Compliance and Integrity


In the earliest stages, organizational ethics centered on the narrow perspective of ethics—the notion of compliance. Are we following the laws? Are we at risk from litigation? If so, how do we minimize that risk?

Ethics programs matured and ethics officers, most of whom are selected from the managerial ranks with little, if any, special preparation, developed increased sophistication regarding the challenges facing their organizations. Both the ethics officers and their organizations began to embrace personal and corporate values in decision making (value-based decision making) as the logical expansion of the definition of what it means to be ethical. What has emerged is what many ethics officers today characterize as the “best practices” model of the ethics office and of a values-based corporation.

But change continues. What is emerging today is a more holistic definition of what it means to be a “good” corporation. This new, global view will again help to reshape the responsibilities and focus of the ethics officer.

The shift to a global perspective means another broadening of the definition of ethics. “Global Integrity” is the latest descriptor, and it embraces both compliance and ethics. It also adds concern for rule of law, human rights, good governance, labor/child labor concerns, anti-corruption/anti-bribery, concern for the environment, safety, social responsibility, good corporate citizenship, and respect for the whole diverse array of local cultures to the definition. This increases the organization’s obligation to reach beyond traditional company boundaries to consider how decisions would affect the surrounding community. One consequence of this new global definition of the organizational ethics is increased scrutiny by stakeholders, especially advocacy groups and the media.

Corporate ethics officers, especially those in multinational corporations and/or corporations with global suppliers/markets, are being challenged with fundamental questions in this expanded integrity area. Perhaps the most common, and most challenging, is how the corporation will balance the desire for global standards (consistency) against the need for local application of standards.

My Consultancy–Asif J. Mir – Management Consultant–transforms organizations where people have the freedom to be creative, a place that brings out the best in everybody–an open, fair place where people have a sense that what they do matters. For details please visit www.asifjmir.com, and my Lectures.

The Contemporary World


By the end of World War 11 in 1945, the Industrial Revolution was complete. The need for war goods required the development of new forms of production and technology, which later were used to produce consumer goods. Inventiveness was at high peak. Synthetic plastics and chemicals replaced natural substances as the basis for many products. Better machinery made it possible to manufacture products to produce precise specifications. (This type of precision is what lead eventually to the Apollo moon shot, which required components that were accurate to several one-hundred thousandths of an inch.)

In the 1970s, widespread use of computers enabled the management to process large quantities of data. Factories could be automated, with computer-controlled machinery carrying out many routine activities that could previously be completed only by time-consuming human labor.

By 1980, more than 80 percent of US 500 largest businesses were multinational, operating facilities in five or more foreign countries. And even for smaller companies and individual consumers, the world has become more like a large neighborhood than a huge, unknowable planet. High-speed computers, orbiting satellites, fluctuating exchange rates, and worldwide scarcities of natural resources bind us together with common needs, concerns, and goals.

My Consultancy–Asif J. Mir – Management Consultant–transforms organizations where people have the freedom to be creative, a place that brings out the best in everybody–an open, fair place where people have a sense that what they do matters. For details please visit www.asifjmir.com, and my Lectures.

Employee Satisfaction


Employees expect more from their jobs now than they used to. Today’s affluent employees often demand work that provides some self-fulfillment, whether it is on the assembly line, in middle management at a multinational corporation, or in managing a fast-food franchise.

Business pays attention to these needs—and to the problems that can occur when they are not met. Poor productivity, high absenteeism, and sloppy workmanship are expensive by-products of worker dissatisfaction. So all sizes of businesses are making efforts to improve employee performance and satisfaction. Involving employees in key decisions, making jobs more interesting, and providing employee counseling are several of the ways in which they are doing it.

My Consultancy–Asif J. Mir – Management Consultant–transforms organizations where people have the freedom to be creative, a place that brings out the best in everybody–an open, fair place where people have a sense that what they do matters. For details please visit www.asifjmir.com, and my Lectures.

Changing Buying and Selling Processes


Winning companies are all focused on speed to market, cost reduction, and customer satisfaction—whether buying or selling goods, services, and solutions. Today, many leading companies are changing their selling processes and tools, including the following actions:

  • Expanding self-service sales via Web-based sales catalogs of products and related services available to buyers.
  • Creating customized electronic interfaces between themselves and their strategic customers to facilitate rapid order receipt and order processing. Typically, sellers provide their most favored customers with preferred pricing or large discounts.
  • Offering multinational companies global pricing policies for products and services with economic-related adjustments, i.e., variations due to labor rates in specific countries or regions, inflation or deflation, value-added taxes, etc.
  • Developing standard statements of work, acceptance criteria, and standards intervals for consistent on-time delivery worldwide.
  • Understanding the buyer’s business needs and budget in order to develop customized solutions priced to fit the buyer’s desired business case.
  • Providing financing to buyers to help them purchase products when required.
  • Offering extended payment terms to customers, well beyond the usual net—15 days, or net—30 days to net—90 days or net—180 days.
  • Developing Web portals to facilitate rapid and direct communications between sellers and their strategic partners.
  • Providing countertrade, offsets, or counter purchases, in order to secure large purchases.

