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7/18/2019 Global HRM.docx http://slidepdf.com/reader/full/global-hrmdocx 1/22 1 Global HRM Business ethics Business ethics (also corporate ethics) is a form of applied ethics or professional ethics that examines ethical principles and moral or ethical problems that arise in a business environment. It applies to all aspects of business conduct and is relevant to the conduct of individuals and entire organizations. [1] Business ethics has normative and descriptive dimensions. As a corporate practice and a career specialization the field is primaril! normative. Academics attempting to understand business behavior emplo! descriptive methods. "he range and #uantit! of business ethical issues reflects the interaction of profit$maximizing behavior %ith non$economic concerns. Interest in business ethics accelerated dramaticall! during the 1&'s and 1&&s both %ithin maor corporations and %ithin academia. *or example most maor corporations toda! promote their commitment to non$economic values under headings such as ethics codes and social responsibilit! charters. Adam +mith said ,-eople of the same trade seldom meet together even for merriment and diversion but the conversation ends in a conspirac! against the public or in some contrivance to raise prices., [] /overnments use la%s and regulations to point business behavior in %hat the! perceive to be beneficial directions. 0thics implicitl! regulates areas and details of behavior that lie be!ond governmental control. "he emergence of large corporations %ith limited relationships and sensitivit! to the communities in %hich the! operate accelerated the development of formal ethics regimes. Global Human Resource Management - Meaning and Objectives ith the advent of globalization organizations $ big or small have ceased to be local the! have  become global2 "his has increased the %or3force diversit! and cultural sensitivities have emerged li3e never before. All this led to the development of /lobal 4uman 5esource 6anagement. 0ven those organizations %ho consider themselves immune to transactions across geographical  boundaries are connected to the %ider net%or3 globall!. "he! are in one %a! or the other dependent upon organizations that ma! even not have heard about. "here is interdependence bet%een organizations in various areas and functions. The preliminary function of global Human Resource Management is that the organization carries a local appeal in the host country despite maintaining an international feel . "o exemplif! an! multinational 7 international compan! %ould not li3e to be called as local ho%ever the same %ants a domestic touch in the host countr! and there lies the challenge. e ma! therefore enumerate the objectives of global HRM as follows: 1. 8reate a local appeal %ithout compromising upon the global identit!. . /enerating a%areness of cross cultural sensitivities among managers globall! and hiring of staff across geographic boundaries. 9. "raining upon cultures and sensitivities of the host countr!. "he strategic role of Human resources Management in such a scenario is to ensure that 456  policies are in tandem %ith and in support of the firm:s strateg! structure and controls. +pecificall!

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Global HRM

Business ethics

Business ethics (also corporate ethics) is a form of applied ethics or   professional ethics thatexamines ethical principles and moral or ethical problems that arise in a business environment. It

applies to all aspects of business conduct and is relevant to the conduct of individuals and entire

organizations.[1]

Business ethics has normative and descriptive dimensions. As a corporate practice and a career 

specialization the field is primaril! normative. Academics attempting to understand business behavior 

emplo! descriptive methods. "he range and #uantit! of business ethical issues reflects the interaction

of profit$maximizing behavior %ith non$economic concerns. Interest in business ethics accelerated

dramaticall! during the 1&'s and 1&&s both %ithin maor corporations and %ithin academia. *or 

example most maor corporations toda! promote their commitment to non$economic values under 

headings such as ethics codes and social responsibilit! charters. Adam +mith said ,-eople of the

same trade seldom meet together even for merriment and diversion but the conversation ends in a

conspirac! against the public or in some contrivance to raise prices., []/overnments use la%s and

regulations to point business behavior in %hat the! perceive to be beneficial directions. 0thics

implicitl! regulates areas and details of behavior that lie be!ond governmental control. "he

emergence of large corporations %ith limited relationships and sensitivit! to the communities in

%hich the! operate accelerated the development of formal ethics regimes.

Global Human Resource Management - Meaning and Objectives

ith the advent of globalization organizations $ big or small have ceased to be local the! have

 become global2 "his has increased the %or3force diversit! and cultural sensitivities have emerged li3e

never before. All this led to the development of /lobal 4uman 5esource 6anagement.

0ven those organizations %ho consider themselves immune to transactions across geographical

 boundaries are connected to the %ider net%or3 globall!. "he! are in one %a! or the other dependent

upon organizations that ma! even not have heard about. "here is interdependence bet%een

organizations in various areas and functions.

The preliminary function of global Human Resource Management is that the organization

carries a local appeal in the host country despite maintaining an international feel. "o exemplif!

an! multinational 7 international compan! %ould not li3e to be called as local ho%ever the same

%ants a domestic touch in the host countr! and there lies the challenge.

e ma! therefore enumerate the objectives of global HRM as follows:

1. 8reate a local appeal %ithout compromising upon the global identit!.

. /enerating a%areness of cross cultural sensitivities among managers globall! and hiring of

staff across geographic boundaries.

9. "raining upon cultures and sensitivities of the host countr!.

"he strategic role of Human resources Management in such a scenario is to ensure that 456 policies are in tandem %ith and in support of the firm:s strateg! structure and controls. +pecificall!

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%hen %e tal3 of structures and controls the follo%ing become %orth mentioning in the context of

/lobal 456.

ecision Ma!ing: "here is a certain degree of centralization of operating decision ma3ing.

8ompare this to the International strateg! the core competencies are centralized and the rest

are decentralized.

"o#ordination: A high degree of coordination is re#uired in %a3e of the cross cultural

sensitivities. "here is in addition also a high need for cultural control.

$ntegrating Mechanisms: 6an! integrating mechanisms operate simultaneousl!.

Global HRM and the %taffing &olicy

4ere also the role is no different i.e. hiring individuals %ith re#uisite s3ills to do a particular ob. "he

challenge here is developing tools to promote a corporate culture that is almost the same ever!%here

except that the local sensitivities are ta3en care of.

Also the deciding upon the top management or 3e! positions gets ver! tric3!. hether to choose a

local from the host countr! for a 3e! position or deplo! one from the head#uarters assumes

importance; and finall! %hether or not to have a uniform hiring polic! globall! remains a big

challenge.

 <evertheless an organization can choose to hire according to an! of the staffing policies mentioned

 belo%=

'thnocentric: 4ere the >e! management positions are filled b! the parent countr!individuals.

&olycentric: In pol!centric staffing polic! the host countr! nationals manage subsidiaries

%hereas the head#uarter positions are held b! the parent compan! nationals.

Geocentric: In this staffing polic! the best and the most competent individuals hold 3e!

 positions irrespective of the nationalities.

/eocentric staffing polic! it seems is the best %hen it comes to /lobal 456. "he human

resources are deplo!ed productivel! and it also helps build a strong cultural and informal

management net%or3. "he flip side is that human resources become a bit expensive %henhired on a geocentric basis. Besides the national immigration policies ma! limit

implementation.

