Many companies operate …show more content…
Many times differences within international business transactions develop because the cultures’ ethical views and principles do not align. Ethics and morals affect the regulations and laws of that country. These differences tend to create a real challenge for business owners and managers when conducting business internationally. Those responsible for making decisions while conducting business abroad must consider labor laws, human rights, environmental regulations, corruption, and moral obligations, as well as other extenuating factors. Sometimes even the local population will object or disagree with the domestic …show more content…
Managers have the heavy task to create an atmosphere of respect and confidence, by respecting the rights of their employees. The employees will really take great pride in their responsibilities to help the organization succeed if they have a certain sense of standing with their employer, freedom, understanding, and a decent living wage. In underdeveloped countries, human rights and freedoms are often ignored. The establishments must not only respect the law but also respect the traditions of employment and compensation. (Gangone, 2010) Even employees in an underdeveloped country working for a corporation out of the United States or another well-developed country, will harbor resentments if they feel they are being taken advantage of. Disgruntled employees will only cost the company in the long run. The employees will either do bare minimum for the manager, the staff may also talk badly about the company which could cause people from doing business with them. Just like with Walmart, where people were being treated unfairly, the coworkers stood up to them. Which ended up costing Walmart quite a bit of money as a result.
There is the potential for many negative implications surrounding employment practices abroad. Companies choosing to incorporate inferior employment practices of the host company stand to disappoint