The intercultural challenges

in the transfer of codes of conduct

from the USA and Europe

The intercultural challenges

in the transfer of codes of conduct
from the USA and Europe

Code of Conduct Case

Introduction and Case Presentation
Kristina
Case analyses Elena
Implications Alina
Recommendations Meltem

INTRODUCTION
Process of internalization of MNC
Codes of conduct:
-control,
-regulate the employee behavior
More European countries started to adopt
codes of conduct
The intercultural challenges of the
implementation of codes of conduct in
European subsidiaries

CASE PRESENTATION
The code of conduct represents a reference frame of values,
principles and norms in the process of organizational socialization
For the MNC, codes of conduct can also be considered as an
instrument of control and regulation of subsidiaries or foreign
suppliers
Codes of conduct or ethical codes are not culturally neutral
instruments in Europe

CASE PRESENTATION
Today ethical codes concerned in:
- North American MNC 68%
- European multinationals 45%
- Japanese multinationals 38%

Ethical codes are embedded in the American tradition of

internal company regulations specific to the 19th
century
Morality was perceived as useful since it was a source of
material success
The adoption of ethically instruments is bound to
encounter difficulties and resistance
in some European countries

CASE ANALYSIS
I. Critics Addressed to the Code Content
and Formulation
- Critics addressed to the code concern its content
and its formulations
- The code is strongly inspired by the US legal
frame and comprises a number of references to
American laws

I. Critics Addressed to the Code Content and

Formulation (cont.)
Culturally different environment
Examples of sexual harassment and boycott
laws: make everyone here [in France] laugh

The Midwestern approach poses a problem,

especially to the French, who demand the
freedom of interpretation in the respect of rules

I. Critics Addressed to the Code Content and

Formulation (cont.)

There were so many mistakes and

problems with the translation, and some
contradictions with German labor law too
In Germany, managers with an expatriate
experience in the USA were less surprised
than the others

The Conflicts Between the Code and the Legal

Frame
Implementation of the code as an internal regulation

Involvement of employees
Novartis Jurisprudence
Solution seeking of the HR departments in Germany and France

Differentiated Local Resistances

The legislative framework has become a part of resistance.

In France, the employee representatives brought into question the Code

The representatives of the place of production in east of France remained

unresponsive for the new code

In Germany, the employee representatives of the place of production did not

create any problem

IMPLICATIONS FOR CROSS-CULTURAL

MANAGEMENT
Difficult task
International coherence and cultural
standardization
HR instrument is not culturally neutral

IMPLICATIONS FOR CROSS-CULTURAL

MANAGEMENT (cont.)
Negative reaction to the code
Managers played an important role
Code of conduct cannot be introduced with the
same legal value in European subsidiaries
Resistance is not a cultural automatism

Recommendations
Three main things to do:
Understanding similarities and differences
Pointing out local, legal and cultural constraints
and adapting
Implementing the codes

Stage: 1
Understanding the similarities and differences
How other cultures behave?
A human being is a human being everywhere?

Why to start with this?

Stage 2:
Pointing out constraints of the codes of
construct and adapting it
What are constraints? Any borders?

Characteristic of the codes change?

How will it help?

Stage 3:
Adaption and Implementation of the codes of
conduct
Trainings
- practical
- first parent company then subsidiary company

Managers with experience

- middle people
- minimize misunderstandings

THANK YOU