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Sexism in International Business

Posted by: Kevin | October 4, 2012 | 5 Comments |

We were posed this question in class: Should MNCs protect shareholder value by restricting the placement of female employees in certain foreign countries? Discuss sexism in international business.

My response to this is simple. The shareholders are the most valuable entities in any MNC. Therefore in countries where they have an Arabian or Islamic style of life, I fully believe that men should be sent to those countries instead of women, as a man will be able to do business whereas a women may not. This is sexism, however it is the stage of world business. If you are a MNC then in all actuality it is necessary to understand the cultural environment of which your company is moving into and send the best possible fit for that culture in order to do well in that environment.

In American culture this would be deemed sexist and not tolerated, but when we are talking about foreign cultures we must do what is right for that culture and not our own. We can use women in foreign countries where women are seen as equal therefore alleviating the question of equality. A female manager within an MNC should already be aware of the issues of moving into certain cultures and therefore not be offended by such decisions. For example if sending a 50 year old male to Japan for business would be considered a stronger move than sending a 25 year old male, the company would make this decision not to offend the younger man but to make sure we sent the most cultural accepted person in their culture as age is something to be respected.

Ultimately this means that they MNC should always protect shareholder value and send the person that fits the best into the country with which we are expanding. If feelings are hurt and a women is not sent, it should not be taken personally as we are all looking out for the good of the company. We may believe it isn’t fair, but our views should never be forced upon others if we truly want to do good business world-wide.

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Responses -

I completely agree with the stuff you posted. This doesn’t make the business sexist or anything like that. Yeah people in the US think everyone should be like them and have equal opportunities but that isn’t how the real world works so we need to get past that. This may not be fair but you have to do what is best for the shareholders.

I agree completely. At the world stage and doing business overseas MNC’s need to adapt their strategy and approach according to the culture of the people they are working with. It is sexist in our culture but like i said in my post, you can’t change the culture of a people that has been taught to them from birth generation after generation.

But what about US law that says that making employment decisions on the basis of sex is illegal? Are we going to ignore the law?

Mary you pose an excellent question of which I am happy to answer. While operating within the continental United States we do have to protect all employee’s against discrimination of any form. You could make a case for gender discrimination by using a BFOQ (Bona Fide Occupational Qualification). This deals with employment law which in effect gives an employer the right to legal discrimination, in this case gender discrimination because in some countries you would have to be a man in order to do business. This is not a common practice in the United States, however, when dealing with a MNC operating in countries which do not have anti-discrimination laws,it would constitute using the BFOQ. For example: I am hiring someone to be a locker room attendant for a men’s locker room at a gym, under BFOQ I could exclude all female applicants because we would need to hire a man for the position. In some countries you MUST have a man complete business meetings so we would not culturally exclude our corporate opportunities within that country. Does it make it right? No, of course not. However when we are dealing with foreign cultures we must adapt to their way of doing business.

I think you would have a hard time using the BFOQ in the way you describe, but I bet that would be part of the defense…..

After all, concern for the safety of women (or their unborn babies) has been found not to support gender discrimination under BFOQ.

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