Professional Documents
Culture Documents
Before discussing the development of codes of conduct, a brief survey of those in the
international community is helpful in understanding the issue. As the globalization of the
economy progressed, MNCs were economically motivated to transfer their production
bases to developing countries, such as Latin American countries and South East Asian
countries, for low wage labor and less employee protection. Simultaneously, the
international community increased criticism of MNC behavior in host countries while
various governmental and non-governmental organizations drafted guidelines to control
the MNCs’ business conduct. Generally, codes of conduct in the international community
have been developed by two parties: international organizations such as the United
Nations or the Organization for Economic Cooperation and Development (OECD), and
private parties such as MNCs or non-governmental organizations
Following are the different codes of conduct proposed by the international organizations
during the globalization era:
UN Code
Among the many efforts by international organizations to create norms that regulate
MNC business conduct, the United Nations’ 1974 Code of Conduct for Multination
Corporations
(“UN Code”) was the first. The UN Code had been under development since 1974, when
the Economic and Social Council established a commission on MNC’s. The commission
was directed to study the role of MNC’s in the international economy and to draft a code
of conduct for them, which later became the UN Code. The UN Code consists of seventy-
one articles. The wording is somewhat generic and no concrete burden is imposed on
MNC’s. For example, Article 14 regarding human rights simply states that Multinational
corporations shall respect human rights and fundamental freedoms in the countries in
which they operate.” Despite its weakness, the UN Code met strong opposition from
industrialized countries, especially from the United States, and was not officially adopted.
While talking about Suzuki and Peugeot one must have to know a brief description of
these companies i.e. what these companies are about. So below mentioned is the brief
description of Suzuki and Peugeot respectively. The companies follows these basic six
principles of business.
principles are:
1. Antidiscrimination
2. Fair Employment
3. Equal wages
4. Job training
5. Promotion of non-white management
6. Improvement of the quality of life outside the workplace.
SUZUKI (INTERNATIONAL)
Suzuki was fonded in 1909 and is a japan based company, primarily dealing with the
manufacturing of automobiles. Its headquarter is based in japan and is the main head for
every concern. As the era of globalization arrives Suzuki became to expand cross
nationally which leads to adopt the international managment style as for the sustainability
of the company, thus they adopted those atyles which are necessary and being very
successfully ruling in the economical world. The management style adopted by Suzuki
will be mentioned later in the report.
PEUGEOT
Peugeot has been manufacturing cars since 1889. The Peugeot Frères company was
officially founded in 1810 when the Peugeot family bought a cereal mill at Sous
Cratet and set about capitalizing on the Industrial Revolution by converting it into a
steel factory.
This factory began producing sheet steel and various tools but it was handsaws
which inspired the famous emblem of the company. From the 1850s the lion emblem
was stamped onto Peugeot made products to symbolize the strength and flexibility of
the steel.
Peugeot is a company founded in Paris area of France. It basically focuses the elite desire
of the elite class consumer. it is a privately held company and a subsidiary of PSA
Peugeot Citroen. It also operates across the nation but is limited to only the European
nations, it a French company. The management style adopted by Peugeot will be
discussed in the later part of the report.
MANAGEMENT STYLE OF JAPANESE CORPORATION (SUZUKI)
As mentioned earlier that Suzuki is a Japanese corporation and it has its own
management practices that it follows across the nation. These practices are recognized by
the US code which are the universally accepted laws that every mnc have to adopt while
becoming globalized, but in the case of Japanese corporation a set of management style
have been devised by JAMA (Japanese automobile association) and that they follow
across the nation boundries in accordance with the US code.
As far as my study is concern I pointed out that it is the world largest industry due to its
gdp output of $4.883 Trillion, and is the world’s largest automobile manufacturer and
exporter.
• Employees are recruited directly from school rather than from an open job
market
• Employees are expected to stay with the company all their working life
• They can expect lifelong job security
• The importance of the recruitment
• A real family-type social organization
• A major motivation for employees to stay long in one company
• A system under pression
SUZUKI (PAKISTAN)
Pak Suzuki Motor Company Limited is a subsidiary of Suzuki Motor Corporation (SMC)
Japan. Suzuki is the 12th largest automobile manufacturer in the world, employs over
45,000 people in 23 countries
Pak Suzuki Motor Company Limited is the largest automotive company in Pakistan
employing over 1,500 direct/indirect staff across Pakistan. Our most valued asset is our
employees; we provide a challenging and conducive environment with a chance of
tremendous growth opportunities, as we believe in continuous learning and development
of our employees & their continuous effort and hard working made us market leader, we
are committed to continue the same.
Corporate Strategy
Pak Suzuki is built on the idea of a responsible corporate citizenship thereby managing
environmental, safety & occupational health matters as an integral part of our business. In
fulfilling this responsibility Pak Suzuki adheres to the following principles:
1. We are committed to provide top quality products to the satisfaction and requirement
of our customers.
2. We conduct our operations in compliance with applicable environmental,
occupational health & safety laws and regulations.
3. We recognize the interrelationship between energy and the environment, and we
promote the efficient use of energy throughout our system
While in the comparison of home and host, I come to point out some of the
difference between the management as well as business practices. Well in the home
country Suzuki corporation has given equal rights to their employees while making
decision, group of each department put their views then all the views are interpret and
then a decision is make while in Pakistan no such rights are issued to their employees,
only the top management are responsible for decision making. There is a lifetime
employment opportunity in the home country and the employees are directly recruited
from the school life and these type of employees are fully committed well in host country
there is no lifetime employment and they hire the employees on the contract bases. In
both the nations the pay and promotion system heavily dependent upon seniority.
PEUGEOT
supervising, monitoring, and advising the Managing Board on: (i) the
Company's performance, (ii) the Company's strategy and risks inherent to its
business activities, (iii) the structure and management of the internal risk
management and control systems, and (iv) compliance with legislation and
regulations;
progress,
conditions.