Identifying Issues Global Business Face In Qatar Commerce Essay Example

According to the US State Department's Trafficking in Persons Report, both men and women are lured to Qatar with promises of high salaries only to be coerced into underpaid work.

The study from Human Development Studies (2009) reveals that Qatari laws against forced labor are rarely enforced, resulting in victims being detained in exile Centers while legal proceedings take place. When state governments violate citizens' rights, they have limited options for recourse, relying on their extended families and support networks for any influence they may have. Although citizens do have access to independent legal advocates, the judiciary is not entirely independent and does not always ensure the rule of law. While citizens are rarely targeted for abuse by private or non-state actors, non-citizens lack effective protection from the state.

(Countries at the hamlets 2009)

Womans right

The issue of women's rights in Qatar is a significant concern. Discrimination against women is prevalent and they are not considered equal to men. Islamic beliefs dictate that women should obey the men in their families as male judgment is deemed superior. Women's workforce participation rates in Qatar are low, with most working in traditional sectors like education and healthcare. However, employment barriers for Qatari women are primarily informal rather than formal. Those who choose to work face various professional challenges and must adhere to dress codes requiring modest attire, covering their hair, and wearing long sleeves.

Despite the exclusion of alien adult females from following this dressing manner, they are still prohibited from wearing short frocks as a sign of respect. Foreigner adult females who wish to work in the country must register themselves as working adults at the Labor department.

The employer is required to send a letter to the Ministry of Civil Service and Housing Affairs seeking permission to hire the worker. Once approved by the Ministry, the worker needs to bring several documents including a copy of the employment contract, a letter from the family patron granting permission to work, original academic qualifications along with photocopies, two photos, original passports and IDs for both the worker and her family patron.

A considerable number of foreign individuals constitute a significant part of Qatar's workforce. However, a notable proportion of female foreign workers in Qatar encounter different types of discrimination, leading to a lack of security. They often find themselves limited to poorly paid domestic positions and have been deprived of their rights as citizens. This discrimination is evident both in their role as employees and as women. Those who come to Qatar under personal sponsorship, such as spouses, are obliged to pay an annual fee for a work permit from the Department of Labor since January 1st, 2008. Regrettably, there is no legal protection or entitlements offered to foreign women employed in Qatar. Consequently, numerous employers and companies opt for evading formal procedures and contracts by instead employing women on an informal basis.

They understand each other through spoken words.

Racism

Racism exists in Qatar, especially towards the workforce from India, Pakistan, Sri Lanka, Bangladesh, and Nepal. These people face discrimination in the form of job opportunities compared to Qataris. Racism can take the form of emotional or physical abuse, including sexual abuse. People from the US or Europe do not usually experience racism in Qatar. (Source: Qatar living.com 2009)

Scheme for Social Issues

Social Responsibility

The topic of corporate social responsibility in international business has sparked debates about the benefits and harm caused by their operations worldwide, particularly in less developed countries. The issue of social responsibility continues to be challenging in addressing poverty and lack of equal opportunities globally. (Source: Helen Deresky, 2008)

The attempt made by International Business comprises of several guidelines and requirements, including the prohibition of forced labor, maltreatment, and favoritism. Companies are also mandated to provide a safe and healthy environment for their workers and pay at least the prevailing local minimum wage (Helen Deresky, 2008).
Furthermore, international businesses are expected to support the protection of universal human rights and not be complicit in any human rights abuses (Helen Deresky, 2008). They must ensure that human rights practices are adhered to within the workplace and condemn violations in the broader community. This will foster an environment encouraging dialogue between workers and managers for more efficient problem-solving (Helen Deresky, 2008).

