Chapter Four

2. Managing Intercultural Diversity

2.1. Introduction

The intercultural city has a diverse population including people with different nationality, origin,
language or religion/belief. Most citizens regard diversity as a resource, not as a problem, and
accept that all cultures change as they encounter each other in the public space. The city officials
publicly advocate respect for diversity and a pluralistic city identity. The city actively combats
prejudice and discrimination and ensures equal opportunities for all by adapting its governance
structures, institutions and services to the needs of a diverse population, without compromising
the principles of human rights, democracy and the rule of law. In partnership with business, civil
society and public service professionals, the intercultural city develops a range of policies and
actions to encourage greater mixing and interaction between diverse groups. The high level of
trust and social cohesion help to prevent conflicts and violence, increase policy effectiveness and
make the city attractive for people and investors alike.

2.2. Norms, Values and World Views

2.2.1. Norms

Norms are sentences or concepts with practical, i.e. action-oriented (rather than descriptive,
explanatory, or expressive) import. Norms imply "ought"-type statements or assertions, in
distinction to descriptions which provide "is"-type statements or assertions. Some common
sentences that are norms include commands, permissions, and prohibitions. Some common
concepts that are norms include 'sincerity', 'justification' or 'honesty'. Another popular account of
norms describes them as reasons to act, believe or feel.

Kinds of Norms

Orders and permissions express norms. Such norm sentences do not describe how the world is,
they rather prescribe how the world should be. Imperative sentences are the most obvious way to
express norms, but declarative sentences also may be norms, as is the case with laws or
'principles'. Generally, whether an expression is a norm depends on what the sentence intends to
assert.
Those norms purporting to create obligations (or duties) and permissions are called deontic
norms. The concept of deontic norm is already an extension of a previous concept of norm,
which would only include imperatives, that is, norms purporting to create duties. The
understanding that permissions are norms in the same way was an important step in ethics.

2.1.1. Values

Important and enduring beliefs or ideals shared by the members of a culture about what is good
or desirable and what is not. Values exert major influence on the behavior of an individual and
serve as broad guidelines in all situations.

The following are some terms typically found in codes:

 Acceptance: Favorable reception or belief in something,

 Accomplishment: Doing or finishing something successfully,

 Accountability: Obligation or willingness to accept responsibility,

 Adaptability: The ability to modify behavior to fit changing situations,

 Adventurousness: Inclination to undertake new and daring enterprises, etc.

2.2.2. World View

A person's world view is the way they see and understand the world, especially regarding issues
such as politics, philosophy, and religion.

2.3. Cultural Reactivity

Culture can be defined as, the integrated system of socially acquired values, beliefs, and rules of
conduct which delimit the range of accepted behaviors in any given society. Cultural differences
distinguish societies from one another.

The Nature of Culture

Culture is based on the uniquely human capacity to classify experiences, encode such
classifications symbolically, and teach such abstractions to others. It is usually acquired through
enculturation, the process through which an older generation induces and compels a younger
generation to reproduce the established lifestyle; consequently, culture is embedded in a person's
way of life. Culture is difficult to quantify, because it frequently exists at an unconscious level,
or at least tends to be so pervasive that it escapes everyday thought. This is one reason that
anthropologists tend to be skeptical of theorists who attempt to study their own culture.
Anthropologists employ fieldwork and comparative, or cross-cultural, methods to study various
cultures. Ethnographies may be produced from intensive study of another culture, usually
involving protracted periods of living among a group. Ethnographic fieldwork generally involves
the investigator assuming the role of participant-observer: gathering data by conversing and
interacting with people in a natural manner and by observing people's behavior unobtrusively.
Ethnologies use specialized monographs in order to draw comparisons among various cultures.

