MBA630 project 5 Employment Issues.docx - Project 5...

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Project 5: Managing a Global Business Employment Issues Report MBA 630 Leading in the Multicultural Environment UMUC Employment Issues Report New Brand Design Inc (NBD) is a subsidiary of Colossal Corporation. NBD is incorporated out of Delaware in the United States, but the operations of the company are located
2 within Serafini, a small country in Eastern Europe. There are 100 local national employees within the Serafini facility. They are managed by a board of ten multinational executives, six from the U.S., three from Serafini, and one from Italy (UMGC, 2020). The issue at hand is equal pay and benefits for two executives from Serafini. This report will assess whether the plan to terminate the executives from Serafini is an ethical strategy and other strategies NBD can take. We will then determine what laws would govern these issues if this took place within the United States. Lastly, those laws will be assessed to see if they can or cannot be applied to NBD within Serafini. Elena and Viktor are executives from Serafini. They recently found out that their pay and benefits are below all the other executives. They have since filed formal complaints against NBD and risk termination. From a business standpoint, they should not be terminated. Ethically, they should not be terminated either. The presented case does not provide any legitimate reasoning as to why Elena and Viktor should be terminated. When they filed complaints, they did so in a civilized manner to the Human Resources Director. The Director tried to end the matter by lying to them and said their experience level compared to the other executives is lower. Elena’s and Viktor’s experience levels are equal to three U.S. members who are paid more. Replacing Elena and Viktor became NBD’s solution when they threatened to file a lawsuit. Terminating two local national employees because they complained that their pay was not equal with their peers and trying to replace them with two new Americans will be a PR nightmare. Even though NBD is located within Serafini, it is still a subsidiary of an American owned company. Elena and Viktor’s termination would show the public that Colossal Corporation shows a preference for U.S. citizens for executive positions and that local nationals are only suitable for basic entry work. Having local nationals at the executive level, both male
3 and female would be an advantage for NBD because they would be familiar with the actual customs and culture of Serafini. It also shows the people of Serafini that NBD is a trustworthy company and gives equal opportunity.

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