Online Tutoring on Multinational Organizations

Multinational organizations are continuously invading new lands with a desire of earning more profits. In this regard many multinationals simply ignore or pay no respect to the local culture, believes and rights. Particularly in poor regions, where the locals have no access of advance technologies, lacks skilled manpower, low literacy rate or is dominated by a first world nation, multinationals operating in such regions taking advantage of its influence proceed with its operations without implementing any social responsibility policies or programs. These organizations may succeed in achieving their destined goals but would not be able to operate seamlessly. As there would be a continuous resistance by the locals, thus creating more challenges for the multinational. Business ethics and corporate social responsibility infuse the consideration of moral issues in corporate decision making and actions (Phatak, Bhagat & Kashlak,  2005).

The culture and traditions of the host country are much influenced by the large scale operations being conducted by list of multinational organizations. Their behavior can have both beneficial and harmful consequences on the quality of life and living standards in various countries in which they conduct trade and commerce (Phatak, Bhagat & Kashlak,  2005). Considering it an ethical responsibility, successful multinational organization incorporate social benefit programs among their organizational policies. Whereas, multinational organizations would be countered with multiple controversies if its performance is in defiance of the host culture or rights. Humanism addresses the deeper motivations for sustainability but does not, by itself, lead to the practical tools and metrics for connecting business operations to sustainability outcomes (Senge et al, 2007).

Fossil fuel is gaining more importance day by day due to the rapid increase in the global population and industries. New lands are being explored in search of any clues of fossil fuel. As quoted by Chiras (2010) that even with newer techniques of oil extraction, the impacts could be devastating. As due to the extraction procedures a large area of land is exploited while the human population based on such lands are either compelled to move to some other place or left with no option to bear the harmful effects of extraction operations. It is witnessed in many parts that oil extraction companies are facing great resistance from the local communities. As such, the mode of operations of these companies must be acceptable by the local communities and it could only be done by involving the local community members in the company’s operations or implementing social benefit programs. Private corporate involvement is vital: if oil companies do not establish good relations with the local communities in energy source areas, this will continue to create instability and may lead to terrorism (Forest & Sousa, 2006).

Nigeria is the biggest oil producer among West Africa, whereas huge oil reserves of Niger Delta have attracted many international oil companies. Shell’s involvement in the oil-rich Niger Delta extends back to 1958 (Pilkington, 2009). At present Shell is conducting vast operations at oil rich Niger Delta, and is encountered with many challenges mainly armed resistance by the local community members. Protest by the local community can be justified considering the pollution created due to the oil extraction procedures.

The local indigenous at Niger Delta were dependent on agriculture and fishing for their living but due to extraction procedures groundwater had been contaminated their farm lands infertile, whereas the river and sea along the Delta are also contaminated badly damaging the marine creatures. Thus, traditional fishing practices are now impossible for the local indigenous. Moreover, oil spills due to varied reasons is also a major cause for land and sea pollution which is of great concern for the local indigenous. Generally, transnational oil companies have shown rhetorical commitment to the Niger Delta, as they have at different times restated/defended their “commitment” to the Niger Delta and the principle of “corporate/social responsibility.”(Kullenberg & Lehne, 2009).

By implementing measures that would be in the best interest of the local indigenous, Shell can continue with its operations seamlessly. As the locals are more concerned about their land, the company should adopt advance technologies that are less dependent on procedures that are ecologically damaging.

Extra precautionary techniques have to be practiced to minimize the oil spills, also the affected farm lands will be revitalize by adding nutrients making it fit for farming again. Though the Government and the company are generating huge revenues through the export of crude oil, but unfortunately the local community is deprived of any benefit from the revenues. It is recommended that some investments must be made on improving the condition of basic infrastructure, like roads, health facilities, schools and housing schemes.

In spite of river and sea water near the Niger Delta being polluted, still the fishing practice can be conducted in deep sea. Easy installment plan will be developed for the poor fishermen, enabling them to acquire bigger advanced boats and fishing equipments. Establishing a relation with the local indigenous would be great significance for the company and this could be done by creating job vacancies for the local community members.

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References:

Pilkington, E. (2009) Shell pays out $15.5m over Saro-Wiwa killing. [online] Available from: http://www.theguardian.com/world/2009/jun/08/nigeria-usa. [Accessed: 15th November 2015].

Senge, P. M. et al. (2007) Collaborating For Systemic Change. MITSloan:Management Review. 48(2). p.44-53.

Phatak, A. V., Bhagat, R. S., Kashlak, R. J. (2005) International Management. New Delhi: Tata McGraw-Hill.

