Intercultural Management E-Book

Herman Blom

• Herausgeber: Books on Demand
• Kategorie: Fachliteratur
• Serie: MBA Essentials
• Sprache: Englisch

Seitenzahl: 217

Veröffentlichungsjahr: 2021

Beschreibung

The book contains fundamentals of international corporate policy, communication and cultural concepts as well as an overview on the central functions of international HR Management, Leadership and Managing Diversity. On the one hand, it represents the essential framework conditions and instruments of international corporate management as well as for managers in their responsibility managing departments or project teams with intercultural staff or stakeholders or being as an expat working abroad. In this way, a company, team or a manager can also gain intercultural experience of other diverse related differences as usable diversity potential. The book is based on the 3rd edition of the German-language title of the same name by the Dutch-German team of authors with decades of experience in many countries in corporate projects, management training courses and study programs. The target group are primarily companies and managers, management training courses and study programs such as an MBA, General Management, Entrepreneurship or Project Management.

Leseprobe

Blom/Meier

Intercultural Management

Intercultural Communication

International HR Management & Leadership

Managing Diversity

Edition Management Essentials

Vol. 1

Business Management (2020)

Vol. 2

HR Management and Leadership (2021)

Vol. 3

Entrepreneurship (in prep.)

Vol. 4

Social Business (in prep.)

Vol. 5

Intercultural Management (2021)

Vol. 6

Intercultural Project Management (in prep.)

Preface

The book contains fundamentals of international corporate policy, communication and cultural concepts as well as an overview on the central functions of international HR Management, Leadership and Managing Diversity.

On the one hand, it represents the essential framework conditions and instruments of international corporate management as well as for managers in their responsibility managing departments or project teams with intercultural staff or stakeholders or being as an expat working abroad. In this way, a company, team or a manager can also gain intercultural experience of other diverse related differences as usable diversity potential.

The book is based on the 3rd edition of the German-language title of the same name by the Dutch-German team of authors with decades of experience in many countries in corporate projects, management training courses and study programs. The target group are primarily companies and managers, management training courses and study programs such as an MBA, General Management, Entrepreneurship or Project Management.

Bonn, Leeuwarden, September 2021

Herman Blom NHL Stenden Hogeschool

Harald Meier Hochschule Bonn-Rhein-Sieg

All people are the same. It's only their habits that are so different.

Confucius (551–479 BC)

Brief Contents

Contents

1. Intercultural Business and Management

1.1 Global Business and Megatrends

1.2 International Companies

1.3 Intercultural Management Concepts

2. Cultures and Communication

2.1 Culture and Cultural Studies

2.2 Intercultural Communication

3. International HR Management

3.1 International HR Management and Organisation

3.2 Intercultural Recruitment and Onboarding

4. International Expat Management

4.1 International Secondments

4.2 Intercultural Training and Management Development

5. Managing Intercultural Teams

5.1 Intercultural Leadership

5.2 Intercultural Teamwork

6. Managing Diversity

6.1 From Intercultural HRM to Managing Diversity

6.2 Intercultural Organisational Development

6.3 Diversity Approaches in HRM and Leadership

Contents

Preface

Brief Contents

Figures

Abbreviations

1. Intercultural Business and Management

1.1 Global Business and Megatrends

1.2 International Companies

1.2.1 Globalisation of Companies

1.2.2 Levels of Globalisation

1.2.3 International Corporate Organisation

1.3 Intercultural Management Strategies

1.3.1 Internationalisation in Decision-making Bodies

1.3.2 Intercultural Management Strategies

2. Cultures and Communication

2.1 Culture and Cultural Studies

2.1.1 Culture

2.1.2

The classic

: Cultural classifications (Hall)