Global HRM therefore is a very challenging front in HRM( $f one is able to stri!e the right

chord in designing structures and controls) the job is half done. +ubsidiaries are held together b!

global 456 different subsidiaries can function operate coherentl! onl! %hen it is enabled b!

efficient structures and controls.

Human Resource Management:

Transfer

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"ransfer refers to the shifting of emplo!ees form one ob to another %ithin the same

organization %here salar! responsibilities and categor! of the ne% ob and the previous ob are almost

same. "ransfer of an emplo!ee can be done in other department of the same plant or office or to the

same department of plant or office located in other region7cit!.

Reason * +bjectives for Transfer:

? "ransfer can be done on the re#uest of emplo!ee due to personal reason li3e famil!

 problem or health problem.

? @ue to 45 polic! %hich states that one emplo!ee can %or3 in department or place for

specific time period

? "ransfers are common in the organizations %here the %or3 load varies timel!.

? If an emplo!ee is not able to do the %or3 or ob assigned effectivel! he can be transferred

to the other ob %here he can use his s3ills properl! according to his interest and abilities

? @epartmental vacancies can be filled %ith transfer of emplo!ees from overstaffed

department.

? 0mplo!ees can be transferred to the position or department %ith the higher priorit!%or3load.

 

Types of Transfer:

&roduction Transfer= hen the transfers are being made for filling the position in such departments

having lac3 of staff from the departments having surplus manpo%er it is called production transfer. It

 prevents the la!offs form the organization. Also it is good to adust existing staff rather than to hire

the ne% one.

Remedial Transfer: 5emedial transfer refers to rectification of %rong selection or placement of

emplo!ees. If the emplo!ee can adust himself in the given ob he can be transferred to the ob %here

he can use his s3ills and abilities accordingl!.

,ersatility Transfer: +uch transfers are done to increase the versatilit! in the emplo!ees so that he

can %or3 different 3ind of obs. "his is done b! transferring emplo!ee to different obs closel! related

in same department or process line.. "his is used as a training device. It helps emplo!ee to develop

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him and he is e#uipped for the high responsibilit! obs as he is having 3no%ledge of the %hole

 process.

%hift Transfer: In man! multi$shifts obs such as 8all centres emplo!ees are transferred from one

shift to another due to their personal reasons li3e health problem or evening college for higher studies

or an! famil! problems.

The purposes of the Transfer

"he transfer are generall! affected to build up a more satisfactor! %or3 team and to achieve the follo%ing purposes=

•  "o increase the effectiveness of the organization.

•  "o increase the versatilit! and competenc! of 3e! positions.

•  "o deal %ith fluctuations in %or3 re#uirements.

•  "o correct incompatibilities in emplo!ee relations.

•  "o correct erroneous placement.

•  "o relieve monoton!.

•  "o adust %or3force.

•  "o punish emplo!ees.

Global business refers to international trade %hereas a global business is a compan!

doing business across the %orld. "he exchange of goods over great distances goes bac3 a ver! long

time. Anthropologists have alread! established long$distance trading in 0urope in the +tone Age

/lobal business refers to international trade %hereas a global business is a compan! doing business

across the %orld. "he exchange of goods over great distances goes bac3 a ver! long time.

Anthropologists have alread! established long$distance trading in 0urope in the +tone Age. +ea$borne

trading %as commonplace in man! regions of the %orld in times predating /ree3 civilization. +uch

trade of course %as not b! definition ,global, but had the same characteristics. In the 1th centur!

all of the continents came to be routinel! lin3ed b! ocean$based communications. "rading activit! in

the modern sense rapidl! follo%ed at the beginning of the 1th centur!; it might be more accurate to

sa! that it ,returned, again because trading of such character had ta3en place in 5oman times as %ell.

It is not intended here to discuss another and related subect covered separatel! in this volume=

globalization. /lobalization is a long$standing program advocated b! the economicall! advanced

nations to free up international trade across the globe through treaties. It has also come to mean the

relocation of production or service activities to places that have much lo%er labor costs. /lobal

 business in the pastCor currentl!Cdoes not re#uire %hat advocates of globalization see3 namel! a

so$called level pla!ing field. International trade has al%a!s had a mixed character in %hich national

organizations and private enterprises have both participated in %hich monopolies have been imposed

fre#uentl! defended b! armed forces in %hich all manner of restraints and tariffs have been common

and participants have made all sorts of efforts to counter such interference or to profit from it.

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Types of $nternational 'mployees

International emplo!ees can be placed in three different classifications.

• -n e.patriate is an emplo!ee %or3ing in a unit or plant %ho is not a citizen of the countr! in

%hich the unit or plant is located but is a citizen of the countr! in %hich the organization ishead#uartered.

• - host#country national is an emplo!ee %or3ing in a unit or plant %ho is a citizen of the

countr! in %hich the unit or plant is located but %here the unit or plant is operated b! an

organization head#uartered in another countr!.

• - third#country national is a citizen of one countr! %or3ing in a second countr! and

emplo!ed b! an organization head#uartered in a third countr!. 0ach of these individuals

 presents some uni#ue 45 management challenges. Because in a given situation each is a

citizen of a different countr! different tax la%s and other factors appl!. 45 professionals

have to be 3no%ledgeable about the la%s and customs of each countr!. "he! must establish

appropriate pa!roll and record$3eeping procedures among other activities to ensurecompliance %ith var!ing regulations and re#uirements.

'/&-TR$-T'% 

(An e.patriate (in abbreviated form e.pat) is a person temporaril! or permanentl! residing in a

countr! and culture other than that of the personDs upbringing.) (A person %ho leave oneDs native

countr! to live else%here)

6an! 6<0s use expatriates to ensure that foreign operations are lin3ed effectivel! %ith the parent

corporations. /enerall! expatriates also are used to develop international capabilities %ithin an

organization. 0xperienced expatriates can provide a pool of talent that can be tapped as the

organization expands its operations more broadl! into even more countries. Eapanese$o%ned firms

%ith operations in the Fnited +tates have rotated Eapanese managers through F.+. operations in orderto expand the 3no%ledge of F.+. business practices in the Eapanese firms.

+everal t!pes of expatriates ma! be differentiated b! ob assignment because not all individuals %ho

decide to %or3 as expatriates are similar in the assignments underta3en.

• Volunteer expatriates: "hese are persons %ho %ant to %or3 abroad for a period of time

 because of career or self$development interests. Gften these expatriates volunteer for shorter$

term assignments of less than a !ear so that the! can experience other cultures and travel to

desired parts of the %orld.

• Traditional expatriates: "hese are professionals and managers assigned to %or3 in foreignoperations for one to three !ears. "he! then rotate bac3 to the parent corporation in the home

countr!.

