Answer to Question 1
Managers can influence the ethical behavior of their direct reports in the following ways:
Take actions that develop trust.
Act consistently.
Be truthful and avoid white lies and other actions designed to manipulate people by giving a false impression.
Demonstrate integrity by keeping confidences and showing concern for others.
Meet with employees to discuss and define what is expected of them.
Ensure that employees are treated equitably.
Adhere to clear standards that are seen as just and reasonable.
Respect employees, showing openly that you care and recognize their strengths and contributions.
Answer to Question 2
There are a number of advantages to using locals to staff international subsidiaries. Using locals may lower labor costs, demonstrate trust in local citizenry, increase acceptance of the company by the local community, maximize the number of options available in the local environment, lead to recognition of the company as a legitimate participant in the local economy, and effectively represents local considerations and constraints in the decision-making process. However, using locals may make it difficult to balance local demand and global priorities, lead to postponement of difficult local decisions until they are unavoidable, may make it difficult to recruit qualified personnel, and may reduce the amount of control exercised by headquarters.
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