Law assignment report on: INTERCULTURAL MANAGEMENT & BUSINESS ETHICS

Law assignment report on: INTERCULTURAL MANAGEMENT & BUSINESS ETHICS

1. Executive SummaryThis report highlights a case study on Bacteria and Virus Vaccine Biotechnology AG (BVVB) a bio technology organization. The research intensive company is a 10 year old enterprise. The enterprise is a spin off & is funded by a venture capital. The first output which was provided by the organization i.e. BVVB AG was the manufacturing of a vaccination which would cure cancer. This has helped BVVB AG to earn high amount of cash flows for the past many years. After the manufacturing of cancer vaccination no other vaccine has been developed. Hence, the economy’s hope is to have two major developments such as vaccination for ‘leprosy & encephalitis”. The development of leprosy has been discovered by chance & has huge potential within the developing market.

These researchers have been carried out by a US based company i.e. Clinical Research Enterprise (CRE). It is a research centre which takes into account drug tests due to cost reduction as well as reduced monitoring & regulatory requirements in Calcutta (India). CRE Ltd. assured Bacteria and Virus Vaccine Biotechnology AG (BVVB) to reduce the approval process from 5 years to 1 year. This will lead to an overall decrease in the levels of cost attached to the entire drug test. The drug tests are carried in a hospital which is owned & controlled by CRE Ltd. It was seen that the, Non Government Organization Panjaa have been seen criticizing the reports generated by the same. After the criticizing the reports, the CEO of the organization i.e. CRE Ltd will take time to approve the entire process as well as lead to high levels of negotiations. The press release leads to high levels of emphasizes over the activities which are BVVB AG.Introduction

Based upon the case study attached, it is seen that BVVB AG were conducting various types of unethical activities which would reduce the cost of tests for the poor Indians. The management failed to understand certain aspect such as ethics, intercultural management, the legal system, government policies, and could not scan the internal & external environment.Culture is defined as the values, rituals, beliefs that are being shared by the people in community and citizens of a particular country. It reflects the behavior, language, food habits, dress, which helps in diversity management at workplace. The culture of an individual will differ from the other individuals in organizations, societies, and different countries. The culture reflects the individual’s behavior and human nature adds meaning to the lives of people. It is a sum total of behavior that is being transmitted from one generation to the other generation. Every culture holds its importance as compared to the other cultures (World Forum for Ethics in Business, 2010). In an era of Globalization the different cultures in an organization should be managed properly to distribute the work properly. The Intercultural management is the vital aspect which needs to be addressed for managing different diversities and increase its productivity. It shall be kept in mind by the organization i.e. BVVB AG shall take into consideration one of the most important aspects i.e. intercultural management amongst the employees who belong to different countries. The case study has been end up by saying that, the negative media reports will lead to high levels of problems in their business. The newly employed employer shall take into consideration different types of activities which would help in smooth running of the business house & carry out the drug test within a stipulated time span.

1. Give an overview of essential moral standards and norms (e.g. ethical codes or codes of conduct etc.) for this case. Discuss by which ethical concept (e.g. deontological, teleological or discourse ethics) these moral standards and norms should be based.Ans3. Based upon the case study it is clearly highlighted that, BVVB AG deals in vaccination & drugs. They have recruited CRE i.e. (Clinical Research Enterprise) as a research organization which carries out various types of studies on behalf of the organization. BVVB AG in order to start the testing process in Calcutta shall have an in depth understating regarding the culture of the same (Institute of Leadership & Institute of Leadership & Mana, 2007).

Deontological ethics refers to a type of ethical norm which are based upon the duty based theory as well as explains for the obligation & do not require high levels of justification for the same. Deontological ethical norms are purely based upon self evidence as well as connected internally which would help to decide as to what is right & wrong. It shall be kept in mind by BVVB AG that to expand its business operations within a developing country such as India various types of approaches shall be followed. The Deontological aspect will reflect the ethical points which shall be taken into consideration.

Deontological ethics have been referred to as the “principle of thing”. The deontological ethics will help to teach the clients, shareholders, employees & the stakeholders to act according to their will and try to perform the acts irrespective of the consequences are it bad or good. Deontological ethics mainly takes into consideration the value of every individual & tend to focus upon providing respect to the individual. The Indians at Calcutta had issues with the company but management wanted to resolve it at any cost though the drug testing was very sensitive and risky process. Before entering into Calcutta for testing their drugs, management could have taken initiative to understand the culture and diversities of India o that failures or issues could be handled at appropriate time period. Managing business in one country cannot be same as the other country.

The Teleological ethics focus on the consequences on the basic of the morality. It is based on the ways how the judgments are being formed in different situations. The management of BVVB AG has decided that if the new employee fails to carry out his job then in such case the employee will be fired. Discourse ethics explains about the view points of everyone who has been affected with and something new is being created which is universal for everyone. It is valid for everyone because individual desire, attitudes and needs can be identified by the organizations. According to all the ethical Concepts discussed above the discourse ethics will explain the moral standards and norms on which the ethics should be based (Institute of Leadership & Institute of Leadership & Mana, 2007).

