MGMT5003: Culture and Ethics in Myanmar Business: A Detailed Report

This report provides a comprehensive analysis of the intricate relationship between business practices and the cultural and ethical landscape of Myanmar, with a specific focus on the impact on the country's diverse ethnic minorities. It explores the historical context of business in Myanmar, including the role of small and medium-sized enterprises (SMEs) and the pervasive issue of corruption. The report examines the effects of business activities, both local and international, on indigenous rights, cultural preservation, and peace-building efforts. It also highlights the ethical challenges faced by ethnic minorities, particularly in the context of an illiberal democracy. Furthermore, the report offers recommendations for establishing ethical and sustainable business operations that respect cultural sensitivities and promote the well-being of Myanmar's ethnic communities. The report draws on various sources and studies to provide a nuanced perspective on the complexities of business ethics in Myanmar.

Running head: CULTURE AND ETHICS
CULTURE AND ETHICS
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Table of Contents
Introduction......................................................................................................................................2
Discussion........................................................................................................................................2
Small and Medium Sized Businesses in Myanmar......................................................................3
Impacts of Business Corruption on Myanmar Ethnic Minorities................................................4
Importance of Local business in peace as well as peace-building...............................................5
Impact of international business in illiberal democracies............................................................6
Ethical challenges Faced by Myanmar Ethnic Minorities...........................................................7
Recommendations for establishment of Local and International companies Operations............8
Conclusion.......................................................................................................................................9
References......................................................................................................................................10

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Introduction
Myanmar is recognized as one of most culturally diverse nations in Asia. Ethnicity is a
multifaceted and politically sensitive issue. Ethnic nationally associations have been supposed
that the Government tends to influence ethnic categories for political purposes. Furthermore, the
extensive majority of armed conflicts have critically afflicted Myanmar for over sixty years have
an ethnic foundation. Reports of Dale and Kyle (2015, 291-326) have noted that the 2008
Constitution makes no vital reference to ethnic minorities (lu-neh-za) or the Indigenous
individuals. To a certain extent the 2008 Constitution employs tain‐yin‐thar lu‐myo‐mya’ which
has been translated into English with authorization as ‘national races’ According to Brenner
(2015, 337-358), Indigenous individuals are presented all levels of the country especially in
conflict-affected areas. Comprehensive studies of Miklian and Schouten (2019, 1-13) have shed
light on the way several failures to show deference to Indigenous people’s rights has resulted to
critical negotiations in addition to costly business project delays, litigation in addition to the loss
of the legal and social licence to operate. The report will evaluate the way business has impacted
the rights and cultures of Myanmar Indigenous people.
Discussion
There are mounting evidences engagement from businesses especially the extractive
sector in Myanmar at policy as well as practice levels. Such an engagement has been raised in
identifying Indigenous communities’ rights and developing strategies. Naylin (2016, 99-141)
have noted that while in several places Indigenous communities of Myanmar has remained
highly sceptical and rigid resulting to the unconstructive experiences received from established
business in the country.

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Small and Medium Sized Businesses in Myanmar
Naylin (2016, 99-141) have opined in their studies that throughout the course of history,
Myanmar businesses did not receive the avenue to attain utmost potential considerably except
from 1948 to 1962. The critical lack of management of Myanmar’ economy under the socialist
financial system from 1962 to 1988, only a few institutional reorganizations have been formed in
order to maximize private sector development of Myanmar along with the Right of Private
Enterprises Law that had been circulated during the 1970s. Naylin (2016, 99-141) have drawn
insights from previous studies and noted that while privately owned businesses across the
socialist period had been restricted to small-scale performances thus focusing on processing
natural resource. According to insights gathered from previous studies have claimed that military
government stated the implementation of a market-oriented financial system in 1988 and the
Private Industrial Enterprises Law of 1990 as well as the Promotion of Cottage Industrial Law of
1991 had been publicized (De Buck et al. 2016, 13-79). These establishments of privately owned
SMEs’ have aimed to promote indigenous communities of Myanmar. As per the view of Naylin
(2016, 99-141), because of the global agreements of during the military administration
accessibility to international markets has been seen as a critical impediment for businesses in
Myanmar. In relation to technology approval, SMEs in Myanmar has shown a propensity to be
technologically outdated and their efficiency and value of excellence tend to reduce thus offering
no significance to Myanmar ethnic minorities. Likewise, Brenner (2015, 337-358) in their
studies have claimed that Myanmar businesses utilize outdated machineries and equipment for
production before 1948 which badly constrained productivity improvement as well as quality
improvement of the ethnic minority groups.