2.1.3 The current WVS Study

2.1.4 Critical Reflection on Cultural Studies

2.2 Intercultural Communication

2.2.1 Self-assessment: Intercultural Communication

2.2.2 Communication process

2.2.3 Levels in Communication

2.2.4 Intercultural Negotiation und Conflict Management

3. International HR Management

3.1 International HR Management and Organisation

3.1.1 International HR Management Strategies

3.1.2 Organisation in International HR Management

3.1.3 Labour Law and International Labour Organisations

3.2 Intercultural Recruitment and Onboarding

3.2.1 International Recruitment Policy

3.2.2 Intercultural Requirements

3.2.3 International Recruiting

3.2.4 Intercultural Onboarding

4. International Expat Management

4.1 International Secondments

4.1.1 Secondment Strategies

4.1.2 Financial Compensation

4.1.3 Expat Preparation and Cultural Shock

4.1.4 Cross-cultural Shock and Re-integration

4.2 Intercultural Training and Management Development

4.2.1 Intercultural Training

4.2.2 International Management Development

5. Managing Intercultural Teams

5.1 Intercultural Leadership

5.1.1 Leadership Tasks and Instruments

5.1.2 Managerial Style in intercultural context

5.2 Intercultural Teamwork

5.2.1 Intercultural Work

5.2.2 Intercultural Team Development

5.2.3 Intercultural Project Management

6. Managing Diversity

6.1 From Intercultural HRM to

Managing Diversity

6.1.1 Development of Intercultural HR Management

6.1.2

Managing Diversity

as a Competitive Advantage

6.1.3 Approaches to Managing Diversity

6.1.4 The

Glass Ceiling

and Positive Discrimination

6.2 Intercultural Organisational Development

6.2.1 Types of Intercultural Organisation

6.2.2 Diversity Management as Organisational Development

6.3 Diversity Approaches in HRM and Leadership

6.3.1 HR Management and Managing Diversity

6.3.2 Leadership and Managing Diversity

Bibliography

Index

Notes

Figures

Fig. 1.1: Development of the German Age Structure

Fig. 1.2: International Demographic structures

Fig. 1.3: Global Workforce of large German Companies

Fig. 1.4: International Corporate Profile

Fig. 1.5: Global Market Entry and Processing Strategies

Fig. 1.6: Organisational Concept of international active Companies

Fig. 1.7: Export Department

Fig. 1.8: International Division

Fig. 1.9: Integrated Functional Organisation

Fig. 1.10: International Matrix Organisation

Fig. 1.11: Multi-dimensional Organisation

Fig. 1.12: Strategic Alliances

Fig. 1.13: EPG-Model

Fig. 2.1: The Cultural Onion

Fig. 2.2: High-context vs. Low-context Communication style

Fig. 2.3: Country characteristics

Fig. 2.4: Cultural map – WVS study

Fig. 2.5: Communication Process

Fig. 2.6: Relative overall influence of a message

Fig. 3.1: HR Management and Cultural Strategy concepts

Fig. 3.2: HR Department

Fig. 3.3: The Bennet Scale

Fig. 4.1: Expat Cost calculation

Fig. 4.2: Cultural Adjustment process

Fig. 4.3: Hybrid Roles: dynamics of expert- and social skills

Fig. 4.4: Traditional Management Development

Fig. 5.1: Leadership Styles and Leadership Corridor

Fig. 5.2: Leadership Style tendencies in Countries

Fig. 5.3: Intercultural Diversity in teams

Fig. 5.4: Global Languages

Fig. 5.5: Team Development process

Fig. 5.6: Phases in Team Development

Fig. 5.7: Team Development Workshop

Fig. 5.8: Software Global Development Project

Fig. 5.9: Centralized/Decentralized international project structure

Fig. 6.1: Impact levels of Diversity Management

Fig. 6.2: Diversity view of the organisation on the employees

Fig. 6.3: Corporate advantages with Managing Diversity

Fig. 6.4: Intercultural Organisational types

Fig. 6.5: The 7-step Model of Intercultural Organisation

Abbreviations1

A.

Auflage

AG

Aktiengesellschaft

AGG

Allgemeines Gleichbehandlungsgesetz

approx.

approximately

BC

before Christ

BetrVG

Betriebsverfassungsgesetz

bn

billion (German:

Milliarde

)

BV

Besloten vennootschap met beperkte aansprakelikheid

cent.

Century

chap.

Chapter

Corp.

Corporation

CSR

Corporate Social Responsibility

C.V.

Curriculum Vitae

DAX

Deutscher Aktienindex

Dept.

Department

e-

electronic

Ed.

Editor, edition

e.g.

exempli gratia

(for example)

esp.

especially

est.

established

etc.

et cetera

(and so on)

EU

European Union

e.V.

eingetragerner Verein

(registered association)

Expat

Exptriate manager

FAQ

Frequently asked question

Fig.

Figure

F&I

Finance and Investment

GmbH

Gesellschaft mit beschränkter Haftung

GMT

Greenwich Mean Time (London

)

GNP

Gross national Product

hr / hrs

hour / hours

HR / HRM

Human Resources / HR Resources Management

Hrsg.

