this country especially to cater for expatriates who are non Chinese speakers is on communication. This based on the fact that majority speaks Chinese. This can be addressed through localised trainings. Cummings (2004:352) notes that structurally diverse workplace increases the value information sharing. According to Cummings, this is so because a structurally diverse workplace through distinct organizational roles, job descriptions, affiliations, as well as positions exposes the diverse group for unique information and knowledge. By actively sharing this unique information and knowledge the performance of diverse work groups is likely to improve. Therefore, organizations can effectively enhance the performance of their diverse workforce by investing in information and knowledge systems and encourages the sharing of the same (Ditomaso & Post, 2004:1). The next point is protection from racism or other abuses. This case holds true because it has been proven that for a long period china was detached from the rest of the world due to their political policies. This meant that they had little contact with people from other cultures and that translates to too little experience on inter cultural engagement outside their national boundaries. This can be addressed by having cross cultural training workshops for the native and foreign employees. Closely connected to this is the need to protect minority workers at the firm. The first is to have policy on ethnic minorities so that they feel represented. The last point of ensuring diversity management especially between local and foreign workers is through mediating states and process (Fu and Kamenou, n.d:12). The essence of this concept is to open one’s mind about this country. There are people who do believe without seeing. This can lead to biases, poor perceptions and negative attitudes. The reason for raising this point is that due supremacy and ideology battles, at times China has been seen as sympathisers of rogue states. This equally can be manifested in an employee who has been posted in china and is not from this country. To avoid friction emanating from such perceptions it is prudent for management not to allow political process infiltrate into the organisation. 5.0 Diversity in India and Current Situation India ranks as one of the most diverse countries in the world. Diversity in India can be understood in terms of language, religion, caste/ tribe, class or religion (Swenden, 2010:3). The country has five linguistic families with Hindi which falls under Indo- Indo Aryan being the majority. The country has 544 dialects and 179 languages. This great diversity is exemplified in terms of dialects and cultures. The country has six main religions. The religions are Hindu at 83.2%, Muslims at 11%, Sikhs at 2%, Christians at 2% and Jains and Buddhists at less than 1%. Moreover, this country has over 4000 caste groups. The greatest problems afflicting diversity is regionalism, stereotyping and casteism (Woodard and Saini, 2006:157). 5.1 Recommendation One way of addressing diversity is through equal employment rights policy for all irrespective of their background. In addition, the firm can adopt affirmative action so that people from disadvantaged background can be employed at the firm. One of the benefits of the above two approaches is that they will guarantee what is known as diversity enlargement. Diversity advocates for increasing the representation of individuals of different ethnic and cultural backgrounds so as to change demographic composition. This will go a long way in addressing the underrepresented groups as a result of numerous cultural practices like caste system in work place. Also to reduce communication barriers there is need to have a common official language at work place. The next recommendation is developing policies that address diversity sensitivity. This will ensure that all employees are respectful to each other’s culture, values and beliefs. As noted in the current diversity issues in India, India is one of the fragmented nations. This can be achieved through communication aimed at reducing stereotypes and discrimination. Closely connected to the above is entrenching cultural audit. Under the cultural audit, the main goal would be to analyse the obstacle facing various people from diverse backgrounds and how it can be resolved. Moreover, since India is becoming global, cross-national diversity management is paramount in a situation involving citizens and immigrants. 6.0 Conclusion In a nutshell, Coffey (n.d:33) emphasizes that best practices in the effective management of diversity in the workplace is only “FAIR”. “F” stands for feedback and communication which are crucial diversity management strategies that enhance productivity, reduces conflicts among and promotes understanding among diverse workforce. “A” stands for assistance and support to others to enable them become culturally competent. It is about team playing within the organization. “I” stands for inclusion which empowers the diverse workforce to perform and participate fully in the realization of the organizations goals, as well as their own. Lastly, “R” emphasizes the significant role that respect plays in effective management of diversity in the workplace. Respect is not negotiable and all employees in an organization are required to adhere to the terms of the social contract by respecting the views, opinions, thoughts and contributions of others in the workplace. If organisations can align their diversity policy along this line then work places would be harmonious zone that respects individual contributions based on character. However, this cannot be achieved without collaborative participatory approach. The best approach would be that management through human resource department to formulate guidelines and allow for employee input. Moreover, the subsidiaries should adopt policies in the context of socio-cultural and political factors in these countries and report to the global headquarters. This would ensure standardisation and adoption of best practices from other regions. References Appropriate work place behaviours, your right-your responsibility (2009). 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