Globalization Hits Home

The globalization readings this week brought to mind my own experiences with this issue. My company makes materials used in making electronics. Greater than half of our business is in Asia.

We’re currently building a new plant in an Asian country. It’s a logical place to build a plant and given the magnitude of our business in Asia, it’s understandable for my company to want to build there. It’s interesting that we don’t expect our cost basis to reduce much; this country is a relatively expensive. It is simply a matter of being close to our customers; a fundamental business need.

In my two trips to this country, I’ve enjoyed the culture and the people. They are very hospitable and professional. Nevertheless, I can’t help but be disappointed about our move there. In the long term what do you think is going to happen to our US operations and jobs? The answer seems obvious.

What are the ethical responsibilities for companies to their workers when moving their operations from one location to another? How much is the company’s responsibility and how much the worker? I feel like I am making an investment in my future with this MBA program (partially funded by my employer), but what about workers for whom that isn’t possible? As a manger of people and also being involved in building this new plant, what are my responsibilities to people who report to me? How candid should I be verses the company’s position?

I feel fortunate to be employed at my company. It actually has been pretty candid about the new plant and the implications. I’ve mimicked this with my subordinates and would use this as an example in the future in a similar position. My company also provides an educational benefit and a very competitive salary and benefits. In the end, we can only provide options to people. It’s up to the them to act on the options.

As for companies with less noble intentions - that is a tough one. I do believe in free markets, and the freedom for companies to largely do business as the see fit. But you do have to be honest with people and provide them with the options in the first place (competitive salaries, benefits, honesty). There needs to be a balance.