Herausgeber

ICT

Information and Communication Technology

i.e.

id est

(that is)

Impat

Impatriate manager

incl.

including

m

meter

MBA

Master of Business Administration

mill.

Million

M&A

mergers and acquisitions

NE

North East

NGO

Non Governmental Organisation

NL

the Netherlands

no.

number

NW

North West

OECD

Organisation for Economic Co-operation and Development

p. / pp.

page, pages

PLC

Public Limited Company

pub.

published by

QM

Quality Management

R&D

Research and Development

SCM

Supply Chain Management

SE

Societas Europaea

European Society / South East

SME

Small and Medium Enterprise

STEM

Science, Technology, Engineering, and Mathematics

UK

United Kingdom

UN

United Nations

US / USA

Unites States (of America)

USD

Us Dollar

vs.

versus

WW

World War

1 Italics: foreign language.

1. Intercultural Business and Management

1.1 Global Business and Megatrends

1.2 International Companies

1.2.1 Globalisation of Companies

1.2.2 Levels of Globalisation

1.2.3 International Corporate Organisation

1.3 Intercultural Management Concepts

1.3.1 Internationalisation in Decision-making Bodies

1.3.2 Intercultural Management Strategies

1.1 Global Business and Megatrends

Employees at all corporate levels and areas step-by-step are today confronted with intercultural influences in their function and at their workplace. And the company's workforce is changing step-by-step into a colourful diversity of people of different nationalities, gender, ethnicities, religions, skins, etc.

Development in International Tradein a nutshell

Globalisation was and is always discussed critically. International trade and investment are not really a new phenomenon. Trade, investment and labour migration have stretched across continents for thousands of years and are an integral part of cultural developments. Human beings and entire cultures cannot be restricted in their urge to move and develop in the long term and even by laws and walls of any kind.

First trade documents between Europe and the Orient are dated 4,000 BC. During the more than 100-year-lasting construction of the

Cheops pyramid

complex (Egypt), more than 100,000 porters (

meru

) were employed. Like stone blocks, these human resources were imported from Central Africa and shipped down the river Nile. Recordings from grave finds show carved in stone how work and accommodation, distribution of tools and violations was regulated between people of different ethnicities and languages.

Even BC until the 13th cent., the today known as

Silk Road

crosscontinental trade network over land and sea between Europe and Central Asia as far as China as the most important logistics network for e.g., import of spices, silk or porcelain and vice versa export of agricultural products, glass and precious metals. Among other things, security (escort), trade (exchange and trans-shipment points) and food/accommodation (e.g., known as

caravanserai

in today's Turkey) were organised.

Since

Columbus'

voyage at the end of the 15th cent. – originally, to research a safer and shorter sea route to India – an idea, which

Aristotle

had around 350 BC. European kingdoms have subjugated overseas cultures and created state enterprises to exploit these colonies. With the abandonment of colonial policy, private investments (e.g., the

British East-India Company

) with foreign offices gradually took over the promotion of natural resources, trade in products and financial transactions.

Today, around 25 countries control 80% of world trade and the majority takes place in the triad

North America–EU–SE Asia.

The role of the

Gulf States region

has been increasing rapidly for years. And all over the world there are numerous expanded and new international bridges, tunnels and pipelines, canals and rail networks, airports and seaports to cover the international trade.

Now, the same problems arise as hundreds and thousands of years ago due to intercultural misunderstandings and international piracy, national protectionism and political intervention (e.g., US boycott of companies involved in the Russian-German pipeline Nordstream). And there are even new technical problems: for a week the Suez Canal (12% of world trade) was blocked for almost a thousand ships by a transverse lying container ship, which led to massive production losses in Europe because missing technical components from Asia.

Beside big companies even most SMEs in industrial countries are today part of international value chains. At the same time, German companies are represented world-wide as investors and branches – and vice versa foreign companies here. In addition is a demographic development: the aging and declining native population in industrialised countries need foreign staff and constant immigration. The number of business start-ups, for example, in Germany, has been falling for many years (partly due to the very good labour market for skilled workers). But the number of entrepreneurs with a migration background is increasing so much that they are seen as a job engine2 (see example below).

International Workforce

Today, intercultural workforces belong to every industrial country and even to emerging countries, e.g.:

seasonal/permanent guest workers, cross-border commuters,

specialists as fitter, manager or development worker as expats,

or in international projects and virtual collaboration,

employees as migrants and their subsequent generation with a migration background.

