CSR is important for the multinationals to perform in foreign countries because of the growing competition and other challenges that are faced by an organization; the management theory is used as a tool to encounter such challenges ( Ismail, 2009). Donaldson (1989, cited in Secchi, 2007 :359) CSR also acts upon the firms managerial decisions when there are problems such as clashes, protests and strikes, these lay down the moral values, above profit maximization. Managerial theories performance depends on stakeholders trust, co operation and acceptance. Garrige and Mele ( 2004) Detomasi( 2008) were all of a view that social power drives the social responsibility as the corporation is a corporate citizen, who has investment in the community. Davies (1960) stated that CSR is a political power and therefore must be used responsibly as a business is social institution; its power comes from both within and outside.
Thus, the opportunity of first mover advantage can be provided when doing business in emerging markets. Besides, the advantage of emerging markets is gaining prestige. Emerging markets provide a chance for M&S to enter a new market, by taking the existing brands, goods and services, to reach the international customers. M&S able to gain prestige, as well as increase the brand awareness, when the local customers recognized that M&S expands the business to emerging markets. M&S can also increase sales and revenue, as M&S has access to a new market, and sells goods and services to a bigger market.
Influences of Cultural Differences in Communication Due to the cultural difference, it may give rise to several issues that influence working relationship among Malaysians and Americans. According to Hoecklin (1994), an organization might work with people from different cultures, as well as languages and customs. This may lead to ineffective communication, misunderstandings and even fail in the business. Every cultures hold their own believes and practices. Therefore, to work with company from different cultures, avoid mismanaging cultural differences is important for an organization to develop relationship among each other.
Diversity when properly managed and implemented, contributes immeasurably to the growth of a business. As such, prioritizing diversity in business activities as a social responsibility does not only benefit the community the business is located but also promotes growth within the business environment. Diversity has been seen to be the premise for a healthy human reproduction and development. It is also needed to complement the ever increasing rigidity and interdependence that exists in the global business environment. Nielsen and Nielsen, 2013 postulated that “global firm have been shown to perform better because of diversity.” But they further explained that the management of diversity is very crucial as the world is increasingly becoming interconnected and complex.
I think globalization is very important and it become more necessary for now socials, so I want to talk about globalization. Globalization is the fact that different cultures and economic systems around the world are becoming connected and similar to each other because of the influence of large multinational companies and of the influence communication. Globalization will increase opportunities for firms to expand production in foreign markets, and countries has many benefits from economic synergy and collaborate in handing political, social and economic challenges and broad market allow producers to get more goods , and the global supply networks more purchasing options for the public and private entities. I collet some information from
The developing countries have achieved this progress by reforming their policies, institutions, and infrastructure. The existing market structure, the market potential and the expected increasing returns are the leading criteria for firms for investment. With the growing global competition, the world economy provides a large source of supply and demand, so that international trade increases the possibilities for an adequate through specialization and complementary strategies. Economies of location can be seen as a prominent factor in globalization of industries. The transnational co-operations (TNC) are important market players in world trading system.
Moreover, the firms can also benefit from the competition against groups of local firms of a relatively homogeneous kind when entering foreign markets. However, with the increasing cultural distance and wider range of host countries, the abovementioned advantages will be weakened or neutralized. At the same time there will be higher levels of complexity and uncertainty for transaction cost, managerial decision-making regarding MNE strategies and organizational choices (Shane et al., 1995), the management of an MNE's portfolio of foreign subsidiaries from a culturally diverse country base (Tihanyi et al., 2005), and human resource management (Schuler, Dowling, & Cieri, 1993). Generally, such increased operational difficulties
We are living in internationalized world, global trade keeps increasing and more companies from many countries around the world are going national at an astounding rate. This is reflection of strong economic growth around the world and globalization of the economy and corporations. Offices are spread from one continent to another and travel is essential to business. This is the reason why “business travel is increasing,” states Hubert Joly, president and chief executive officer of CWT. Nowadays in business world, you might well find yourself as an international manager in a foreign subsidiary of an American firm, facing on a daily basis all aspects of international management, or could travel to country such like Japan, negotiating export sales
Understanding diverse cultures and adapting business operations to suit different cultures is vital part of International business expansion. According to David (2009, p. 7), “the failure to understand cultural differences can bear serious consequences”. In addition, knowledge for and appreciation of other cultures is
Current situation of Cultural Diversity in the workplace in Hospitality Industry Because of globalization, organizations in hospitality field not only compete with domestic market but also foreign market. Globalization is one of the causes that contributed most to workforce diversity. Globalization leads to the immigration of employees that make