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Impacts of Business Corruption on Myanmar Ethnic Minorities
Regardless of the embedded cultural roots which undergird the established ideas of a ‘tse
a thwe’ in Myanmar communities, there has been observed an extensive notion related to
Myanmar Indigenous populace. Andrews and Htun (2017, 289-306) in their studies have found
that over the last generations the business establishment has turn out to be decomposed. Such a
decline of business establishments has led to a military-industrial association predominated by
administrative allies along with their business associates that involved business executives from
ethnically marginalized immigrant Chinese communities rather than including Indigenous
Myanmar communities. Andrews and Htun (2017, 289-306) have drawn insights from previous
studies and claimed that such disregard towards ethnic minorities of the country initiated during
the time of Ne Win, the ta ma do commander which extensively questioned foremost Myanmar
down the path of autarky and subjugation. Furthermore, while drawing divergence to the armed
political organization in addition to the approaches of several administrative, the essential need
of documented agreement in business agreements has developed as a commonplace of many
ministers, the perceived need for written documentation in commercial dealings has become
commonplace (Brenner 2015, 337-358). Moreover, the effectual collapse in conviction within as
well as across set of connections which has been positioned behind this development reveals that
the productivity embedded within ethnic minorities of Myanmar has been severely disregarded
and overlooked. This severe collapse of Indigenous Myanmar community networks has been
portrayed in the domain of business through an array of correlated vantage points.
Meanwhile, Andrews and Htun (2017, 289-306) have claimed that within the arena of
businesses and financial systems business and financial system, the Myanmar ethnic minorities
groups have been witnessing advanced ways of rules and standards in relation to business

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execution. Such a business execution has involved several MNC’s and global organizations. By
gathering insights from previous studies Andrews and Htun (2017, 289-306) have found that a
recent generation of proficient ethnic Burmese communities who have been exposed to
modernized business practices, standards, regulations as well as management theories. Several
international businesses have been in recent times returning to Myanmar and increased by the
NLD electoral success and discernments that the supremacy of the military will be extremely
low. The international business organizations have aligned to global business education,
competences, values and knowledge. In contrast to this situation, Brenner (2015, 337-358) have
shed light on the nature of ‘networks’ and the processes through which these business operations
have transformed under military subjugation. As per the view of De Buck et al. (2016, 13-79),
within Myanmar’s borders there can be identified significant push for change, where even the
alleged cronies have been disregarding the mounting ministerial demands and pressures.
Importance of Local business in peace as well as peace-building
With growing level of economic advantages in Rakhine have gone completely to capital
privileged sections with an insignificant proportion receive by the ethnic Rakhines, the Rohingya
community in Myanmar has turned out a scapegoat for discontented promises. Comprehensive
studies of Miklian and Schouten (2019, 1-13) have revealed that local business actors have been
seen as an underestimated entity in Rakhine, both in their peace potential in order to link
communities through cross-group business engagements as well as in their entanglements
surrounded by local divergence challenges which have been logically eliminated from
Indigenous community roles of Myanmar. Regardless of the significant advantages of a highly
egalitarian theory of financial development, respected local business leaders in Myanmar have
been amalgamated in order to seek ways to avoid together to find ways to avoid any form of

