Early global Trotters and their entrepreneurial employment practices

Abstract

Purpose Questions have often been asked of the ethicality of multinational enterprises (MNEs) with the conducts of many being classified as exploitative. This is particularly so the internal context, where MNEs are often reluctant to employ host country nationals at important positions and treat their host and parent countries employees differently. This study aims to examine whether the locals are really getting the raw end of the deal. Design/methodology/approach Utilising a unique record book that is available about the employment details of civil servants in Hong Kong known as the blue book, this study intends to examine whether first-moving multinational organisations treated their local employees in an ethical and reasonable manner, for the employees entering the service between 1845-1850. Findings The data suggests that, overall, host country nationals earn much less than not only the British but also those from third countries. Moreover, parent country nationals were placed at important officer and supervisory roles, as oppose to host country nationals at the bottom, forming a typically ethnocentric governance structure (Perlmutter, 1969). Furthermore, even divided by grade, the starting salary difference between host and parent country nationals remain considerable. However, the reason for this is complex, and the authors do not have a quick and precise answer as to whether there has been discrimination. Research limitations/implications The findings perhaps explain the dilemma faced by the early-movers because they tend to feel the strong need of adopting an ethnocentric approach, which can be extremely costly as a result of the large wage differential. A balance needs to be struck between this and utilising host country nationals, which might not necessarily possess all the essential qualities but might be cheaper. Originality/value This is the first study examining the employment practices of fast-moving MNEs.

The social value creation of MNEs – a literature review across multiple academic fields

“…Research within IB most notably explores the transfer of corporate social responsibility (CSR) practices from headquarters to subsidiaries, the role of institutional influences on CSR uptake and outcomes, CSR as a form of legitimacy and way to overcome the liability of Social value creation of MNEs Buldybayeva (2014), Chai et al (2016), Giraudo (2005), Halter et al (2009), Lindgreen (2004), Williams and Zinkin (2008) Ethics Leadership Country-level variance Employee ethics Company culture Outcomes of (un)ethical behaviour 2015, Barrientos et al (2016), Bostrom (2015), Franz and Hassler (2010), Giri and Singh (2016), Henderson et al (2002), Jorgensen and Milanez (2017), Lee and Gereffi (2015) Table IV.…”

“…In agriculture, Amekawa (2009) examines the rise of public good agricultural practice standards and their potential to facilitate better social, economic, and environmental outcomes through the inclusion of 'global south' producers. Historical studies in entrepreneurship investigate the past employment practices of first-mover MNEs, describing the discriminatory treatment of host-country nationals (Chai et al, 2016). Within the field of ethics, research investigates the management of ethics in supply chains, and CPOIB 16,1 product design issues that present subsequent reputational risks (Gilbert and Wisner, 2010).…”