Diversity in the workplace Exam 4
The 4th level, reflects the
"macro" system level of international relations.
According to TransFair, coffee importers buy directly from growers at
$1.31 per pound (10 cents above prevailing market rates), or $1.51 per pound (20 cents above market rates) for organic coffee.
The Chiquita Brand International went through four stages in the process of addressing the needs of the rural areas
(1) raising top management awareness; (2) formulating a vision and core corporate values; (3) changing organizational behavior; and (4) anchoring the change.
Despite the negative images of fair trade clothing and the higher prices of their items, The Fair Trade Company experienced
40% to 50% growth per year for the first few years.
What is the first step in becoming a more inclusive workplace
A self-study/assessment of its diversity climate and of its climate for inclusion;
What is the second step in becoming a more inclusive workplace
Creating a strategic plan of action relevant to the organization's mission and goals;
The demand for fair trade products has spread across approximately 58 countries including, as of 2007,
Europe to the United States. However, the number and types of fair trade products varies from country to country.
Benefits of level 3, Organizational level
Expanding potential employee pool as a result of these policies, Gaining a loyal work force, Improving customer relations—particularly among the disadvantaged groups but also among other clients who care about social issues.
What is the fourth step in becoming a more inclusive workplace
Feedback - collecting information regarding diversity and inclusion at the team and organizational levels.
What is the third step in becoming a more inclusive workplace
Implementation - actions and corrective actions that address conflicts or dilemmas;
what is the 4th level?
Inclusion through International Collaborations
An inclusive workplace, at the second level, recognizes the economic and noneconomic consequences of its presence in the community.
It acknowledges the responsibility it has to ameliorating the adverse effects of this presence and to making a positive contribution to the community's well-being
Barrier of level 3
Limited corporate vision that only focuses on immediate needs and objectives, Stereotyping disadvantaged groups as unstable and disposable labor
___ products are regularly introduced around the world.
New fair trade
After gaining success in Japan, The Fair Trade Company branched into the UK market in September 2000, naming the company
People Tree after its catalog. After two years of sales in the UK, with little more than word-of-mouth promotion, sales have climbed to 460,000.
Soon the Fair Trade Company launched a small catalog which, by 1999, developed into a 100-page catalog called
People Tree, listing the Fair Trade Company's products.
Benefits of the Inclusive Approach at level 4 at the individual level
Provided that companies today reap the benefits of an increasingly global marketplace by employing workers from different nationalities in or outside, their native countries—new jobs and international opportunities, will emerge for these companies' employees.
In the 1990s, Global Village was formed in Japan through the efforts of one resident
Safi Minney
Barriers of level 2
Shortsighted and internally focused corporate vision Economic pressures to demonstrate short-term profitability
The key principles of Fair Trade, as defined by The Fair Trade Federation (2008) are
The creation of opportunities for economically disadvantaged producers, Gender equity, Transparency and accountability, Capacity building, Payment of a fair price, Improved working conditions, Environmental sustainability, and Promoting fairer trade by educating consumers about the importance of purchasing fairly traded products.
Fair trade originated in the late 1950s when a UK charity, Oxfam, started selling crafts made by Chinese refugees
This practice helped bolster Oxfam's organizational goal of offering a lasting solution to poverty and suffering around the world.
In 2014, People Tree was voted into UK's
Top 5 most ethical companies by Ethical Consumer (a not-for-profit UK magazine and website).
__ is leading the pack in the battle for fair trade city and was named the first fair trade city in 2002.
Wales
In Europe, a growing trend is to have cities certified as
a "fair trade city" by the The Fairtrade Foundation.
The exclusionary workplace operates from
a framework that is ethno-centric, competition-based, and is focused on narrowly defined financial and national interests (e.g., this type of workplace will send local employees on international assignments to strictly enforce company's values and norms overseas)
Lotus established its South Africa social investment fund and has charged its newly hired manager with
a mandate to work directly with Black-run information technology projects.
In 1995, Ms. Minney formed The Fair Trade Company
a natural outgrowth of Global Village.
The inclusive workplace perceives welfare recipients seeking work, domestic violence survivors, and youth in distress as
a potentially stable and upwardly mobile workforce.
Chiquita Brands International
a producer, distributor, and marketer of fresh and processed foods
Organizations aiming to become inclusive need to engage in a continuous four-stage process comprised of the following steps
a self study/assessment, a strategic plan of action, implementation, and feedback
The inclusive work place is guided by
a set of values that propel its policies and practices.
Benefits of Level 4, Individual level
access to job training and employment that may otherwise not be available improved life conditions for individuals, their families, and the communities they live in
Benefits of level 2, Individual level
access to opportunities such as job training, employment and additional services that community members would not otherwise have.
Several of the organizations now certify that consumer products meet fair trade guidelines,
adding a certification to product packaging.
