IHRM+6th+Edition+GlobalHRM_Ch06

INTERNATIONAL HUMAN RESOURCE MANAGEMENT

Overview

• Focus on policies and practices for multinational enterprises (MNEs)

• Foundational concepts addressed in IHRM include legal, ethical, and operational frameworks

LEARNING OBJECTIVES

• Understand legal systems and their distinctions

• Awareness of international labor law impacts and standards

• Goals of international trade agreements

• EU directives and their influence on IHRM

• Challenges in HR concerning immigration, data protection, anti-discrimination, termination, and intellectual property

• Integration of laws, regulations, and corporate governance into IHRM practices

LEGAL CONTEXT

Types of Legal Systems

• Common Law: Based on tradition, with general principles outlined by constitutions

• Civil Code: Structure comprising commercial, civil, and criminal laws

• Religious Law: Mainly Islamic law guiding personal conduct

LABOR STANDARDS

Roles of International Institutions

• ILO Declaration: Key principles for labor rights adopted internationally

• United Nations: Limited direct role in employment law, primarily through organizations like ILO

• OECD: Focus on economic policy and social welfare among member states

TRADE ORGANIZATIONS

Major Organizations

• World Trade Organization (WTO): Facilitates trade negotiations and resolution of disputes

• European Union (EU): Sets worker rights through Social Charter and standards for member states

• USMCA: Links trade liberalization to labor standards

COMMERCIAL DIPLOMACY

• Influences foreign policy affecting global trade

• Involves negotiations and regulation impacts on businesses

IHRM COMPLIANCE

Obligations of IHR Managers

• Adhere to local laws and international standards

• Understand extraterritorial laws of home country

ETHICS IN IHRM

Ethical Framework

• Varied perceptions of right versus wrong across cultures

• Ethical Relativism: Societal definitions of right

• Ethical Absolutism: Universal ethical standards

• Cosmopolitanism: Compromise between differing ethical standards

CSR AND GOVERNANCE

Corporate Social Responsibility

• Commitment to ethical behavior and community development

• Benefits include enhanced reputation and employee loyalty

Implementing CSR

• Key strategies include developing policies, communicating activities, and fostering a CSR culture

Corporate Governance and Sustainability

• Structures guiding decision-making and corporate responsibility

• Sustainability defined as meeting current needs without compromising future generations' needs

STRATEGIC POLICIES

Global Code of Conduct

• Development of policies that define acceptable employment behavior

• Alignment with company culture to avoid conflicting biases in practice