Without the intercultural workforces' labour, knowledge, experiences as well as motivation, industrial companies, for example, would no longer be able to maintain their level of service and performance. Also, the product and market development as well as research within the framework of international value chains would not be nearly as successful. For example, migrants or their children are among the most successful founders in industrial societies worldwide.

ExampleInternational leading US brands founded by migrants

Migrant entrepreneurs in the US are twice more often as native-born to start a business, they’ve founded more than 50% of the high-tech companies in California. They are more likely earning an advanced degree and inventing something new or holding US patents. And these migrants are not only driving the New Economy, they help the urban revitalisation incl. creating hundreds of thousands of new jobs – they bring back the spirit of the American Dream. Migrants often have entrepreneurial skills by nature, e.g., they are risk takers and showing stress resistance, they have huge personal networks, and often they like self-employment because of their ethnic and cultural background – nowadays more than natives in our saturated societies. Migrant entrepreneurs are making a significant contribution to the economic growth and innovations, they are keeping the US companies and economy globally competitive, e.g., the 30 most successful US companies founded by migrants – Apple, AT&T, Budweiser, Colgate, Dow, DuPont, eBay, Garmin, Google, Intel, Kraft, Levi’s, LinkedIn, Netflix, PayPal, PepsiCo, Pfizer, P&G, Sun, Tesla, USS Steel, Yahoo, YouTube ... – nearly half of the Fortune 500 companies were founded by the first or second migrant generation, and only less than a third of the Mainstreet Business.3

As important as intercultural migration is for socio-cultural development in societies, international labour migration and labour exchange is also important for economic development today and in the future. In Germany, for example, there have been guest workers from South and SE-Europe since the 1960s and later ethnic re-settlers from Eastern Europe. Today there are more and more qualified migrants from all parts of the world in all areas and functions of research and development. Vice versa, many Germans work worldwide as expats, project managers and technicians as cross-border commuters (e.g., to Denmark, the Netherlands, Luxembourg, Switzerland) or virtually in internationally networked teams (e.g., R&D).

Same applies to all industrial countries, e.g., migrants from Suriname in the Netherlands, from North Africa in Spain and France, Central Americans in the US, Indians and Pakistanis in the UK etc. – vice versa medical staff from West- and South Europe in Scandinavia, EU citizens in the international financial hub London, ICT specialists in US Silicon Valley etc. – not only a better standard of living or income, a relatively safe society or career opportunities play a role, but also ethnic relationships (e.g., due to previous colonial relationships) or simply travel and visa conditions.

ExampleFrom historic migration policy to current tech hubs

After the Thirty Years' War, government-ordered migration began in mid-17th cent. in order to increase the number of tax-paying subjects (as the so-called German Peupelierung). Agents recruited across Europe immigrants with incentives such as tax privileges, free settlement land, travel expenses. For example, around half a mill. French Huguenots moved to what is today the Berlin-Brandenburg region. Or new cities were founded: for example, Mannheim, which quickly had 25,000 inhabitants with a multicultural background and so grew scientifically, culturally and economically.

While California's Silicon Valley was a synonym for ICT in recent decades, it is slowly beginning to change and est. itself in other parts of the world, incl. EU. For example, the Netherlands are considered as the European Distribution Centre and Germany as a World Export Champion, or the Dutch Amsterdam region, German Berlin-Brandenburg or the axis Mannheim-Stuttgart-Munich as flourishing Tech & ICT hubs, today seen as one of the world’s most innovative industrial and scientific region.4

More and more employees have to speak foreign languages (at least basic knowledge of English as lingua franca). They work in interculturally mixed teams, having a supervisor from abroad or with a migrant background, or lead themselves an interculturally mixed team or project. Many employees are regularly on business trips abroad, on projects for several month or international secondments for years – in person or virtually. And more and more employees are already working in international value chains and are in contact with suppliers and customers from other cultures.

Current and future Megatrends

Megatrends flow into all private and business areas of life and thus set important framework conditions for corporate policy and strategies in the entire value creation process. Due to the international value creation process, megatrends are transnational or global and usually last for several decades. Typical megatrends in the western industrialised countries are currently e.g., the strong change in demography and social values, technological developments, globalisation and climate change, a new fundamentalism and organised crime.

The following example shows an overview of typical developments triggered by megatrends on the markets (procurement, sales, labour market) or in competition. Megatrends are medium and long-term changes over one or more product life cycles with a fundamental, often decades-long change for companies.