• Career development expatriates: "hese individuals are placed in foreign obs to develop the

international management capabilities of the firm. "he! ma! serve one to three Htours in

different countries so that the! can develop a broader understanding of international

operations.

• Global expatriates: "he broadcast categor! comprises those individuals %ho move from one

countr! to another. Gften the! prefer to %or3 internationall! rather than in the home countr!.

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International 5ecruitment

Global Human Resource Management 

hile recruiting people for international operations the international 45 managers must identif! theglobal competitiveness of the potential applicants at the time of the recruiting process. It is essential

that the %or3force of an international organization is a%are of the nuances of international business.

Fnderstandabl! the compan! must 3eep international 3no%ledge and experience as criteria in the

recruitment and selection process.1 Besides the international 45 department must have a fairl!

good idea about the s3ills and availabilit! of human resources in different labour mar3ets in the %orld.

"he 45 department must have the capacit! to foresee the changes in these mar3ets and exploit those

changes productivel!. A trul! international 45 department %ould insist on hiring people from all over 

the %orld and place them throughout the international business operations of the organization.

Approaches to 5ecruitment in I456 "hough the general aim of an! recruitment polic! is to select the

right people for the right tas3 at the right time the 45 department of international companies ma!

adopt one of the follo%ing three specific approaches available for recruiting emplo!ees for globaloperations.

'thnocentric approach

%hen a compan! follo%s the strateg! of choosing onl! from the citizens of the parent countr! to %or3 

in host nations it is called an ethnocentric approach. <ormall! higher$level foreign positions are

filled %ith expatriate emplo!ees from the parent countr!. "he general rationale behind the

ethnocentric approach is that the staff from the parent countr! %ould represent the interests of the

head#uarters effectivel! and lin3 %ell %ith the parent countr!. "he recruitment process in this method

involves four stages= self$selection creating a candidate pool technical s3ills assessment and ma3ing

a mutual decision. +elf$selection involves the decision b! the emplo!ee about his future course of

action in the international arena. In the next stage the emplo!ee database is prepared according to themanpo%er re#uirement of the compan! for international operations. "hen the database is anal!sed for

choosing the best and most suitable persons for global assignments and this process is called technical

s3ills assessment. *inall! the best candidate is identified for foreign assignment and sent abroad %ith

his consent. "he ethnocentric approach places natives of the home countr! of a business in 3e!

 positions at home and abroad. In this example the F.+. parent compan! places natives from the

Fnited +tates in 3e! positions in both the Fnited +tates and 6exico.  "he pol!cenlric approach uses

natives of the host countr! to manage operations in their countr! and natives of the parent countr! to

manage in the home office. In this example the Australian parent compan! uses natives of India to

manage operations at the Indian subsidiar!. <atives of Australia manage the home office.

Geocentric approach

%hen a compan! adopts the strateg! of recruiting the most suitable persons for the positions available

in it irrespective of their nationalities it is called a geocentric approach. 8ompanies that are trul!

global in nature adopt this approach since it utilizes a globall! integrated business strateg!. +ince the

45 operations are constrained b! several factors li3e political and ethnical factors and government

la%s it is difficult to adopt this approach. 4o%ever large international companies generall! adopt the

geocentric strateg! %ith considerable success.

*or international recruitment especiall! on foreign soil organizations generall! use manpo%er

agencies or consultants %ith international connections and repute to source candidates in addition to

the conventional sources. *or an effective utilization of the internal source of recruitment global

companies need to develop an internal database of emplo!ees and an effective trac3ing s!stem to

identif! the most suitable persons for global postings.

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"he geocentric approach uses Ihe best available managers for a business %ithout regard for their

countr! of origin. In this example the F> parent compan! uses natives of man! countries at compan!

head#uarters and at the F.+. subsidiar!.

Regiocentric -pproach

8ompan!Ds international business is divided into international geographic regions. "he regiocentric

approach uses managers from various countries %ithin the geographic regions of business. Although

the managers operate relativel! independentl! in the region the! are not normall! moved to the

compan! head#uarters.

"he regiocentric approach is adaptable to the compan! and product strategies. hen regional

expertise is needed natives of the region are hired. If product 3no%ledge is crucial then parent$

countr! nationals %ho have read! access to corporate sources of information can be brought in.

Gne shortcoming of the regiocentric approach is that managers from the region ma! not understand

the vie% of the managers at head#uarters. Also corporate head#uarters ma! not emplo! enoughmanagers %ith international experience.

$nternational %election

0ven though cultural differences influence the selection procedure to some extent organizations tend

to follo% similar criteria and methods %orld%ide. "his is due to the fact that the end obective of an!

selection process is to choose the most capable persons for the ob. "he selection criteria for

international obs usuall! revolve around the five core areas of behaviour attitudes s3ills motivation

and personalit!. 6ore specificall! the focus of selection for international operations normall!

includes cultural adaptabilit! strong communication s3ills technical competence professional or

technical expertise global experience countr!$specific experience interpersonal s3ills language

s3ills and famil! flexibilit!. 0mplo!ers around the %orld usuall! ran3 personal intervie%s technicalcompetenc! and %or3 experience in similar obs as important criteria for selection. International

firms %hile choosing emplo!ees for overseas operations usuall! prefer people %ith

• highl! developed technical s3ills

• good language and communication s3ills

• tolerance to%ards other culture race creed colour habits and values

• high level of motivation

• stress resistance

• goal$oriented behaviour 

*inall! at the time of selection for international assignments an organization should consider the

 previous overseas experience famil! circumstances and cultural$adaptabilit! level of the candidates

aspiring for the global obs.

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ifference between a global) transnational) international and multinational company

•  International companies are importers and exporters the! have no investment outside of 

their home countr!.

•  Multinational companies have investment in other countries but do not have coordinated product offerings in each countr!. 6ore focused on adapting their products and service to each

individual local mar3et.

• Global companies have invested and are present in man! countries. "he! mar3et their 

 products through the use of the same coordinated image7brand in all mar3ets. /enerall! one corporate

office that is responsible for global strateg!. 0mphasis on volume cost management and efficienc!.

• Transnational companies are much more complex organizations. "he! have invested in

foreign operations have a central corporate facilit! but give decision$ma3ing 5J@ and mar3eting

 po%ers to each individual foreign mar3et.

"!pes of International Business

1) 8ountertrade

  8ountertrade is the exchange of goods or services for other goods or services.

"his s!stem can be t!pified as simple bartering s%itch trading counter purchase bu!bac3

or offset.

  +%itch trading= -art! A and B are countertrading salt for sugar. -art! A ma! s%itch its

obligation to pa! -art! B to a third part! 3no%n as the s%itch trader. "he s%itch trader gets

the sugar from -art! B at a discount and sells it for mone!. "he mone! is used as -art! ADs

 pa!ment to -art! B.

