Writing Assignment help on :Intercultural Management / Business Ethics
Executive Summary
This report is based on the Company known as BVVB AG dealing in biotechnology. The success of the company depends upon the new drug testing and its approval. Business in such companies is being managed with the help of successful venture capital. The company has being trying to test one of its drugs with the help of CRE Ltd of Calcutta by providing the drugs free of cost and in lower prices for the slum people. Recently the organization has hired a new employee to go and resolve the issues being raised by the media, NGO’s and the chairman of Calcutta.
According to the given case, the management of BVVB AG was conducting unethical activities and moreover to reduce the cost of drug testing it was being tested on poor Indians. The management wanted successful approval by any means else the new employee would have been fired from the organization. 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.
Sum up, according to the analysis of the given case, this report provides some recommendations for BVVB AG Company.
- The organization could have managed the aspects of ethics by understanding it in terms of Deontological, Teleological and discourse manner.
- Practically the organization should have understanding of the culture in multi or geocentric manner so that failure can be avoided.
- The RADAR concept could help the organization in finding out the problems and implementing the suggestions to resolve it with the process of transparent communication system.
1. Introduction
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 (University of Minnesota 2012). 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. The intercultural management helps to respect the different diversities and promotes cooperation. The ethics can be managed when the healthy atmosphere is being created at the workplace by understanding the different diverse cultures[1]. There is need for Intercultural management because the demands of global business have been increasing day by day. The organizations have to face lots of problems when the projects are not being successfully carried on due to cross cultural management. The intercultural management has got its own advantages such as it helps to identify the international markets, facilitates overseas investment, creates multicultural teams, and customers traffic is being created from countries across the globe. Intercultural management assists in dealing with the cultural differences, identifies different styles of management, and helps in effective communication process and etc. This is a case study based on the intercultural management of Business. The company known as BVVB AG is a biotechnological company dealing with vaccine and its research based activities. Recently one of the graduates has been hired as Product Market Development Manager by the company. It has been successfully operating its business since 10 years. The first cancer vaccine provided ample of profits to grow the business. The two more vaccines have been developed such as tick-borne encephalitis and leprosy and it is having huge market in the developing countries. The vaccine will support the people for more than 10 years. It has been trying to gain the new venture capital to explore the business in coming future. The success of Biotechnology Company depends upon the approval of the drugs and new innovation which is based on the research and developmental activities. The CRE Ltd is a Research Enterprise that has been carrying out the tests at Slums of Calcutta. This drug testing was not being preferred by the Non Governmental Organizations known as Panjaa and it was also being criticized by the Chairman of Calcutta. The management of BVVB AG said that the media reports against drug testing at Calcutta will result into problems in their business. The new hired employer will need’s to identify the activities so that things can run smoothly and tests can be carried on at appropriate time.
2. Essential Moral Standards and Norms with ethical Concepts
As per the given case study since the organization has been dealing with the vaccine and drugs the management of BVVB AG has tried to apply the testing process at Calcutta without understanding the culture of India. According BVVB AG, ethics to the Deontological[2] aspect is defined as the duty based theory which explains the obligations and do not require more justification. It is based on the basis of self evidence and is internally connected which helps to decide about what is right and wrong. To grow the business company wanted to approach to the developing countries in terms of their morality. The morality aspect will reflect the ethical points. Deontological aspect reflects the part when the company knew that their reserves would only last for two years. It was stated and did not require any other evidences to prove it again. 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 management of company needs to understand the business from the global aspects by understanding the culture and managing it in ethical terms (BBC 2012). The issues need to be addressed at appropriate time because management knew that their sustainability is based on the finances and the venture capital. It was not good initiative to show that medical treatments were subsidized for the poor people foe the successful approval of the drugs. Moral standards and norms were broken when the company tried to test the harmful drugs without researching it further. It is also in the perception of the people how they value the business with cultural aspects. The Teleological[3] 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. If the testing fails then in such case company will also incur lots of lose because the other biotechnological company can grab the opportunity to innovate the new drug for the similar types of diseases by understanding the business with global aspects. 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.
3. Practical value of Economics Ethics Concepts
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[4] 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. In their opinion it is not ethical to allow the drug testing. By maintaining the meta-ethics the company will help in exploring the connectivity, the value system of Indians, the reasons for the human demands and etc. The issues related to the freedom can also be identified with the help of the moral responsibility (About.Com 2012). It will help to study the structure, nature and the premises of the organization with the help of the cultural aspects. It is manner to differentiate the good and the bad aspects. Normative[5] ethics is defined as the how to implement the rules for human actions, so that things can be justified in a proper manner. 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. 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[6], 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.
