Skip to main content

Advertisement

SpringerLink
Log in

A New Framework for Understanding Inequalities Between Expatriates and Host Country Nationals

  • Published:
Journal of Business Ethics Aims and scope Submit manuscript

Abstract

An interdisciplinary theoretical framework is proposed for analysing justice in global working conditions. In addition to gender and race as popular criteria to identify disadvantaged groups in organizations, in multinational corporations (MNCs) local employees (i.e. host country nationals (HCNs) working in foreign subsidiaries) deserve special attention. Their working conditions are often substantially worse than those of expatriates (i.e. parent country nationals temporarily assigned to a foreign subsidiary). Although a number of reasons have been put forward to justify such inequalities—usually with efficiency goals in mind—recent studies have used equity theory to question the extent to which they are perceived as fair by HCNs. However, since perceptual equity theory has limitations, this study develops an alternative and non-perceptual framework for analysing such inequalities. Employment discrimination theory and elements of Rawls’s ‘Theory of Justice’ are the theoretical pillars of this framework. This article discusses the advantages of this approach for MNCs and identifies some expatriation practices that are fair according to our non-perceptual justice standards, whilst also reasonably (if not highly) efficient.

This is a preview of subscription content, log in via an institution to check access.

Access this article

Log in via an institution

Price excludes VAT (USA)
Tax calculation will be finalised during checkout.

Instant access to the full article PDF.

Institutional subscriptions

Similar content being viewed by others

Notes

  1. We are aware that HCNs are a heterogeneous group. It is important to emphasize, however, that our analysis focuses on the sub-group of ‘professionally equivalent’ HCNs in comparison to that of expatriates.

  2. More general criticism of national culturalism beyond the ethics-based critique (see, e.g. Peterson et al. 2010) needs to be acknowledged, as it provides additional support to our non-perceptual view of justice in international work arrangements. See, e.g. McSweeney (2002) for a general critique of Hofstede’s framework, and also other critical views of the (mainstream) notion of national culture, arriving from international management (e.g. Nelson and Gopalan 2003) or IHRM (Bloom et al. 2003; Gerhart and Fang 2005).

  3. The idea of ‘overlapping consensus’ (Rawls 1993, 2001) refers to the need for peaceful living and mutual respect between different individuals and societies that believe in different philosophical, religious or cultural frameworks as cornerstones of their ways to understand the world and social organization. It is then necessary that individuals and institutions reach a sufficient (cross-cultural and cross-ideological) consensus around the basic principles of social organization.

  4. Regarding classical philosophical approaches to justice, we note that Aristotelian ethics has indeed influenced important elements of Rawlsian thought (see, e.g. DeLue 1980; Mann 2009; Xianzhong 2007). Hence, whilst inspired by classical philosophy, Rawls crucially focuses on contemporary (social and political) institutions and geo-political dynamics, thus offering especially insightful tools for analyzing current and timely justice concerns.

  5. We wish to clarify that, obviously, we do not plainly identify Rawlsian thought with extended corporate citizenship (cf. Matten and Crane 2005), which has been deemed by critical views as too ‘libertarian’ or ‘neo liberal’ in a way that might be at odds with more ‘liberal egalitarian’ Rawlsian thought (e.g. Mäkinen and Räsänen 2011). Pragmatically, Rawls helps us to complement a descriptive use of extended corporate citizenship by inspiring us to introduce some more clearly ‘liberal egalitarian’ normative elements, adapting aspects of Rawlsian views to the IHRM domain, that are useful for tackling actual justice problems derived from unacceptable inequalities—in our article in terms of unfair MNCs’ work arrangements.

  6. We are aware that other contributions (notably Phillips and Margolis 1999) have interpreted the issue of voluntarity as a matter of pre-defined ‘kind’—as opposed to our view as a matter of post-assessed ‘degree’ (Moriarty 2005)—implying a straightforward rejection of philosophy-informed views of business ethics, thus denying the applicability of Rawlsian principles to the corporate domain. However, Phillips and Margolis (1999) argument is intrinsically inconsistent for at least two main reasons. First, their rejection of the applicability of Rawlsian principles to corporations derives, paradoxically, from their axiomatic belief in the deeply philosophical idea that corporations are not part of the basic structure of society. Second, Phillips and Margolis (1999) also believed that business ethics, given its more pragmatic aim, should be independent from philosophy, but their interpretation of the concept of basic structure of society is highly theoretical—as opposed to our certainly more pragmatic arguments for including MNCs in the basic structure of society, in line with insightful literature (notably Hartman 2001) defending the role of philosophy in business ethics. Moreover, the denial of the role of philosophy for business ethics on the grounds of a too ‘theoretical’ nature of the former is also questioned in light of relevant, highly pragmatic philosophical approaches to justice—notably the ‘capabilities approach’ (see, e.g. Nussbaum 2000; Sen 2009).

