International Business

This essay delves into an in-depth analysis of various factors in international business, including culture, CSR, and global management. It discusses the importance of culture in global negotiations, the ethical and CSR policies in the UK and Australia, the skills and awareness needed for global managers, and the human resource management strategy for international organizations.

Running head: INTERNATIONAL BUSINESS
International Business
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Introduction
Aiming to trace the subtle nuances associated with the idea and practice of International
Business, this paper strives to delve into an in-depth analysis of various factors. This essay will
endeavor to analyze the factor of culture and its various implications in the global market and
context. The following paragraphs will try to employ the model proposed by Hofstede and
account for the importance of various skills for global managers. Further, it will also delve into
an analysis of CSR and ethical process in UK and Australia. These paragraphs will also try to
provide strategy for global human resource management.
Discussion
1.
Culture in a global context
The notion of culture is comprised of innumerable assumptions and ideologies (Bohm,
2013). With the gradual development of the concept of globalization, the prevalent sense of
culture has also amalgamated the various cultural premises and consumerism (Pieterse 2015). As
the term depicts, international negotiation refers to the phenomenon of negotiation and
interrelation between various countries. This process also helps in the transference of various
cultures and ideologies. These negotiations also help in resolving the various issues related to the
climate (Fischer and Geden 2015). Recent studies have projected that for the process of
international negotiations to occur, the various cultural and strategic arenas must amalgamate
with each other (Khakhar and Rammal 2013). Cultural amalgamation can also bring in business
negotiations. The myriad cultures and values pose problems for the proper concretization of
international negotiations and affect the cross-cultural business transactions (Peleckis 2013). In

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order to ensure a smooth functioning of the international interactions, it is essential to erase the
differences by getting acquainted with myriad cultures.
Geert Hofstede had propounded certain ideologies about the various nuances of global
culture. He had even propounded the importance and need for attaching an international
dimension to culture (Geert Hofstede 2019). The model discovered by Hofstede discusses about
the various problematic areas that inhibit the proper interaction between culture and the global
environment. He had identified four major areas namely, authority distance, avoidance of
uncertainties, the battle between collectivism and individualism, femininity versus masculinity as
well as futuristic orientations (Rienties and Tempelaar 2013). The problem areas and the model
proposed by Hofstede can be analyzed through the analysis of two countries. For example, in
Japan, the aspect of power distance is quite apparent because it exhibits a score of 54 and is
hierarchical in nature (Hofstede Insights 2019). Further, Japanese society also exhibits major
traits of both collectivism and individualism, thereby granting recognition to each aspect.
Exhibiting a masculine orientation towards competition and achievements, Japan scores 95 in
this index. For the indices of uncertain avoidance and futuristic orientation, Japan scores high
points to emerge as a strong country (Hofstede Insights 2019). UK has a lower score in the index
of authority distance meaning that UK does not harbor inequality. UK values individuality more
than collectivism. This country exhibits a relatively lower score in futuristic visions and
uncertainty avoidance. As opposed to this, UK is seen to be a masculine society focused on
performance and result (Hofstede Insights 2019).
2.

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Ethics and Corporate Social Responsibility
The ethical policies and corporate social responsibilities of different countries varies
with each other. While ethical considerations refer to the various principles that reflect upon the
moral and social arenas, corporate social responsibility refers to the social and environmental
responsibilities and policies that countries or organizations have to follow to ensure balance
(Cheng, Ioannou and Serafeim 2014). The government of UK had enlisted the criterions that any
business enterprise needs to follow the ethical standards of the country and remain committed to
these standards while maintaining an ethical dimension towards the employees (GOV.UK 2019).
In addition to this, the government had also enlisted that organizations need to ensure that they
guarantee the implementation of ethical policies and principles and not just speak about them. In
addition to this, the government of UK had also elaborated about the stringent Social
Responsibility policies that need to be followed by business enterprises. UK’s CSR policies
inculcate the environmental aspect where business organizations are deigned to manage waste
products. It also includes the humanism aspect where enterprises are supposed to ensure the
well-being of others and organizations need to engage in community services to raise funds for
societal causes (GOV.UK 2019). On the other hand, the government of Australia had enlisted
certain major areas that identify the ethical role and social responsibility of the business
organizations. There is a separate commission that looks into the implementation of fair trade
rules and aspects throughout the nation. The rules of the government encompasses the various
aspects including suppliers and consumers (Business.gov.au 2019). Similarly, there are policies
for CSR that organizations need to follow. The government lays down that organizations need to
submit sustainability reports about environmental impacts and reports about community
participation.