  8ounter purchase= -art! A sells salt to -art! B. -art! A promises to ma3e a future purchase of sugar from -art! B.

  Bu!bac3= -art! A builds a salt processing plant in 8ountr! B providing  ca"ital to

this develo"ing nation. In return 8ountr! B pa!s -art! A %ith salt from the plant.

  Gffset agreement= -art! A and 8ountr! B enter a contract %here -art! A agrees to bu!

sugar from 8ountr! B to manu#acture cand!. 8ountr! B then bu!s that cand!.

) @irect Investment

• *@I is practiced b! companies in order to benefit from cheaper labour costs tax

exemptions and other privileges in that foreign countr!.

0xplain the effects of foreign direct investment (*@I) for the investor and the host countr!

o *@I is the flo% of investments from one compan! to production in a foreign

nation %ith the purpose of lo%ering labor costs and gaining tax incentives.

o *@I can help the economic situations of developing countries as %ell as

facilitate progressive internal polic! reforms.

o A maor contributing factor to increasing *@I flo% %as internal polic! reform

relating to trade openness and participation in international trade agreements and institutions.

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9) *ranchising

*ranchising is the practice of licensing another firmDs business model as an operator.

  0ssentiall! and in terms of distribution the franchiser is a supplier %ho allo%s an

operator or a franchisee to use the supplierDs trademar3 and distribute the supplierDs goods. In

return the operator pa!s the supplier a fee.

  "hirt! three countries including the Fnited +tates 8hina and Australia have la%s that

explicitl! regulate franchising %ith the maorit! of all other countries having la%s %hich

have a direct or indirect impact on franchising.

  *ranchise agreements carr! no guarantees or %arranties and the franchisee has little or no

recourse to legal intervention in the event of a dispute.

K) 6ultinational firms

  6ultinational corporations operate in multiple countries.

  6<8s have considerable bargaining po%er and ma! negotiate business or trade policies

%ith success.

  A corporation ma! choose to locate in a special economic zone a geographical region that

has economic and other la%s that are more free$mar3et$oriented than a countr!Ds t!pical or

national la%s.

L) offshoring

Gffshoring is the relocation of certain business processes from one countr! to the other

resulting in large tax brea3s and lo%er labor costs.

  Gffshoring can cause controvers! in a compan!Ds domestic countr! since it is perceived to

impact the domestic em"lo!ment situation negativel!.

  Gffshoring of a compan!Ds services that %ere previousl! produced domesticall! can be

advantageous in lo%ering operation costs but has incited some controvers! over the

economic implications.

01 Eoint Mentures

• Gutline the d!namics of a joint  venture In a joint  venture business model t%o or more parties

agree to invest time e#uit! and effort for the development of a ne% shared proect.

•   Joint  business ventures involve t%o parties contributing their o%n e#uit! and resources to

develop a ne% proect.

• +ince mone! is involved in a joint  venture it is necessar! to have a strategic plan in place.

• hile joint  ventures are generall! small proects maor corporations use this method to

diversif!.

• +ince mone! is involved in a joint  venture it is necessar! to have a strategic plan in place.

•   joint  venture (noun) A cooperative partnership bet%een t%o individuals or businesses in

%hich profits and ris3s are shared.

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  Eoint Mentures

• 0xplain ho% a joint  venture is formed ho% it functions and %h! it eventuall! dissolved

A joint  venture is %hen t%o or more parties are both invested in an original concept7proect in terms

of mone! time and effort.

•   Joint  ventures are temporar! partnerships that can have small or ongoing proects.

6iller8oors is a joint  venture bet%een +AB6iller and 6olson 8oors Bre%ing 8ompan!.• , A joint  venture ta3es place %hen t%o parties come together to ta3e on one proect.

• A joint  venture is sometimes a partnership bet%een a domestic firm and a foreign firm.

•   joint  venture (noun) A cooperative partnership bet%een t%o individuals or businesses in

%hich profits and ris3s are shared.

o

) Gutsourcing

Gutsourcing is the contracting of business processes to external firms usuall!

in develo"ing countries %here labor costs are cheaper.

  "his practice has increased in prevalence due to better technolog! and improvements in

the educational standards of the countries to %hich obs are outsourced.o   "he opposite of outsourcing is called insourcing and it is sometimes

accomplished via vertical integration. 4o%ever a business can provide a contract service to

another business %ithout necessaril! insourcing that business process.

') Importing

  A countr! specializes in the export of goods for %hich it has a comparative advantage and

imports those for %hich it has a comparative disadvantage. B! doing so the countr! can

increase its %elfare.

  8omparative advantage describes the abilit! of a countr! to produce one specific good

more efficientl! than other goods.

o   A countr! enhances its %elfare b! importing a broader range of higher$

#ualit! goods and services at lo%er cost than it could produce domesticall!.

&) Nicensing

Nicensing is a business agreement involving t%o companies= one gives the other special

 permissions such as using patents or cop!rights in exchange for pa!ment.

  An international business licensing agreement involves t%o firms from different

countries %ith the licensee receiving the rights or resources to manufacture in the foreign

countr!.

  5ights or resources ma! include patents cop!rights technolog! managerial s3ills or

other factors necessar! to manufacture the good.  Advantages of expanding internationall! using international licensing include= the abilit!

to reach ne% mar3ets that ma! be closed b! trade restrictions and the abilit! to expand

%ithout too much ris3 or capital investment.

o   @isadvantages include the ris3 of an incompetent foreign partner firm and

lo%er income compared to other modes of international expansion.

1) contract manufacturing

A hiring firm ma! enter a contract %ith a contract manufacturer (86) to produce

components or final products on behalf of the hiring firm for some agreed$upon price.

  "here are man! benefits to contract manufacturing and companies are finding man!

reasons %h! the! should be outsourcing their production to other companies.

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  -roduction outside of the compan! does come %ith man! ris3s attached. 8ompanies must

first identif! their core competencies before deciding about contract manufacture.

11) 0xporting

"his term export is derived from the  conce"tual meaning as to ship the goods and

services out of the port of a countr!.  In national accounts ,exports, consist of transactions in goods and services (sales barter

gifts or grants) from residents to non$residents.

  +tatistics on international trade do not record smuggled goods or flo%s of illegal services.

A small fraction of the smuggled goods and illegal services ma! nevertheless be included in

official trade statistics through dumm! shipments that serve to conceal the illegal nature of 

the activities.

"he 0uropean 0nvironment of 456 (8hris Bre%ster and *ranOois Bournois)

5ecentl! interest has gro%n in the possibilit! of there being a model of 456 %hich is distinctl!

