The cultural diversities are fairly promoted in the multi- national companies by opening job opportunities for people irrespective of the cultural and social backgrounds. However, some people believe that globalization promotes English as the global language in business therefore, it is a biased system of business in the market (Beck, 2018). This paper puts light on the positive aspects of the globalization with respect to the multi- national companies. Globalization has its positive and negative effects on mankind but majorly it promotes equality in the culturally diverse work environments. Moreover, it discusses the determinants of the culture in the MNCs. However, this paper poses the study and discussions done in week 4 from a combined work of week 1 to 5.
Cultural diversity in global MNC
The multi- national corporations work in a global market therefore, they should be ready to accept the potential changes in the global market. Some countries for example British are reserved and those companies that are interested in investing in this country have to adapt to slow progress by accepting the cultural differences. The disregard towards the countries cultural values and accepting them can result in the failure of the company. Therefore, to avoid this failure, the companies should indulge itself in getting cultural knowledge of the place (Pieterse, 2019). . However, there are some disadvantages of theses MNCs because as much as they are spreading, people are inclining towards different cultures and forgetting theirs. But the fact cannot be denied that globalization has many advantages over disadvantages as it is improving the standard of living of people and promoting the cultural equality in such culturally diverse environment. For example, Google is the most successful multi- national corporation which has erased the cultural differences by providing multi language surfing. Similarly, MacDonald’s has adopted different innovative changes for the growth of the enterprise at global level. It serves the products according to the likes of the majority of the people. Beef and pork mixed food are provided in UK and Australia but it changed its product range in India because the Hindu and Muslim culture is against the consumption of pork and beef. Therefore, a company can establish itself by adopting the cultural values of the country it is investing in. it also proves that in today’s world, culture is of utmost importance for globalization.
Determinants of the culture
Innovation and technological culture are strategic resource that leads to the increased and improved adaptability. Technological culture promotes the interaction and collaboration among the culturally different people towards the company’s environment therefore, generating the adaptive advantages.
The organizations define special social norms to avoid the social differences among workers therefore, a more productive organization can be established. However, it is not always homogenous in all the areas of the organization. People with different cultures can set up their own and different sub- cultures. For example, Nike is a global organization which provides a supporting cultural environment for its employees.
Ethical beliefs and norms
Ethical beliefs refer to the opinion it has about itself and how does it manage in balancing the profitability and its engagement with the local cultures. In today’s global environment, the purpose of the managers is not restricted in making profits but it also resonates with the needs and desires of the people inside and outside of the organization. In this way, it stabilizes the cultural indifferences and promotes the growth of organization. For example, Johnson and Johnson provided transport facilities for those who lack conveyance and day shifts for the female workers where females are not allowed to work during night hours according to their convenience. Therefore, by setting such ethical norms, the company flourished in the global market and is still praised for adopting these norms.
Behavior and attitude
People in organizations think according to their culture that they have lived in forever. the cultural minorities sometimes feel that they are not equally treated in the environment. For example, the indigenous communities of Australia suffer the stereotypes at workplace which hinders the personal growth and the organizational growth. In globalization all cultures are integrated therefore, the cultural indifferences are blurred to high extents therefore, supporting the growth of the organization.
Values, Norms, Ethics, Social Mobility
Social, ethics and values are the drivers of the global companies to attain success at global market. Global MNCs consider these parameters as the crucial ones to achieve success therefore, such companies that value the culture and ethics of the common people in the operating environment are promoting a healthy globalization.
When an organization functions globally, it has to showcase good values so that it can attract more employees from that place. A better and deeper insight and understanding of the culture can help in achieving the objectives of the organization (Kotlyarova, Rudenko and Ponomarev, 2017). For example, Tesco company keeps a check on the values of the customers and employees and honors them to achieve global success.
Rules and regulations are important in establishing the companies. The set up of rules are developed in the favor of the employees so that they do not face any discrimination due to their backgrounds. The legal attributes are also developed for the companies so that they can act according to the government policies and does not affect the common people. Therefore, globalization supports the growth of economy by following the taxation rules and policies. For example, nestle is a global organization that is still continue to the commitment of following the local norms of the operating environments therefore, it is the fastest growing company in the global market.
Global MNCs cannot run without maintaining the ethics and respect towards the local tradition inside and outside the organization. The growth of the MNCs is dependent on their behavior towards the humanity and the possible ways it adopts to tackle the problem arise due to inappropriate ethical issues (Collier, 2018). Therefore, the growth of the global organizations is not possible without ethical regulations. For example, Johnson and Johnson company discusses the ethical context of their business complications under the Credo challenge session which has become a famous method for achieving global success (Medina and Martinez, 2015).
Social mobility refers to the upward movement of the people from their current status. When a global company starts operating, it opens job opportunities for the people and reduces poverty. Social mobility improves as more people are attracted to these companies and they contribute in the economy elevation of the company. For example, Korea shows more social mobility than its counterpart Japan because the relationships of the companies with government are long-term and reliable (Jung and Lee, 2016).
The advantages and disadvantages of cultural diversity for the MNC
It integrates people of different cultures.
It promotes cultural equality of all the cultures.
The company gets insight of all the cultures so that it can favor culturally diverse people in best possible ways.
For example, Sodexo industries are involved in diversity and inclusion. They promote cultural and social equalities at the global level therefore, growing with a healthy pace in the global market.
Sometimes it causes death of the traditional cultural festivals. For example, the Chinese population are inclined towards the American festivals due to which they are forgetting their traditional festivals.
The cultural innovation restricts because of the dependence on the import of the innovative technologies (Hassoun and Sechrest, 2015).
After assessing all the details, it could be inferred that the globalization is the driving force to promote equality among different cultures by studying its advantages and disadvantages in the context of different companies. The paper summarizes the values. Ethics and norms to be maintained for healthy globalization by the global MNCs.
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