With reference to one or two organization(s) that you have studied evaluate

different approaches that businesses can adopt to respond to issues of

globalization and ethics.
Globalisation, being the increasing international integration of companies as a result
of the emerging freedom of transport and movement, and Ethics, referring to the
moral and environmental implications of a companys actions, are vital elements to
be considered in the direction and management of a business. This is made
especially apparent in the application of various strategies and actions engaged in by
Lenovo, the Chinese computer manufacturing company based in Hong Kong. It has
responded to the increasing ease of globalisation by expanding itself through various
large scale acquisitions, a quick, external form of expansion. It has also responded to
a global issue of ethics through its Ethics and Compliance program, which aims to
meet international regulations and law alongside the issues of internal ethical
behaviour with regards to diversity and acceptance within the workplace.
Lenovo has embraced increased globalisation through its strategies of external
expansion, and as the leading computer manufacturer in the world, with $39 billion in
2014 sales, it has been able to make some recent high value acquisitions. One such
is a segment of IBMs chinese server operations, which Lenovo purchased for $2.3
billion in 2014, that was unprofitable under IBM management but which flourished
under Lenovo - playing its part in leading to the record high 2014 sales. It has also
acquired the recently Motorola owned Google Handset division for $2.9 billion in
2014. This aggressive acquisition policy has helped improve Lenovos market share
worldwide. By engaging in external acquisitions, Lenovo was able to expand quicker
than it would have been able to through internal methods while simultaneously
improving its overall market and technology access. Through its global brand
recognition, expansion, and sales, Lenovo has gained a number of new marketing
advantages, such as increased funds towards global advertising campaigns or
sponsorships, such as when it sponsored the 2008 olympic games; Lenovo spends
around $500 million a year on marketing and it is largely due to this that it has such
high global awareness, such as its 26.3% awareness in the US. Alongside this
acquisition policy, Lenovo also operates with a dual headquarters in Beijing and
North Carolina, meaning that its corporate structure is more decentralised and it has
been able to recruit and retain greater technology and local talent, facilitating its
growing strength in both Western and Eastern markets. This means that employees
are able to operate in an environment where they feel more comfortable and
connected to the upper management, potentially decreasing employee turnover and
resulting in greater internal talent and therefore greater efficiency, innovation and
ultimately, profitability.
Similar to its response to globalisation, Lenovo has acted pro actively regarding the
issues of ethics by implementing its Ethics and Compliance program, which promotes
an ethical organisational culture throughout the company. This highlights its desire to
adopt new policies to address prevalent issues and through such policies to not only
promote the external ethical code of compliance with the law and environment, but
also the internal issues of safety, welfare and diversity. Through this program, Lenovo
clearly demonstrates its development as a corporate citizen by acting with good
Corporate Social Responsibility with regards to both its internal and external
stakeholders. Alongside these active policies, Lenovo also promotes a more subtle
workplace attitude, increasing awareness of diversity and innovation, leading to a
more heretic workplace where ethical codes are strong among employees and it is
seen to be a very accepting company. This ethical transparency and the adoption of
policies has been largely in response to the newly placed emphasis on ethics by
consumers and the government, but Lenovos integration of these policies can be

seen as something going beyond the expected minimum measures, resulting in an

increasingly favourable view of the company by consumers and a greater internal
satisfaction among employees and managers that they are part of a vibrant and
ethical company rather than a soulless corporation. This perception of the business,
especially in Chinese markets where transparency and ethics are not largely
adopted, can play a major role in the way in which consumers shop; they will be
more likely to buy products from a company that they see as having good Corporate
Social Responsibility rather than one which does not.
Overall, Lenovo is a company that has seen many proactive policies and ideas in
response to the issues of globalisation and ethics. Globalisation has been particularly
addressed through aggressive expansion strategies as well as a multinational base
of operations to address the broad market that Lenovo supplies. Ethics has been
largely satiated through the Ethics and Compliance policy alongside the unmandated
ethical workplace culture that has been developed within the company, likely having
a greatly positive impact on its internal and external perception. Lenovo has done
well to maintain itself alongside both of these issues and has benefitted greatly from
it as it is still leading the global computer manufacturing industry in many aspects.