Team3_EmploymentIssues_091421.docx - 1 Project 5 Employment...

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1 Project 5: Employment Issues Case Team #3 Wendy Lee Damon Bailey Jadelynne Thorne Agustina Salon Kajganich University of Maryland Global Campus MBA630 9042 Professor Jackson September 14, 2021 Instructor Guidance: 1 st submission (September 14, 2021) 2 nd submission 3 rd submission Background
2 This case took place in Serafini, a country in Eastern Europe where New Brand Design (NBD) operates. NBD’s Executive Board is composed of six expatriates from the US, one from Italy, and three from Serafini. Elena and Viktor are two of the board members from Serafini. Their salaries are much lower compared to the salaries of the other eight members, and their benefits are not as good. Therefore, they complained to NBD’s human resources director and threatened to sue. The director said that their experience and qualifications are more limited. However, the truth is that they have the same qualifications as at least three of the American members. The director consulted with operations in the United States, who decided to send to Serafini two Americans, Michael and Beth, to replace Elena and Viktor. The Serafini labor office refuses to issue Michael a work permit because he is 66 years old or grant a work permit to Beth because she is a woman. Therefore, Elena and Viktor continue to work and have not yet been terminated. Ethical Perspective It was not ethical for NBD to terminate Elena and Viktor. Even though this discrimination is accepted in the local culture, NBD should be socially responsible and uphold its core ethical values when making this kind of decision. While cross-cultural understanding is important when operating in a foreign country, this does not mean that NBD should change its culture and adopt Serafini’s if it clashes with its core principles (UMGC, n.d.-c). Global companies usually have clear antidiscrimination policies, which they follow to make management decisions instead of following locally accepted practices (UMGC, n.d.-a). It is simply not ethical to terminate someone just because they complained about not receiving the same compensation as someone who is just as qualified for the same position. The case states that Elena and Viktor’s experience and qualifications were the same as at least three other members. While often expatriates get paid
3 more than locals as an incentive, one of the members is from Serafini too and he is paid the same as the expatriates. Therefore, Elena and Viktor are being unfairly discriminated against. To look at this issue from an ethical perspective, NBD could use the utilitarian approach, which focuses on how a certain action affects others (UMGC, n.d.-b). The consequences of terminating Elena and Viktor could include ruining its reputation globally, which would ultimately affect its profitability. Another approach is to use deontological ethics, which says that

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