  7. For instance, it seems reasonable to assume that employment gender inequality tends to decrease as MNCs increase their presence in more traditionally gender inegalitarian and less liberal societies. This example of ‘spill-over effect’ would support the applicability of the principle of fair equality of opportunity to the internal structure of MNCs’ employment relations. Similarly, in poor countries, although the employees at the bottom of the pay scale tend to be better off if they are working for an MNC than for a local company, the pay differential between senior managers and shop-floor employees may well be greater too in MNCs (since senior managers’ pay scales in MNCs tend to be more globally influenced). This example of higher inequalities that also benefit the least advantaged would support the applicability of the difference principle to the internal structure of MNCs’ employment relations.

  8. May we clarify that we do not feel obliged to either accept or reject Rawlsian ideas in full. We feel legitimized to pick the ones we consider most relevant to our purposes, as long as we provide careful argumentation—as we have tried to do. For example, Nobel Prize winner (1998, Economics) Sen (2009) draws heavily on Rawls to propose his ‘capabilities approach’. Still, there are elements of this approach that depart substantially from Rawlsian proposals—notably the consideration of actual human capabilities (what people can actually do and choose to do, therefore the ends that human beings can achieve), as opposed to the Rawlsian concept of primary goods (the means through which people may or may not ultimately develop capabilities). Such an ‘amendment’ to Rawlsian theory is by no means less substantial than our own reinterpretation of the concept of the basic structure of society, yet the ‘capabilities approach’ has gained widespread popularity and is highly compatible with Rawlsian thought (Sen himself dedicated his latest book to the memory of his friend Rawls).

  9. Crucially, the libertarian stance on justice as a defence of a minimal state (Nozick 1974) does not fit an active concern for fighting economic inequalities (precisely a key motivation of our research), contrasting with other priorities of the ‘minimal state’ (e.g. national defence or the enforcement of contracts); on the other hand, the utilitarian focus on justice as the maximization of happiness of the parties involved (Mill 1879) implies a substantial perceptual focus (i.e. the very notion of ‘happiness’ which must be subjectively self-assessed), again not fitting our research purposes and focus. Accordingly, the difference principle is a key pillar of our own framework (i.e. it will evolve into our principle of fair meritocracy) as a tool to assess inequalities’ fairness as a distributive concern in itself, so we deem the Rawlsian view of justice essential to our approach—far more appropriate than Nozick’s or Mill’s. Furthermore, the balanced nature of Rawls’s liberalism (especially through the difference principle) can be observed by comparing it to radical positions at both ends of the (liberal) political spectrum. Rawls is more permissive with inequalities than left-wing positions (which disapprove extreme inequalities), but at the same time he is less permissive with them than right-wing stances (which prioritize the maximization of combined wealth and efficiency).

  10. Formal equality of opportunity just ‘leaves the window open’ (e.g. for exercising individual rights), risking falling into not exceptional situations of ‘selective incivility’ or ‘covert discrimination’ (cf. Cortina 2008). Conversely, fair equality of opportunity usually embraces active steps towards increasing opportunities for traditionally disadvantaged groups (e.g. positive discrimination policies).

  11. Our view of universalism does not equate to uniformism. We focus on values that are often defended as universal (e.g. freedom of conscience and religion in the broader social domain, or freedom to choose one’s own career path in the occupational arena; values recognized by several United Nations’ and other agreements, and by the constitutions of virtually all democratic regimes), the application of which leads indeed to more diversity. Such diversity and hence higher freedom would—paradoxically but logically—naturally result from observing some conditions for (or limits to) free choice: (i) the different outcomes are the result of free, informed and un-coerced choice by the individual, (ii) they do not preclude the free choice of other people based on the same rights and (iii) they do not jeopardize the use of other universal rights by the same individual (e.g. the freedom to pursue the career of your choice does not allow you to get yourself into a ‘career in slavery’). These universal conditions are influenced by relevant streams of (Western) liberal philosophy and ethics, but also by notable non-Western philosophical and ethical traditions that are also consistent with our view (see, e.g. Nussbaum 2000; Sen 2009, for insightful accounts of this issue). Crucially, they also neatly fit the UDHR (United Nations 1948) and other international agreements aimed at promoting global ethical standards.

Abbreviations

HCN(s):

Host country national(s)

HQs:

Headquarters

HRM:

Human resource management

IHRM:

International human resource management

MNC(s):

Multinational corporation(s)

UDHR:

Universal Declaration of Human Rights

References

  • Ackerman, B. (1980). Social justice in the liberal state. New Haven, CT: Yale University Press.