ExampleMegatrends and effects on companies

Demography and Population:

decreasing total population due lower birth rates and longer life expectancy, structural change (more older people and migrant cultures) …

e.g., adapt products/services (specific related to cultures, age), fewer young people, more 50+ on the job market and as consumers, more employees with a migrant background.

Changing Social Values:

consumer capital accumulation in private households (Singles, DINKs, DCCs),

5

sustainability (LOHAS, LOVOS),

6

CSR, social security, fun-orientation and risk avoidance (e.g., Generation Y),

7

flexible shoppingand worktime, social-media mastered life ...

e.g., more customer-oriented market segmentation, more quality, sustainable products/production, social media market channels, more women as managers, work-lifebalance (flexible worktime, home office ...).

Technology:

digitalised world (cloud computing, new work systems, 3D-printing), virtualisation (e-commerce, social media and e-government), renewable energy, genetic- and bio-technology ...

e.g., new work and global supply chain, new ICT solutions (e.g., in purchase, marketing and sales, service), flexible work organisation (e.g., group- and click work), new work content (less production, more controlling) and new location (e.g., home office, outsourcing).

Globalisation:

more free trade and protectionism same time, adapting international standards, global SCM, more global markets and competition, permanent migration ...

culturally diverse products and services, global procurement and sales, intercultural workforce, international accounting, investors and capital markets and standards, new market barriers, purchasing and pricing policy.

Climate Change:

environmental disasters in previous safe areas, rising global sea level and temperature, internal, crossnational and global migration, declining bio-diversity, changes in agriculture, tourism, regional/spatial planning ...

e.g., industry-specific changes (e.g., food industry, transport and storage, textile industry, tourism), migrants as new workforce, investments in emission avoidance (e.g., carbon footprint).

Fundamentalism:

nationalism (for example,

America first

) and movements for independence (like

Brexit, Catalonia

or

Scotland

), religious and political fundamentalism, terrorism, white-collar crime and corruption ...

e.g., security for expat and family, combating racism in the workplace, re-evaluate foreign investments and provision (risk management), compliance regulations.

These trends (which partially influence each other) affect the majority of companies in industrialised countries – and even emerging and developing countries as well with partly other outcomes, for example, older or younger demography – regardless of their size/industry. In addition, there are relatively new trends that so far have only affected a few countries, industries or companies (Urbanisation, Individualisation, New Work, Mobility, Migration, and Gender equality). For example, Migration (national, cross-national and global) has now become a global megatrend that goes beyond demographic aspects.

ExampleDemography and labour market Germany

Headlines like Nobody can help the Germans ... The number of households with single- and double-income has increased rapidly ... Biggest birth strike in history can be found in the media almost every day. They are based on the phenomenon that one of the world’s richest countries has a steadily declining population. This means a strong shift in the age structure of society with fewer and fewer young and more and more older people (fig. 1.1).

The cuts in statistics (1983) explained e.g., with WW I + II, the global economic crisis, the invention of the birth control pill, and more recently through changes in social values towards more Singles, DINKs and DCCs.

Fig. 1.1: Development of the German Age Structure8

ExampleBirth rates worldwide

Similar developments like in Germany apply to all industrialised countries world-wide. And the emerging economies with their industrial regions with a growing income-secure middle class are showing the same developments (see fig. 1.2), e.g., in some countries in Africa or SE Asia.

A stable demography in industrial countries requires an average of 2.1 children/women. Due the past low birth rates with corresponding now fewer women as well, initially increasing birth rates have a relatively smaller effect on demography. In order to stabilise the population, which has been reduced for years, the next two decades will require 3.6 children/woman. And likewise, the now born only come after approx. 20 years into the job market.

The common misconception, migrants would have many children, is wrong. On the one hand, migrants to Germany are pre-dominantly men, and on the other hand, their birth rates will slowly adjust to the society's average (demonstrably in the next generation).

For a company, demography is not only evident among the external labour market and internal workforce structure, it is even among customer segments (e.g., fewer younger and more older ones, or with a migrant background).

Fig. 1.2: International Demographic Structures9

1.2 International Companies

1.2.1 Globalisation of Companies

Products and thus companies are mostly unthinkable today without international value chains and markets. Large trading companies (e.g., German Aldi, Lidl, or Dutch Ahold, Delhaize) work almost exclusively with suppliers who can deliver internationally, despite the sensible trend towards regional products in the food sector. Same applies to industrial companies: for example, as a rule, more than 50% car components are manufactured abroad (e.g., Volkswagen), and they are developed in intercultural cooperation for global markets in such a way that they can be offered worldwide with as few/ simple local adjustments as possible (so-called platform strategy).