According to Helen Deresky (2008), the text criticizes prejudiced practices as they hinder a company's access to workers and promote social division. It highlights that many organizations have established their own codes of behavior based on international standards, while some have collaborated with global partners to establish standards for improving workers' quality of life worldwide. To address human rights issues in Qatar, International Business should adhere to the international code of behavior. These proposed global standards would be monitored by external organizations to ensure compliance with criteria such as prohibiting child or forced labor, providing a safe working environment, respecting workers' right to unionize, limiting work weeks to 48

hours, and ensuring sufficient wages for basic needs. Additionally, it is recommended that international businesses consult with Qatar's governmental authorities and national employers' and workers' organizations to align their practices with human rights standards in Qatar. The text concludes by stating that International Business faces challenges in resolving the current human rights issue.

Despite efforts to minimize human rights issues, minority workers remain dissatisfied and resistant to following regulations and ordinances due to cultural differences in each state. International Business seeks to reduce human rights problems, but not completely eliminate them. The most commonly used approach to minimizing these issues is the application of ethical theories in business practices, with utilitarianism being the most preferred and popular method (WordiQ.com, neodymium).

Utilitarianism is the belief that the moral value of an action is determined solely by its usefulness in maximizing utility or minimizing disutility (utility can be defined as pleasure, preference satisfaction, knowledge or other things) as summed among all beings (WordiQ.com, nd). It is therefore a form of consequentialism, meaning that the moral value of an action is determined by its outcome (WordiQ.com, nd). It can also be explained by the greatest happiness or greatest bliss principle (WordiQ.com, nd). Utility has been defined by various thinkers as happiness or pleasure, although preference utilitarians define it as the satisfaction of preferences (WordiQ.com, nd). It may be described as a life philosophy, with happiness or pleasure being of utmost importance (WordiQ.com, nd). Therefore, in order to maximize the greater happiness in Qatar, international companies can employ utilitarianism practices as their strategy.

To exemplify, the mistreatment of female workers is notorious in the Qatar civilization, and it is advisable for domestic

businesses to refrain from sending female staff to manage operations in Qatar. This action will significantly enhance happiness and diminish human rights issues.

Economic problems

Corruption

Corruption remains a problem, especially at higher levels, as well as the excessive involvement of the government in the economy, particularly in the energy sector. However, recent efforts by the amir have simplified decision-making and reduced overlapping authority among policymakers, specifically in the energy sector. These changes aim to attract foreign investment (Countries at the Crossroads 2009). The record on corruption and transparency in Qatar presents a mix of outcomes.

Junior-grade corA­ruption is not prevalent. State employees are well paid; in addition, many provincial employees are expatriates reluctant to risk job loss and exile for improper financial gains. The government is generally free from excessive bureaucratic regulation, recruitment requirements, and other controls that would increase opportunities for corruption. However, the government is also free from bureaucratic regulations and requirements that might prevent corruption. Recent reforms streamlining bureaucracy and reducing overlapping authority have improved the situation.

According to Transparency International (2009), Qatar has made significant progress in fighting corruption. The country's rank has improved by 17 positions, placing it at 22nd out of 133 nations on the organization's index. While instances of low-level corruption are rare in Qatar, there appears to be widespread corruption among those in power. In 1995, when the previous amir was removed from office, he refused to return state funds ranging from $3 billion to $8 billion that had been invested abroad, claiming they were his personal belongings. Eventually, the matter was resolved outside of the legal system and a majority of the funds were returned.

The new fundamental law does not

provide clarification on the matter. According to Article 17, the Emir's financial remuneration, gifts, and assistance will be determined annually by his decision. Gaining access to the Qatari market or important connections typically requires establishing relationships with influential brokers who are often members of the ruling family. These brokers receive substantial commissions for facilitating introductions (Countries at the Crossroads 2009). At the highest level, effective procedures or safeguards to prevent conflicts of interest are lacking, and officials who are also influential members of the ruling family have no obligation to separate their personal interests from public office. Article 128 of the constitution states that ministers should not use their official positions for personal gain or for those they have special relations with. However, previous cases indicate that corruption has not been deterred despite similar language being used.

Investigations were launched in England against Sheikh Hamad bin Jassim, Qatar's foreign minister, for allegedly accepting substantial kickbacks in violation of British money-laundering laws. Nevertheless, the case reached a resolution without proceeding to court. This incident underscores the clear lack of a strong system to encourage integrity and combat corruption among government officials. Additionally, the general public and media face difficulties in accessing and verifying asset disclosures made by these officials.