An exclusionary workplace, at the first level, is based on the perception that
all workers need to conform to pre-established organizational values and norms (determined by its "mainstream").
All of the producers were paid a price, approximately 30% above the prevailing market prices, which would
allow them to sustain a living for their families and to invest in their businesses.
Hindustan Lever, the Indian division of Unilever. In 1975, the company was
almost forced to close its dairy because the villagers, being poverty stricken, were unable to properly feed their livestock.
The Lotus Corporation launched a visionary initiative with the purpose of
assisting in the development of the black business community in 1992.
Benefits of Level 1, Individual level
better access to promotion and benefits as well as improved job satisfaction and well-being for individual employees.
Lotus created an internship program for
black programming trainees in Johannesburg and brought a group of black computer instructors to its Massachusetts headquarters for advanced training.
There has been a growing movement to eliminate poor working conditions, not through laws or trade penalties,
but through positive trading relations, known as fair trade.
Benefits of Level 4, Organizational level
by treating their employees fairly and respectfully, companies are able to generate goodwill from both their employees and potential customers. This results in: gaining a loyal and committed workforce expanding their economic activities
The internationalization of ___ and ___ has changed the prerequisites for national economic success.
capital markets and advances in technology
The combination of business internationalization, worker migration, and workforce diversity creates a
challenge for companies engaged in international business.
More than any other product, ___ is experiencing strong growth worldwide.
coffee
What are the three inclusion dimensions used by The Climate for Inclusion-Exclusion Scale (MBIE)
decision making, information networks, and participation/involvement
In order to compete in this changing environment, companies must
develop intelligent systems of human resource management and open up opportunities for a diverse workforce across national boundaries.
Level III refers to the values that drive organizational policies with regard to
disadvantaged populations such as welfare recipients, domestic violence victims, and youth in distress.
The second barrier of implementing the Inclusive Approach at level 4 is
discrimination or inappropriate consideration of age, gender, race, or other personal characteristics with respect to the hiring and employment conditions of both local employees and expatriates (employees who move from one country to the other to do their jobs).
Level IV refers to the organization's positions and practices related to the
fair exchange of economic goods and services and the respectful cultural relationship with individuals and groups in other countries.
Through much of its 100 years history, including those as predecessor companies United Fruit and United Brands, the company has been fiercely competitive and suffered
from a less than stellar reputation—the main impetus for implementing its socially oriented organizational change.
Today, gender inequality is not at the level it once was, although it is suggested that more research is needed in order to
fully identify how trade relations perpetuate inequality and what trade relations are necessary to advance global and gender parity.
The primary barrier of implementing the Inclusive Approach at level 4 is
greed, which motivates companies to go beyond a fair economic exchange and take advantage of employees or resources of a host country. Companies exploit uneducated people who live in poor nations with the purpose of gaining economic advantage.
Lotus developed its international inclusive initiative out of
ideological conviction by reversing its previous policy not to do business in South Africa.
Benefits of level 2, Organizational level
improved corporate image within as well as outside the community that can translate into advantages in recruitment potentially avoiding or mitigating the negative results of labor disputes
Lotus also made efforts to conduct its business dealings in the country
in a way that will enhance black businesses
Transparency and accountability
includes transparent management and open dialogues between importers and producers
Level II is
inclusion and corporate-community relations
Level IV-
inclusion through international collaborations
Level III-
inclusion through state/national collaborations
There is general agreement that the certifications are having a profound effect on the
industry and will become more common in the coming years.
Hindustan Lever, the Indian division of Unilever. The management decided to invest effort and financial resources on its
innovative development initiative, helping some 600 villagers reach self-sufficiency.
Benefits of level 3, Individual level
job training that may lead to employment with the company or improved job prospects with other employers.
The third barrier of implementing the Inclusive Approach at level 4 is
lack of respect for other national cultures, which leads to a forced implementation of values and norms that are not appropriate for the host country.
As of the end of 2002, the catalog had 20,000 customers in Japan, which, combined with sales to about 500 Japanese stores,
led The Fair Trade Company to annual sales of $7.4 million
Benefits of Level 1, Organizational level
lower turnover and reduced absenteeism as a result of improved job satisfaction among employees, better access to high potential employees who would be attracted to their organizational culture, more likely to attract clients of diverse backgrounds.
Gender equity
making sure that women are properly paid for their work and empowered within their organizations
The Climate for Inclusion-Exclusion Scale (MBIE)
measures the degree to which individuals feel a part of critical organizational processes.
At level 2, an exclusionary workplace sees
minimal or no connection to its community.
The inclusive workplace at the first level is based on a dynamic coevolving value frame that relies on
mutual respect and equal contributions of different cultural perspectives to the organization's values and norms.