    Google Scholar 

  • Adams, J. S. (1965). Inequity in social exchange. In L. Berkowitz (Ed.), Advances in experimental social psychology (Vol. 2, pp. 267–299). New York: Academic Press.

    Google Scholar 

  • Ambos, T. V., & Ambos, B. (2009). The impact of distance on knowledge transfer effectiveness in multinational corporations. Journal of International Management, 15(1), 1–14.

    Article  Google Scholar 

  • Andersson, U., Forsgren, M., & Holm, U. (2001). Subsidiary embeddedness and competence development in MNCs—a multi-level analysis. Organization Studies, 22(6), 1013–1034.

    Article  Google Scholar 

  • Asian Human Rights Commission. (1998). Asian human rights charter: A People’s Charter. Retrieved March 20, 2012 from http://www.unhcr.org/refworld/pdfid/452678304.pdf.

  • Bannerjee, S. B. (2007). Corporate social responsibility: The good, the bad and the ugly. Cheltenham: Edward Elgar.

    Google Scholar 

  • Baron, J., & Kreps, D. (1999). Strategic human resources: Frameworks for general managers. New York: Wiley.

    Google Scholar 

  • Bartlett, C. A., & Ghoshal, S. (1989). Managing across borders: The transnational solution. Boston: Harvard Business School Press.

    Google Scholar 

  • Beitz, C. (1999). Political theory and international relations (2nd ed.). Princeton, NJ: Princeton University Press.

    Google Scholar 

  • Bidet, J. (1995). John Rawls and the Theory of Justice. Paris: PUF (in French).

    Google Scholar 

  • Björkman, I., Barner-Rasmussen, W., & Li, L. (2004). Managing knowledge transfer in MNCs: The impact of headquarters control mechanisms. Journal of International Business Studies, 35(5), 443–455.

    Article  Google Scholar 

  • Björkman, I., & Lervik, J. E. (2007). Transferring HR practices within multinational corporations. Human Resource Management Journal, 17(4), 320–335.

    Article  Google Scholar 

  • Björkman, A., & Piekkari, R. (2009). Language and subsidiary control: An empirical test. Journal of International Management, 15(1), 105–117.

    Article  Google Scholar 

  • Black, J. S., & Gregersen, H. B. (1999). The right way to manage expats. Harvard Business Review, 77(2), 52–59.

    Google Scholar 

  • Black, J. S., Mendenhall, M., & Oddou, G. (1991). Toward a comprehensive model of international adjustment: An integration of multiple theoretical perspectives. Academy of Management Review, 16(2), 291–317.

    Google Scholar 

  • Bloom, M., Milkovich, G. T., & Mitra, A. (2003). International compensation: learning from how managers respond to variations in local host contexts. International Journal of Human Resource Management, 14(8), 1350–1367.

    Article  Google Scholar 

  • Blumberg, M., & Pringle, C. D. (1982). The missing opportunity in organizational research: Some implications for a theory of work performance. Academy of Management Review, 7(4), 560–569.

    Google Scholar 

  • Bonache, J. (2004). Towards a re-examination of work arrangements: An analysis from Rawls Theory of Justice. Human Resource Management Review, 14(4), 395–408.

    Article  Google Scholar 

  • Bonache, J. (2006). The compensation of expatriates: A review and a future research agenda. In G. K. Stahl & I. Björkman (Eds.), Handbook of research in international human resource management (pp. 158–175). Cheltenham: Edward Elgar.

    Google Scholar 

  • Bonache, J., & Brewster, C. (2001). Knowledge transfer and the management of expatriation. Thunderbird International Business Review, 43(1), 145–168.

    Article  Google Scholar 

  • Bonache, J., Sanchez, J., & Zarraga, C. (2008). The interaction of expatriate pay differential and expatriate inputs on host country nationals pay unfairness. International Journal of Human Resource Management, 19(1), 1–18.

    Article  Google Scholar 

  • Bonache, J., Trullén, J., & Sánchez, J. I. (2011). Managing cross-cultural differences: A test of human resource models in Latin America. Journal of Business Research. doi:10.1016/j.jbusres.2011.10.037.

  • Bossard, A. B., & Peterson, R. B. (2005). The repatriate experience as seen by American expatriates. Journal of World Business, 40(1), 9–28.

    Article  Google Scholar 

  • Bowie, N. E., & Vaaler, P. (1999). Some arguments for universal moral standards. In G. Enderle (Ed.), International business ethics challenges and approaches (pp. 160–173). Notre Dame, IN: University of Notre Dame Press.

