Cultural Differences in International Business
Cultural Differences in International Business
A global business consultant once defined culture in international business as
“Culture is how we do things here”…
This definition sets the tone for what is perhaps one of the most challenging tasks for global managers today: how to lead and manage cultural differences while operating abroad effectively. In particular, international business practices related to child labor, human resources management policies, and ethical standards can vary from one country to another.
For this assignment, you need to analyze and provide solutions for a real-world case involving a U.S. multinational doing Business in Pakistan.
Read the case study: Cultural Differences in International Business Pakistan (link opens in a new tab)
Assume that you are an International Business Consultant, so Iād like you to answer the following questions:
1- What would you advise the management team of this U.S. multinational to do about the situation in Pakistan?
2- Should this U.S. multinational adapt to how the labor culture is in Pakistan? or should the company enforce American labor standards upon a different culture? – Explain why or why not
3- What are the global standards for child labor?
ANSWER
Cultural Differences in International Business
All work done by children cannot be classified as child labour. There is child labour, and there is child work. Child labour involves any form of work that affects children’s health and personal development. In this case, the health and the personal development of the children working in the company are affected. Stein had a conversation with a child, and he believed that the child was no more than eight years old. An 8-year-old child should not be working. They should be enjoying their childhood and going to school.
The US company should consider paying more for their products so that the company in Pakistan can employ more adults at a higher cost. Increasing the cost of its products might lead to the company losing some of its customers, but they can control its narrative by creating a campaign against child labour (Hampden-Turner et al., 2020). They can show that they are working towards making life better for developing countries such as Pakistani by holding campaigns against child labour and calling on the parents of the children to take the jobs and let their children enjoy their childhood. Most customers would rather buy expensive products made ethically than cheap products obtained through child labour; Stein should consider upholding the ethical guidelines of their company and the company’s image.
Question 2
Imposing the labour standards of the US in another culture will not work. The first thing Stein needs to understand is that his personal guilt does not matter in this case and that he cannot compare his daughter with the Pakistani girls. They all have different life. This is because Pakistani is a developing country. Banning child labour is out of the question for the company because, as he was told, they could be scavenging or begging if they are not working in the company. Adapting the labour standards in Pakistan is also out of the question. This is because the company’s image will be affected if it continues to profit from child labour. The company should not impose the American standards and should also not adopt the Pakistan standards. The company should focus on creating employment for the parents in Pakistan. If the parents are making enough money, they will not need the children to work, and they will have enough money to take their children to school. This will also improve the company’s image and help in increasing its sales.
Question 3
According to the international labour standards, child labour is a violation of fundamental human rights. The minimum age convention, 1973 (No. 138) states that the general minimum age for admission to employment or work is at 15 years; 13 years for light work. The minimum age for hazardous work is 18 years and 16 under strict conditions. The general minimum age for child work is 14 years, and 12 years for light work where the economy and the educational facilities ate not sufficiently developed.
A child is anybody under the age of 18. This convention ensures that the worst forms of child labour are eliminated, including all forms of slavery and any articles that are similar to slavery. Using children for hazardous work and overworking them is harmful to their health (Junaid et al., 2017). Child labour guidelines are in place to prevent the misuse of children. This involves the use of children for unpaid labour, child trafficking and child slavery. Child labour has, however, been known to be utilized in developing companies. In the case of the Thomas and Timothy company, they should consider looking at the child labour guidelines and creating company guidelines based on these laws.
Question 4
There is a cultural conundrum facing the company in this case. On one hand, it is in the Pakistan culture to hire underage children for cheap labour. On the other hand, it is considered child labour by global standards; however, the global standards do not apply to developing countries as most of the parents cannot afford to feed and take their children to school, which has led to mothers going to work with their children. In this case, I would advise the plant managers to let children who are 12 years and above work in the plants. According to the child labour laws, children above 12 years can do some light work (Cho et al., 2019). This means that the company can employ the 12 and 13-year-olds in the plant to do some light work part-time to supplement their family incomes.
The workers in the plants can also focus on getting more pay for their work. This will increase their income, helping them provide for their families and even put all their children, including the girls, through school. The children should focus on being children and not focus on making money for their families. However, it is okay for them to take light work in the plants to supplement their family income. They should report or quit whenever they feel they are being overworked as every child has the right to enjoy their childhood.
References
Cho, S. H., Fang, X., Tayur, S., & Xu, Y. (2019). Combating child labour: Incentives and information disclosure in global supply chains. Manufacturing & Service Operations Management, 21(3), 692-711.
Hampden-Turner, C., Trompenaars, F., & Hampden-Turner, C. (2020). Riding the waves of culture: Understanding diversity in global business. Hachette UK.
Junaid, M., Malik, R. N., & Pei, D. S. (2017). Health hazards of child labour in the leather products and surgical instrument manufacturing industries of Sialkot, Pakistan. Environmental Pollution, 226, 198-211.