Certified fair trade products are common in Europe;
nearly 81% of all products sold in Europe feature a certification.
If companies wish to survive and succeed in today's changing market conditions, companies
need to conduct their business in a fair and ethical way while respecting other cultures.
The fourth level, inclusion through international collaborations, refers to the
organization's positions and practices related to the fair exchange of economic goods and services and the respectful cultural relationship with individuals and groups in other countries.
Barriers of Level 1
prejudice, overt, and covert discrimination, misunderstanding of groups from diverse backgrounds, and employees' perceptions, people's perceptions of group competition in access to power within the organization
The fair trade market has grown considerably since its start with craft items in the UK. Consumers can now buy a wide array of fair trade products including
produce, coffee, tea, toys, jewelry, furniture, paper products, clothing, chocolate, rugs and other items (Fair Trade Federation, 2003).
Ms. Minney explains that ___ was the key to her success in Japan.
product quality
To earn the designation of fair trade city, the city must
prove that shops and suppliers are committed to selling fair trade products.
The Fair Trade Company was formed to
provide environmentally and socially friendly products to consumers in Japan.
Global Village is a nongovernmental organization with the goal of
providing sources for Japanese consumers to recycle and to purchase environmentally and socially friendly products.
Women in less-developed countries were not receiving the same working conditions in terms of
quality and fairness in the fair trade workforce then that of men.
Given that products and services reach a growing number of men and women in countries throughout the world,
sales organizations and supplier communities can improve their access to people with talent by increasing the diversity of their workforce.
Organizational climate refers to the
shared perceptions of employees regarding an organization's policies, procedures, and practices.
The exclusionary workplace, at the second level, views disadvantaged populations as being in the
sole domain of welfare agencies and charity organizations.
The rural areas in Latin American countries from which Chiquita sources bananas
struggle to various degrees with poverty, illiteracy, lack of access to health care and other basic social and infrastructure needs.
Level II relates to the organization's sense of being a part of its
surrounding community and the reciprocity embedded in that relationship.
Opportunities exist for exploitation by companies who
take advantage of workers' desperation in poor regions by employing them in abhorrent conditions and sub-minimal payment.
A survey conducted by Cooperation of Fair Trade found: Fair trade provides more
than 37,500 jobs to people in Africa, with the largest number being held by women; Asia provides approximately 250,000 jobs; and South America producers employs approximately 21,000 people in fair trade.
Since the late 1950s, fair trade practices have emerged to ensure
that producers, laborers and farmers are paid a price that not only covers their costs, but also allows them to support their families, invest in their businesses, and invest in social and economic improvements.
Transfair is working to expand their certifications beyond a few labeled products in
the United States, Canada and Japan.
How much extra fair trade products cost varies by product and company. However,
the costs can often be kept relatively close to the price of nonfair trade products, as illustrated by the coffee market
Climate for diversity
the extent to which employees view an organization as integrating employees of diverse backgrounds into the organization and the presence of personnel practices that are applied equitably to everyone in the organization
As a result of the Hindustan Lever, the Indian division of Unilever
the health and income levels of the local people have improved considerably; the dairy has been operating at full capacity; and the villagers are now loyal consumers of Hindustan Lever products.
Although the prices paid by importers are not much more than the prevailing market rates,
the money goes directly to the growers instead of to a middleman.
Clime for Inclusion
the shared employee perceptions of the extent to which organizational polices and practices encourage and reward acceptance of demographically diverse employees by recognizing their unique attributes, providing them with a sense of belonging, and by encouraging their involvement in organizational communication, decision-making processes, and informal interactions
Foreign production currently accounts for more than 25 percent of multinational companies' domestic production, new global ventures, and international collaborations allow companies
to expand their geographical markets and to increase their economic activities.
Capacity building
to promote sustainable business practices by producers and provide management-skill development and financial and technical assistance
Level I, diversity within work organizations relates
to the organization's internal relations with its own employees.
The Fair Trade Company formed relationships with
underprivileged people from around the world to use indigenous resources to produce clothing and handicrafts.
The inclusive work place model examines the organization's
value frame on each of the four system levels (the vertical y-axis) and at the two extremes of the inclusion-exclusion continuum (the horizontal x-axis).
The inclusive workplace sees
value in collaborating across national borders, in being pluralistic, and in identifying global mutual interests (e.g., an inclusive workplace will hire local managers and give autonomy to its international branches).
sales organizations and supplier communities can also become more aware of the specific needs of their internationally based customers,
which can enable them to create valued products and services.
The increasingly more open economic markets create opportunities for the countries
with surplus workforce and under-developed economies to come together with countries that can finance economic endeavors and provide jobs.
What are the five work-organization system levels The Climate for Inclusion-Exclusion Scale (MBIE) uses
work group, organization, supervisor, higher management, and social/informal