    Google Scholar 

  • Brewster, C. (2006). Comparing HRM policies and practices across geographical borders. In G. K. Stahl & I. Björkman (Eds.), Handbook of research in international human resource management (pp. 68–90). Cheltenham: Edward Elgar.

    Google Scholar 

  • Brown, C. (2007). Liberalism and the globalization of ethics. In W. M. Sullivan & W. Kymlicka (Eds.), The globalization of ethics (pp. 151–170). New York: Cambridge University Press.

    Chapter  Google Scholar 

  • Carrell, M. R., & Dittrich, J. E. (1978). Equity theory: The recent literature, methodological considerations, and new directions. Academy of Management Review, 3(2), 202–210.

    Google Scholar 

  • Chen, C. C., Choi, J., & Chi, S. C. (2002). Making justice sense of local-expatriate compensation disparity: Mitigation by local referents, ideological explanations, and interpersonal sensitivity in China–Foreign joint ventures. Academy of Management Journal, 45(4), 807–826.

    Article  Google Scholar 

  • Choi, J., & Chen, C. C. (2007). The relationships of distributive justice and compensation system fairness to employee attitudes in international joint ventures. Journal of Organizational Behavior, 28(6), 687–703.

    Article  Google Scholar 

  • Cohen, J. (2003). For a democratic society. In S. Freeman (Ed.), The Cambridge companion to Rawls (pp. 86–138). West Nyack, NY: Cambridge University Press.

    Google Scholar 

  • Collings, D., & Scullion, H. (2006). Global Staffing. In G. K. Stahl & I. Björkman (Eds.), Handbook of research in international human resource management (pp. 137–157). Cheltenham: Edward Elgar.

    Google Scholar 

  • Connelly, B., Hitt, M. A., DeNisi, A. S., & Ireland, R. D. (2007). Expatriates and corporate-level international strategy: Governing with the knowledge contract. Management Decision, 45(3), 564–581.

    Article  Google Scholar 

  • Cortina, L. (2008). Unseen injustice: Incivility as modern discrimination in organizations. Academy of Management Review, 33(1), 55–75.

    Article  Google Scholar 

  • Daily, C. M., Dalton, D. R., & Cannella, A. A, Jr. (2003). Corporate governance: Decades of dialogue and data. Academy of Management Review, 28(3), 371–382.

    Google Scholar 

  • Daniels, N. (Ed.). (1989). Reading Rawls critical studies of ‘A Theory of Justice’. Oxford: Blackwell.

    Google Scholar 

  • DeLue, S. (1980). Aristotle, Kant and Rawls on moral motivation in a just society. American Political Science Review, 74(2), 385–393.

    Article  Google Scholar 

  • Demuijnck, G. (2009). Non-discrimination in human resources management as a moral obligation. Journal of Business Ethics, 88(1), 83–101.

    Article  Google Scholar 

  • Dickmann, M., Doherty, N., Mills, T., & Brewster, C. (2008). Why do they go? Individual and corporate perspectives on the factors influencing the decision to accept an international assignment. International Journal of Human Resource Management, 19(4), 731–751.

    Article  Google Scholar 

  • Dietz, J., & Petersen, L.-E. (2006). Diversity management. In G. K. Stahl & I. Björkman (Eds.), Handbook of research in international human resource management (pp. 223–243). Cheltenham: Edward Elgar.

    Google Scholar 

  • Dipboye, R. J., & Halverson, S. K. (2004). Subtle (and not so Subtle) discrimination in organizations. In R. W. Griffin & A. M. O’Leary-Kely (Eds.), The dark side of organizational behavior (pp. 131–158). San Francisco: Jossey-Bass.

    Google Scholar 

  • Donaldson, T. (1996). Values in tension: ‘Ethics away from Home’. Harvard Business Review, 74(5), 48–62.

    Google Scholar 

  • Donaldson, T., & Dunfee, T. W. (1994). Towards a unified conception of business ethics: Integrative social contracts theory. Academy of Management Review, 19(2), 252–284.

    Google Scholar 

  • Donaldson, T., & Dunfee, T. W. (1995). Integrative social contracts theory: A communitarian conception of economic ethics. Economics and Philosophy, 11(1), 85–112.

    Article  Google Scholar 

  • Donaldson, T., & Dunfee, T. W. (1999a). When ethics travel: The promise and peril of global business ethics. California Management Review, 41(4), 45–63.

    Article  Google Scholar 

  • Donaldson, T., & Dunfee, T. W. (1999b). Ties that bind: A social contracts approach to business ethics. Boston: Harvard Business School Press.

