MGT616 Global Management Case Study Sample

MGT616 Global Management Case Study

Task Summary

Research, analyse and develop a case report in 2500 words (+/- 10%) related to the responsibilities of directors of multinational companies with respect to business ethics and Corporate Social Responsibility (CSR) in a nominated country. The case report needs to identify the responsibilities of directors in the nominated country, with an emphasis on an ethical/CSR issue as well as an analysis of impact of failure to comply with such responsibilities.

Please refer to the Task Instructions for details on how to complete this assessment.

Context

This assessment will provide you with an opportunity to research and develop a case report on the business ethics and CSR responsibilities of directors of multinational organisations operating in non- western countries. This is important in globally operating organisations given that cultures, norms, perspectives, traditions, and regulations differ, as countries are also faced with different ethical and CSR issues and priorities. This understanding is important to managers who require a global mindset and understanding of their business ethics and CSR responsibilities. In addition, insight is required into contemporary matters which global managers could face, such as corruption/bribery, compliance to the Geneva Convention (for organisations operating in war zones), modern slavery, sustainability and environmental issues.

Task Instructions

You need to prepare for and approach this task by studying the following modules:

• Module 5: Principles of business ethics and international business responsibilities

• Module 6: Managing business ethics internationally

• Module 7: Principles and characteristics of CSR

• Module 8: Responsibilities of directors of multinational enterprises with respect to business ethics and CSR In addition to these learning materials, it is necessary to research widely including in academic, government, and business sources for appropriate additional material.

Your facilitator will provide you with the name of the country for this assessment. To complete this assessment, you need to carry out the following tasks:

Task 1.

Choose one of the business ethics and CSR issues from a list provided. This could include bribery/corruption, Geneva convention, sustainability and environment, modern slavery.

Task 2.

Research the business ethics and CSR practices of the nominated country. Analyse the responsibilities of directors of multinational companies with respect to your chosen business ethics and CSR issue.

Task 3.

Research and analyse the impact of non-compliance with a director’s responsibilities.
Below is a guide to structuring the report:

1. Introduction/Background: Summarise background information on the nominated country and issue chosen; then, describe the objective of the assessment (20% of the word count).

2. Analysis: (60% of the word count)

a) Research and analysis of the responsibilities of directors in your nominated country related to your chosen issue.
b) Research and analysis of the consequences to directors of not complying with their responsibilities in the nominated country.

3. Key findings: outline the main differences and similarities, and their implications on doing business (15% of the word count).
5. Conclusion: discuss whether your report has been able to achieve its aim (5% of the word count).
6. Reference list: use the APA 7.0 referencing system.
7. Appendices: for any additional but not mandatory information.

Solution

Introduction

The two issues which are enlisted for the chosen country Argentina in this report are Modern Slavery and sustainability and environment. There have been observed few instances in the country related to modern slavery due to which the country faced problematic issuers in making development in the international domain. As per the MBA Assignment Experts, The report would discuss in the analysis section the two primary issues concerning Argentina in detail focusing on the necessary roles and responsibilities of the directors.  Furthermore, in the key findings, the part focus will be given to showcasing similarities and differences of the issues with necessary implications for doing business activities.   

Analysis

Modern SlaveryDiscussions

The visualization representing modern slavery is entwined with several social issues a large portion of economically underpowered people suffers from. It includes domestic servitude, forced labour, debt bondage or bonded labour, forced child labour, forced marriage, slavery as well as human trafficking. An act was initially introduced by the Australian Government in 2018 to propose some amendments to overcome these miseries. The same act is implied upon Argentina to fight against the problematic attributes associated with modern slavery. Being an underprivileged nation, it is surrounded by enormous problem employment issues for which the poor people are left with no choices but to accept slavery to earn bread for their families. According to the laws of the constitution, slavery was partially abolished from Argentinian boundaries in 1853 however, the law wasn't much impactful.The Australian Modern Slavery Act was the first to put forth the required and detailed steps to fight such discrimination and inhumanity (Dean & Marshall, 2020). These legislations can be further implemented in countries that are below the poverty line and faces tremendous problems concerning modern slavery.

Modern Slavery Imposed upon Argentinian People

• Workers are not provided with the convenience to deny performing assigned tasks on basis of deception and coercion as they were never treated as an equal by their supervisors or managers.  