0uropean. "he model of the 0uropean environment of 456 first produced in 1&&1 b! 8hris

Bre%ster and *ranOois Bournois emphasizes the cultural legal and mar3et contexts of human

resource strateg! and practice.L

Bre%ster sa!s that he prefers "homas >ochanDs frame%or3 of I5 (discussed above) %hich he

contends is a more comprehensive vie% of the range of social factors influencing 456 than other 

models such as soft and hard 456. 4e also proposes that the model of the 0uropean environment of 

456 is partl! a response to dissatisfaction %ith American 456. "he anti$unionism of the

American approach to 456 has been more consistent in F+ national culture than in some countries

%ithin 0urope %hich have sho%n greater %illingness during some periods of their histor! to %or3 

%ithin a social partnership.

 Brewster and Bournois (1991)In the Bre%ster and Bournois model 45 strateg! is onl! partl! subservient to corporate strateg!

 because 456 is influenced b! behaviour and performance from both inside and outside the

organization. "he organization and its human resource strategies and practices interact %ith the

environment and at the same time are part of it. "he model sho%s that 456 polic! and practice are

not exclusivel! an organizationDs choice but are also influenced b! the %ider environment particularl!

the national culture and the industr! sector the organization operates in (see *ig. 1.).

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In 1&&L Bre%ster 

reported the results

of a surve!

covering fourteen

0uropean countries in %hich three regional clusters corresponding to level of socio$economic

development %ere found= a Natin cluster (+pain Ital! *rance); a 8entral 0uropean cluster (8entral

0uropean countries plus the F> and Ireland); and a <ordic cluster (<or%a! +%eden @enmar3).

Bre%ster proposed that the surve! sho%s Natin countries to be at the lo%est stage of socio$economic

development the F> and Ireland next then continental 8entral 0uropean countries and finall!

 <ordic countries at the top of the development scale.' "he Natin culture at the lo%est stage of 

development according to Bre%ster is characterized b! an oral culture and political structures that

create docile attitudes to%ards authorit! %hereas the culture of the highest stagethat of the <ordic

countriesdispla!s a %idespread collective orientation to management extensive consultation bet%een

emplo!ers and %or3ers documented strategies and (perhaps this conclusion is to be expected from an

456 researcher) substantial and authoritative 456 departments.

@espite the tendenc! of the national cultures to cluster into three regional groups Bre%ster foundsome trends common across most 0uropean countries. -a! determination according to the evidence

of the surve! is becoming increasingl! decentralized and flexible pa! s!stems are becoming more

common. *lexible %or3ing practices are increasing in 0uropean countries (for example at!pical

%or3ing; annualized hours; and temporar! casual and fixed$term contracts). "here is unfortunatel!

also continuit! in lac3 of e#ual opportunities in so far as at senior management level %omen and

ethnic minorities are still underrepresented.

4o%ever other opportunities var! much more b! countr!. *or example in /reece and +pain %here

%omen are a third of the %or3force there is ver! limited childcare provision but in +%eden and

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*rance the provision is more extensive. "raining investment is on the increase overall in the %hole of 

0urope particularl! for managerial and professional staff but the level of government intervention

varies greatl! b! countr!. & "he role of the 45 function %as also found to var! according to countr!

45 eno!ing the greatest representation at board level in +pain and *rance %here 'P of 

organizations have an 45 director (thus contradicting on this point Bre%sterDs ran3ing of the Natin

cluster as the least developed) and some%hat less in the F> %here fe%er than LP of organizations

have an 45 director.

0uropean emplo!ment differs from emplo!ment in other parts of the %orld in that it is comparativel!

more unionized and unions pla! a %ider role in societ! and the %or3place in 0uropean countries than

the! do in man! other countries. Bre%ster attributes some of the persistence of unions in 0urope to

their official recognition as social partners %ithin the 0uropean Fnion. +o %hat is the model of the

0uropean environment of 456Q 0ssentiall! it has similarities %ith >ochanDs frame%or3 in that both

accommodate partnership bet%een unions emplo!ers and government. "he 0uropean model assumes

that national culture shapes 456 practices and that the culture of countries %ithin 0urope are despite

their differences more positive overall to%ards social partnership than is F+ culture. In summar!

ho%ever the 0uropean environment of 456 does not indicate a distinctive move a%a! from

 personnel management; rather %hatDs happening in 0urope is a complex mix of continuation of 

traditional personnel management and change to%ards 456.

Convergence Theory

a modern bourgeois theor! according to %hich the economic political and ideological differences bet

%een the capitalist and socialists!stems are graduall! diminishing leading ultimatel! to a merger of th

e t%o s!stems. "he term Hconvergence %as ta3en from biolog!. "heconvergence theor! arose in the

1&L:s and 1&:s under the influence of the progressing socialization of capitalist production caused

 b! thescientific and technological revolution the increasing economic role of the bourgeois state and

the introduction of elements of planning in thecapitalist countries. "he proponents of the convergence

theor! characteristicall! distort these processes %hich actuall! ta3e place in moderncapitalism and tr 

! to s!nthesize several conceptions that are in fact apologies for capitalism mas3ing the rule of big ca

 pital in contemporar!bourgeois societ!. "he most prominent representatives of the convergence theor 

! are E. /albraith and -. +oro3in in the F+A E. "inbergen inthe <etherlands 5. Aron in *rance and E. +trache! in /reat Britain. "he ideas of the convergence theor! are used %idel! b! Hright and Hlefto

 pportunists and revisionists.

"he advocates of the convergence theor! consider technological progress and the gro%th of big indust

r! decisive factors in therapprochement of the t%o socioeconomic s!stems. "he! claim that the increa

sing size of enterprises the rise in the relative %eight ofindustr! in the national econom! and the gro

%ing importance of ne% branches of industr! are factors contributing to a greater similarit! of thet%o

s!stems. "he basic fallac! of their vie%s is their technological approach to socioeconomic s!stems th

at is the substitution oftechnolog! or the technical organization of production for relations of social pr 

oduction bet%een people and classes. 8ommon traits in thedevelopment of technolog! technical orga

nization and the branch structure of industrial production do not in an! %a! preclude fundamentaldiff 

erences bet%een capitalism and socialism.

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"he proponents of the convergence theor! also claim that capitalism and socialism are becoming simil

ar in socioeconomic respects. *orinstance the! note the gro%ing similarit! in the economic roles of th

e capitalist and the socialist states. Fnder capitalism the! argue therole of the state in directing the ec

onomic development of societ! is increasing %hereas it is decreasing under socialism because theeco

nomic reforms carried out in the socialist countries allegedl! lead to a departure from the centralized p

lanned management of the nationaleconom! and to a return to mar3et relations. "his interpretation of

the economic role of the state distorts realit!. "he bourgeois state unli3ethe socialist state cannot pla

! an all$encompassing directing role in economic development because most of the means of producti

on areprivatel! o%ned. At best the bourgeois state can forecast economic development and engage in

recommendator! or indicative planning orprogramming. "he conception of Hmar3et socialism is als

o fundamentall! %rong; it totall! distorts the nature of commodit! and mone!relations and the charact

er of the economic reforms in the socialist countries. Fnder socialism commodit! and mone! relation

s aresubordinate to the planned management b! the socialist state and the economic reforms refine th

e methods of the socialist plannedmanagement of the national econom!.

