Business and Ethical Considerations for Operating Organizations on a Global Scale
Global entrepreneurship is a growing concern in the Western world. The United States government has taken steps to utilize commercial diplomacy and encourage entrepreneurship on a global scale. These are vital concerns when attempting to grow the American economy in a global economy. In addition to these concerns, there are many other business and ethical considerations to keep in mind when operating organizations on a global scale.
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Global Branding
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Global branding is one concern for many organizations attempting to operate on a global scale. Branding expert Rob Frankel says, "Branding is about getting your prospects to perceive you as the only solution to their problem." This can be a challenge in a global economy where consumers face dramatically different problems in everyday life. In some cases, an organization may have to create different branding for use in different countries to achieve optimum brand recognition.
Communication Gaps
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Cultural gaps can sometimes seem insurmountable when doing business on a global scale. Unfortunately, cultural signs that are well known in the Western world, such as shaking hands, may have very different meanings in other cultures. Differences in aspects, including individualism and family values, can have a major impact on businesses. It is essential for organizational leaders of two different cultures to study the practices of the other to avoid communication gaps.
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Diversity
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Diversity can be a very complex subject in the business world but perhaps no more so than when conducting business on a global scale. A vital aspect of managing diversity in global business is to be respectful of other cultures. According to the HR Management website, global organizations, such as IBM, have learned to encourage a culture of inclusion within their global business units.
Corporate Social Responsibility
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Corporate social responsibility (CSR) consists of conducting business in an ethical manner which considers the needs of all stakeholders in an organization. These stakeholders may consist of shareholders, executives, employees, customers, suppliers and the community in which the business exists. It is vital for global organizations to ensure corporate practices are in alignment with the societies in which they exist. This can be extremely complex when operating on a global scale.
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References
- Photo Credit global computer network image by Michael Brown from Fotolia.com