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scapegoating as well as lack of belief and lack of trust that result to ethnic decontamination of
the communities. Meyer and Thein (2014, 156-171) in their studies have found that local entities
have been disregarded regardless of the evidences that they worked together across ethnicities
even whereas the communities have initiated to collapse.
Comprehensive studies of Tun, Kennedy, and Nischan (2015, 1-58) have opined that the
financial opportunity has been considered as a critical macro shock event for Myanmar
commerce which have been witnessed in the peripheral areas such as Rakhine. In these contexts,
the ethnic minorities of Myanmar had been aware of the emergence of government elites as well
as overseas organizations which were placed in a position to harvest the recognition of those
communities. As per the view of Miklian and Schouten (2019, 1-13), although local businesses
managed to embed their responsibilities in varied ways, they showed the propensity to charge
external factors over internal attachments due to various reasons related to political expediency.
On one hand, when such a circumstance gave rise to constant corruption which further
contributed to inconsistency and arguments, there has been witnessed a highly extensive study of
the conditions for the way and underlying reasons which led financial avenues produce local
conflicts. Meanwhile, Meyer and Thein (2014, 156-171) have realized the need of a
comprehensive holistic understanding regarding the way local small and medium enterprises
connect to ethnic communities in internal disagreements.
Impact of international business in illiberal democracies
Holliday (2013, 93-100) has led extensive implications within the discussions of
international governance specifically in the way support of the business-peace agenda cover a
shift in the balance between public and private authority. Such a shift has been done particularly

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by integrating business within public responsibility arrangements and by authorizing as well as
establishing businesses mainly as peace actors in a form of asymmetrical governance. Similar
views have been offered by Meyer and Thein (2014, 156-171) have noted that the peace actors
have been built upon business studies approaches which observe the outcome of business on
peace and conflict on ethnic minorities of Myanmar in complex conflict settings. Drawing
relevance to these insights, Miklian and Schouten (2019, 1-13) have noted that multi-lateral
organization removal further implies eliminating the sovereign entail that peace-building
organisations have been positioned in fragile and conflict-impacted regions.
Ethical challenges Faced by Myanmar Ethnic Minorities
The mounting demands of home nation institutions are been particularly significant with
respect to host nations that follow policies. These policies extensively violate collective ethical
norms. However, in certain politically sensitive cases, global agreements have been imposed
significantly on South Africa during the apartheid regime. Holliday (2013, 93-100) have noted
an amalgamation of institutional pressures purposed to follow overseas agencies from engaging
in the nation. However, there has been a lack comprehensively enforced legal agreements. While
designing strategies, ethnic minorities in Myanmar have been facing critical threats. Such risk for
business reputation has been significant concern when it comes to engage with Myanmar which
is de-legitimized by agencies in the organization’s first home nation. As a result, several U.S and
U.K organizations have removed from Myanmar market without being legally essential due to
concerns and issues that association with a global ‘pariah’ such as Myanmar which could
blemish their corporate reputation.

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There are mounting evidences of the ethical implications that global business community
in Myanmar have the propensity to encounter rising demands in order to turn into developmental
agents, specifically reflecting as concerns action on anticorruption business legislation as well as
civil liberties. However, these developmental agents have remained to establish the agenda for
sustainable development based on its individual terms. These terms have been stimulating a pro-
corporate hegemonic discourse that tends to reserve organizations from local businesses as well
as communities. Miklian and Schouten (2019, 1-13) have noted that as global organizations as
global organizations have included local community contributions in delicate operational areas,
very insignificant amount of study is provided to the way organizations have been directing
situations where the Indigenous communities are recognized as agents of violence. The
substantial qualitative as well as quantitative observations of business in regions of institutional
peace-building departure tend to improve these groundwork answers.
Recommendations for establishment of Local and International companies
Operations
Before initiating business operations in a community, companies must study the possible
effects on cultural life of their operations. Author have noted that if the land tends to have
cultural significance to the Myanmar’s ethnic minorities, businesses will facilitate considerable
accessibility to the place of significance or tends to reinstate business operations in the conflicted
areas. Business operations positioned in special lands tend to interfere with the rights and
cultures of Indigenous in order to study specific ethnic as well as cultural values and obligations.
Furthermore, businesses have aimed to ascertain that the establishments of local businesses and
overseas companies do not restrain the local ethnic rights and authorities or lead to the
displacement of local cultural traditions as well as actions. On the other hand, there can be