4. Evaluation of the Case Using RADAR Concept
The Radar Concept[7] will help in recognizing, Assessing, Deciding, Acting and resolving the issues that organization faces in terms of managing the ethics and culture. This concept will help in identifying the gaps and also preparation of the action plan. 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. The accessing part will also help in identifying the standards in term of right duties. For reducing the cost of testing company is trying to test the drugs with the slum people. The third point is related with the decision making process which will help in identifying the visibility and the Universality process so that it could fit into moral framework. 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.
5. Preparation for Business Activity in India
The important core elements required for preparation of business activity in India are explained in this paragraph. The vision mission and the core values of the organization must be identified. The core elements are related to resources, government, culture, ethics and etc. The products that are being launched in India should be based on the demands of the customers. The management should identify and understand the mindsets of the consumers form the ethnocentric, polycentric and the geocentric approaches. The Business strategy should be explained by the management to their stakeholders so that they can have better scope of business and financing can be done in an adequate manner. The legal authorities should be understood so that company can implement the fair practices while doing the Business in India[8]. The shareholders in India who can fund for their business should be identified and the Business Plan should be explained to them. The process of right entry mode in form of Foreign Direct Investment, Licensing, and etc should be identified. 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. The factors such as human rights, labor, 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 (The state University of New York n.d).
6. Description of Different Cultures
The different cultures using the appropriate theoretical approaches and the choice for selecting the particular culture is explained in this paragraph. There are three types of culture such as Linear Active Culture, Multi Active culture, and the reactive Cultures[9]. The first one is known as linear culture that will help in explaining about the data and the facts. It is being managed by the organized planners. It helps in directing others and with the help of proper discussions at the communities, societies and organization. It is a type of culture based on the set rules and the regulations by valuing with the Meritocracy. The second one is known as Multi culture Aspects which will help in being social, impulsive, lively and talkative in nature. It is a culture where other culture is also being valued on the basis of empathy and compassion. It is culture that believes in multitasking and by being flexible. It is also being supported with lots of arguments, interruptions and the conversations of the people. The third type of culture is known as Re-Active culture which shows that one should be good listener and the interruptions in term of conversations should be less. Things need to be pacified by appropriate discussions and also details and information should be there for the evidences. The people following such culture are shy and introverted in nature. It is a culture of self depreciating because the interactions are very low with the outside members. Multicultural aspect of culture will be suitable one for the business to reflect the difference in terms of the factors which have been identified by Hofstede’s cultural theory. The factors are Power Distance, Individualism vs. Collectivism, Uncertainty Avoidance, Masculinity vs. Feminity, and the short term vs. long-term goals. It is also related with geocentric, polycentric and ethnocentric factors (Guardian News and Media Limited 2012).
7. Preparation of Meeting & Discussion with NGO’s and Representative
In this paragraph the preparation and discussion with NGO’s and representative will be explained by conducting the meetings and discussions with appropriate style of communication. The communication can be done by different styles such as Coconut & the peach style, and E.T Hall style. The Coconut and the peach style will help in differentiating the two types of communication in terms of past and present aspects. E.T Hall style will help in communicating on the basis of context, time and space. The context communication will help in communicating on the basis of the knowledge and situations. The time factor will explain about the monochromic and the polychronic orientation of the communication process to conduct the meetings. The monochronic process will help in adding advantage to the company by explaining their plan to the NGO’s and contributing ethically some parts of their organizations profits for the poor sections of people in society. 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[10] 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 are 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.
8.Conclusion
Thus BVVB AG is a company that is trying to expand the business in form of venture capital. The business can be grown in companies like biotechnology by the process of successful innovation, approval of drugs by testing it. In case of BVVB AG management tried to manage its drugs testing by providing the drugs at low cost and sometimes at free of cost to CRE Ltd who were dealing with slum in Calcutta. It was also being pressurized from the side of management to the new employee to resolve the issues at any cost. The NGO’s and the chairman were opposing such testing because the management failed to manage the ethics and the culture of India. The organization was being highlighted by media in negative terms because such illegal and the harmful testing were being done in India to reduce their cost of research and developmental activities. The organization could have managed the aspects of ethics by understanding it in terms of Deontological, Teleological and discourse manner. Practically the organization should have understanding of the culture in multi or geocentric manner so that failure can be avoided. The RADAR could help the organization in finding out the problems and implementing the suggestions to resolve it. The tie up can be done with the NGO’s because it creates confidence among the stakeholders regarding that transparent communication is being managed within and outside the organization to carry out the business activities in a smooth manner. These days in the era of globalization it is very important for the consumers to know about whether the organization is contributing for corporate social responsibility before purchasing any product. It is not very easy task to market any product without managing ethics and understanding the Intercultural aspects. The factors such as morality, ethics and culture should be related with the global aspects with proper understanding (Markets Culture and Ethics 2012).
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