    Google Scholar 

  • Doz, Y., Bartlett, C. A., & Prahalad, C. K. (1981). Global competitive pressures versus host country demands: Managing tensions in multinational corporations. California Management Review, 23(3), 63–74.

    Article  Google Scholar 

  • Doz, Y. L., Santos, J., & Williamson, P. (2001). From global to metanational. Boston: Harvard Business School Press.

    Google Scholar 

  • Edstrom, A., & Galbraith, J. R. (1977). Transfer of managers as a coordination and control strategy in multinational organizations. Administrative Science Quarterly, 22(2), 248–263.

    Article  Google Scholar 

  • Egri, C. P., & Ralston, D. A. (2008). Corporate responsibility: A review of international management research from 1998 to 2007. Journal of International Management, 14(4), 319–339.

    Article  Google Scholar 

  • Ellis, K. M. (2000). Strategic contexts, knowledge flows, and the competitiveness of MNCs: A procedural justice approach. Competitiveness Review, 10(1), 9–24.

    Article  Google Scholar 

  • Folger, R., & Crapanzano, R. (1998). Organizational justice and human resource management. Thousand Oaks, CA: SAGE.

    Google Scholar 

  • Fortin, M. (2008). Perspectives on organizational justice: Concept clarification, social context integration, time and links with morality. International Journal of Management Reviews, 10(2), 93–126.

    Article  Google Scholar 

  • Foss, N. J., & Pedersen, T. (2002). Transferring knowledge in MNCs: The role of sources of subsidiary knowledge and organizational context. Journal of International Management, 8(1), 49–67.

    Article  Google Scholar 

  • Fougère, M. (2009, July 2–4). The business firm as a political and unpolitical actor. Paper presented at the 25th European Group of Organizational Studies (EGOS) Colloquium, ESADE Business School, Barcelona.

  • Fougère, M., & Moulettes, A. (2009). On ‘Cultural’ knowledge in international management textbooks: A postcolonial reading. In S. B. Bannerjee, V. C. M. Chio, & R. Mir (Eds.), Organizations, markets and imperial formations: Towards and anthropology of globalization (pp. 17–42). Cheltenham: Edward Elgar.

    Google Scholar 

  • Fougère, M., & Solitander, N. (2009). Against corporate responsibility: Critical reflections on thinking, practice, content and consequences. Corporate Social Responsibility and Environmental Management, 26(4), 217–227.

    Article  Google Scholar 

  • Freeman, S. (2007). Rawls. London: Routledge.

    Google Scholar 

  • Furuya, N., Stevens, M. J., Bird, A., Oddou, G., & Mendenhall, M. (2009). Managing the learning and transfer of global management competence: Antecedents and outcomes of japanese repatriation effectiveness. Journal of International Business Studies, 40(2), 200–215.

    Article  Google Scholar 

  • Gerhart, B., & Fang, M. (2005). National culture and human resource management: Assumptions and evidence. International Journal of Human Resource Management, 16(6), 971–986.

    Article  Google Scholar 

  • GMAC. (2008). Global relocation trends 2008 Survey Report. Woodridge, IL: GMAC Global Relocation Services.

    Google Scholar 

  • Gnyawali, D. R., Singal, M., & Mu, S. C. (2009). Knowledge ties among subsidiaries in MNCs: A multi-level conceptual model. Journal of International Management, 15(4), 49–67.

    Article  Google Scholar 

  • Grant, R. M. (1996). Toward a knowledge-based theory of the firm. Strategic Management Journal, 17(Winter special Issue), 109–122.

    Google Scholar 

  • Greenwood, M. (2002). Ethics and HRM: A review and conceptual analysis. Journal of Business Ethics, 36(3), 261–278.

    Article  Google Scholar 

  • Gregersen, H. B., Morrison, A., & Black, J. S. (1998). Developing leaders for the global frontier. Sloan Management Review, 40(1), 21–32.

    Google Scholar 

  • Grey, S., & Garsten, C. (2001). Trust, control and post-bureaucracy. Organization Studies, 22(2), 229–250.

    Article  Google Scholar 

  • Gupta, A. K., & Govindarajan, V. (1991). Knowledge flows and the structure of control within multinational corporations. Academy of Management Review, 16(4), 768–792.

    Google Scholar 

  • Harley, B., & Hardy, C. (2004). Firing Blanks? An analysis of discursive struggles in HRM. Journal of Management Studies, 41(3), 377–400.

    Article  Google Scholar 

  • Hartman, E. M. (1994). The commons and the moral organization. Business Ethics Quarterly, 4(3), 253–269.

    Article  Google Scholar 

  • Hartman, E. M. (2001). Moral philosophy, political philosophy, and organizational ethics: A response to Philips and Margolis. Business Ethics Quarterly, 11(4), 673–685.

