Cross-Cultural Ethics and Social Responsibility Team A MGT/216

Past events in corporate America have shown destructive effects that occur when the leadership of a company behaves in an unethical manner. Enron, Tyco, WorldCom, and Adelphia are companies whose lack of ethic caused them trouble (Posters, 2003). Good Business ethics and social responsibility contributes to the success and profitability of a company and is good for society. Funco Toy World Incorporated (Funco) is a toy store that operates in the United States. After extensive research the owners of Funco decided to expand into China. According to Orfield (2006) in 2002, for the first time, China attracted more foreign investment than the United States. The world’s fastest-growing economy is the second largest behind the United States, and by mid-century, it is expected [The passive voice is a form of "be" (is) and a participle (expected). Over-use of the passive voice can make paragraphs officious and tedious to read. Try to use the active voice most often; for example, passive voice = The paper was completed on time. Active voice = the student completed the paper on time--(Note: the Plain Writing Act of 2010 makes avoidance of the passive voice in official writing a requirement for government employees)] to be number one. “The moral challenge is even more intense for multinational companies who need to live up to moral expectations both in the US and in host foreign countries. In developed countries, the moral expectations of the host country are as stringent as our own. With third world host countries, though, the moral expectations often more lax, and multinationals are tempted to lower their standards when situations permit” (Fieser, n.d.). Although China has lower standards, Funco will operate its stores in China using its same values and codes of conduct it operates under in the United States while keeping in mind the best interest of stakeholder groups that will be affected. Funco has two locations in Cleveland, Ohio. At Funco we love children. Children’s toys, from bikes to dollhouses fill our 5,000 square foot family oriented building. Our team culture includes 35 employees. We train our employees to deal with children in all types of situations. Our Values At Funco our customers, employees, shareholders, and communities are very important to the success of our business. We will treat employees and our customers fair and honest, always representing our community in a responsible manner. Our mission to sell the most reliable brands built with the highest quality. At Funco, respectful employee conduct is priority. We developed a workplace code of conduct so that our employees are clear of the expected behavior in our corporate environment. Our hiring practice, workplace discipline and diversity policies will provide a direct communication of what we expect from the employees at Funco. Employees should be aware that Funco does not tolerate certain actions and behaviors that are unproductive and damaging to the company. These include * Promote ethical behavior in the work environment. * Reporting dishonest, unethical, or illegal activities by other employees * Maintain a safe and drug-free workplace. * Ensure that the workplace is free from discrimination and harassment and respect diversity and every individual. * Discourteous treatment of customers Failing to comply with this Code of Conduct may result in disciplinary action, up to and including termination of employment. The disciplinary process will go as follows: Step 1: Verbal Warnings Step 2: Written Warnings Step 3: Final Written Warnings Step 4: Dismissal Funco recognizes that its employees are a huge asset to its company. The goal at Funco is to provide quality and personalized service to our customers. We strive to recruit and hire qualified candidates without regard to race, sex, color, religion, disability, sexuality, age, nor national origin. Funco’s hiring practices are as follows: * Advertising: Positions are advertised openly to current employees first. Positions posted for two weeks will be advertised to the public. * Job Description: Job descriptions will be in complete details in writing so that all candidates receive the same information about job requirements. Job descriptions will focus on the necessary skills needed for the position and work performed. * Screening Applicants: We will base applicant screening on job description only. Race, color, ethnic origin, sex, creed, sexual orientation, age, marital status, or disability will not be a determining factor of employment. * Interview Process: Interview questions will be relevant to the job position and not relate to race, color, ethnic origin, sex, creed, sexual orientation, age, marital status, or disability. * Selection Process: When contacting prospective employees references, questions should be job-related issues. Diversity at Funco diversity is welcome. We will not allow race, gender, age, disabilities, religion, sexual orientation, nationality affect any of our decision concerning employment or advancement opportunities. We understand the diversity can bring upon a wide range of creativity. Funco believes in equality in diversity. At Funco it is important to maintain a diverse culture where all employees feel like they belong to one community, which is consistent with our core values. Legal and ethical issues may arise while conducting business abroad. China has rules and regulations that differ from the United States rules and regulations. According to Travel Guide (1998-2010) “Chinese people legally enjoy over 115 days off including 104 days of weekends and 11 days of festivals. Employees have five to 15 days of paid annual leave” (Holidays in China, para. 1). Funco will monitor working conditions are monitored quarterly to ensure employees are not working long hours for inadequate compensation. China is known for violating the labor laws such as not paying valid overtime rates and forced labor. Funco employees abroad are huge stakeholders therefore; they will treat international employees fair and compensate them for their hard work. An anonymous hotline is available as a risk-free way to report questionable activities at anytime. Efforts to maintain safety, remuneration, and fairness to all employees are top priority for Funco. Falling below these standards could attract the media and have a negative impact on the company and our stakeholders. Aldsworth (2010) “China is the fastest growing emerging market, and unofficially the largest economy on the globe. Although it offers vast prospects for an expanding business, the chances of success without sufficient knowledge and expertise is, to be frank, considered slim. With a theoretical market of 1.5 billion people and a culture which has embraced the ethics of western business.” Expanding operations into China will be good for Funco and also challenging because of the ethical differences of China versus the United States. Continuing to operate with our same values and codes of conduct we operate under in the United States, protecting our stakeholder groups at home and abroad will build a strong company. Upholding our core values and using good business ethics will be the cause of our success and continued growth.

Reference Page Aldsworth, S (2010). Expanding a Business in China. The Prysm Group. Retrieved from http://www.startupoverseas.co.uk/expanding-a-business-in-china Fieser, J (n.d.). Business Ethics. The University of Tennessee Martin. Retrieved from http://www.utm.edu/staff/jfieser/vita/research/Busbook.htm Orfield, K (2006). Doing Business in China. Wisconsin Business Alumni. Retrieved from http://www.bus.wisc.edu/update/winter05/business_in_china.asp Posters, H (August). Importance of Ethics in Business. American Society for Quality (ASQ), Retrieved from http://www.asqsandiego.org/articles/ethics1.htm Travel China Guide (1998-2010). Retrieved from http://www.travelchinaguide.com/essential/public-holiday.htm