E. /albraith has proposed another version of the convergence theor!. 4e does not sa! that the socialistcountries are returning to the s!stemof mar3et relations. Gn the contrar! he asserts that mar3et relatio

ns must give %a! to planned relations in an! societ! %ith an advancedtechnolog! and a complex orga

nization of production. 6oreover he declares that the s!stems of planning and organization of produc

tion aresimilar under capitalism and socialism and vie%s this as the basis for the convergence of the t

%o s!stems. "he e#uation of capitalist andsocialist planning is a distortion of economic realit!. /albra

ith does not distinguish bet%een private economic and national economicplanning; he sees onl! the #u

antitative differences and ignores the basic #ualitative differences bet%een them. "he concentration of

all thecommand positions of the national econom! in the hands of the socialist state ensures a proporti

onal distribution of labor and productionresources. 8orporate capitalist planning and state economic p

rogramming on the other hand cannot ensure such proportionalit! or overcomeunemplo!ment and th

e c!clical fluctuations of capitalist production.

"he convergence theor! has gained currenc! among various intellectual circles in the est. +ome of it

s proponents are sociall! andpoliticall! reactionar! and others are more or less progressive. "herefore

in arguing against the convergence theor! 6arxists must use adifferentiated approach %ith respect t

o different proponents of this theor!. +ome li3e /albraith and "inbergen lin3 it up %ith the idea ofpe

aceful coexistence bet%een the capitalist and socialist countries. "he! believe that onl! the convergen

ce of the t%o s!stems can saveman3ind from a thermonuclear %ar. 4o%ever the deduction of peacefu

l coexistence from the idea of convergence is completel! %rong andfundamentall! contrar! to the Nen

inist idea of the peaceful coexistence of antagonistic s!stems that do not merge at all.

*rom the point of vie% of its class essence the convergence theor! is a refined form of apolog! for ca

 pitalism. Although it appears to placeitself above capitalism and socialism and seems to advocate som

e undefined Hintegrated (Hintegral) economic s!stem it essentiall!proposes a s!nthesis of the t%o s!

stems on a capitalist basis on the basis of private o%nership of the means of production. +ince thecon

vergence theor! is above all a variant of contemporar! bourgeois and reformist ideological doctrines i

t also fulfills #uite a specificpractical function= its advocates attempt to provide the capitalist countries

%ith %a!s to establish Hsocial peace and propose that thesocialist countries enact measures to%ard a

rapprochement of the socialist and capitalist economies via a so$called mar3et socialism.

&acts and &igures' (conomic (m"o)erment

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Benefts o economic empowerment• hen more %omen %or3 economies gro%. An increase in female labour force participation

 Cor a reduction in the gap bet%een %omen:s and men:s labour force participationCresults in faster

economic gro%th [1].

• 0vidence from a range of countries sho%s that increasing the share of household income

controlled b! %omen either through their o%n earnings or cash transfers changes spending in %a!s

that benefit children [].

• Increasing %omen and girls: education contributes to higher economic gro%th. Increased

educational attainment accounts for about L per cent of the economic gro%th in G08@ countries

over the past L !ears [9] of %hich over half is due to girls having had access to higher levels of

education and achieving greater e#ualit! in the number of !ears spent in education bet%een men and

%omen [K]. But for the maorit! of %omen significant gains in education have not translated into

 better labour mar3et outcomes [L]

• A stud! using data from 1& countries from 1& to & found that for ever! one additional

!ear of education for %omen of reproductive age child mortalit! decreased b! &.L per cent [].

• omen tend to have less access to formal financial institutions and saving mechanisms.

hile LL per cent of men report having an account at a formal financial institution onl! K per cent

of %omen do %orld%ide. "his gap is largest among lo%er middle$income economies as %ell as in+outh Asia and the 6iddle 0ast and <orth Africa [].

The world of wor! 

• omen continue to participate in labour mar3ets on an une#ual basis %ith men. In 19 the

male emplo!ment$to$population ratio stood at . per cent %hile the ratio for females %as K.1 per

cent ['].

• /loball! %omen are paid less than men. omen in most countries earn on average onl! to

L per cent of men:s %ages [&]. 8ontributing factors include the fact that %omen are more li3el! to be

%age %or3ers and unpaid famil! %or3ers; that %omen are more li3el! to engage in lo%$productivit!

activities and to %or3 in the informal sector %ith less mobilit! to the formal sector than men; [1] the

vie% of %omen as economic dependents; and the li3elihood that %omen are in unorganized sectors or

not represented in unions [11].

• It is calculated that %omen could increase their income globall! b! up to per cent if theemplo!ment participation gap and the %age gap bet%een %omen and men %ere closed. "his is

calculated to have a global value of F+@ 1 trillion [1].

• omen bear disproportionate responsibilit! for unpaid care %or3. omen devote 1 to 9 hours

more a da! to house%or3 than men; to 1 times the amount of time a da! to care (for children

elderl! and the sic3) and 1 to K hours less a da! to mar3et activities [19]. In the 0uropean Fnion for

example L per cent of %omen report care and other famil! and personal responsibilities as the

reason for not being in the labour force versus onl! three per cent of men [1K]. "his directl! and

negativel! impacts %omen:s participation in the labour force.

• /ender ine#ualities in time use are still large and persistent in all countries. hen paid and

unpaid %or3 are combined %omen in developing countries %or3 more than men %ith less time for

education leisure political participation and self$care [1L]. @espite some improvements over the lastL !ears in virtuall! ever! countr! men spend more time on leisure each da! %hile %omen spend

more time doing unpaid house%or3 [1].

• omen are more li3el! than men to %or3 in informal emplo!ment [1]. In +outh Asia over

' per cent of %omen in non$agricultural obs are in informal emplo!ment in sub$+aharan Africa K

 per cent and in Natin America and the 8aribbean LK per cent [1']. In rural areas man! %omen derive

their livelihoods from small$scale farming almost al%a!s informal and often unpaid [1&].