With globally the same (or slightly locally adapted products), more foreign markets and direct investments, the number of subsidiaries and branches usually increases, and so does the cultural diversity of employees. The large German companies and SMEs as so-called hidden champions make their largest turnover abroad (e.g., Adidas, Bayer, Fresenius, Linde, SAP, Siemens or Volkswagen between 60% and more than 90%, as of 2019) and employ more people abroad than in Germany. In addition, there are employees who are temporarily as expats abroad) – in other European countries alone, there are regularly around 100,000 specialists and managers. And most of the companies in the German leading share index DAX such as Adidas, Linde, Deutsche Post/DHL, RWE, E.ON and Siemens belong to a majority of foreign shareholders (fig. 1.3 + 1.4).

For almost a decade now, many companies also operate under international legal forms such as the Societas Europaea (EU-standard comparable to an AG (Germany), BV (the Netherlands) or PLC (UK) such as Allianz SE, BASF SE, Porsche SE, Puma SE, Zalando SE).

Employees

(as of 2014)

Company

global

Germany

Germany

abroad

Adidas

51,777

5.299

10%

90%

BMW

105,876

74,571

70%

30%

Bosch

271,000

112.000

41%

59%

Commerzbank

59,761

37,720

63%

37%

Deutsche Bahn

296,172

193,106

65%

35%

Deutsche Telekom

240,000

117.500

49%

51%

E.ON

63,987

25,254

39%

61%

SAP

60,000

16,400

27%

73%

Siemens

367,000

118,000

32%

68%

Volkswagen

343,511

102,520

30%

70%

Fig. 1.3: Global Workforce of large German Companies (excerpt)10

Challenges for Companies

Regardless of social-cultural problems, it is often assumed in economies that international challenges can only be met with company growth. And that finally the first five to eight companies in an international industry can be truly successful on an international level in the long term. A quarter of a century ago, the reality was predicted that SMEs could only grow successfully internationally in market or product niches:11

International expansion enables more cost-effective production (international division of labour, faster and easier equity and often cheaper debt capital, higher profit opportunities).

International profitability of economies of scale arises through cost savings, as overlaps between parts of the company can be avoided.

Using international knowledge more economically and more efficient control of value creation.

ExampleRelevant developments in corporate management (Fresenius SE, excerpt)12

Environmental developments

Healthcare remains one of most important global economic sectors.

Above-average growth in the health sector over the past few years.

Significant growth drivers, especially in the emerging countries.

Extensive stability of the framework conditions relevant for the operating business.

Constantly increasing of healthcare costs in the OECD countries.

…

Company developments

Diversification in four business areas.

Spatial distribution of subsidiaries across 80 countries.

Main sales markets: North America (46%) and Europe (38%).

Leading market positions in the company's product groups.

Concentration on selected areas of the healthcare system, esp. the treatment of seriously and chronically ill people.

Geographical expansion of the business.

Selective small and medium-sized acquisitions.

…

Under the heading Better international communication leads to higher profits, the Economist Intelligence Unit (UK) states that it is normal for employees and companies to work with customers, colleagues, suppliers and partners in other countries. 77% of the managers surveyed see a further increase in the operational international presence of their companies, and 78% will set up even more international teams in the next three years. Every second manager sees cultural differences such as traditions or work rules as the greatest obstacle to productive international cooperation. And almost 90% are convinced that better international communication in the company also leads to higher profits, sales and market shares. Half see inadequate language skills as a lack, and around 40% see mistakes in the selection of employees for intercultural work. It is also wrong to believe that all people are the same because they can be easily reached practically anywhere in the world.13

Fig. 1.4: International Corporate Profile (Siemens)14

Multinational companies in public criticism

International companies emerged during colonial times in the 16th/ 17th cent. (see chap. 1.1) and multinational companies in the second half-19th cent.) they are seen as the origin of global value creation. Today, their turnovers often exceed the GNP of industrialised countries. This economic power (e.g., international relocation and tax liability) and thus also political power exceeds or steers that of governments and politicians. The corporate and esp. financial structures are often so complicated that state tax authorities can barely record the legally required fair share from the consolidated profit. The role in emerging and developing countries has also been heavily criticised since the 1970s under keywords such as exploitation of mineral resources and labour, bribery, and tax avoidance.