Due to the authorities relying on the sale of oil and gas for revenue instead of taxes, there is a lack of effective internal review systems to ensure accountability in revenue collection. There is no independent auditing body separate from the executive branch. The amir seems unwilling or unable to control the powerful tribal sheik. Many ministries are essentially controlled by the tribal sheik, with its ministers not being

limited by either the law or the emir. Allegations of corruption are not widely reported in the media, and there are no effective independent auditing bodies to investigate such matters. The state lacks adequate mechanisms for corruption victims to seek justice. However, higher education is protected from pervasive corruption and graft.

According to Countries at the Crossroads 2009, bribes are not required for admission or good grades. However, due to fear of job loss and exile, faculty members often hesitate to give poor grades to Qatari subjects, especially those from influential families. Since taking power in 1995, the amir has made efforts towards economic liberalization to attract foreign investment. Some privatization has occurred, including the partial sell-off of telecommunications, power, and water utilities. Furthermore, foreign investors no longer need local partners and can have full ownership in certain projects. Despite this progress, the economy still heavily depends on state-owned oil and natural gas.

( Countries at the hamlets 2009 )

Scheme for corruptness

Personal Morality and Corporate Ethical motives

It is argued that individuals with strong personal morals are likely to resist corrupt demands. However, personal ethics may be insufficient when faced with external influences, especially when profit and principles are in conflict. Additionally, certain personal qualities that are admired in private life can hinder efforts to combat corruption within organizations. ( Greenberger, Miceli, and Cohen, 1987 ) Experimental research suggests that many employees have strong moral norms but fail to apply them in their behavior.

The prioritization of house profitability outweighs their moral ethics, as evidenced by a pioneering study

in business ethics that surveyed directors on their responses to ethical dilemmas. The study found that 58% of the interviewed directors would bribe a foreign official in order to secure a business contract, as this action would serve the company's interests.

According to a survey conducted by the CMI in 2007, it was revealed that ethics ranked second in terms of importance compared to company goals. Additionally, personal values often have a significant impact on the decisions made by managers. A study conducted by Cooper and Frank in 1992 found that personal values and standards were the primary guiding factors when individuals encountered ethical dilemmas. Another research report indicated that managers with varying values can predict differences in their behavior.

The study categorized participants as having "ethical" or "economic" values. The findings revealed that individuals identified as "ethical" acted ethically in morally ambiguous situations, while those with primarily economic values based their decisions on the impact to the bottom line. It was noted that behavior is often dependent on the specific situation, and moral behavior is less likely if it results in direct costs for the manager (Barnett and Karson, 1987; Hoffman et al.).

According to Jones (1998), human beings may have different reactions towards moral issues, which can be consistently related to the characteristics of the issue itself. Jones also introduced the term "moral strength" to describe this ethical difference, suggesting that it significantly affects ethical decision making, including corruption (Jones, 1991). Moreover, it is not enough to hire individuals who possess strong moral ethics. In order for organizations to avoid engaging in unethical or illegal actions, it is crucial for the owners and top managers to

clearly communicate their stance instead of relying solely on their employees' moral values.

When faced with the choice between profitability and morality, some lower-level directors will prioritize profitability unless they receive clear signals from proprietors and top directors. On the other hand, others will prioritize personal relationships over profitability and business ethics. This highlights the crucial role played by leaders (proprietors and top directors) in serving as role models for their lower-level directors or employees. Employees are not solely guided by their personal values; they are also influenced by other members of the organization, including top directors, supervisors, coworkers, and fellow employees. Therefore, employees rely on their leader to communicate policies and practices regarding ethical behavior.

"Actions carry more weight than words," meaning that the behavior of leaders has a strong influence on their subsidiaries. It is essential for leaders to maintain regular communication with their subsidiaries regarding ethical policies and perspectives. They should always support their employees in recognizing and resolving ethical issues and try to convince them that honest reporting is part of their job. For example, a study found that business students were more likely to report their friends cheating after being told it was their responsibility as members of an educational institution (Trevino and Victor, 1992). This discussion highlights the significance of corporate ethics within a multinational company.