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identified cultural issues specifically in relation to Indigenous Myanmar communities that must
have relevance to Myanmar Oil and Gas sector (Dale and Kyle 2015, 291-326). Drawing insights
from previous studies Kramer (2015, 355-374) have mentioned Myanmar is developing as one of
the highly proficient destinations for businesses at international level and further to attain the
anticipate growth of the sector whereby current infrastructure will need be needed in order to
expand. On the other hand, Jason (2019, 55-78) has noted that major influxes of international
businesses of all cultural patterns, religions and nationalities would be seen as impediment to
several ethnic minorities of Myanmar subsequent to the decades of global isolation. Such an
isolation of global businesses has shown a propensity to influence the ethnic value, rights and
cultural practices of Indigenous communities. Holliday (2013, 93-100) have noted that in-
migration of Indigenous individuals from other areas within Myanmar tend to impact on local
edifying cultures and practices.
Conclusion
Hence to conclude, the establishment of business development of small and medium
enterprises shed light to the importance of global measures to the growth of small and medium
enterprises. Thus, global sanctions as well as restrictions have related to the promotion of trade
and investment of Myanmar with a focus on SME expansion along with the endorsement of
effective integration of small and medium enterprises in international as well as regional value
chains as a rising and vital policy objective.

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References
Andrews, T. G., and K. T. Htun. "Business Networks in Myanmar: Kjei zu, Corrosion and
Reform." In Business Networks in East Asian Capitalisms, pp. 289-306. Elsevier, 2017.
Brenner, David. "Ashes of co-optation: from armed group fragmentation to the rebuilding of
popular insurgency in Myanmar." Conflict, Security & Development 15, no. 4 (2015): 337-358.
Dale, John, and David Kyle. "Smart Transitions?: Foreign Investment, Disruptive Technology,
and Democratic Reform in Myanmar." Social Research: An International Quarterly 82, no. 2
(2015): 291-326.
De Buck, Sylvie, Ivan Ingelbrecht, Marc Heijde, and Marc Van Montagu. "Innovative farming
and forestry across the emerging world: the role of genetically modified crops and trees." (2016).
Holliday, Ian. "Myanmar in 2012: Toward a normal state." Asian Survey 53, no. 1 (2013): 93-
100.
Kramer, Tom. "Ethnic conflict and lands rights in Myanmar." Social Research: An International
Quarterly 82, no. 2 (2015): 355-374.
Meyer, Klaus E., and Htwe Htwe Thein. "Business under adverse home country institutions: The
case of international sanctions against Myanmar." Journal of World Business 49, no. 1 (2014):
156-171.
Miklian, Jason, and Peer Schouten. "Broadening ‘business’, widening ‘peace’: a new research
agenda on business and peace-building." (2019): 1-13.

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Miklian, Jason. "Contextualising and theorising economic development, local business and
ethnic cleansing in Myanmar." Conflict, Security & Development 19, no. 1 (2019): 55-78.
Oo, Naylin. "The implementation of small and medium-sized enterprise development in the rice
sector of Myanmar: Empirical research findings." Asia-Pacific Development Journal 22, no. 1
(2016): 99-141.
Tun, Than, Adam Kennedy, and Ulrike Nischan. Promoting agricultural growth in Myanmar: A
review of policies and an assessment of knowledge gaps. No. 1879-2017-1644. 2015.