How do ethical practices in both China and India impact organizational decision-making?
An essential part of governance is business ethics. Businesses should reconsider their activities outside of their native nation at a time when they are primarily concerned with profitability. Every country has a different climatic and ethical climate, and ethics include concerns like bribery, human rights requirements, social responsibility, cooperative governance, and discrimination (Ghandour, 2019). Nuseir and Ghandour (2019) claim that ethical issues such legal responsibility, overbilling, child labor, social media risks, workplace safety, bribery, cybercrimes, deceptive ads, privacy concerns, and fraud have caused US corporations to suffer significant losses in various host nations. In terms of their distinctive ethical and cultural environments, India and China are not unusual. Therefore, it is essential to have a clear awareness of all the ethical standards that apply in the host nations while making acquisition selections.
How do China’s and India’s human rights legislation compare to those in the United States?
American workers are well protected by the law. The Department of Labor (DOL) is the foundation of all legislation. They are the Social Security Act (GLI, 2023), the Occupational Safety and Health Act, and the Fair Labor Standards Act (FLSA). All businesses doing business in the US are strictly bound by the laws. On the other hand, the country is home to powerful labor unions and advocacy organizations that are ready to stand up for their members against even the smallest violation of the law (GLI, 2023).Any US corporation dealing with China has a moral conundrum. The host firms hire Chinese employees without contracts, subject them to unsanitary working conditions, and do not provide them with the fundamental occupational safeguards even though foreign businesses are obliged to follow the law (GLI, 2023). Despite being an unlawful practice under Uyghurs, China has been accused of running labor camps in Xinjiang (GLI, 2023). The country only accepts the All-China Federation of Trade Unions (ACFTU) and forbids independent labor unions. Therefore, collective salary negotiating is the only kind of collection bargaining that is permitted. Labor rallies are frequent in China because the ACFTU, an instrument of the CCP, serves the interests of the government more than those of the populace (GLI, 2023).However, the power of the various labor unions in India varies. Only unions with political ties and governmental ownership are seen as powerful. Due to the underrepresentation, labor disputes often result in missed workdays in India. A number of legislation have been implemented, including The Industrial Disputes Act to clean up the country’s labor environment and The Code on Wages, which unified all the current laws (GLI, 2023). Along with these actions, the nation passed the Maternity Benefits Act in 2017 and the A Child Labor Act in 2016, respectively (GLI, 2023). It also implemented the Industrial Relations Code in 2016.While the US has highly developed labor law, according to a comparison of the two legal systems, India presents itself as a challenging working environment due to frequent labor uprisings, but it has aspirations of becoming a popular worldwide corporate destination. China, on the other hand, has a liberal labor market and what seem to be slackly administered legislative frameworks (GLI, 2023). It will be simple for the foreign company to operate in the nation if it has a solid understanding of the labor market.
How are these nations’ cultures and values different from those in the United States?
In 2023, Hofstede Insights predicted that China and the United States will be at opposing poles. The characteristics of collectivism, moderation, and long-term focus are important to Chinese culture. Power gap, indulgence, individuality, and long-term orientation are some areas where India and the United States diverge. According to the dimensions, the US culture is rated highly in indulgence, short-term orientation, and strong uncertainty avoidance. It also has a reduced power distance. A US company operating in one of these host nations must reduce these cultural differences in order to avoid cultural misunderstandings and foster host acceptance.
What effects do economic factors have on morality and corporate social responsibility in these nations?
Ethics and CSR are directly influenced by economic issues. Because of the robust institutions they create, powerful economies are more likely to be conscientious about CRS and ethical issues (Kim, Krishna, & Dhanesh, 2019). While the US is committed to its CRS rules in this regard, China and India are more permissive. In contrast to how the US maintains its CRS procedures, the ethical environment is culturally and ethically very well safeguarded. According to some, poor countries like India cannot successfully compel powerful corporations to comply with their CSR requirements, leading to gaps in their procedures (Kim, Krishna, & Dhanesh, 2019). Mega cooperation often leverages the activities of its employees by paying high taxes and hiring many of people.
What, if any, organizational ethical problems exist in China and India in this case?
Climate change problems and labor issues present difficulties for China and India. The US has led several discussions to reduce the amount of carbon and related components in the atmosphere. The nation has been mindful of its industrial processes in order to accomplish this. By supporting the green revolution, US firms are urged to adopt sustainable development. China, which would be severely harmed by efforts to reduce atmospheric carbon, hasn’t been very cooperative in climate negotiations, however. India, on the other hand, is having trouble putting sustainable policies into place in its already filthy industrial sector (UNDP, 2022). Before beginning the purchase process, a business seeking to operate in these nations should have a direct environmental discussion with the host stakeholders. Similar discussions need to focus on concerns relating to human rights, which are flagrantly abused in China and India (UNDP, 2022). China has failed to safeguard its inhabitants from exploitation, while India is notorious for its use of child labor.
References
GLI. (2023). Employment & labor laws and regulations. https://www.globallegalinsights.com/practice-areas/employment-and-labor-laws-and- regulations/.
Hofstede Insights. (2023). Country comparison tool. https://www.hofstede-insights.com/country- comparison-tool
Kim, S., Krishna, A., & Dhanesh, G. (2019). Economics or ethics? Exploring the role of CSR expectations in explaining consumers’ perceptions, motivations, and active communication behaviors about corporate misconduct. Public Relations Review, 45(1), 76-87.
Nuseir, M. T., & Ghandour, A. (2019). Ethical issues in modern business management. International Journal of Procurement Management, 12(5), 592-605.
UNDP. (2022). Climate change and the business and human rights agenda. https://www.undp.org/publications/climate-change-and-business-and-human-rights- agenda
write