A house should have knowledge about corporate ethics and how business ethics individuals handle conflicts between personal morality and their jobs. Corporate ethics refers to the set of rules and policies implemented by corporations, mainly to regulate the behavior of their employees. It is an effective strategy for addressing problems involving illegal actions, particularly issues of

corruption. Some argue that compliance with the law should be the foundation, while others believe that ethics codes should establish even stricter standards for interactions with other members of the company, as well as with clients and suppliers. Generally, corporate ethics can be divided into three elements.

The first component involves establishing a code of ethics. While codes of ethics have been known for a long time, it is only recently that they have been incorporated into corporate practice. These codes contain various provisions, including rules regarding conflicts of interest, the use of company assets, the confidentiality of information, limitations on the use of sensitive investment information, and restrictions on giving and receiving gifts. ( U4, ND ) The second component is to implement strategies to promote codes of ethics through the use of training and educational programs.

Some houses go beyond their boundaries to demonstrate other houses and inform key providers about how such regulations apply (U4, ND). In addition, they develop a system to ensure compliance, including various methods for reporting illegal instances to panels of peers for review and resolution (U4, ND).

Whistle-blowing

In addition to corporate ethics, whistle-blowing regulations are another strategy used to address corruption issues. Recent international professional research indicates that whistle-blowing, along with other tools such as personnel management and internal and external controls, is an effective tool for detecting fraudulent behavior (e.g. corruption) within a company.

A survey conducted by an international accounting firm revealed that a whistleblower system implemented by companies was responsible for exposing 25% of fraud incidents in the surveyed businesses (International Chamber of Commerce, ND). Another example that demonstrates the effectiveness of whistleblowing mechanisms in combating corruption

and detecting fraud within organizations involves a large publicly traded healthcare company in the United States. The case highlights how the utilization of a whistleblower helpline played a crucial role in combating corruption within the organization (Jose A. T. & Chris M.).

, ND ) However, the concept of whistleblowing refers to a voluntary procedure within an organization that enables employees to expose instances of error, fraud, corruption, or waste which could result in a violation of the law or the company's internal regulations, as well as significant harm to the company's operations and responsibilities. (Iccwbo, 2010) By implementing a whistleblowing policy, the organization ensures that employees feel comfortable reporting concerns without fearing any negative consequences. The company must protect them from any form of harassment or discriminatory actions, such as termination of their employment, in order to address these concerns before any illegal activities occur. (Iccwbo, 2010) Delayed reporting could have serious repercussions for the company, including damage to its reputation and potential legal consequences. Hence, whistleblowing plays a crucial role in controlling issues of corruption.

(Iccwbo, 2010)

Political issues

Torahs

Qatar operates under an emirate-type government and has a legal system that combines Islamic and civil law codes. This is a discretionary legal system controlled by the Arab Emirates. While civil codes are being implemented, Islamic law dominates family and personal matters. Sharia or Islamic law is applied to aspects of family law, inheritance, and certain criminal acts. Qatar has not accepted the jurisdiction of the International Court of Justice. (U.S.

The Department of province in 2010 suggests that the bench demonstrates a certain level of independence, even though the delivery of justice can be slow and the

judiciary can be harsh. However, there are no effective safeguards in place to prevent the government from using its support for the bench as a means of control and political pressure. Additionally, according to Countries at the hamlets in 2009, there are individuals who are exempt from following the law, particularly members of the governing family, especially those who hold high positions such as cabinet members or advisors to the amir. These individuals are often not held accountable for the abuse of their power or any other misconduct.

