Q1
Managers in multinational companies face numerous challenges. For instance, the variations in the nationalities of the workforce, the differences in political settings of different nations, and the variations in business regulatory policies are among the problems that these managers encounter (Briscoe, Tarique, & Schuler, 2012). The issue of workplace diversity has emerged as one of the most significant problems that managers in the contemporary corporate world have to deal with for them to realize the fullest productivity potential of their workers. The problem arises from the fact that globalized economies have has enabled people from different nations to co-exist, and the challenges that arise are related to issues such as communication, conflict resolution, and others. Of course, each country has its system of politics with a different approach to business and related activities, which makes it necessary for global managers to abide with such regulations.
Managers who engage in international deals that vary from domestic ones should be aware of two challenges, political and foreign risks. By political risks, the corporate leaders should be aware of the implications of the policies of foreign nations on the nature of their businesses (Briscoe, Tarique, & Schuler, 2012). For instance, some nations have stricter legislations on tax than others do while others have more cumbersome procedures for entry into their markets than others do. This finding would suggest that the political environments of different nations have different effects on the flourishing of business activities; some countries are supportive to foreign investors while others are less welcoming. The foreign risk, on the other hand, relates to the risk to corporate investment that would result from fluctuations in the economic forces within the foreign nations. It would mean that managers risk their businesses when they engage in economies with fluctuating trends in aspects, such as the exchange rates of the domestic currencies, economic stagnation, and other issues that would slow the performance of their businesses and affect profitability.
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Q2
The notion that ethics are no longer useful for corporations is unfounded. In fact, modern managers have to understand that ethical frameworks have a bigger role to play in the performance of their organizations now than they did centuries ago. The modern consumers of the services and products have increased their awareness of the corporate social responsibility of companies, and they seem to be scrutinizing the corporations for compliance (Maignan, 2011). It means that ethics play a significant role in defining what the businesses should do to the public. In any case, the whole notion of corporate social responsibility draws from the idea that companies should not explore their profit motives without consideration for the wellbeing of the communities in which they operate (Rappaport & Flaherty, 2012).
The importance of corporate ethics cannot be overstated. What managers should understand is the fact that corporate ethics is now one of the sources of competitive advantages for companies. Specifically, managers want to make their companies the most attractive places for employees to work alongside the need for them to gain approval of their customers. For this reason, for example, it is economically wise for companies to be transparent in their operations through reporting their revenues for taxation and compliance to the directions of the corporate social responsibility initiative. Managers who feel that the issue of ethics is valueless would be in for a shock because the changing times now mean that companies that do not care for their clients have less approval. Since ethical frameworks provide the means for ensuring the elements described, all corporate leaders should be conversant with corporate ethics.
References
Briscoe, D., Tarique, I., & Schuler, R. (2012). International human resource management: Policies and practices for multinational enterprises . Routledge.
Maignan, I. (2011). Consumers' perceptions of corporate social responsibilities: A cross-cultural comparison. Journal of business ethics , 30 (1), 57-72.
Rappaport, A., & Flaherty, M. F. (2012). Corporate responses to environmental challenges: Initiatives by multinational management . Praeger Pub Text.