• Workers mostly suffer from deprivation of freedom as they were mostly treated like vermin.

• Workers will receive detrimental aftereffects if they intend to protest against ongoing custom.

• Workers aren’t paid with justified remuneration and promised entitlement.

• Workers are forced to work extra hours without excess wages and that too within unsafe working environments such as workers in mines (Chandrasena, 2022).

Responsibilities of Directors of Argentina to Fight off Modern Slavery

Steps to be taken by the Argentinian Government

• It should introduce laws that will help to set forth equal working standards for everyone.
• Introducing legislation is impactful on a global scale to receive a positive response in terms of preventing modern slavery.  

Steps to be taken by Civil Society

• The civil commissions of Argentina should raise awareness campaigns against modern slavery and keep the facts transparent.
• Civil societies can promote effective practices through rallies, official announcements and open forums to fight against these illegal actions (Ford & Nolan, 2020).

Steps to be taken by Businesses

• The human rights of workers should be imposed with foremost importance.
• Globally expanding businesses should opt for critical decision-making and make changes in rules to fight the slavery custom.

Steps to be taken by Investors

• Investors are asked to integrate the risk factors of modern slavery through risk assessments and state clear norms for their investment process that would cover the rights of workers.

• Investors should establish an engagement with investees and formulate a firm knowledge about their approach to workers' handling and oppose any unequal behaviour entertained by the companies. 

Sustainability and Environmental Discussions

Mankind has stepped into the 21st century with the baggage of biased issues mostly faced by the mediocre as well as people below the poverty line. Besides the third-world countries, several first and second-world countries remotely face similar issues in terms of business sustainability. However, being economically and socially equipped leverages the above two, hence the troublesome consequences are mostly faced by third world countries such as Argentina, Finland, Malaysia and many more. Over the years, numerous corporate issues of business organizations have scratched the peace global civilization was promised to be provided (Kiseľáková et al., 2019).

Sustainability and Environmental Issues of Business in Argentina

• Argentina is low on youth employment as capitalism is not much promoted by the country, hence youths are mostly forced into slavery.

• The Argentinian Government doesn't impose enough exposure upon the advantages of workers and prefers to stall the opportunities for critical decision-making.

• The jurisdiction system is weak on business regulations and tends to interfere in less amount.  

Steps to be Taken by Business

• Authorities need to connect with the core demand of employees to have some clear ideas.
• Authorities need to perform effective behaviours to gain the trust of employees

Steps to be taken by Investors

• They should perform prior research on companies they are going to invest in and retrain themselves if there are any issues regarding employee inequality in the organization.

• Investors should change their core principles and indulge in more factors that would support the sustainability of businesses (Tur-Porcar, Roig-Tierno&Llorca Mestre, 2018).

Steps to be taken by the Government

• The government authorities should come up with laws to support the constant improvement of working stability and the environment of organizations. 
• Government should narrate the required leadership type for individual industries to let them have a clear overview regarding behaviours in the working place.

Consequences of directors not complying with the responsibilities

The government of Argentina must comply with necessary aspects related to modern slavery as stated earlier which will help the country to abolish the slavery system prevailing in the country. In this regard, the role of the government will be vital to fighting against modern slavery in the country which would assist in developing a discrimination-less society. Otherwise, Argentina will observe a work culture embedded with discrimination which will turn out to be a negative aspect for the country (Crane et al., 2021). At the same time, it would prove to be detrimental to society in terms of economic development. 

Civil society

If civil society does not show its willingness in complying with necessary legal aspects related to modern slavery then business risks will be aggravated in Argentina which will, in turn, hamper functional activities. More importantly, there would not be any comprehensive policy without which organizations cannot be able to continue their activities accordingly in the country. At the same time, there would not be any suitable measures based on which society, as well as a business operating here, will be able to perform accordingly (Esquilar, 2021). People living in society would need to understand the necessity of abolishing the aspect of modern slavery in Argentina would make an eventful contribution to improving the living standard of the people. Simultaneously, it would bring change in the mindset of people. 