Scheme for Political Issues

Political hazard insurance

Political hazard insurance can be obtained by concerns of any size to protect against various political hazards, including expropriation of assets. In Qatar, this insurance safeguards investors from arrogation, expropriation, nationalisation, and actions by the government that would deprive them of their rights of ownership or control of assets. It also covers forced forsaking, selective favoritism, and business interruptions caused by the government. Additionally, political hazard insurance provides protection against non-payment or arbitrary non-honoring of contracts, both before and after the international shipment of goods or performance of services. It is designed to prevent defaults on autonomous government payment warrants.

Joint Ventures

Joint ventures refer to a typical arrangement where one company collaborates with another to establish a long-term business relationship and share capabilities and resources, including distribution channels, technology, or finance (Helen Deresky, 2008). The concept of joint ventures is crucial for risk mitigation (Helen Deresky, 2008). Engaging in joint ventures with Qatar residents, especially those affiliated with labor unions or the government, will directly reduce political risk. Additionally, involving third parties as business partners will also help minimize political risk.

Involved spouses from different

states, Qatar's authorities may be hesitant to intervene in the concern because it may offend other states' authorities (Helen Deresky, 2008).

Localization

Each state and region has its own cultural identity. By employing local staff and integrating into local social life, a company can better respect local customs and practices (Helen Deresky, 2008). This involves changing the company's name in Qatar and adapting management style to suit local preferences. It is essentially transforming the business from a foreign entity to a national one in order to avoid interference from the local government (Helen Deresky, 2008).

International companies may choose to hire advisers who are familiar with the specific state or region in order to achieve localization. These advisers can monitor import trends, predict political changes, and assess the political environment and conditions (Helen Deresky, 2008). Monitoring local media, contacting other businesses with recent experience in the host country, and conducting on-site visits are some ways through which they gather information (Helen Deresky, 2008). By relying on evaluation results, international companies can minimize risks before making any decisions.

Besides that, localisation can be achieved by developing internal staff and in-house capabilities (Helen Deresky, 2008). This includes sending the staff to Qatar to supervise political activities and the staff will acquire experience from it and improve from the error.

References:

1. Human development studies 2009. Qatar, online, date accessed 8th October 2010. Available from:
2. http://hdrstats.undp.org/en/countries/country_fact_sheets/cty_fs_QAT.html
3. U.S. Department of State 2010. Qatar, online, date accessed 8th October 2010. 27th. Available from: http://www.state.gov/g/drl/rls/irf/2007/90219.htm
4. U.S. Department of State 2010.

Qatar state specific information, online, day of the month entries 8th October 2010. Available from: hypertext transfer protocol: //travel.state.gov/travel/cis_pa_tw/cis/cis_1003.html # kids

Cardinal intelligence

bureau 2009. Qatar, online, day of the month entries 23rd October 2010. Available from: hypertext transfer protocol: //www.cia.gov/library/publications/the-world-factbook/geos/qa.html

Foreign and commonwealth office 2010. Qatar, online, day of the month entries 23rd Oct 2010. Available from: hypertext transfer protocol: //www.fco.gov.uk/en/travel-and-living-abroad/travel-advice-by-country/country-profile/middle-east-north-africa/qatar?profile=economy

Countries at the hamlets 2009.

Country profile of Qatar, online, day of the month entrees 23rd Oct 2010. Available from:

• Transparency International 2009. Subway and international rail on the manner forA Qatar, online, day of the month entrees 31st Oct 2010. Available from:
• Qatar living.com 2009.

Racism in Qatar, online, day of the month entries 26th Oct 2010. Available from: hypertext transfer protocol: //www.qatarliving.com/node/269936

The text is a citation for an online article about "Whistleblowing." It provides the date accessed and the URL of the article. The citation also lists the authors as Jose A.T and Chris M.The source "Internal coverage and whistle-blowing" can be accessed online on October 27th, 2010 from the following link:

D.B. Greenberger, M.P. Miceli, and D. have also contributed to this source.

J. Cohen. 1987. "Oppositions and Group Norms: The Reciprocal Influence of Whistle-blowers and Colleagues," Journal of Business Ethics, Vol.

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page numbers, online availability, and the date accessed. It also provides a hyperlink to view the article in PDF format.