Cross-border alliances are cooperative agreements between two or more firms from different national backgrounds, which are intended to benefit all partners (Dowling, Festing, & Engle Sr, 2013). With that being said, it is difficult to enforce one Code of Conduct across numerous countries. There are certain areas that should stay uniform regardless of the location, such as (Kundenmagazin, 2013):
• Conflicts of …show more content…
“Creating a system that operates effectively in multiple countries by exploiting local differences and interdependencies while sustaining global consistency” is normally a challenge and difficult to overcome (Dowling, Festing, & Engle Sr, 2013). Upholding and enforcing an area such as business relations can deem to be difficult due to the vast array of cultures in one multinational corporation. This may force some cultures to act against their beliefs or customs. Degussa appointed compliance officers to ensure the rules are respected, which may prove to be difficult (Kundenmagazin, 2013). If the officers are chosen in their home country, it may be challenging to disregard their customs in order to enforce Degussa’s codes. Monetary compensation is not uniform throughout the world; therefore, legislation may need to be involved when regulating wages (Dowling, Festing, & Engle Sr, 2013). That may interfere with the political involvement policy in the Code of Conduct. Degussa wanted unity and its employees to feel included as one organization, even though they are spread out over a multitude of countries. Business decisions are sometimes difficult to make and having one Code of Conduct will lessen the burden. Senior management must always take business practices, profits, and employees into consideration when creating policies, regulations, and procedures, so hopefully Degussa did just