WINNERS AND LOSERS OF GLOBALIZATION ─ MNC’S SOCIAL RESPONSIBILITY VS. GLOBAL HRM EFFICIENCY
Satu Lähteenmäki, Professor, Turku School of Economics
Maarit Viljanen, D.Sc., Turku School of Economics

Abstract
Global competition forces companies to enter into new markets for maintaining their market-shares and to disperse the production in different locations worldwide for improving their cost-efficiency. Subsequently companies face the need to consider whether it makes sense to integrate HRM/IR policies throughout the company or should HRM practices and terms of employment rather be tuned according to local labour market conditions. In this descriptive paper we aim at raising critical discussion on the meaning of ‘decency’ related to globalization of businesses. It bases on an ongoing research project that studies successfulness of Finnish companies’ IHRM policies related to their foreign direct investments (merger, acquisition or establishing a factory) in 1) highly developed labour markets), 2) transitional economies and 3) still developing labour markets (which are almost un-regulated). By comparing 4 recent Finnish FDI cases we will lighten up the contextual nature of socially responsible HRM and the need to recognize the magnitude of aspects and view points that affect the decision on FDI.
Keywords: social responsibility, SHRM, competitiveness, psychological contract, MNCs