1. Discuss the practical value of different economic ethics concepts and show how they can be guide in this case.Ans4. In this paragraph the value of different economic ethics are being explained in a practical manner. The different types of ethical concepts are meta-ethics, normative, Deontological, and the Teleological ethics. The meta-ethics will explain about what is right and wrong. Some of the researchers say that right and the wrong things are being decided with the help of the holy books. It will also help in identifying the good and the bad aspects of an Organization. As per the case of BVVB AG is concerned it has been facing the issues at Calcutta because the company’s management has not being doing good by testing the Indian Slums and it has been criticized by the Chairman and the NGO.

It is concerned with applied ethics. It deals with issues like the human rights, moral implications, and social equity related to the scientific research. As per the given case is concerned the management had failed in some manner to understand the business from the global point. The deontological ethics explains the inherent rightness in setting the standards. It is based on the certain aspects such as individual’s duty, obligation, and decision power based on what is right and wrong (World Forum for Ethics in Business, 2010). This theory will help to analyze the case because management can take the decision regarding what is good and bad for their company while planning for the successful approval of their drugs and vaccine. The teleological ethics explains about what ethics is all about and deals with the logical mindsets. It helps in cultivation of excellence, faith, love and actions. It helps in smooth functioning of the activities in the organization. Thus all the above theories can guide the case because it will help management of the company to decide what is good and bad for their business by relating it with the past theories of business ethics, how they can lunch and test the drugs by convincing all the stakeholders in the society. It will help in addressing the cultural issues and the decisions can be implemented in a right manner at macro economics level. The development of the new drugs and vaccine is only possible if innovation is done by creating the cross cultural teams in an organization for the research based activities (World Forum for Ethics in Business, 2010). It will help in economic ethics by creating the positive compatibility between two countries, resolve the moral conflicts, and also at the same time satisfy the requirements of all the stakeholders.

1. Evaluate the case using the RADAR Concept.Ans5. RADAR are the factoring ethics which are taken into consideration during the decision making process. The components of RADAR include recognize, act, decide, assess and resolve. This concept brings about sense with the company-employee population. Recognize in the RADAR case is recognizing the ethical component or ethical values such as the company’s values, individual values and global business standard codex values to any proposed actions.

The first point will help in recognizing the moral component in terms of ethical owned values of the employees, company and Business standards. It will help in identifying whether the ethics is being violated. In case of BVVB AG the management wanted to have the approval of the drugs from the CRE Ltd from Calcutta (Integrating Publishing, 2008). The second point will help in accessing the action plan of the business and duty towards the stakeholders of the BVVB AG such as the customers, media, NGO’S, government, creditors, local communities, general citizens and the leaders of Calcutta. In case of the BVVB AG the management had decided to hire a new employee who will find out the loopholes related to the testing process of Calcutta and it was the duty of the employee to ensure that testing should be carried out successfully by any means. The fourth point will explain the factors for implementing the decisions in proper manner. The CEO had participated in the press conference and the testing was being subsidized and made free of cost. The fifth point is to resolving the problems related to the ethics in business. It is a process determining, implementing, developing and monitoring the activities of the business. The negative media reports were ignored by the company.

1. How would you prepare yourself for this business activity in India? Which are the most important core elements?

Ans6. The representative of BVV AG needs to comply with the acts such as compliance with Indian company’s act of 1956 and compliance with reserve bank of India. The core elements to consider while undertaking business activity in India includes business ethics of India, corporate governance and corporate social responsibility.

The business culture of India is a reflection of various rules and regulations followed by the people. The ethics, customs and culture needs to be understood. Some examples include that in India, the guests are treated with courtesy and respect. Indians have difficulty in saying ‘no’, this can be a barrier for negotiation. The punctuality and time management in India is still anathema. Laid-back approach followed in government circles can bring about delays, overload of paperwork. Thus a lot of patience is essential in carrying out business activity in India. The business culture in India puts more emphasis on friendship and favour. The ethical business in India regarding the corporate social responsibility is different from the western culture. This includes differences in decision-making, where the decisions are made only by the top management and not involve a participatory approach. The different diversities of the people should be known in India and Intercultural aspects should be understood. The organization should scan the internal and the external business environment so that failures can be easily managed in advance. The available resources in India should be identified (World Forum for Ethics in Business, 2010). The factors such as human rights, labour, environment and corruption related activities should be identified before entering for the business related activities. The mindsets of people should be understood properly so that it will also help in operating with the fair practices in an organization. The tie up should be done by the management with the NGO’s and goals should be framed and explained to the management. Transparency should be there related to ethics and morality at the workplace.

