Ethical And Social Issues: IHRM

The international human resources management is the interactive combination of human resources activity and the staff type. International human resources management has more functions and activities and often involves employee’s individual life. The emphasis of international human resources management has changed. And it will confront bigger risk and be influenced by more external factors. This requests enterprise implements the global human resources management and adjusts human resources management policy to adapt the national culture, commercial culture and the social system. Simultaneously, enterprise is not only the machine which makes money, is also an important component society. So, enterprise must undertake the corresponding social responsibility. The social responsibility in the international human resources management is mainly the responsibility to staff. But the phenomenon that breaking law is massive. In addition, many ethics issues also exist in enterprise human resources management. Therefore, this article mainly analyzes the ethical and social responsibility issues that arise in IHRM practices and points out these issues faced by employees, international companies and researchers. Enterprise should enhance the ethics values in the international human resources management, increase humanities concern to staff and take responsibility for staff.

Table of content

Introduction 3

1. The introduction on IHRM 4

2. Social responsibility issues that arise in IHRM practices 5

2.1 social responsibilities of enterprise 5

2.2 social responsibilities of enterprise in IHRM 5

2.2.1 The definition of social responsibilities in IHRM 5

2.2.2 The aspects of social responsibilities in IHRM 6

2.2.3 The reasons for social responsibility issues in IHRM 7

2.2.4 The challenges and measures for social responsibilities issues in IHRM 8

3. The ethical issues that arise in HRM practices 9

3.1 The ethical issues in enterprise human resources management 9

3.2 The solution methods of ethics issues in IHRM 　　 10

Conclusion 10

References 11

Takao Satow and Zhong-Ming Wang, 1994, Cultural and Organizational Factors in Human Resource Management in China and Japan- a Cross-cultural Socio-economic Perspective, Journal of Managerial Psychology, 9(4): 3-11. Emerald http://www.emeraldinsight.com/journals.htm?issn=0268-3946&volume=9&issue=4&articleid=881211&show=html&PHPSESSID=pk0g2ggpdjtro6ibq8mh0vl9l4 (accessed April 3, 2011) 13

Introduction

International human resources management is caused by the enterprise manages internationalization. When the function of human resources management is applied in the international environment, it changes into the international human resources management. The complexity of international human resources management causes it easier to meet the community responsibility and ethics issues. So, it is necessary to analyze the ethical and social responsibility issues that arise in IHRM practices. First of all, this report will introduce the basic situation of International human resources management. Then, it will talk about the social responsibility issues from IHRM practices. In this section, the definition, aspects, reasons, challenges and measures for social responsibilities issues in IHRM practices will be illustrated. This formal business report will analyze the ethical issues that arise in IHRM practices. The solution methods for ethics issues in IHRM will be pointed out at the end of this report.

1. The introduction on IHRM

The questions in human resources management become more and more complex under the international environment. Some researchers points out that international human resources management is a process of selecting, training, developing and driving staff for the overseas service of the Multinational Corporation (Randall S. Schuler, Pawan S. Budhwar, and Gary W. Florkowski, 2002, 59). All the basic activity of human resources management still retain when a company enters the international scene, but actually appears by a more complex appearance. This requests enterprise implements the global human resources management. But as for the transnational superintendent, they must adjust the policy of human resources management to adapt to the local culture, the commercial culture and the social system.

International human resources management has some specific characteristics compared to the common human resource management, such as it has more functions and activities, the international idea and the global judgment, more involves employee’s individual life. The changes in key emphasis of works, and a bigger risk will receive more external factors influence. IHRM pays great attention to the strategic environment analysis. It also needs to attach importance to “the Trans-Culture management” and have a bigger compatibility. Besides, the technical talented person and the senior management talented person become the core of international human resources management (Chris Brewster, Clive Viegas Bennett, 2010, 2577). Generally speaking, there are some important factors may affect the international human resources management, such as politics and legal environment, cultural environment, language, values, education background, religion, manners and customs, and economic environment. Human resources management measures will be influenced and the restricted by the counterparts’ benefit and the environmental factors (Takao Satow and Zhong-Ming Wang, 1994, 7). Besides, international human resources management is united whit the national culture.

