Eric Lenin Fuentes
ENC1101
Hornburg, Jeffrey
04/23/2014
Impacts of culture diversity on multinational companies
Cultural diversity is a major factor influencing the way a multinational organization functions and also attributes to the way such organizations success is felt. Its effect can be felt as either negative or positive depending on other factors that determine the success of such organizations. On one hand, cultural diversity focuses on ensuring that different people with different origins and difference ways of doing things comes together and cooperate so that their impact may be greater. For example, a manager would ensure that cultural diversity is attained in an organization’s workforce so that the output may be great. On the other hand, this is not always the case (Create Competitive Advantage by Embracing Diversity). Cultural diversity could also be the source of the downfall of certain multinational organizations. This is especially true when there emerges a greater difference between the various members of the organization. These differences could be ethical, regional, gender or age. In such circumstances, the workforce tend, to be slow and hence the results are low and the organizations is affected negatively. The main objectives of such organizations are not met.
To manage workforce diversity is a major challenge to human resource management to set up a global corporate culture. The most significant thing for the workforce is to recognize the corporate culture of the company (Pitturo). Certain ethical groups or persons tend to dominate a particular organization such as the Caucasians dominates multinational organizations in USA, the Dutch also dominate multinational organizations in Netherlands. Therefore, the workforce is always favoring the Dutch in Netherlands and also the Caucasians in USA. In such cases, there are unequal opportunities since some groups are favored while others are not. As a result some people are motivated while other people’s motivation is lowered. A diverse and inclusive organization does not happen by chance. It requires a commitment from superior management to have a plan to identify and address any issues. Diversity is a journey that must be begun, boldly led, and frequently nurtured.
Corporate social responsibility is often viewed as an industry or corporation based concept with some base in law. However that is not the case, since social responsibility is a basic necessity for any multinational organization to be regarded as a success (Chura). Such organization must ensure that it overcomes all forms of discrimination and also form bylaws which are expected to emphasize fairness in such organizations. For example, in USA, for any company to be given any contract, it must first ensure that it meets the requirement of eliminating any form of discrimination against the minority. Most multinational companies are working towards improving the work conditions of their workers as well the community at large, hand in hand with their doing business.
Although corporate social responsibility seems to be the most effective and efficient method of handling business, it is accompanied with some challenges. At times, such multinational organization pays too much attention at improving the standards of the community and its works men who lead to its minimizing net profit and it can even experience a loss (Pitturo). Such companies’ objectives are not attained and could end up collapsing. Therefore as far as social responsibilities are concerned, they should be implemented wisely and considered all possible outcomes.
Diversity is a major factor to be considered when evaluating organizational performance. First and foremost, diversity can be of an advantage to an organization. This could be so when different talents and skills are brought together to merge into one large output. When unity emerges in such an organization, the workforce is greatly impacted the