Should MNCs protect shareholder value by restricting the placement of female employees in certain foreign countries? Discuss sexism in international business. Remember to post and respond to at least one blog that does not have any comments.
In the U.S. sex discrimination is punishable by law. If it is discovered that a company has failed to comply with these laws, not only are there serious repercussions imposed by the government, but the company is likely to see a backlash in their reputation of social responsibility. With that said, it is essential for a company to adhere to these laws.
Following these laws becomes difficult if the company makes the decision to operate internationally. In many countries sexism is embedded in the culture. For example, in Sri Lanka, women have no legal protection in the private sector; they are paid lower wages and have little room for advancement. In Asia women are not expected to hold higher ranked positions because males are their superiors. In Pakistan woman are not allowed to work alongside men. So what guidelines and laws should a MNC adhere to?
Unfortunately, the fact of the matter is, when a woman is given the role to make a deal with a foreign country who does not believe male and females are on an equal playing field, it is likely she will do harm to the deal. With that said, if the deals aren’t made the value of the company descends. When this happens shareholders become unhappy. One of the top goals for a company is to maximize shareholder wealth. So is it possible for a MNC to maximize shareholder wealth and adhere to sex discrimination simultaneously?
The answer to this is it is an extremely difficult task. On one hand it is important to maintain a positive reputation and adhere to appropriate social responsibility, but on the other hand, letting women perform business deals globally may harm the company’s success. In order for a MNC to protect shareholder value they need to restrict the placement of female employees in certain foreign countries. This does not mean women can have no role in international business. It simply means businesses must be careful when selecting roles for women in foreign countries. They must pay careful attention to the local culture and determine if participation by a woman will help or harm shareholder wealth in the long term.