Chapter 10

Chapter 10
IHRM TRENDS and

FUTURE CHALLENGES
Chapter 10
For use with International Human Resource Management 7e ISBN-10: 1473719026
By Peter J. Dowling, Marion Festing, and Allen D. Engle, Sr. © Cengage Learning
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Chapter 10
IHRM TRENDS and
FUTURE CHALLENGES
C O N T E N T S
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 Vocabulary go to its section.
 Objectives
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 Introduction of contents.
 International business ethics and HRM

O F
 Global developments on the

TA B L E
criminalization of bribery and corruption

 Ethics-related challenges for
the HR function of the MNE
 NGOs
 Challenges in an uncertain world –
Chapter 10
Safety, security, and counterterrorism
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Vocabulary
 ethics
 external factors, organizational factors
 ethical relativism, absolutism, and universalism
 bribery
 ‘gifts’, ‘facilitating’, and ‘grease’ payments
 FCPA
 TI = Transparency International, Corruption Perceptions Index
 NGOs: The Red Cross, The Red Crescent, World Vision, Oxfam,
The Fred Hollows Foundation, Médecins Sans Frontieres,
 disaster protocols, risk management, ‘critical incidents’
 workplace violence, industrial theft
 in-house security, in-facility security
 industrial espionage, cyber-terrorism
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 terrorist threats: micro and macro levels
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Objectives
We comment on observed trends
and future directions:
 International business ethics and HRM
 Mode of operation and IHRM
 Ownership issues relating to IHRM requirements
of organizations other than the large multinational,
such as non-government organizations (NGOs)
 Safety, security, and terrorism issues
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Introduction
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These are not emphasized in
the general IHRM literature:
 International business ethics
 Mode of operation
 NGOs
 Emerging role of IHRM in contributing to
safety and security and dealing with terrorism
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Figure 10.1
A model of strategic HRM in multinational enterprises
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International
business ethics and HRM
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Ethics and IHRM
 Ethical relativism
no universal or international rights or wrongs
 Ethical absolutism
one should do what one would do at home
 Ethical universalism
there are principles of right and wrong which
transcend cultural boundaries
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Global developments on the
criminalization of bribery and corruption
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Bribery and corruption in
international business
 Bribery and corruption
is paying agents to do things inconsistent with the purpose
of their position or office so as to obtain an unfair advantage
 Bribery ≠ “facilitating” or “grease” payments
 US Foreign Corrupt Practices Act (FCPA)
 OECD Convention on Combating Bribery of Foreign Public

Officials in International Business Transactions
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Ethics-related challenges for the HR
function of the MNE
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International Assignees…
 Their ability to manage with integrity is job-relevant
 Pre-departure training should include an ethics component
To avoid cutting “ethical corners,” expatriates should:

 not be placed under unreasonable pressure to deliver good
financial results
 be given feedback and reinforcement
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Non-government organizations
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Non-govt. organizations (NGOs)
 Globalization has increased the scale and
importance of NGOs
 The above trend will likely continue well into
the 21st century
Prominent examples of NGOs:

■
Red Cross ■ Fred Hollows Foundation
■
Red Crescent■ World Vision
■
Oxfam
■
Médecins Sans Frontieres
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Challenges in an uncertain world –
Safety, security, and counterterrorism
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5 MNE corporate risk areas
1. In-facility emergency and disaster preparedness
2. In-facility security
3. Industrial espionage
4. Cyber-terrorism
5. Out-of-facility fire and travel risks36
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Chapter 10

IHRM TRENDS and

 International business ethics and HRM

 Global developments on the

criminalization of bribery and corruption

 US Foreign Corrupt Practices Act (FCPA)

 OECD Convention on Combating Bribery of Foreign Public

 Pre-departure training should include an ethics component

To avoid cutting “ethical corners,” expatriates should:

Prominent examples of NGOs:

5. Out-of-facility fire and travel risks36

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