Business

Employees working in business organizations will not learn the aspect of paying respect to each other, as a result of which dissatisfaction would crop up in organizations. It would harm operational activities thereby creating hindrances in the progression activities of business firms. Modern slavery often is perceived as a transnational crime that if not abolished would create severe difficulties for pee living in Argentina. Since Argentina is not that stable economically therefore any kind of modern slavery would be harmful to society. Consequently, businesses operating there would not get the prolific scope of establishing a suitable work culture within firms based on which they would be able to make a rapid progression in their activities. 

Consumers

The existence of modern slavery would influence the purchasing decisions of the customers if not obeyed the necessary rules to prevent it. In this respect, it would be necessary for the government of Argentina to give education to the people who have the conventional mindset of having modern slavery.  It would be helpful for them to understand the relevance as well as necessity to change the mindset based on which it would obtain the advantage of being propelled in a significant manner (Christ & Burritt, 2021). The act of not complying with modern slavery would increase the change of raising the lack of awareness among the public regarding the aspect thereby considerably harming social development. 

Investors

Last but not the least, if investors do not comply with their duties and responsibilities regarding modern slavery then it would create necessary risks related to business activities in the country (Willert, 2021). It would generate dissatisfaction among the workers of Argentina which would once again be a negative aspect for the country in terms of growth and prosperity. 

The above discussion has clearly shown the necessary consequences related to not abiding by the responsibilities of directors (Richards, 2022).  Therefore, the government of the country needs to come up with effective measures based on which society would get the scoop of advancing effectively. 

Key findings

Main differences and similarities between modern slavery and sustainability and environment and implications in doing business in Argentina

Modern slavery is considered to be a movement, recruitment and harbouring and receiving of the children of men and women with the usage of force and coercion. The following leads to the purpose of exploitation. The concept of human trafficking is considered to be illegal in many parts of Argentina and is considered an illegal trade. The purpose of the same is related to reproductive slavery, forced labor and any kind of modern slavery. Human traffickers are considered to be exploiting foreign and domestic victims that are there in Argentina (Rioux, LeBaron&Verovšek, 2020). Regarding that sustainability and the environment in Argentina, the main issue regarding the samein Argentina leads to pollution and the loss of agricultural land. The soil of Argentina is said to be threatened by deforestation and erosion. The country is seen to be endorsing the Framework of the Coalition that is committed to supporting short-lived climate pollutants. 

Regarding the similarities, it can be said that modern slavery is said to be included in the sustainable developmental goal and the following promotes sustained sustainable economic growth and inclusive, full and productive employment. Modern slavery and sustainability and the environment do go hand in hand. The following is considered to be an encouraging combination that makes effort in eradicating the global woes that are much easier to focus on and succeed (Fresán et al., 2019). Enforcing laws regarding modern slavery is considered to be an issue that could reduce carbon dioxide emissions. Modern slavery is one of the important issues that are related to the same. The local livelihoods of Argentina seem to be destroyed as a result of the various environmental and sustainability. The same could have rendered the people less vulnerable to falling victim to modern slavery. 

Implications

The different implications of modern slavery in doing business in Argentina are related to the workers having fewer protections from the inadequate laws and regulations. It is also related to the weak or the non-existent enforcement and is also related to poor business and government accountability. Additionally, it has been observed that the organization's diverse worker types are subject to widespread discrimination.Argentine workers are seen to have fewer safeguards due to insufficient laws and regulations (Crane et al., 2021). The following therefore can lead to an organized crime that seeks in exploiting the crimes of vulnerable people. 

Sustainability in business refers to conducting operations with minimal negative effects on the environment, local community, and society at large. The following generally addresses the categories such as the effect of the environment in the business and the effect of the society in the business. Sustainability in the business helps in leading a business to its success. The environment in business helps in making responsible decisions in the business that leads to reducing the business income and is considered a negative impact on the environment (Obisesan&Olayide, 2021). Business in Argentina, therefore, needs to use sustainable materials in case they are related to any kind of manufacturing process. Furthermore, the companies need to rely more on using renewable energy sources. 

