Has your company been accused of unethical practices in the past 5-years? Will these accusations affect your strategy?
In this chapter, our group has a better understanding of unethical practices that may cause an issue for companies looking to expand their business.For example, a business must respect their employers human rights and practices. As Jollibee continue to succeed outside of the Phillippines, the company has been under fire for not taking their employees health and rights. In the Phillipines, Jollibee has laid off over hundreds of employee because of wrongful payroll and illegal contracting with local businesses. After employees were terminated, they started to protest and the results were Jollibee to pay for the miss wages and rehire those long-term employers.These accusations may not affect our teams strategy of expanding to Sydney, Australia because the labor codes are different and if more difficult to avoid. By following the labor codes in Australia, Jollibee will be able to increase business opportunity like in the United States. https://www.bulatlat.com/2018/06/29/jolibee-refuses-regularize-workers-lays-off-400/ https://www.manilatimes.net/2017/12/25/news/top-stories/jollibee-penalized-illegal-contracting/370553/
(The expansion abroad, to more advanced economies than the Philippines, will help the to change the corporate culture. Specially in this area of corruption.—professor)
Consider the corruption trends in your destination country, what are your company’s guidelines about corrupt practices?
According to textbooks, ethics, corporate social responsibility, and sustainability are intertwined issues facing countries, companies, and societies (124). Although Australia’s corruption index has fallen in recent years, but this is not a serious impact. And the Government of Australia has a strict code of conduct governing the business practices within as well as overseas and expects companies to implement ethical standards and integrity in their businesses. Either it’s a government sector or private, businesses are required to ensure that they work in compliance with Australian laws concerning foreign jurisdictions and trading. Corruption and bribery is a serious crime with the liability of business confiscation and imprisonment. Australia has a federal Legislation which is governed by FSANZ concerned with the maintenance of safety standards for food. The Australian Government has every right to suspended license over unethical business practices. If the business practices result in an outbreak of serious illness the consequences will be dire. The business practices in Australia are healthy and jubilee Fast-food business will be successful if the company operates in accordance with laws.
Our company’s guidelines:
• Ensuring that all food handlers are trained over food safety standards.
• To meet state, federal, and government legislation AIFS food training will be provided.
• The food authority certificate, NSW will be obtained.
• The nomination of a certified Food safety supervisor.
• Confirmation of the right training being delivered and employing the right supervisor for the Food industry sector.
• Planning refreshers training to ensure food safety is a top priority for staff.
(Good textual references and external research. The company could add guidelines of fair pay for fair work, overtime rules, vacation policies, etc）–Professor
Review your company’s sustainable goals. Decide what SCR strategy can best benefit your strategy for the destination country. Propose a “do Well while doing Good” strategy.
The target of opening Jollibee in Australia is seeking to let more Australians know there is a fast food restaurant that is very famous in the Philippines. We also want to see how Jollibee affects Australia by adding a new type of fast food to there. I strongly believe that Australians like different food from another country because I have seen some fast food restaurants that are being successful in Australia. For the strategy we make, we decide to add some new burgers that accord Australians’ taste. The new burger is equally juicy and addicting rises to the occasion. Introducing Jollibee’s new burger: Bacon Cheesy Yumburger, and its companion, crispy spice fries. For the promotion, we decided to post the news of opening Jollibee in Australia, Sydney by social media because social media has been making strong effects everywhere around the world. On social media, we also show that there is a new burger that is only available in the restaurant from Sydney. For “do Well while doing Good ” strategy, we planned to start sustainability initiatives in hopes of appealing to an environmentally conscious audience because fast food restaurants must spend a lot of paper bags. Therefore, we decide to recycle packaging so that we do not need to cut more trees every year. (The recycling initiative is relevant and challenging. Continue elaborating on this idea.—professor)
The top three cultural dimension differences between Australia and the Philippines are the power distance relationship, individualism factor, and level of indulgence. According to hofstede-insights.com, the greatest difference is the power distance score, with Australia scoring 94 while the Philippines score for power distance is 38. Power distance indicates the level of structured hierarchy in a society, and in the Philippines, there is less social mobility and the less distribution of power from institutions. Ways to mitigate the difference in power distance is for Jollibee to bring Filipino workers to Australia to experience a different society and less hierarchical country. In doing this, Filipinos may choose to enact social change back at home or instead move to a country with more social mobility.
The second cultural dimension difference is the individualism score, with Australia with a high score of 90, and the Philippines with a low score of 32. This shows that people in Australia are more likely to pursue what they want and prefer to support themselves. In the Philippines, the score is lower because it is a more collectivist society where the emphasis is building relationships with family or employees. A way to leverage this difference is that Australian people can learn a few things from Phillipino people and their collectivist culture and vice versa, and in Australians building extended relationships, there can be a healthy balance of individualism and collectivism. Filipinos that are used to a collectivist society may embrace individualism and integrate smoothly into more individualistic societies.
The third cultural dimension difference is the level of indulgence. Australia scores relatively high with a 71, while the Philippines has a score of 42. Australians have a greater tendency to have fun and consume things they want, indicating a greater level of prosperity and happiness. Due to the Philippines having a more strict hierarchical status and greater level of poverty, this is shown in the lower score of indulgence. There are many ways to adjust or mitigate these two societal differences, including Fillipinos that move to Australia may find more economic freedom, therefore causing their level of indulgence to go up. More radical changes include breaking the rigid hierarchy in the Philippines to allow more social mobility, but Jollibee only has so much ability to influence the people it serves, hires, and moves.
Conclusion/Recommendations: Based on your research findings, what changes would you recommend to your initially proposed strategy?
Based on our research findings we haven’t changed our initial stance by much. We initially proposed Jollibee would be a success in Australia, and so far the bulk of our research has corroborated with our proposition. We see Jollibee has had a few unethical practices in the past, but once we open up in Australia those unethical standards will be left in the past since Australian labor codes are stricter and to maintain business practices they must be upheld. The same goes with corruption. As mentioned earlier Australia’s corruption index has fallen in the past few years and thanks to FSANZ all businesses are less likely to be corrupted and we are no different. WE agree the Philippines and Australia are very different but with most of the key differences (indulgence, individualism, power distance) brings new opportunities for expanded business that we believe Jollibee will take full advantage of and prosper. (Your target market has a very fluid and adjustable culture. Exploring the indulgence factor, together with family closeness is a good option.—professor)