These actions are just a few of the many innovative process changes, tools, or unique business arrangements that sellers are using to build successful partnerships with their best buyers.

My Consultancy–Asif J. Mir – Management Consultant–transforms organizations where people have the freedom to be creative, a place that brings out the best in everybody–an open, fair place where people have a sense that what they do matters. For details please visit www.asifjmir.com, and my Lectures.

National Sovereignty and Corporate Power


Multinational corporations present real challenges to a nation’s sovereignty and independence. The national sovereignty principle holds that a nation is a sovereign state whose laws, customs, and regulations must be respected. It means that a national government has the right, power, and authority to create laws, rules, and regulations regarding business conducted within its borders.

The second principle that shapes business-government relations in most countries is the business legitimacy principle. This principle holds that a company’s behavior is legitimate if it complies with the laws of the nation and responds to the expectations of its stakeholders. In theory, the principles of national sovereignty and business legitimacy are not in conflict.

As multinational corporations reach across national borders, their global operations may exceed the regulatory influence of national governments. This has raised concerns about the emergence of stateless corporation. These corporations have facilities, shareholders, and customers everywhere. Therefore, they seem to owe loyalty to no single nation and are able to organize and recognize around the globe. There are economic and political advantages to being, or appearing to be, stateless.

My Consultancy–Asif J. Mir – Management Consultant–transforms organizations where people have the freedom to be creative, a place that brings out the best in everybody–an open, fair place where people have a sense that what they do matters. For details please visit www.asifjmir.com, and my Lectures.

The Challenges of Global Business


Many past political barriers to trade have fallen or been minimized, expanding and operating new market opportunities. Managers who can meet the challenges of creating and implementing effective and sensitive business strategies for the global marketplace can help lead their companies to success. Multinational corporations, such as, General Electric and Ford, which derive a substantial portion of their revenues from international business, depend on savvy managers who can adapt to different cultures. Lucent Technologies has invested more than $24 million in a design center in China in an effort to aid in China’s modernization of its infrastructure and telecommunications technology. The income potential from Lucent, which manufactures, designs, and delivers products for networking, communications systems, software, data networking systems, business telephone systems, and microelectronics components, is enormous. Small businesses, too, can succeed in foreign markets when their managers have carefully studied those markets and prepared and implemented appropriate strategies. Being globally aware is therefore an important quality for today’s managers and will become a critical attribute for managers of the 21st century.

My Consultancy–Asif J. Mir – Management Consultant–transforms organizations where people have the freedom to be creative, a place that brings out the best in everybody–an open, fair place where people have a sense that what they do matters. For details please visit www.asifjmir.com, and my Lectures.

Cross-Cultural Ethical Contradictions


Some of the knottiest ethical problems occur as corporations do business in other societies where ethical standards differ from those at home. Today the policymakers and planners in all multinational corporations, regardless of the nation where they are headquartered face ethical dilemma.

Should ethical principles—the ones that help chart right and wrong conduct—take their meaning strictly from the way each society defines ethics? Are Japanese attitudes towards job opportunities for minorities, other workers and women as ethically valid as US attitudes? Who should assume the ethical responsibility? What or whose ethical standards should be the guide?

As business becomes increasingly global, with more and more corporations penetrating overseas markets where cultures and ethical traditions vary questions occur more frequently. Employees and managers need ethical guidance from clearly stated company policy if they are to avoid the psychological stresses.

My Consultancy–Asif J. Mir – Management Consultant–transforms organizations where people have the freedom to be creative, a place that brings out the best in everybody–an open, fair place where people have a sense that what they do matters. For details please visit www.asifjmir.com, and my Lectures.

Failure in International Business


Failure overseas rarely results from technical or professional incompetence. Multinationals take their international business seriously and typically send abroad high achievers who have proven skills and expertise. But their success is usually in their home countries, where their skills, style and attitude may be exactly the opposite of what will work overseas. Employees’ ignorance of or inability to adjust to foreign ways are usually what cause problems.

In one country people know in vivid details the colors, designs and sounds that appeal to various customer groups. Careerists climbing the corporate ladder study intently the values and norms that characterize their company’s “culture” so that they can maneuver successfully toward the top. Negotiators approach their bargaining table with a rich understanding of what motivates their adversaries. When it comes to foreigners, however, people see only silhouettes. Overseas many foreign companies approach their customers, colleagues, and employees with an ignorance that would be unthinkable on home ground. They are willing to transact business with foreigners without understanding who they are, what makes them tick, how they view the world and how their corporations. Because they do not look behind the foreign mask, their approach to international business is often like shadow-boxing. They deal with imaginary targets.