Forest, J. J. F., Sousa, M. V. (2006) Oil and Terrorism in the New Gulf. UK: Lexington Books.

Chiras, D. D. (2010) Environmental Science. Canada: Jones and Bartlett.

Kullenberg, C., Lehne, J. (2009) Resistance Studies Reader. London: Lulu.

Q.2.

In the current scenario of globalization and intense competitive markets, business companies are implementing strategies and techniques to cut down their expenses and simultaneously improving their services or production. Sustainability is a technique that aids in minimizing the company’s expenses, excess consumption of resources, affecting the environment and gaining a prominent status among the competitors. Sustainable development of business means ‘satisfying the needs of the present without compromising the ability of future generations to meet their own needs (Cohen, 2010).

Astrigo Holdings as a strategy to encounter with its financial issues and visualizing its future position has planned to modify into environmentally friendly home improvement company. Many firms are learning that being environmentally friendly and sustainable has numerous benefits, including increased goodwill from stakeholders and even money savings from being more efficient and less wasteful (Ferrell, Fraedrich & Ferrell, 2013).

However, for implementing any changes in the company’s policies or strategies the workforce must be cooperative and agreeing with the management’s decision. Whereas, due to the company’s decision of laying off around 10% employees to cope up with the financial issues, has developed a sense of uncertainty and mistrust among the employees and are unable to respond positively on the company’s modification plan of environmentally friendly home improvement company.

Conventionally the most common technique utilized by any company to encounter with financial issues is to cut down the expenses. There are multiple options that a company might considers as its strategy for cutting down its expenses, like, laying off a good number of employees, disposing off excess or spare equipments and suspending employees benefit programs for a specific period. However, any technique a company adopts in response of its financial issues would have an impact on the workforce. Developing a sense of insecurity, they might not respond to the change positively. The same negative response by the employees would have been avoided if there was an effective communication link among the management and the employees. Employees need to be kept informed with up-to-date facts and continuously assured that management is on top of the issue (Blythe, 2014).

This is what happened at Astrigo Holdings, when the management took the decision of laying off 10% of the employees, the employee’s representatives were not taken on board. It created a concern about job securities among the rest of the employees, thus affecting the employee’s level of motivation and loyalty. Employee motivation will decrease if they do not understand what their boss, peers, or subordinates are trying to communicate to them (Adekola & Sergi, 2007).

Organizations to operate progressively must consider the employees as an essential part of all decision making processes. Compelling the staff for their engagement for implementing sustainability strategy, it is recommended that the company’s decision and its purpose should be well communicated to all staff members. They should be given an opportunity to express their viewpoints and ideas. This measure will not only mend the damaged motivation level of the staff but will also develop confidence and loyalty among the staff members. In fact, employees want to work and will motivate themselves if they are allowed to participate in decision making (Hamilton, 2013)

An in-house training facility will be established, providing an opportunity for the staff members to enhance their skills for the further growth in their career. Such training facility will abate the sense of job security that was developed among the employees after the termination of their associates. The fact that training is being offered, with the opportunity for the employee to learn something new, demonstrates an organization’s commitment to growing its people (Griffiths & Williams, 1998).

Further to enhance the employees motivation and engagement for the implementation of the sustainability strategy, incentive program for the outperforming employees will be a mode of acknowledging the  performance and advantageous in developing competition among the employees, thus each individual will try to perform his best.

Any individual employee is working to provide the best amenities and luxuries of life to his family, but strict work schedules will put him under stress as he would not be able to spare time for his family commitments or other personal issues. Long working hours increase the likelihood that people will face a conflict between work and family responsibilities (Pfeffer, 2010, p.38). Designing a flexible work schedule for the employees, will enable them to look after their personal issues and they will perform their task stress free with full devotion.

It may be concluded that to gain the staff engagement and loyalty, they must be assured that they are an essential part of the company and would be a part of any decision making procedure. Moreover, the company acknowledges their rights and would provide assistance for improving their skills.

References:

Cohen, E. (2010) CSR for HR: A Necessary Partnership for Advancing Responsible Business Practices. UK: Greenleaf.

Pfeffer, J. (2010) Building Sustainable Organizations: The Human Factor. Academy of Management Perspectives. (2). P.34-45.

Ferrell, O. C., Fraedrich, J., Ferrell, L. (2013) Business Ethics. USA: Cengage Learning.

Blythe, B. T. (2014) Blindsided. USA: Rothstein.

Adekola, A., Sergi, B. S. (2007) Global Business Management. England: Ashgate.

Hamilton, C. (2013) Communicating for Results. USA: Cengage Learning.

Griffiths, K., Williams, R. (1998) A Learning Approach to Change. England: Gower Publishing.