Report on Ethical Issues, CSR, and Global Business Strategy Analysis

This report delves into the ethical challenges encountered by organizations operating in the international business environment, with a specific focus on employment practices, human rights, and corruption, using HSBC as a case example. It explores the conflicts that can arise between corporate strategies, such as profit maximization and employment retention, and ethical and social responsibilities. The report further examines the legislation and regulations related to corporate social responsibility (CSR), highlighting the role of legislation in ensuring ethical business conduct and the voluntary nature of CSR initiatives. Specific legislations like the Working Time (Amendment) Regulation 2001 and the Disability Discrimination Act 1995 (2005) are discussed in relation to their impact on organizational responsibilities.

GLOBAL BUSINESS STRATEGYGLOBAL BUSINESS STRATEGY
(ACTIVITY 2)(ACTIVITY 2)

3.13.1 Ethical issues faced by operatingEthical issues faced by operating
in the international environment.in the international environment.
Ethics and the morals are to be considered as the principles to be followed or
the right or wrong which presents the conduct of an organization or an
individual.
There are a number of activities carried out in a business corporation and
these operations are required to be conducted in a formatted and correct
manner.
HSBC is an investment banking corporation and carry s out the business
activities globally on a large scale and hence it is important for the
organization to follow and carry all the morals and ethics for a smooth and
flawless running of the firm.

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Employment practices.
The company should follow principle of equality in work and working
conditions. For instance there should be no difference in the work conditions in
the units in the home nations and host nations.
HSBC should set an equal standards regarding the work conditions in all the
business units and if not done so this will rise as an ethical issue.
Human rights
There are many human rights which are required to be followed and properly
implemented in the organization and if they are taken for granted then this will
create problems and conflicts.
`There are many economies that do not follow basic human rights which is an
ethical issue.

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Corruption
There has been many laws imposed by the governing bodies such as the
Foreign Corrupt Practices Act which is related to the payment of bribes to the
governing or government officials.
These are the payments which are done to hide the Unlawful or illegal
operations which are conducted with any of the operations in the organization.

3.2 Conflicts between corporate3.2 Conflicts between corporate
strategy and ethical and socialstrategy and ethical and social
responsibilitiesresponsibilities
Strategy is concerned to the development of the plan and policies that are to be required
for carrying out the necessary operations and business activities.
The corporate strategies make a business organization to run smoothly and attain the
objectives and goals.
For instance the corporate strategy involved to maximise profit will develop a number
of processes which will tend the organization to work unethically.
Payment of bribes to the government officials for carrying some of the business
operations will make the business organization work unethically and this comes up as a
reason of conflict between the corporate strategy and social responsibilities.
There can be some superiors in HSBC who will be bias while allotment of the work.
No work is carried out by them in an ethical manner or according to the laws or the
policies implemented.

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So by carrying out practices in such a manner organization is making a conflict
against the social responsibilities and the ethics.
Employment retention is an another corporate strategy which is to be done in an
ethical manner. But the conflict arises when it is done in an UN-ethical manner.
For instance the management team of HSBC can force or pressurize the employees for
staying in the company by not paying them salary or by giving them over loaded
conditions.

3.3 The legislation or the regulation3.3 The legislation or the regulation
related to corporate socialrelated to corporate social
responsibilityresponsibility
The legislation are the general principles or rules which is implemented by the
governing bodies of any economy.
It is very much significant for any region to recognize certain laws as it will raise legal
rights and duties onto the parties such obligations shall safeguard the interest of the
individual.
The system by which the business organizations are operated and controlled is known
as the corporate governance.
This system is supported by the legislation and the defied codes. Whereas CSR
(corporate social responsibility) is a voluntary initiative for which no legislation has
enacted.
As the legislations are the rules which make the company to work in an appropriate
manner which have been implemented by the economies.

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There are changing trends in the legislations and these vary from nation to nation.
The below mentioned are some of the legislations which have been implemented by
the concerning bodies of the economies in which the organization operates its business
activities.
Working Time (Amendment) Regulation 2001.
This legislation imposes a proper and similar working time for all the employees
which is an responsibility of the organization.
Disability Discrimination Act 1995 (2005).
On the basis of this regulation there should be no discrimination between the normal
employees and the disabled/handicapped employees.
Equality should be there on each and every grounds.

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