• 6ore %omen than men %or3 in vulnerable lo%$paid or undervalued obs []. As of 19

K&.1 per cent of the %orld:s %or3ing %omen %ere in vulnerable emplo!ment often unprotected b!

labour legislation compared to K.& per cent of men. omen %ere far more li3el! than men to be in

vulnerable emplo!ment in 0ast Asia (L.9 per cent versus K.9 per cent) +outh$0ast Asia and the

-acific (9.1 per cent versus L per cent) +outh Asia ('.& per cent versus K.K per cent) <orth

Africa (LK. per cent versus 9. per cent) the 6iddle 0ast (99. per cent versus 9. per cent) and+ub$+aharan Africa (nearl! 'L.L per cent versus .L per cent) [1].

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• /ender differences in la%s affect both developing and developed economies and %omen in

all regions. Almost & per cent of 1K9 economies studied have at least one legal difference restricting

%omen:s economic opportunities []. Gf those & economies have la%s that restrict the t!pes of obs

that %omen can do [9]. And husbands can obect to their %ives %or3ing and prevent them from

accepting obs in 1L economies [K].

• omen:s economic e#ualit! is good for business. 8ompanies greatl! benefit from increasing

leadership opportunities for %omen %hich is sho%n to increase organizational effectiveness. It is

estimated that companies %ith three or more %omen in senior management functions score higher in

all dimensions of organizational effectiveness [L].

• 0thnicit! and gender interact to create especiall! large pa! gaps for minorit! %omen. In 19

in the F+ for instance H%omen of all maor racial and ethnic groups earn less than men of the same

group and also earn less than %hite menR4ispanic %omen:s median earnings %ere F+@ LK1 per

%ee3 of full$time %or3 onl! 1. per cent of %hite men:s median %ee3l! earnings but &1.1 per cent

of the median %ee3l! earnings of 4ispanic men (because 4ispanic men also have lo% earnings). "he

median %ee3l! earnings of blac3 %omen %ere F+@ onl! '. per cent of %hite men:s earnings

 but &1.9 per cent of blac3 men:s median %ee3l! earnings %hich are also fairl! lo%. 0arnings for a

full$time %ee3 of %or3 leave 4ispanic %omen %ell belo% and 4ispanic men and blac3 %omen not

much above the #ualif!ing income threshold for receipt of food stamps of F+@ L''.L for a famil!of four [].

'ssential to agriculture

• omen comprise an average of K9 per cent of the agricultural labour force in developing

countries var!ing considerabl! across regions from per cent or less in Natin America to L per cent

or more in parts of Asia and Africa []. @espite the regional and sub$regional variation %omen ma3e

an essential contribution to agriculture across the developing %orld.

• omen farmers control less land than do men and also have limited access to inputs seeds

credits and extension services [']. Ness than per cent of landholders are %omen [&]. /ender

differences in access to land and credit affect the relative abilit! of female and male farmers and

entrepreneurs to invest operate to scale and benefit from ne% economic opportunities [9].

• omen are responsible for household food preparation in 'L$& per cent of cases surve!ed in

a %ide range of countries [91].The green economy) sustainable development

• *rom 1&& to 1 more than billion people gained access to safe drin3ing %ater but K'

million people are still %ithout clean drin3ing %ater [9].

• omen especiall! those in povert! appear more vulnerable in the face of natural disasters. A

recent stud! of 1K1 countries found that more %omen than men die from natural hazards. here the

socioeconomic status of %omen is high men and %omen die in roughl! e#ual numbers during and

after natural disasters %hereas more %omen than men die (or die at a !ounger age) %here the

socioeconomic status of %omen is lo%. omen and children are more li3el! to die than men during

disasters [99].

• omen and children bear the main negative impacts of fuel and %ater collection and

transport %ith %omen in man! developing countries spending from 1 to K hours a da! collecting biomass for fuel [9K]. A stud! of time and %ater povert! in L sub$+aharan African countries

estimated that %omen spend at least 1 million hours a da! collecting drin3ing %ater; men spend

million hours; and children K million hours [9L]. /ender gaps in domestic and household %or3

including time spent obtaining %ater and fuel and processing food are intensified in contexts of

economic crisis environmental degradation natural disasters and inade#uate infrastructure and

services [9].

*rinci"le 1' (stablis+ +ig+-level cor"orate leaders+i" #or gender e,ualit!

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2eadership &romotes Gender '3uality

• Affirm high$level support and direct top$level policies for gender e#ualit! and human rights

• 0stablish compan!$%ide goals and targets for gender e#ualit! and include progress as a factor 

in managers: performance revie%s

• 0ngage internal and external sta3eholders in the development of compan! policies

 programmes and implementation plans that advance e#ualit!

• 0nsure that all policies are gender$sensitive S identif!ing factors that impact %omen and men

differentl! S and that corporate culture advances e#ualit! and inclusion

"ompany '.amples

• An international mining group head#uartered in the F> commissioned a resource guide on

ho% to engage %omen and communit! groups as a maor polic! directive of its business

operations.

• A compan! assessment at the highest level b! a global accounting and consulting firm

determined that the compan! %as losing out on business b! failing to attract and retain highl!

s3illed female professionals and on the basis of these findings %or3ed to change compan!

culture and policies through leadership and board involvement.

• "he leadership of an 0ast Asian apparel manufacturer implemented an integrated

comprehensive approach to %omen:s empo%erment through programmes recognizing female

emplo!ees: accomplishments and supporting %omen:s advancement in the compan! through

%ide$ranging education training and safet! initiatives.

 

*rinci"le 2' reat all )omen and men #airl! at )or. - res"ect and su""ort +uman

rig+ts and nondiscrimination

'3ual +pportunity) $nclusion and 4ondiscrimination

• -a! e#ual remuneration including benefits for %or3 of e#ual value and strive to pa! a living

%age to all %omen and men

• 0nsure that %or3place policies and practices are free from gender$based discrimination

Implement gender$sensitive recruitment and retention practices and proactivel! recruit andappoint %omen to managerial and executive positions and to the corporate board of directors

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• Assure sufficient participation of %omen S 9P or greater S in decision$ma3ing and

governance at all levels and across all business areas

• Gffer flexible %or3 options leave and re$entr! opportunities to positions of e#ual pa! and

status

• +upport access to child and dependent care b! providing services resources and information

to both %omen and men

"ompany '.amples

• "o retain and attract more #ualified %omen an 0astern 0uropean microfinance group initiated

a broad$based data collection and anal!sis exercise follo%ed up %ith recommendations on the

treatment of its female emplo!ees.

• In an effort to close gender$based pa! gaps a global insurance group dedicated 1.L million

0uros over three !ears.

• A large financial services compan! in Australia offers a parental leave polic! that provides a

total of t%o !ears parental leave for the primar! care giver %hich can be ta3en flexibl! rather

than on a full$time basis.

• "o support diversit! and inclusion a multinational steel compan! established a special

committee comprised of management and %omen %or3ers that identifies concerns of female

emplo!ees an in response organizes trainings and programmes.