2.4. The OECD Guidelines for Multinationals

The OECD (Organization for Economic Cooperation and Development) is a unique forum where
the governments of 30 democracies work together to address the economic, social and
environmental challenges of globalization. The OECD is also at the forefront of efforts to
understand and to help governments respond to new developments and concerns, such as
corporate governance, the information economy and the challenges of an ageing population. The
Organization provides a setting where governments can compare policy experiences, seek
answers to common problems, identify good practice and work to co-ordinate domestic and
international policies.

The OECD Guidelines for Multinational Enterprises are the most comprehensive instrument in
existence today for corporate responsibility multilaterally agreed by governments. Adhering
governments - representing all regions of the world and accounting for 85% of foreign direct
investment – are committed to encouraging enterprises operating in their territory to observe a
set of widely recognized principles and standards for responsible business conduct wherever they
operate.
General Policies

Enterprises should take fully into account established policies in the countries in which they
operate, and consider the views of other stakeholders.

In this regard, enterprises should:

1) Contribute to economic, social and environmental progress with a view to achieving

sustainable development.
2) Respect the human rights of those affected by their activities consistent with the host
government’s international obligations and commitments.
3) Encourage local capacity building through close co-operation with the local community,
including business interests, as well as developing the enterprise’s activities in domestic
and foreign markets, consistent with the need for sound commercial practice.
4) Encourage human capital formation, in particular by creating employment opportunities
and facilitating training opportunities for employees.
5) Refrain from seeking or accepting exemptions not contemplated in the statutory or
regulatory framework related to environmental, health, safety, labour, taxation, financial
incentives, or other issues.
6) Support and uphold good corporate governance principles and develop and apply good
corporate governance practices.
7) Develop and apply effective self-regulatory practices and management systems that foster
a relationship of confidence and mutual trust between enterprises and the societies in
which they operate.
8) Promote employee awareness of, and compliance with, company policies through
appropriate dissemination of these policies, including through training programs.
9) Refrain from discriminatory or disciplinary action against employees who make bona fide
reports to management or, as appropriate, to the competent public authorities, on practices
that contravene the law, the Guidelines or the enterprise’s policies.
10) Encourage, where practicable, business partners, including suppliers and sub-contractors,
to apply principles of corporate conduct compatible with the Guidelines.
11) Abstain from any improper involvement in local political activities.
2.5. Ethical obligation of multinationals

In the current era, organizations are changing their methodology of working and they are
expanding their vision. There operations are enlarging and they are leaving methods that are
conventional. Newer methods like offshore outsourcing, globalization, internet advertising are
changing the methodology of working. Business practices in the entire world are changing and
moral values are depleting because organizations are focusing towards making more profits.

Business ethics formally originated from 1980 's and it has transformed the methods of working.
Corporations are usually stressed to focus on ethical issues because the customers are suffering
from it and that is the reason why legal organizations are imposing obligations on multinationals.
As far as the history of ethical issues is concerned business ethics is both of normative and
descriptive nature. But as far as corporate practice is concerned this field is more of normative
nature. Business ethics are very important for corporations and in to be successful in the
corporate world they have to comply with the ethical obligations.

Multinationals are usually considered as the power house in the corporate world and in certain
countries they have their monopoly in certain aspects. But an area of concern arises that are these
multinationals practicing their undue rights? Are they free from all the moral obligations? Can
they practice whatever they want?

But, if by freedom of thought we are to understand the personal right of the individual to form on
all questions such internal convictions as he may judge right, this ethical freedom also has its
limits, since the inner spiritual life is at all events subject to conscience and to the moral order of
the universe, and is, therefore, bound by ethical obligations which no man may disregard.

2.5.1. Multinational Companies and Moral Obligations

Multinational companies are not free from moral obligations.  There will always be social
expectations of multinationals either from individuals, the government or consumers of a product
or service.  Multinationals need to behave morally and corporate leadership can be the guide for
how the corporation should act.
Laws are one way of making multinationals behave morally. Scholars make a good argument
about multinationals ability to escape laws by moving operations between countries.  Some