Based on the time of improbable achievement in Canada and the United States, we decided to develop Core Mark’s actions to the universal troop. The development will aim to expand the market portion and, as a result, grow the collective paybacks. The company agrees with the idea of endorsing different and broad course supply reactions for the trade business housing. Therefore, we decided to frame a branch in Colombia in which we shall ground our actions aiming to assist the cooperative merchants in the northern landfill of the South American region. No firm in the region supplies items to the location, hence an unusual gap in the area with more than 30 individual retail shops. This was, therefore, the main stimulation for setting up my branch. Colombia was chosen in this case; Colombia is located in the middle, and in that aspect, it will reduce the cost of the conveyance of an organization’s merchandise to alternating countries; for instance, Venezuela and Chile.
Business culture and ethics in Colombia
Before doing business in Colombia, organizations should be aware of the local customs and ethics. Business culture in Colombia changes across the country. In the main cities, specifically Medellin and Bogota, the business culture is more formal compared to minor cities such as Cali, whose culture and ethics are more informal. Colombia is a distinctive country with a different and intriguing culture compared to other countries. Therefore any investor or company that wishes to expand its business territory in the country must understand it to create a conducive environment for its employees (Phillips, 2003). More importantly, by understanding Colombian culture, the employer will avoid any controversies with the employees. Some of the interesting cultures in Colombia is that one should cover their mouth when yawning. The employer should observe such things to avoid the employees feeling betrayed by their culture. Moreover, Colombians take it rude when one speaks to them when their hands are in their pocket or chewing gum with their mouth wide open. Additionally, in Colombia, leaning and slouching against things is a bad picture. The most important business culture that investors should respect and accept is that punctuality is not tight in Colombia. Therefore as an employer or boss, you should not be hard or lay off an employee because of failing to observe punctuality. I will expect people to follow a looser “tiempo colombiano” (Colombian time) for social and casual engagements. Delays or lateness of up to an hour from the time stated will be normal. Since the Colombian culture expects men to open doors for women, people will observe it, even for junior women employees.
How do the labor laws compare to those in The United States?
The labor laws in the US and Colombia have some differences and similarities (Koh & El’Fred, 2001). For example, Colombia has a social security system that is mandatory, which gives labor-risk, death, disability, retirement, and healthcare benefits which is the same as in the United States. Employers are indulged to affiliate their workers with it, and they are required to make contributions that ought to be paid within the deadlines prescribed by the government. In the United States, social security is funded mainly through payroll taxes. The difference between Colombia and the United States comes in the retrenchment and hiring issues. In the US, employment contracts are only written, but in Colombia, employment contracts may be written or verbal as well as of indefinite or fixed duration. When taking up employment, employers need the staff first to serve a trial period that does not exceed two months. In Colombia, the employer or employee can end the employment contract without giving out a notice which is very different from the United States. There is a similarity between the issues of foreign workers in the United States and Colombia. Foreign nationals are required to have a valid work visa to work and live in Colombia. Furthermore, foreigners ought to comply with and respect the same payroll regulations and Human Resource conditions as Colombian workers.
How will the company have to change its operations in order to fit into the culture of the country?
For a US company to fit into Colombia, the most important thing to observe first is the culture of the country (Jones, 2012). For example, have an understanding that punctuality in Colombia is not paramount. Hence, when an employee delays for an hour or so, an employer takes it as a normal thing. Additionally, the company should know that the hiring and retrenchment issues in Colombia differ from those in the US. Employees in Colombia can terminate their employment contract without giving out any notice. Lastly, the company has to adjust to the payroll regulations and human resource conditions that are required when working in Colombia.
It can be concluded that there is a big difference between working in Colombia and the US. As a result, any company that wishes to work in Colombia should implement Colombian business regulations in terms of ethics and labor laws. However, a difference arises due to the pay level differences. To enhance the success of the company, organizations will establish some operational structure, such as closing on Sundays since most people in the region are Christians.
Jones, C. R. (2012). Organizational theory design and change; Texts and cases.
Koh, H. C., & El’Fred, H. Y. (2001). The link between organizational ethics and job satisfaction: A study of managers in Singapore. Journal of business ethics.
Phillips, R. (2003). Stakeholder theory and orgaizational ethics.
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Week 5 – Assignment 3: Analyze Culture and Organizational Ethics
Organizational Ethics is extremely important to the success of any organization. In your MBA program you learned about globalization, sustainability, and technology.
Consider that the company that you are running in the simulation was going to move to the global environment. Choose a country (choose Colombia) that the organization may open up operations in and analyze that country in terms of its ethics, pertinent laws, and sustainability practices and requirements in relation to those here in the United States. For example,
- are there ethical differences that would need to be considered when operating in that country?
- How do the labor laws compare to those in The United States?
- How will the company have to change its operations in order to fit into the culture of the country?
Length: 2 – 3 pages not including title page and references
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