CHAPTER 4: Global employment law, industrial relations and international ethics

1. CHAPTER 4: Global employment law, industrial relations and international ethics

2. Learning objectives (chapter 4) • List and describe the activities of international organizations that affect labor standards. • List and describe the goals of the various international trade agreements. • Describe how EU directives impact IHRM. • Identify sources of international laws that affect an organization’s international operations and IHRM. • Compare employment laws and regulations in various countries and analyze their effects on IHRM. • Identify the major issues impacting HR with regard to immigration/visas, data protection, anti-discrimination and harassment, termination and reduction in force, and intellectual property. • Integrate existing labor and employment laws and regulations, ethical standards, and other rules into IHRM policies and practices. • Describe the nature of employee and labor relations in different national contexts. • Describe the role of ethics, CSR and corporate governance in IHRM.

3. Overview chapter 4: • The institutional context of international business (IB) • The global legal and regulatory context of the MNE • International labor relations • The international framework of ethics

4. The institutional context of international business (IB)

5. International organizations • United Nations (UN) • International Labour Organization (ILO) • Organization for Economic Cooperation and Development (OECD) • World Bank (WB) and International Monetary Fund (IMF)

6. Box 4.1 Equivalent international employment standards • Freedom of association (i.e., the right to organize and to bargain collectively). • Equal employment opportunity and non-discrimination. • Prohibitions against child labor and forced (prison or slave) labor. • Basic principles concerning occupational safety and health. • Consultation with workers’ groups prior to carrying out substantial changes such as work force reductions and plant closures. • Grievance or dispute resolution procedures.Use of monitors (internal or external) to audit employment practices.

7. International trade organizations and agreements • World Trade Organization (WTO) • North American Free Trade Agreement (NAFTA) • Mercosur/Mercosul • Andean community • Association of South-East Asian Nations (ASEAN) • Asia-Pacific Economic Cooperation (APEC) • European Union (EU)

8. Commercial diplomacy • Trade negotiations • Policy decision-making • Government regulations • Legislation • Standards • Industrial subsidies • Corporate conduct

9. The global legal and regulatory context of the MNE

10. The MNE legal environment • Comply with the laws of the countries in which they operate • Comply with international standards and supra-national regulations • Comply with extra-territorial laws of their countries

11. Comparative law • Immigration/visas • Data privacy/protection • Anti-discrimination and sexual harassment • Termination and reduction in workforce • Intellectual property

12. Box 4.3 EU data protection principles • Legitimacy • Proportionality • Finality • Notice • Accuracy and retention • Security • Access

13. International labor relations

14. International union membership • Difficult to compare union membership data across countries

15. Evolution of international labor relations and organizations • World Federation of Trade Unions (WFTU) • International Confederation of Free Trade Unions (IFCTU) • International Trade Union Confederation (ITUC) • European Trade Union Confederation (ETUC) • World Confederation of Labour (WCL) • Global Union Federations (GUFs)

16. Labor relations and the MNE • Approaches to labor/employee relations • Pressures • Evolution of labor relations • Considerations for MNE’s • Works councils • Co-determination

17. Labor relations and the MNE • Litigation risk in global labor relations • Development of a strategic global industrial relations policy

18. The international framework of ethics

19. International ethics and culture • Human values • Ethical variances • Ethical relativism vs. absolutism

20. Bribery and corruption • The different faces of bribery • Foreign Corrupt Practices Act (FCPA) • Global codes of ethics

21. Ethical dilemmas in international business • Donaldson’s framework • Best practices related to international ethics

22. Corporate social responsibility (CSR) • Definition • Iron law of responsibility • CSR activities • Best practices

23. Corporate governance • Definition • Sarbanes-Oxley Act

24. Sustainability • Definition • HR sustainability sweet spot • Sustainable management decisions

25. Key terms • ANDEAN community • APEC • ASEAN • Chapeau agreement • Conventions • Corporate social responsibility • Corporate governance • Cultural relativism • EU • Extra-territoriality • FCN treaty • FTAA • Foreign compulsion defense • GATT • Global Compact • Governance • ILO • Individual relativism • Mercosur/Mercosul • NAALC • NAFTA • OECD • Presumption of non-extraterritoriality • Rule of law • Safe harbor • Transparency • Transposition • UN • UNCTAD • Universalism • Visa • World Bank • WTO