Your Company Is Currently Engaged In Business Activities Bot

Your Company Is Currently Engaged In Business Activities Both National

Your company is currently engaged in business activities both nationally and internationally. A country you are operating in is experiencing riots, strikes by its citizens, unconfirmed violence against its people by the government, and other atrocities. Your physical facilities and products are insured and protected, and your company is attempting to ensure the safety and well-being of your employees. There is talk that possible sanctions may be enforced against the government of this country to halt its activities against its people. Financial performance in this country has been solid, and the forecast is equally looking up.

It is your task to write a statement to be presented to your CEO regarding the future of the company's operations in this country. Should the company continue regular operations, halt operations based upon the actions of the government, or leave this country as a public show of support for the people? Assignment Guidelines: Using the Internet and the library, select a country of your choice that is unfortunately experiencing some of the same issues cited in the description of the assignment. Document your findings and how they could relate to your current business situation. Find at least 2 examples of how international organizations and acts could protect your interests as a foreign-based business and what legal actions you could pursue if your rights were violated. Explain and document your findings. State your opinion regarding the impact of conducting business with this country and the ramifications of doing so or not doing so. State what your recommendations will be to the CEO of your company, and support your recommendation.

Paper For Above instruction

The ongoing political unrest and social upheaval in countries where international businesses operate pose significant ethical, legal, and operational challenges. This paper examines Nigeria, a country experiencing civil unrest marked by violence, protests, and governmental repression, which directly impacts multinational corporations (MNCs) operating within its borders. Based on current reports and scholarly resources, Nigeria's tumultuous political climate threatens the safety of personnel, disrupts supply chains, and raises complex legal and ethical questions for companies like ours that maintain active operations there.

Nigeria has endured a substantial increase in protests over recent years, driven by widespread dissatisfaction with governance, corruption, and economic hardship (Amao, 2021). The government’s response has often been violent, with reports of security forces using live ammunition against protesters, resulting in fatalities and injuries (Human Rights Watch, 2022). Such violent repression creates unsafe environments for expatriates and local employees and poses reputational risks for companies perceived as indirectly supporting or benefiting from such actions. Furthermore, Nigeria's political instability and ongoing violence threaten the integrity of operating assets, despite the current profitability and optimistic future projections (Ogunleye & Olaniyan, 2020).

International organizations can provide crucial protections and avenues for legal recourse for businesses in Nigeria. The United Nations Global Compact, which encourages businesses to uphold human rights and ensure ethical practices, offers a framework for companies to align their operations with international human rights standards (UNGC, 2023). Additionally, the International Labour Organization (ILO) promotes workers' rights and can serve as an advocate if our operations or employees face violations of labor standards abroad (ILO, 2023). These organizations can exert diplomatic pressure, facilitate dialogue with local governments, and support corporate social responsibility initiatives.

Legal protections are also vital in managing risks. The Foreign Sovereign Immunities Act (FSIA) in the United States limits the extent to which foreign governments and their agents can violate international norms with impunity. Should our rights be violated—for instance, through illegal detention of employees or expropriation of assets—we could pursue legal action under the FSIA or through international arbitration mechanisms such as the International Centre for Settlement of Investment Disputes (ICSID). These avenues provide legal recourse to challenge unjust actions by the Nigerian government or other entities that infringe upon our rights or harm our interests (Blackwell & Yip, 2022).

Conducting business in Nigeria presents significant considerations. On the one hand, the economic benefits remain attractive due to the market size and resource wealth; on the other hand, the risks associated with violence, governmental repression, and potential sanctions pose serious ethical and operational dilemmas. Continuing operations may be perceived as turning a blind eye to human rights abuses or as incentivizing continued conflict, which could damage our corporate reputation globally. Conversely, withdrawing from Nigeria signals a stance of moral opposition but could result in substantial financial losses and diminished stakeholder trust.

In my opinion, the optimal strategy involves a cautious approach. Instead of full withdrawal, our company should implement a strategic withdrawal from direct operational activities that jeopardize safety or violate international standards. We should enhance our engagement with international organizations such as the UNGC and ILO, advocate for corporate responsibility, and support local peacebuilding initiatives. Maintaining a presence through corporate social responsibility programs and humanitarian aid can demonstrate our commitment to ethical practices while fostering goodwill among local communities and stakeholders (Murray, 2020). This balanced approach mitigates risks while upholding our corporate values.

My recommendation to the CEO is to adopt a phased disengagement plan that prioritizes employee safety, complies with international standards, and leverages diplomatic protections. The company should enhance its due diligence processes, establish clear guidelines for employee safety, and coordinate with international bodies to monitor developments. In parallel, engaging with local NGOs and community groups can facilitate peace and stability while positioning the company as a responsible corporate citizen. Should our interests be directly threatened by violations, legal recourse through ICSID or FSIA should be pursued promptly. Emphasizing corporate social responsibility and ethical engagement will not only protect our assets but also uphold our reputation globally.

References

  • Amao, C. (2021). Human rights abuses in Nigeria: A study on government repression. Journal of International Affairs, 45(3), 112-130.
  • Blackwell, P., & Yip, V. (2022). Legal mechanisms for international business dispute resolution. International Business Law Review, 28(4), 555-573.
  • Human Rights Watch. (2022). Nigeria: Events of 2022. https://www.hrw.org/world-report/2022/country-chapters/nigeria
  • ILO. (2023). Workers' rights around the world. International Labour Organization. https://www.ilo.org/global/about-the-ilo/how-the-ilo-works/WCMS_795620/lang--en/index.htm
  • Ogunleye, O., & Olaniyan, T. (2020). Economic consequences of political instability in Nigeria. African Development Review, 32(2), 240-255.
  • UNGC. (2023). The UN Global Compact and business ethics. United Nations Global Compact. https://unglobalcompact.org/what-is-gc/our-benefits
  • Murray, L. (2020). Corporate social responsibility in conflict zones. Business Ethics Quarterly, 30(1), 45-67.
  • Ogunleye, O., & Olaniyan, T. (2020). Economic consequences of political instability in Nigeria. African Development Review, 32(2), 240-255.
  • United Nations. (2020). Protection of human rights in conflict zones. United Nations Human Rights Office. https://www.ohchr.org/en/issues/war/Pages/Protection.aspx
  • International Centre for Settlement of Investment Disputes (ICSID). (2023). Dispute resolution. ICSID. https://icsid.worldbank.org/resources/dispute-resolution

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