    Article  Google Scholar 

  • Harvey, M., & Wiese, D. (1998). The dual-career couple: Female expatriates and male trailing spouses. Thunderbird International Business Review, 40(4), 359–388.

    Article  Google Scholar 

  • Harzing, A.-W. K. (2001). Who’s in charge? An empirical study of executive staffing practices in foreign subsidiaries. Human Resource Management, 40(2), 139–158.

    Article  Google Scholar 

  • Harzing, A.-W. K., & Christensen, C. (2004). Expatriate failure: Time to abandon the concept? Career Development International, 9(7), 616–626.

    Article  Google Scholar 

  • Harzing, A.-W. K., & Van Ruysseveldt, J. (Eds.). (2004). International Human Resource Management (2nd ed.). London: SAGE.

    Google Scholar 

  • Heath, J., Moriarty, J., & Norman, W. (2010). Business ethics and (or as) political philosophy. Business Ethics Quarterly, 20(3), 427–452.

    Article  Google Scholar 

  • Heenan, D. A., & Perlmutter, H. V. (1979). Multinational organization development. Reading: Addison-Wesley.

    Google Scholar 

  • Hemingway, C. A., & Maclagan, P. W. (2004). ‘Managers’ personal values as drivers of corporate social responsibility. Journal of Business Ethics, 50(1), 33–44.

    Article  Google Scholar 

  • Hendry, C. (1991). International comparisons of human resource management. Putting the firm in the Frame. International Journal of Human Resource Management, 2(3), 415–440.

    Article  Google Scholar 

  • Höffe, O. (Ed.). (1977). About John Rawls’s theory of justice. Frankfurt: Suhrka. (in German).

    Google Scholar 

  • Hofstede, G. (1980). Culture’s consequences: international differences in work-related values. Beverly Hills, CA: SAGE.

    Google Scholar 

  • Hofstede, G. (2001). Culture’s consequences: Comparing values, behaviours, institutions, and organizations across nations (2nd ed.). Thousand Oaks, CA: SAGE.

    Google Scholar 

  • House, R. J., Hanges, Paul, J., Javidan, M., Dorfman, P. W., & Gupta, W. (Eds.). (2004). Culture, leadership, and organizations: The GLOBE Study of 62 societies. Thousand Oaks, CA: SAGE.

    Google Scholar 

  • House, R., Javidan, M., Hanges, P., & Dorfman, P. (2002). Understanding cultures and implicit leadership theories across the globe: An introduction to project GLOBE. Journal of World Business, 37(1), 3–10.

    Article  Google Scholar 

  • Hsieh, N. (2004). The obligations of transnational corporations: Rawlsian justice and the duty to assistance. Business Ethics Quarterly, 14(4), 643–661.

    Article  Google Scholar 

  • Hsieh, N. (2009). Does global business have a responsibility to promote just institutions? Business Ethics Quarterly, 19(2), 251–273.

    Article  Google Scholar 

  • Insch, G. S., McIntyre, N., & Napier, N. K. (2008). The expatriate glass ceiling: The second layer of glass. Journal of Business Ethics, 83(1), 19–28.

    Article  Google Scholar 

  • Islamic Council. (1981). Universal Islamic declaration of human rights. Retrieved March 24, 2012 from http://www.alhewar.com/ISLAMDECL.html.

  • Jackson, K. T. (1993). Global distributive justice and the corporate duty to aid. Journal of Business Ethics, 12(7), 547–551.

    Article  Google Scholar 

  • Jaussaud, J., & Schaaper, J. (2006). Control mechanisms of their subsidiaries by multinational firms: A multidimensional perspective. Journal of International Management, 12(1), 23–45.

    Article  Google Scholar 

  • Keegan, A., & Boselie, P. (2006). The lack of impact of dissensus inspired analysis on developments in the field of human resource management. Journal of Management Studies, 43(7), 1491–1511.

    Article  Google Scholar 

  • Kogut, B., & Zander, U. (1992). Knowledge of the firm, combinative capabilities, and the replication of technology. Organization Science, 3(3), 383–397.

    Article  Google Scholar 

  • Kolk, A., & van Tulder, R. (2002). Child labor and multinational conduct: A comparison of international business and stakeholder codes. Journal of Business Ethics, 36(3), 291–301.

    Article  Google Scholar 

  • Kukathas, C. (1990). Rawls. A theory of justice and its critics. Stanford, CA: Stanford University Press.

    Google Scholar 

  • Kulik, C. Y., & Ambrose, M. L. (1992). Personal and situational determinants of referent choice. Academy of Management Review, 17(2), 212–237.