2. Social responsibility issues that arise in IHRM practices

2.1 social responsibilities of enterprise

Corporate social responsibility means that the enterprise must undertake the responsibilities to staff, consumer, community and environment during creating profit and undertaking legal liability to shareholders (Jie Shen, 2011, 1360). The appearance of social responsibilities is that the big enterprise in developed country realizes the enterprise is not only the machine which makes money, but is also important component of society and must undertake the corresponding community responsibility. The content of social responsibility is really complex. Community responsibility of enterprise can be divided into the responsibility to environment, staff as well as society and so on. The community responsibility centralizes in observing the business ethics, devoting to the environmental protection, supplying the chain management and partnership, maintaining staff’s rights and interests joining in social public service.

2.2 social responsibilities of enterprise in IHRM

2.2.1 The definition of social responsibilities in IHRM

The social responsibility which is involved in the international human resources management is mainly the responsibility of enterprise to staff. The responsibility of enterprise to staff can be divided into the legal liability, the moral duty and the community responsibility from low to high (Jie Shen, 2011, 1359). The legal liability requires that enterprises cannot pay the wages lower than the local lowest standard according to the agreement of labor contract as well as give social security for staff and so on. The moral duties cannot be harm to the staff’s health and raise funds for serious illness staff. In this sense, the community responsibility is the higher level compared to the legal liability and the moral duty. It asks the staff not only to make contribution to enterprises, but also make more contributions for society.

2.2.2 The aspects of social responsibilities in IHRM

The first is in the aspect of employees’ welfare. The welfare measure is the catalyst to promote the responsibility consciousness and image of enterprise. It is may not only enhance the staff’s degree of satisfaction, but also very good manifest their own responsibility consciousness through formulating humanity welfare measures (Jie Shen, 2011, 1361). Welfare measures can the greatest degree reduce the private costs and obtain the realization of community responsibility. People must follow some principles in formulating welfare policy. First, the enterprise needs inquire staff’s demand deeply before formulating the welfare option to make each welfare measure is useful to the specific staff. When provides rich welfare option for the staff, enterprise can obtain the fullest use of resource and reduce the private costs. Second is effectiveness. It refers enterprise formulate welfare measure effectiveness in connection with the exterior or internal situations. Another is the selectivity. The choices of welfare form make the welfare is more flexible. This enables the enterprise to save the welfare cost, and thus could design the pointed welfare measure for the staff in a broader aspect.

The other aspect is labor relation management. Social responsibility of enterprise is obvious when processing labor relations. This report mainly selects the labor contract, labor dispute and occupational health and safe in labor relations management to combine with social responsibility of enterprise. The enterprise must sign labor contract in timely when hiring the workers. Meanwhile, the labor contract probably be legitimate promptly and cannot encroach upon rights of workers. Simultaneously, it must base on the principles of equal and consultative consistent in the process of signing labor contract (Peter J Dowling; Denice E Welch, 2008, 131). Once the labor contract signs, it will be carried out earnestly. Enterprise should deal with the labor dispute legally. Mediating, arbitrating and lawsuit the labor dispute on the equal status with workers, and cannot damage workers’ benefit because of the congenital superiority that occupying the capital. The results of labor dispute after mediating, the enterprise must achieve practical fulfillment. Enterprise treatments labor dispute legitimate and responsible, not only respects workers’ right, but also maintains the stability of society and sets up good image of enterprise. The health and safety of occupation is also an important aspect that manifests the consciousness of enterprise social responsibility. Enterprise should provide safe working conditions, complete the essential protective measures and simultaneously carry on system security and health training for staff.

2.2.3 The reasons for social responsibility issues in IHRM

Protecting staff’s legitimate rights and interests is the focus of social concern. But some social responsibility issues that damage the staff’s benefit also exist massively. The main reasons include the following aspects. One is the supply and demand of labor market is imbalanced. Generally speaking, the labor force supply still exceeds demand in the labor market (Jane Collier, Rafael Esteban, 2007, 25). In the situation of supply exceeding demand, worker’s negotiations strength is weaken, but employer’s strength enhanced relatively. So, the employer will neglect staff’s rights and interests accidentally. Second, the supervision of government is not enough. One important responsibilities of government is protecting staff’s legitimate rights and interests legally. And this kind of protection is not the negative protection, is not only to solve the problem and conflict arising. The effective protection must be the positive protection, including in anticipation propaganda, the explanation, the prompt supervision and the surveillance. The other reason is the human resources management department of enterprise not fulfilling duty. The human resources management department cannot defend staff’s legitimate rights and interests initiatively.