1. Discuss the different cultures in the case using an appropriate theoretical approach. Justify the choice of selected culture concept and show the main differences for a business purpose.Ans7. Cultural concepts are the parameters for the measurement of the cultural phenomenon. Cultural concepts by Hofstede include the power dimensions, individualism, masculinity, uncertainty avoidance and long-term orientation. The power distance index is the measure of the extent where the employees expect the power is unequally distributed. Inequality and power are fundamental for the society. The two power distance approaches are large and small power distance. The small power distance focuses on minimizing the inequality of the people and reducing the interdependence between the more and less powerful people. Parent’s treatment toward their children is equal and vice versa. In the classroom background the teachers are considered experts and take initiatives from the students. Students treat the teachers with respect. The educated people hold less authority and values compared with the people who are less educated. Hierarchy in the organization means inequality of roles performed in the organization, where decentralization is popular (Institute of Leadership & Institute of Leadership & Mana, 2007). The power in the organization is based on expertise, formal position and the ability to give rewards whereas the large power distance focuses on expecting inequality between less and more influential people. The less powerful people are expected to be dependent on the more powerful people in practice and polarized between counter dependence and dependence. The parents treat their children with the obedience and the children treat the parents with respect. The less and the more educated people depict equal authoritarian values and the centralization is popular. Also wide salary range exists from the bottom and top of the organization and the ideal boss is a benevolent autocrat. The collectivism and the individualism focus on the societies of the world. The case study on the BVVB AG Company in carrying out research in CRE limited in India indicates the shift in culture and cultural differences as both organizations are located in different countries. The various cultural concepts discussed gives the understanding of various cultural differences exists in different countries. In the context of this case study, the cultural dimension includes the following the large power distance concept which should be followed as it gives a clear indication of work-power partition within the organization (Ferrell, Fraedrich & Ferrel, 2001). The collectivist cultural dimension is ideal than individualism because the employees, stakeholders and the client’s need to work together in order to efficiently carry out the clinical research tests within time. The feminist perspective needs to be followed in the organization to prevent any gender discrimination. This will bring about healthy work environment, effective cooperation and collaboration to carry out clinical tests. Next cultural concept which is ideal for the case study is following the strong uncertainty avoidance where scientists carrying out the research for development of tick-born encephalitis and leprosy are constantly provided with motivation. This gives the environment for the scientists to constantly work hard and follow punctuality and precision. Also the long-term orientation concept helps in building virtues oriented towards persistence, saving and adapt accordingly to the changing situation. Adapting the appropriate cultural concept helps the organization to work efficiently and effectively. This helps in improving the strategic thinking, limiting the liability of the top position management, maintain confidentiality with the foreign and the domestic investors and improve capital costs risk.

1. How would you prepare the meeting and discussion with the NGO’s representative? Which main aspects would you emphasize?

Ans8. The main purpose when scheduling the meeting with the NGO representative is to facilitate action and achieve the goal of making effective decisions. The meeting needs to be conducted with control in order to fully express opinions from both the parties. The agenda of the meeting needs to be clearly outlined. The agenda is to convince and fully ensure the NGO representative about changes made in the procedure of drug-testing and safety ensured to the society.

Reports from the NGO, Panjaa about the negative criticism regarding the clinical tests conducted for the development of the tick-bone encephalitis vaccine and leprosy needs to be addressed for the successful drug approval. The importance of this vaccine development needs to be highlighted during the meeting and how it would bring about  huge benefit for the future of the community’s well-being and how the successful approval of the vaccine will improve the quality of life needs to be emphasized. The minutes of the meeting can be recorded by the secretary and this legal signed document should follow as per the agenda outlined. A healthy discuss needs to be conducted with the sole purpose of carrying out the clinical test on time and not prevent any further delay in successful approval of the vaccines (Cryns, 2002).

A formal report should be presented to the representative of the NGO’s and he should be explained about how their business will benefit the NGO’s and its people for uplifting their standard of living. The space should be given to the people for making the decisions regarding the operating of the business process in terms of culture and ethics. The management should fill up the gaps between the NGO’s and itself by stating the goals of the organization in a clear manner, the viability of the business, and the ability to grant the funds for social causes. In the name of corporate social responsibility the organization should not harm the culture and emotions of people of in a particular country.  The main aspects that management of an organization should focus our resources, culture, systems, environment, its stakeholders and the legal systems. The business should not be based on exploitation of the human emotions and corruption based practices for running the business globally (Zylinska, 2005).

1. Conclusion

Hence, it can be concluded that BVVB AG is trying to make its entry in India (Calcutta) with the help of venture capital. It shall be kept in mind by the officials at BVVB AG that, growth of the business firm can be done with the help of innovation, use of new technology as well as fair approval of drugs which have been used for testing. At BVVB AG, the main aim was to provide drugs for drug testing at a subsidised rate, free cost to CRE Ltd who can deal with people staying in the slum areas of Calcutta (India). It has been discussed in the above answers that, representatives of the NGO’s have opposed such type of drug testing as they failed to manage the ethical aspects for the same. The organization such as BVVB AG shall try to cope up with the ethical issues by understanding the terms such as Deontological & Teleological. In the era of globalization, it shall be kept in mind by the customers that the organization they are dealing does something for the welfare of the society or not.

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