Conclusion

The above study focused on the issues such as modern slavery and the sustainability and the environment and the country that is focused on in the following study in Argentina. The first section of the study focused on the background information that is related to the following issues mentioned. In the analysis section of the study, the researcher discussed the responsibilities of the directors related to the chosen issue in Argentina. Followed by, the next section of the study discussed the consequences to the directors that do not comply with the issues undertaken. Furthermore, in the analysis section of the study, the researcher discussed the differences and the similarities of the issues mentioned. Moreover, the implications that are related to the issues in doing business in Argentina were also discussed in the last section of the study. 

Reference List

Chandrasena, U. (2022). Can Willing Migrant Sex Workers be Real Victims of Human Trafficking? A WPR Analysis of the Australian Modern Slavery Act Inquiry Report. International Journal of Gender, Sexuality and Law, 2(1), 48-72. Retrieved From: https://www.northumbriajournals.co.uk/index.php/IJGSL/article/view/1255/1614 Retrieved On: 16.07.2022

Christ, K. L., & Burritt, R. L. (2021). Exploring effectiveness of entity actions to eliminate modern slavery risk–Early Australian evidence. The British Accounting Review, 101065. Retrieved from: https://www.newswise.com/pdf_docs/163909405734036_Christ%20and%20Burritt%20-%20BAR%20Effectiveness.pdf Retrieved on: 16.07.2022

Crane, A., LeBaron, G., Phung, K., Behbahani, L., & Allain, J. (2021). Confronting the business models of modern slavery. Journal of Management Inquiry, 1056492621994904. Retrieved from: https://journals.sagepub.com/doi/pdf/10.1177/1056492621994904 Retrieved on: 16.07.2022

Crane, A., LeBaron, G., Phung, K., Behbahani, L., & Allain, J. (2021). Confronting the business models of modern slavery. Journal of Management Inquiry, 1056492621994904. Retrieved from: https://journals.sagepub.com/doi/pdf/10.1177/1056492621994904 Retrieved on: 16.07.2022

Dean, O., & Marshall, S. (2020). A race to the middle of the pack: An analysis of slavery and human trafficking statements submitted by Australian banks under the UK Modern Slavery Act. Australian Journal of Human Rights, 26(1), 46-73. Retrieved From: https://www.tandfonline.com/doi/pdf/10.1080/1323238X.2020.1712515 Retrieved On: 16.07.2022

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Ford, J., & Nolan, J. (2020). Regulating transparency on human rights and modern slavery in corporate supply chains: the discrepancy between human rights due diligence and the social audit. Australian Journal of Human Rights, 26(1), 27-45. Retrieved From: https://www.tandfonline.com/doi/pdf/10.1080/1323238X.2020.1761633 Retrieved On: 16.07.2022

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Kiseľáková, D., Šofranková, B., Gombár, M., Čabinová, V., &Onuferová, E. (2019). Competitiveness and its impact on sustainability, business environment, and human development of EU (28) countries in terms of global multi-criteria indices. Sustainability, 11(12), 3365. Retrieved From:  https://www.mdpi.com/2071-1050/11/12/3365/pdf Retrieved On: 16.07.2022

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Richards, H. (2022). Risk, Reporting, and Responsibility: Modern Slavery, Colonial Power and Fashion's Transparency Industry. International Journal for Crime, Justice and Social Democracy, 11(2), 47-60. Retrieved from: https://www.crimejusticejournal.com/article/download/2378/1233 Retrieved on: 16.07.2022

Rioux, S., LeBaron, G., &Verovšek, P. J. (2020). Capitalism and unfree labor: a review of Marxist perspectives on modern slavery. Review of International Political Economy, 27(3), 709-731. Retrieved from: https://eprints.whiterose.ac.uk/149433/22/Rioux%2C%20LeBaron%20and%20Verovsek%20-%20Capitalism%20and%20unfree%20labour.pdf Retrieved on: 16.07.2022

Tur-Porcar, A., Roig-Tierno, N., &LlorcaMestre, A. (2018). Factors affecting entrepreneurship and business sustainability. Sustainability, 10(2), 452. Retrieved From:  https://www.mdpi.com/2071-1050/10/2/452/htm Retrieved On: 16.07.2022

Willert, B. (2021). Modern Slavery–An Empirical Analysis (No. 167). Thünen-Series of Applied Economic Theory-Working Paper. Retrieved from: https://www.econstor.eu/bitstream/10419/245955/1/wp167rev.pdf Retrieved on: 16.07.2022