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Globalisation, embracing opportunity, creating synergy

The CIB/APARG conference focused on the impact of globalisation on India and the challenges for business to compete on world markets and for government to formulate and implement policies conducive to economic growth and poverty reduction. There was a lively debate among Indian entrepreneurs, civil servants, journalists and economists with interesting contributions from such non-Indians as Olivier Giscard d’ Estaing, Cornelio Sommaruga and Bill Jordan. The discussions were not conclusive. Indeed, participants disagreed openly on the need to protect or liberalise agriculture in India, the importance of public investment and the roles of government, business and civil society for the achievement of development objectives. But the atmosphere at the conference was excellent and discussions probably helped to develop a common understanding of issues and a shared language in which to discuss them. A full report of the meeting will be posted on the CIB website.

After the conference, we also visited the Symbosis Institute for International Management in Pune as well as Forbes Marshall,a company making environmental measurement equipment for industry. These visits helped us understand the meaning of ethical business in a country like India. As opposed to other management schools in India, the Symbiosis Institute makes it a point to educate its students on value-based aspects of doing business (which actually helps rather than harms commercial objectives). Forbes Marshall leads the way in this regard in Pune. In co-operation with several other companies it supports a network of community centres helping the local population educate themselves and set up small businesses.

The Junior Round Table: working across cultures in a globalising world

In the beautiful environment of the Asia Plateau conference centre, we started our discussions at the highest level possible: a meeting right at the edge of the plateau that overlooks the centre and the village of Panchgani. The starting point for our discussions was that, in a globalising world, we are increasingly dependent on others who are unknown to us and live in distant and unknown places.

In modern economies, we are used to rely on supplies of parts by other companies, provision of services and, just as important, the fact that others will demand our services and products. Our mutual dependence is sometimes formalised in a contract, or rules of behaviour within a company, but in many cases we rely on informal understandings and trust.

In theory, mutual dependence between states, companies or people facilitates peace, understanding and congeniality. This is enlightened self-interest. Moreover, interaction through business fosters familiarity with others.

A globalising world brings some change. Our colleagues with whom we work day to day, may be in plants at the other end of the world, we may produce according to designs made in a different country, by someone who speaks another language and we expect supplies of half-products to arrive in time after crossing the Pacific or the Atlantic. And,

• because we only see emails from this far-away colleague, it may be much easier to fire him or her;
• because we impose procedures that are developed in America on workers in Europe or India, people may be very uncomfortable in their jobs, which creates tension and misunderstanding;
• we may upset others because we fail to respect the custom to exchange the usual chit-chat or compliments before we enter into business talk;
• when one of our Indian JRT members discovered a mistake in a drawing from an American client, he was asked to simply produce according to the design.

How do we overcome misunderstandings that emerge from cultural misunderstandings? Or, how do we straddle between fulfilling our business targets, having reliable and clear agreements on the one hand and respecting each other's habits and values on the other hand?

The simple and obligatory answer is that it all boils down to building trust and confidence. But that is easier said than done.

There are many courses on cultural sensitivity and they help but they are also technique rather than real understanding. One of the JRT members referred to the American company United Parcel Services. UPS rotates its managers between plants in different states in the US and between different countries. Rotation is simply an element in the development process for managers and an integral part of a wider package of policies to enhance co-operation among colleagues across the world.

Obviously, we discussed what the JRT and its members could do.

To begin with, we all set ourselves personal objectives for the next six months or so. We discussed these and committed to supporting each other in reaching those objectives.

Secondly, we as individuals can work in our organisations to enhance understanding of what it means to work with other cultures by showing understanding ourselves, discussing working procedures that create frictions and promoting sensible HR policies.

Towards Caux, 2003

In addition, we agreed to collect examples of good and bad practices relating to the paragraph in the Caux principles for business on "Employees." The objective is to exchange these examples through email and post them on the JRT discussion space on the CIB website. At our next meeting in Caux, we could compile a “best practice” guide regarding treatment of employees. Subsequently, the JRT would take on another one of the principles to make a guide on and gradually build a body of best practices for all the Caux principles.

Finally, we will keep the spirit of the JRT that has existed for 10 years now alive by exchanging our personal experiences and ambitions. Knowing that others make efforts to live up to maintaining our values in our work has helped JRT members in the past. It will help us and future members to realise our individual objectives.

Hein Bogaard, February 2003