2.2.4 The challenges and measures for social responsibilities issues in IHRM

The social responsibility issues will bring many challenges in international human resources management for enterprise. First is the transformation in the idea of management (Mariluz Fernandez-Alles and Antonio Ramos-Rodríguez, 2009, 167). The idea of management plays the guidance and support role in regarding human resources management to realize the social responsibility. The highest managers must strengthen the consciousness of humanistic management. The high personnel’s pledge and support of enterprise is the safeguard for implying the social responsibility management. At the same time, the enterprise high managers should understand the enterprise locates the market and the environment fully, and pay attention to the social responsibility and social responsibility management. Only forming the atmosphere of “humanist” in the entire enterprise, responsibility in human resources management can be realized.

Undertaking the social responsibility of enterprise through the specific measures of human resource management will bring the cost raise inevitably. But, the paying cost can bring the repayment gradually to the enterprise from the long-term benefits of enterprise. The enterprise should undertake the social responsibility from the interior (Jane Collier, Rafael Esteban, 2007, 29). On the one hand, this can raise the working efficiency and quality and enhance staff’s degree of satisfaction and loyalty. And thus brings benefit to the enterprise. On the other hand, the brand image will be improved and advantage for the long-term development of enterprise. Human resources management pattern will be transformed also. First, human resources management must realize the efficiency and establish the human resources mechanism that based on the staff’s competent and strength.

3. The ethical issues that arise in HRM practices

3.1 The ethical issues in enterprise human resources management

The first question is to work for the boss and maintain the rights and interests of staff. The human resources superintendents have the dual roles in the labor management relation (Budhwar, PS and Schuler, RS and Sparrow, PR, 2009, 27). One is on behalf of the capital, and they must observe the shareholder values to seek the maximization of the capital benefit. Another is the performer who takes the work laws and regulations. They should comply with the work laws and regulations, coordinate labor management relation, and protect the minority groups. Defending legitimate rights and interests of workers is basic professional personal integrity of the human resources superintendent.

The second one is ethical vacancy of human resources training development. Seen from present enterprise training, the majority of companies pay attention to every skill of staff and the training of basic systems (Shen, Jie; Chanda, Ashok; D’Netto, Brian; Monga, Manjit, 2009, 248). The ethics vacancy of enterprise training is not to enable the staff to have the depth approval to enterprise’s core values. At the same time, enterprises do not give staff the full opportunity of studying and training. The third one is the asymmetrical information and faith flaw between the labor and the capital. On the one hand, the human resources superintendents will encroach upon the privacy of staff unscrupulously. On the other hand, the knowing right of staff can not obtain the protection.

The last is deficient in humanity loving concern. Some enterprises violate the work laws and regulations, encroach upon the staff personal rights and other rights of citizens, trample the worker dignity, and impair the worker physical and moral integrity the event. In the process of management, there is no human nature and humanity concern. Social security systems of enterprises are not perfect, and the rights and interests of protecting the staff will be insufficient.

3.2 The solution methods of ethics issues in IHRM 　　

Enhancing ethics values of enterprise human resources need take the protection development of human resources as a principle, put humanities concern to staff, create harmonious environment of competition for staff development, and set up the correct training ethics view (Helen De Cieri, Julie Wolfram Cox and Marilyn Fenwick, 2007, 294). First of all, relevant government should consummate the work laws and regulations unceasingly. To adapt the development and progress of society, they have to further make up the existing laws and regulations. It is necessary for them to make a more explicit specific stipulation in the ethics moral standards aspect of human resources management. The government must strengthen the protection to the workers, and enlarge the risk and responsibility of the enterprise illegal ethics morals.

Human resources managers should improve ethics morals quality also. Cognizant agency needs establish human resources superintendent’s professional personal integrity credit system to avoid the human resources superintendent entering this professional community who not conform to ethics moral standards. Moreover, the condition enterprise can establish ethics morals committee composed by the represents of capital representative. It can investigate and process the ethics morals questions independently in human resources management.

Conclusion

From the analysis above, we can learn that enterprise encounters many ethical and social responsibility issues in international human resource management. Some researches suggest that the fulfillment of community responsibility and the growth of company are compatible (Michael Dickmann, Paul Sparrow, Chris Brewster, 2008, 278). However, the ethical and social responsibility issues in IHRM will reduce the public image of enterprise greatly. So, the enterprise should undertake corresponding responsibility to staff, scrupulously follow the commercial ethics morals, protect staff’s rights and interests and enhance interior cohesive force of enterprise.