    Google Scholar 

  • Kymlicka, W. (2007). The globalization of ethics. In W. M. Sullivan & W. Kymlicka (Eds.), The globalization of ethics (pp. 1–16). New York: Cambridge University Press.

    Chapter  Google Scholar 

  • Maak, T. (2009). The cosmopolitical organization. Journal of Business Ethics, 84(Supplement 3), 361–372.

    Article  Google Scholar 

  • Maak, T., & Pless, M. (2009). Business leaders as citizens of the world: Advancing humanism on a global scale. Journal of Business Ethics, 88(3), 537–550.

    Article  Google Scholar 

  • Mäkelä, K., & Brewster, C. (2009). Interunit interaction contexts, interpersonal social capital, and the differing levels of knowledge sharing. Human Resource Management, 48(4), 591–613.

    Article  Google Scholar 

  • Mäkinen, J. (2005). John Rawls’s justice, Understanding the Importance of Normative Economics, Doctoral dissertation published as: A 244. Helsinki School of Economics Dissertations, Finland (in Finnish).

  • Mäkinen, J., & Kourula, A. (2008). The politics of corporate responsibility. Niin&Näin Philosophical Journal, 59(4), 92–101. (in Finnish).

    Google Scholar 

  • Mäkinen, J. & Kourula, A. (2009, July 2–4). Blurring the boundaries of responsibility—the rise and fall of strategic corporate social responsibility (CSR) in Finland. Paper presented at the 25th European Group of Organizational Studies (EGOS) Colloquium, ESADE Business School, Barcelona.

  • Mäkinen, J., & Kourula, A. (2010, August 7–9). The politics of corporate responsibility. Paper presented at the annual meeting of the society for business ethics (SBE), Montréal, Canada.

  • Mäkinen, J., & Räsänen, P. (2011). Extended corporate citizenship: A libertarian interpretation. Electronic Journal of Business Ethics and Organization Studies, 16(2), 6–11.

    Google Scholar 

  • Mann, M. H. (2009). Ricoeur’s principle of civic inclusion. An Aristotelian interpretation of Rawls’s theory of justice. Philosophy Today, 53(1), 44–57.

    Article  Google Scholar 

  • Marens, R. (2007). Returning to Rawls: Social contracting, social justice, and transcending the limitations of Locke. Journal of Business Ethics, 75(1), 63–76.

    Article  Google Scholar 

  • Marshall, T. H. (1965). Class, citizenship and social development. New York: Anchor Books.

    Google Scholar 

  • Martin, R., & Reidy, D. A. (2006). Introduction: Reading Rawls’s law of peoples. In R. Martin & D. A. Reidy (Eds.), Rawls’s law of peoples, A realistic Utopia? (pp. 3–18). Oxford: Blackwell.

    Chapter  Google Scholar 

  • Matten, D., & Crane, A. (2005). Corporate citizenship: Toward an extended theoretical conceptualization. Academy of Management Review, 30(1), 166–179.

    Article  Google Scholar 

  • Matten, !!. D., & Moon, J. (2008). “Implicit” and “Explicit” CSR: A Conceptual Framework for a Comparative Understanding of Corporate Social Responsibility. Academy of Management Review, 33(2), 404–424.

    Article  Google Scholar 

  • Mayer, D., & Cava, A. (1993). Ethics and the gender equality dilemma for US multinationals. Journal of Business Ethics, 12(9), 701–708.

    Article  Google Scholar 

  • Mayrhofer, W., & Brewster, C. (1996). In praise of ethnocentricity: Expatriate policies in European multinationals. International Executive, 38(6), 749–778.

    Article  Google Scholar 

  • McDonald, G. M., & Kan, P. C. (1997). Ethical perceptions of expatriate and local managers in Hong Kong. Journal of Business Ethics, 16(15), 1605–1623.

    Article  Google Scholar 

  • McSweeney, B. (2002). Hofstede’s model of national cultural differences and their consequences: A triumph of faith—a failure of analysis. Human Relations, 55(1), 89–118.

    Google Scholar 

  • Melé, D., & Paladino, M. (2008). Corporate services in poor areas: A case study with participative multistakeholder involvement. Business and Society Review, 113(2), 253–275.

    Article  Google Scholar 

  • Mendenhall, M. E., & Oddou, G. (1988). The overseas assignment: A practical look. Business Horizons, 31(5), 78–84.

    Article  Google Scholar 

  • Mercer. (2006). International assignments increasing. New York: Mercer Human Resource Consulting.

    Google Scholar 

  • Mill, J. S. (1879). Utilitaniarism (7th Edition). Retrieved March 20, 2012. http://www.gutenberg.org/files/11224/11224-h/11224-h.htm.

