Individual Project Unit 5 BUSN310-1104A-10
Deborah Winnie
American Intercontinental University

Individual Project 5 In order to make it in the modern world of global business, many companies are looking to other countries for expansion of their businesses. Taiwan and Thailand are two of the more popular East Asian countries that are being selected. Acceptable and ethical behavior in these countries are shaped by their culture, so there are many differences in legislation which deals with working hours and wages and the environment. Before expanding a business in another country, companies must first learn the different legislations. Due to rapid economic development seen recently in Thailand, the environmental regulation level is on the rise. Because of this, there are many problems including environmental damage. In the past few years there has been increasing alarm concerning Thailand’s environment. Even though there have been environmental laws in the past, these laws were not strictly enforced because of overlapping responsibilities, redundant laws, and budget constraints which greatly reduced the monitoring, detection, and prosecution of violators. However, the National Environmental Board was elevated to ministerial level with the enactment, in 1992, of the Enhancement and Conservation of National Environmental Quality Act’s updated version. This act also offers incentives for the preservation and promotion of the environment, such as establishing a fund to promote and preserve the environmental quality. It also imposes penalties on polluters and allows the people of Thailand to participate in tackling their environmental issues. The people of Thailand have become more aware of their environmental issues and realize they must support the newest legislation in order to protect their quality of life. (Protecting the environment, 2008-2009) Thailand seems to be heading in the right direction when it comes to having adequate regulations to protect their environment and they are also taking steps to educate the companies operating within the country. Companies wanting to expand or start their businesses in Thailand must also look at the country’s working hours and wages legislation. Minimum wage in Thailand was increased by almost seven percent in 2011. Although it varies according to different regions of the country, the national average is approximately $5.90 per day. (Thailand minimum wage 2011 increases, 2011) As far as the number of working hours allowed in Thailand, it is base on the type and nature of the job. Working hours should not exceed eight hours a day or forty-eight hours a week in most cases however, if the job could cause health problems to the employee, hours do not go above seven hours daily or forty-two hours weekly. Employees in Thailand receive are entitled to thirty sick days per year, thirteen public days per year, six vacation days after one year of employment, and ninety days of maternity leave with forty-five of those paid for pregnant employees. (Labor law in Thailand, 2005-2011) Compared to the U.S., Thailand’s wages seem very low, but that is because the country’s cost of living determines what sufficient wages are. Because of the rapid industrialization of Taiwan, many environmental issues are being created. Approximately half of the rivers in Taiwan are polluted because of municipal wastewater, the generation of one million metric tons of hazardous waste, twelve million metric tons of nonhazardous industrial waste yearly. Because of the formation of the Environmental Protection Administration in 1987, the Solid Waste Act, Air Pollution Act, Recycling Law, Toxic Substances Act, Water Pollution Act, Soil and Groundwater Remediation Act, and the Environmental Impact Assessment Act are just a few of the regulations that have been put into place in Taiwan and are enforced by the Local Environmental Protection Bureaus. Enforcement of these acts, as in many other countries around the world, is not easy because of the lack of training and resources. However, the government has made available tax incentives for businesses which invest in technology or equipment for recycling and pollution control. These incentives allow the company to deduct five to twenty percent of their investment amount from their income tax over the course of a five year time period. Financial incentives are also offered by the government, such as providing low interest loans to smaller and medium sized businesses for the purchase or upgrade of pollution treatment or control equipment. (Taiwan environmental industry profiles, n.d.) Taiwan’s government is making great strides in legislation to reduce their environmental issues but, as is the case in Thailand, enforcement, funding, and education are coming up short. In 2000, Taiwan amended their working hours so that beginning January 1, 2001, workers could only work a maximum of forty two hours per week in a six day time period. (Taiwan legislature, 2011) Men are permitted to work three hours of overtime per day and women only two hours of overtime per day. Taiwan’s legislation for working hours is ethical because workers are given a two day vacation every two weeks. But, Taiwan’s wage legislation is another story. It is far from ethical because their minimum wage cannot cover the workers living expenses. When compared to salaries in the U.S., employees are being paid half to two thirds of U.S. employees and even upper level jobs are extremely lower than those in the U.S. (Gross, 2011) Because of this, Taiwan has a very difficult time drawing talent to their businesses and the economic outlook is less than favorable. There is still a lot of hard work ahead of both the government and the people of Taiwan and Thailand to solve their environmental issues. Training and resources must be available to enforce the laws and regulations so more work to improve this area is desperately needed by both of these countries. Seemingly both countries working hour legislation is ethical since workers are allowed adequate time off and are not presenting any safety issues by being overly tired from working long hours. However, the wages in both Thailand and Taiwan are forcing their workers to live in substandard conditions. Although many countries around the world are having the same problem in today’s economy, the governments of Taiwan and Thailand must create legislation that will increase the wages of their workers. This in turn will help to draw new talent from other countries and give them a more stable economy in which to live.

References
Gross, A. (2011). Taiwan human resources update. Retrieved from http://www.pacificbridge.com/publication.asp?id=7
Labor law in Thailand. (2005-2011). Retrieved from http://www.articlesbase.com/law-articles/labor-law-in-thailand-288044.html
Protecting the environment. (2008-2009). Retrieved from www.tillekeandgibbins.com/Publications/thailand_legal_basics/protecting_environment.pdf
Taiwan environmental industry profiles. (n.d.). Retrieved from http://proj.moeaidb.gov.tw/environet/e-04envr05-0112.asp
Taiwan legislature. (2011). Retrieved from http://www.thefreelibrary.com/Taiwan+legislature+approves+42-hour+workweek-a062835653
Thailand minimum wage 2011 increases. (2011). Retrieved from http://www.business-in-asia.com/thailand/minimum_wage2011.html