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