*rinci"le 3' (nsure t+e +ealt+/ sa#et! and )ell-being o# all )omen and men

)or.ers

Health) %afety and 5reedom from ,iolence

• "a3ing into account differential impacts on %omen and men provide safe %or3ing conditions

and protection from exposure to hazardous materials and disclose potential ris3s including toreproductive health

• 0stablish a zero$tolerance polic! to%ards all forms of violence at %or3 including verbal

and7or ph!sical abuse and prevent sexual harassment

• +trive to offer health insurance or other needed services $ including for survivors of domestic

violence $ and ensure e#ual access for all emplo!ees

• 5espect %omen and men %or3ers rights to time off for medical care and counseling for

themselves and their dependents

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• In consultation %ith emplo!ees identif! and address securit! issues including the safet! of

%omen traveling to and from %or3 on compan!$related business

• "rain securit! staff and managers to recognize signs of violence against %omen and

understand la%s and compan! policies on human traffic3ing labour and sexual exploitation

"ompany '.amples

• Building on a compan!$initiated stud! to determine the economic benefits to companies of

emplo!ee health a%areness a large apparel compan! partners %ith health education professionals

to offer trainings to emplo!ees on reproductive and maternal health disease prevention and

access to care.

• 5ecognizing the need to support %or3ing parents a >en!an communications compan! offers

free on$site da! care and an in$house ph!sician in addition to comprehensive medical coveragethat includes pre$ and post$natal care.

• "%o +panish companies offer victims of domestic violence ob placement services

specificall! tailored to their needs to ease transition to the %or3place.

• A +ri Nan3an apparel manufacturer demonstrates its commitment to creating and maintaining

a safe and health! %or3 environment $ and recognition of the differential needs of its female and

male emplo!ees $ through a range of targeted policies and programmes including special care for 

 pregnant emplo!ees and s!stematic ris3 assessments and monitoring of its plants processes and

e#uipment.

*rinci"le 4' *romote education/ training and "ro#essional develo"ment #or )omen

'ducation and Training

• Invest in %or3place policies and programmes that open avenues for advancement of %omen

at all levels and across all business areas and encourage %omen to enter nontraditional ob fields

• 0nsure e#ual access to all compan!$supported education and training programmes including

literac! classes vocational and information technolog! training

• -rovide e#ual opportunities for formal and informal net%or3ing and mentoring

• Articulate the compan!Ds business case for %omen:s empo%erment and the positive impact of

inclusion for men as %ell as %omen

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"ompany '.amples

• "o open opportunities for %omen:s career advancement in I" fields a F+$based multinational

technolog! compan! maintains strategic partnerships %ith %omen:s organizations in man! of the

countries %here it operates to promote education and training and recognize %omen:saccomplishments in I".

• A large 0uropean airline compan! reaches out to !outh through education proects to brea3

do%n the barriers that traditionall! limit %omen to certain obs in the industr! and men to others.

• A large financial services compan! in Australia offers numerous initiatives aimed at

supporting %omen in business including an online platform to help Australian %omen connect

%ith other %omen in business internationall! to share information research and career advice.

•A 8hinese international transport compan! established special emplo!ee committees to

identif! and design programmes and information tailored to the distinct needs and interests of

female %or3ers.

 

*rinci"le 5' 0m"lement enter"rise develo"ment/ su""l! c+ain and mar.eting

"ractices t+at em"o)er )omen

'nterprise evelopment) %upply "hain and Mar!eting &ractices

• 0xpand business relationships %ith %omen$o%ned enterprises including small businesses

and %omen entrepreneurs

• +upport gender$sensitive solutions to credit and lending barriers

• As3 business partners and peers to respect the compan!:s commitment to advancing e#ualit!

and inclusion

• 5espect the dignit! of %omen in all mar3eting and other compan! materials

• 0nsure that compan! products services and facilities are not used for human traffic3ing

and7or labour or sexual exploitation

"ompany '.amples

• 5ecognizing the expanding role of %omen entrepreneurs a large F>$based ban3 launched

specialized financial services microfinance opportunities and business loans and also provides an

online resource center for %omen entrepreneurs running small and medium$sized enterprises.

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• A +%edish manufacturer helps %omen producers of ra% materials in developing countries to

trade directl! %ith the manufacturer thus improving their income b! reducing the number of

intermediaries in the suppl! chain.

• "o ma3e the scope of violence against %omen visible to an international public a global

advertising compan! partnered %ith a F< organization to develop a public a%areness campaign

using television and the internet.

 

*rinci"le 6' *romote e,ualit! t+roug+ communit! initiatives and advocac!

"ommunity 2eadership and 'ngagement

• Nead b! example S sho%case compan! commitment to gender e#ualit! and %omen:s

empo%erment

• Neverage influence alone or in partnership to advocate for gender e#ualit! and collaborate

%ith business partners suppliers and communit! leaders to promote inclusion

• or3 %ith communit! sta3eholders officials and others to eliminate discrimination and

exploitation and open opportunities for %omen and girls

•-romote and recognize %omen:s leadership in and contributions to their communities and

ensure sufficient representation of %omen in an! communit! consultation

• Fse philanthrop! and grants programmes to support compan! commitment to inclusion

e#ualit! and human rights

"ompany '.amples

• A large international cosmetics compan! launched and sold products to raise funds for

communit!$based organizations %or3ing to end domestic violence around the %orld.

• A multinational mining compan! %ith operations in /hana implemented a gender

mainstreaming programme to encourage female emplo!ees to assume greater responsibilit!

%ithin the mine and connect to the local communit!.

• A F+$based multinational apparel manufacturer a%ards grants to communit!$based

organizations to empo%er %omen in localities %here it does business.

*rinci"le 7' Measure and "ublicl! re"ort on "rogress to ac+ieve gender e,ualit!

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Transparency) Measuring and Reporting

• 6a3e public the compan! policies and implementation plan for promoting gender e#ualit!

• 0stablish benchmar3s that #uantif! inclusion of %omen at all levels

• 6easure and report on progress both internall! and externall! using data disaggregated b!

sex

• Incorporate gender mar3ers into ongoing reporting obligations

 

"ompany '.amples

• A mid$sized Israeli fashion compan! became the first of its size in Israel to voluntaril!

 publicize a +ocial and 0nvironmental 5esponsibilit! 5eport reflecting its commitment to gender

e#ualit!.

• A +panish financial institution publicizes its commitment to e#ual opportunit! and inclusion

on its %ebsite and regularl! undergoes external e#ualit! diagnostics validated b! an autonomous

government bod!.

• A +outh African mining compan! includes a detailed brea3do%n of emplo!ment b! gender

and race per occupational level in its sustainabilit! reporting.

• "%o Australian companies S one ban3ing one consulting S use the seven omen:s

0mpo%erment -rinciples as a gender e#ualit! report guide.