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Unilever has started initiating its relation with the societies of UK and USA. Taking into
consideration the ethical and CSR regulations of UK and Australia Unilever has started engaging
in social and environmental aspects. In UK and Australia, Unilever is catering to the needs of the
community and environment by including the sustainability Report (Unilever Australasia 2019).
A strategic approach towards the community connection must include the aspect of
understanding the intrinsic needs of consumers and society. This will enable organizations to
extricate information about the various needs and aspirations of the consumers that have not been
fulfilled. Communication with potential consumers has to be taken into consideration as a
strategic approach to build connections with community.
3.
Skills and Awareness of Global Managers
For companies to succeed in the global market, it is essential for companies to be
managed by managers who can positively impact the revenue generated and the success of a
company. In order to succeed in the global market, international organizations need the
amalgamation of the efforts of every employee. Firstly, global managers need to possess the
chief skill of emotional intelligence, which refers to the intelligence that enables managers to
look into and adjudge the emotional and prevalent thoughts (Goleman, Boyatzis and McKee
2013). This can assist managers in knowing the willingness of each employee. Further, the
presence of emotional intelligence can help global managers in positive manipulation and
distributing works according to the capability of each employee (Obradovic et al 2013).
Secondly, global managers need to be aware of the international trends and the prevalent
scenario in the global markets (Griffith and Hoppner 2013). Wide gamut of knowledge about the

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various changing consumer preference and knowledge of the fluctuations in the global market
can assist managers in contributing and introducing changes that can help companies in
succeeding. It is often seen that the global market fluctuates in certain cases that affect the
economy of other related and contributing companies and countries (Baumeister and Kilian
2016). In addition to this, this knowledge of managers also contribute in gauging the myriad
product range and the changes that need to be incorporated to enhance the already existing
products.
Thirdly, global managers need to cultivate the awareness of cross-cultural ideologies and
preferences. A culturally aware global manager can help the international company in collating
the different cultural trends and cultural preference to diversify the products and profit generated
by the company. In addition to this, global managers should possess the skill of maintaining
inter-cultural relationships and interactions with clients that can help in identifying the various
shortcomings of the products to improve them. Interaction with international clients can help
global managers in meeting the demands of different cultures. Further, global manger should
possess the skill of resolving difference among employees belonging to different cultures
(Bücker et al 2014). Managers should possess the awareness and skill of comingling employees
of diverse cultural lineage. International and interpersonal competencies possessed by managers
ensure success of companies in the global market. Fourthly, global managers of international
businesses should possess the skill and awareness of exercising a global temperament. Whenever
the idea of company expansion or product diversification comes up, global managers must think
in terms of the global market and global audience to meet the cultural and global demands
(Javidan and Bowen 2013).
4.

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Human Resource Management Strategy
One of the key components of any organization is the human resource department that
manages various related to the management of employees in the workplace and their behavioral
performance of employees (Alfes et al 2013). Due to the cultural diversification of the
employees in various organizations, it is essential for the human resource department to be
equipped for the changes and adopt appropriate policies. Global Human Resource Management
is indicative of the employment and management of employees who represent the global cultures
(Ugoani 2016). The global human resource management strategy that can help in ensuring the
coherent management of culturally diverse employees is to reduce and shun the boundary
between the local and international. This strategy should be implemented in a manner that erases
the various distinction among the myriad cultures. In order to implement the policies, it is crucial
for managers and employees to remove favoritism from the ambience of the organizations.
Biased nature towards the employees who are citizens of the parent company can hamper the
proper implementation of the strategy and accentuate the gap between the cultures.
To maintain a proper balance and erase the difference in the cross-cultural backgrounds
of each employee, this strategy has to be employed by the Human Resource Department of
International Organizations. This strategy will also assist in helping the managers and
employees to maintain a cordial bond with each other. This will also help in removing the
prevalence of xenophobia, which refers to the practice of harboring dislike against citizens of
other countries (Sundstrom and Kim 2014). This management strategy can help in alleviating the
difference and various phobias amongst the employees against each other. In addition to this, this
strategy is needed because many international enterprises have witnessed the difference in pay
structure and privileges amongst the local employees and other employees belonging to different

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cultures (Gupta and Shaw 2014). Further, it is also to be noted that the strategy of demolishing
the wall amongst the various ethnic groups can be implemented by various policies such as
engagement in common activities and equal pay to every employee in the international
organizations. Further, the managers can also implement it by organizing regular orientations and
regular check over the functioning and involvement of each employee.
Conclusion
After analyzing the above-discussed points, it can be concluded that international
business can be conducted in an easy and concrete manner only when the global managers
employ the various factors such as CSR, ethics and proper human resource strategies. It can also
be concluded that Hofstede’s model can assist in understanding the prevalent cultural scenarios
in various countries.

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