Motorola - Ethical Challenges in a Multicultural Environment

TITLE OF THE CASE: Motorola. Ethical Challenges in a Multicultural Environment

TIME CONTEXT: 1999

SUMMARY OF THE CASE:

In June 1999 Christopher Galvin, Motorola's CEO, wrote a memo to all Motorola employees concerning the company's continuing commitment to its code of business conduct and the ongoing efforts to get "Motorolans" worldwide to live up to the highest possible ethical standards:

As we continue to focus on the future, we are changing many things in the corporation. However, we will never change or compromise our high principles- our superb business ethics and dignity and respect we hold for the individual. This week I met with the team responsible for revising and reissuing Motorola's code of business conduct. The updated code has been well researched and embodies insights of small group discussions with Motorolans around the world. You will hear more about it soon.

The code is an important milestone in the Motorola Ethics renewal Process which has engaged us over the last few years. During that time, we established ethics committees and ethics compliance officers worldwide in our vigorous commitment to live up to the highest possible standards. We have always considered trust to be our competitive advantage and we continue to demand ethical behavior throughout the Corporation. Adherence to our code of business conduct ensures that we will disappoint neither ourselves nor the world.

We are committed to behave honorably at all times when conducting business. Global implementation of our code is challenging because cultures, morals, value systems and business ethics standards vary widely from country to country. To address this we have established an active, open, participative process where Motorolans worldwide can discuss how to determine right or wrong in various situations. Our process which has been in place for years is powerful, exciting, and right. It will be expanded and re-emphasized over the next few months through training and employee communications, including Motorola's Intranet.

Motorola had a long legacy of honorably and ethically conducting its business worldwide and Christopher Galvin wanted to continue the company's tradition. But as Galvin and others at Motorola had come to recognize, this was easier said than done given that the company had over 121,000 employees scattered across company operations in nearly 100 countries.

I. Objectives:

* To know how will Motorola adjust its ethical code of conduct to different culture of different countries.

* To know what Motorola could do to be able to properly apply its new ethical code of conduct.

* To expand and grow their business around the globe.

II. Central Problem:

How will the company adjust its ethical standards to different cultures in different countries and what will Motorola do to cope up with its competitors in developing high quality technological products.

III. Areas of Consideration:

Strengths

1. Well known in the world

2. Personal and high quality of service

3. A well established company and reputation

4. Good management governance and practices.

5. Emphasis on innovation and development among employees and management.

6. Competitive quality of products that meet the needs of different users.

7. Valuing the customer's needs and wants

8. Continuous company expansion

9. Strong enforcement of ethical standards

10. Consistent improvement of employees

11. Built a harmonious relationship with customers/suppliers

12. Aggressive research and development activities.

Weaknesses:

1. Continuing emphasis on analog technology

2. Lack of competitive digital product

3. Struggles on how to make new products profitable

4. Product line slow to expand

5. Lack of sufficient technique, information and data in producing new products

6. Allocation of high financial assistance to developing products without concrete confirmation that it would bring and generate profit for the company.

7. Difficulty in recruiting or attracting new customers

Opportunities:

1. New and emerging markets in the global arena

2. Improving global economic conditions

3. Spending on global opportunities, and expanding and developing new areas.

4. Strategic acquisitions of technological, human capital and customer assets.

5. Decentralization of the departments

6. Spending on global opportunities, and developing new products

7. Recruitment of more customers

8. Probability to grow the other Motorola branches worldwide

Threats:

1. Aggressive competition with other company with the same kind of products.

2. Government regulations as to operations and local market competitions.

3. Expansion might cause losses for the company

4. Company