My Consultancy–Asif J. Mir – Management Consultant–transforms organizations where people have the freedom to be creative, a place that brings out the best in everybody–an open, fair place where people have a sense that what they do matters. For details please visit www.asifjmir.com, and my Lectures.

Knowledge Management: Sharing What is Known


One by one, employees learn what they need to know and develop areas of expertise that are called on when needed to perform a certain job. However, there are occasions in which somebody in an organization requires special expertise but doesn’t know how to find it within the company. When this occurs, the company may waste time and money by “reinventing the wheel,” developing expertise that already exists (if they only knew where to find it). In other cases, if the necessary expertise is not tapped or new expertise is not developed, then either something will get done improperly or it will not get done at all.

Acknowledging this situation, in recent years many companies have instituted what is known as knowledgement management programs. Knowledge management is defined as the process of gathering, organizing, and sharing a company’s information and knowledge assets. Typically, knowledgement programs involve using technology to establish repository databases and retreival systems. These are ways of using computers to sort through and identify the areas of expertise represented in the company—that is, its intellectual capital. But don’t misunderstand: Knowledgement relies on human skills for success. Computers merely organize what those skills are and where in the company they may be found. One-third of all companies and 80 percent of large multinational enterprises already have a knowledge management system in place, and most others expect to implement in the near future.

It’s important to note that simply having a knowledge management program does not ensure success. Employees also must use it, but too often they don’t. this is called knowing-doing gap—the tendency for employees to refrain from using the knowledge that’s available to them in the company, leading to poor performance. Although there are many possible reasons for not using a knowledge management system, the most dominant is the tendency for employees to be afraid of expressing their ideas (for fear of giving people in other parts of the company an advantage over them) or of seeking ideas from others (for fear of admitting that they don’t know something). Obviously, for knowledgement to be effective people in the company have to be willing to both donate and receive information. To ensure that their company’s knowledge resources are put to use, execuitives put various incentives in place to encourage the company’s many experts to add their expertise to the database and to encourage employees to use others’ expertise contained in the database. Given the success of the company’s system, it’s apparent that the knowing-doing gap may not be found in the company. In fact, on the heels of its success, similar systems need to be introduced in the company’s sales reps and its research and development unit.

My Consultancy–Asif J. Mir – Management Consultant–transforms organizations where people have the freedom to be creative, a place that brings out the best in everybody–an open, fair place where people have a sense that what they do matters. For details please visit www.asifjmir.com, Line of Sight

Advertising and Advertisements


Advertising today is a worldwide phenomenon. It is important to recognize that many advertisers use advertisements for many purposes with many different possible effects. For example, within a given country it is common to find what might be considered highly fanciful advertising for consumer goods such as toothpaste, detergents, or soft drinks, and highly technical messages dealing with construction equipment, medical supplies, or computer services. The advertisers themselves can include huge multinational firms, special interest groups, local shopkeepers, and individuals. Their intents can range from altering behavior to affecting the way people think about a particular social or economic position. The results of their efforts can range from enormously influential to a waste of the advertiser’s money. It is not, then, a subject that lends itself to oversimplification.

 

When you think about “advertising,” you probably think in terms of specific advertisements. To begin there, then, advertisements can be recognized as paid, non-personal communication forms used with persuasive intent by identified sources through various media.

 

As paid communication forms they are different from common varieties of publicity (e.g., a press release) or “public relations” e.g., a news conference), which are often covered by the media without charge. By non-personal they are distinguished from forms of personal salesmanship occurring in business establishments or door-to-door. The advertiser is identified, which again sets this form of persuasive communication apart from various types of promotion and publicity in the form of “news” or “feature” material often carried by the media, but supplied by a particular source whose intent is often persuasive.

 

Advertisements are most commonly associated with the mass media of newspapers, magazines, cinema, television, and radio, although they frequently flourish in other forms such as billboards, posters, and direct mail as well. And, finally, advertisements are overwhelmingly used with persuasive intent. That is, the advertisers are striving to alter our behavior and/or levels of awareness, knowledge, attitude, and so on in a manner that would be beneficial to them.

 

These are some of the most obvious characteristics of advertisements, the end product of much that is advertising.

 

My Consultancy–Asif J. Mir – Management Consultant–transforms organizations where people have the freedom to be creative, a place that brings out the best in everybody–an open, fair place where people have a sense that what they do matters. For details please visit www.asifjmir.com, Line of Sight

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