Team2_EmploymentIssues_15Sep2020.docx - Case Study u2013...

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Case Study – Employment IssuesProject 5MBA 630Team 2September 15, 20201
OverviewNew Brand Design, Inc. (NBD), a Colossal Corporation subsidiary in a small European country, Serafini, is experiencing employee issues. NBD Executive board comprises ten members, where seven members are ex-pats of either the United States or Italy, and three remaining members are local hires. The two local hires, Elena and Viktor, realized that they are severely underpaid compared to their remaining counter partners. Elena and Viktor brought this injustice to the attention of human resources director NBD, Max Ciccone. Max Ciccone explained Elena and Viktor that the difference in pay is due to their lower level of experience than the rest of the executive board, which is not true as their experience is comparable to at leastthree other members. NBD decided to replace Elena and Viktor with two new executive board members, Beth and Michael, currently applying for work permits with the Serafini's labor office. However, their applications are being denied due to Michael's age and Beth's gender. The age of forced retirement in Serafini is 65 to allow new job opportunities for the younger generation. There is no law preventing women from holding management positions, but Serafini denies work permits to women based on their gender. This report will discuss if NBD's decision to replace Elena and Viktor was ethical, and what other better routes could NBD pursue to resolve this issue. Next, we will discuss the legal point of view of this dispute and decide what laws are applicable in this situation, both internationally and in the United States.2
EthicsBusiness ethics is defined as applying "good" practice in business environments (UMGC,2020d). Business ethics application becomes complex when dealing with a global business, cultural diversity, customs, and other aspects linked to international dealings. Elena and Vitor areSerafini citizens working for a US employer who recently discovered that their compensation packages are significantly lower than 8 of their other counter partners. It's essential to state that 7of these counter partners are experts, primarily from the United States and Italy. The NBD director of human resources claims that this difference is due to the lack of work experience compared to their coworkers, even though this was proven incorrect. Their experience is comparable to three other executives. It's unknown if the last Sefrinian local executive is being

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