  • Minbaeva, D. B. (2005). HRM practices and MNC knowledge transfer. Personnel Review, 34(1), 125–144.

    Article  Google Scholar 

  • Minbaeva, D. B. (2007). Knowledge transfer in multinational corporations. Management International Review, 47(4), 567–593.

    Article  Google Scholar 

  • Minbaeva, D. B., & Michailova, S. (2004). Knowledge transfer and expatriation in multinational corporations: The role of disseminative capacity. Employee Relations, 26(6), 663–679.

    Article  Google Scholar 

  • Moriarty, J. (2005). On the relevance of political philosophy to business ethics. Business Ethics Quarterly, 15(3), 455–473.

    Article  Google Scholar 

  • Mudambi, R. (2002). Knowledge management in multinational firms. Journal of International Management, 8(1), 1–9.

    Article  Google Scholar 

  • Müller, F. (1999). Unitarism, pluralism, and human resource management in Germany. Management International Review, 39(3), 125–144.

    Article  Google Scholar 

  • Nagel, T. (2003). Rawls and liberalism. In S. Freeman (Ed.), The Cambridge companion to Rawls (pp. 62–85). West Nyack, NY: Cambridge University Press.

    Google Scholar 

  • Nelson, R. E., & Gopalan, S. (2003). Do organizational cultures replicate national cultures? Isomorphism, rejection and reciprocal opposition in the corporate values of three countries. Organization Studies, 24(7), 1115–1151.

    Article  Google Scholar 

  • Newman, K. L., & Nollen, S. D. (1996). Culture and congruence: The fit between management practices and national culture. Journal of International Business Studies, 27(4), 753–779.

    Article  Google Scholar 

  • Ng, P. W.-K., Lau, C.-M., & Nyaw, M.-K. (2007). The effect of trust on international joint venture performance in China. Journal of International Management, 13(4), 430–448.

    Article  Google Scholar 

  • Nohria, N., & Ghoshal, S. (1994). Differentiated fit and shared values: Alternatives for managing headquarters–subsidiary relations. Strategic Management Journal, 15(6), 491–502.

    Article  Google Scholar 

  • Nonaka, I., & Takeuchi, H. (1995). The knowledge-creating company, how Japanese companies create the dynamics of innovation. New York: Oxford University Press.

    Google Scholar 

  • Nozick, R. (1974). Anarchy, state and Utopia. Oxford: Basil Blackwell.

    Google Scholar 

  • Nussbaum, M. C. (2000). Women and human development. New York: Cambridge University Press.

    Google Scholar 

  • Parliament of the World’s Religions. (1993). Declaration toward a global ethic. Retrieved March 20, 2012 from http://www.parliamentofreligions.org/_includes/FCKcontent/File/TowardsAGlobalEthic.pdf.

  • Peltonen, T. (2006). Critical theoretical perspectives on international human resource management. In G. K. Stahl & I. Björkman (Eds.), Handbook of research in international human resource management (pp. 523–535). Cheltenham: Edward Elgar.

    Google Scholar 

  • Perlmutter, H. V. (1969). The tortuous evolution of the multinational corporation. Columbia Journal of World Business, 4(1), 9–18.

    Google Scholar 

  • Peterson, R. A., Albaum, G., Merunka, D., Munuera, J. L., & Smith, S. M. (2010). Effects of nationality, gender, and religiosity on business-related ethicality. Journal of Business Ethics, 96(4), 573–587.

    Article  Google Scholar 

  • Pettigrew, T. F., & Meertens, R. W. (1995). Subtle and blatant prejudice in Western Europe. European Journal of Social Psychology, 25(1), 57–75.

    Article  Google Scholar 

  • Phillips, R. A., & Margolis, J. D. (1999). Toward an ethics of organizations. Business Ethics Quarterly, 9(4), 619–638.

    Article  Google Scholar 

  • Philpott, D. (2007). Global ethics and the international law tradition. In W. M. Sullivan & W. Kymlicka (Eds.), The globalization of ethics (pp. 17–37). New York: Cambridge University Press.

    Chapter  Google Scholar 

  • Piekkari, R. (2006). Language effects in MNCs: A review from an IHRM perspective. In G. K. Stahl & I. Björkman (Eds.), Handbook of research in international human resource management (pp. 536–550). Cheltenham: Edward Elgar.

    Google Scholar 

  • Pogge, T. (1989). Realizing Rawls. Ithaca, NY: Cornell University Press.

    Google Scholar 

  • Prahalad, C. K., & Doz, Y. (1987). The multinational mission: Balancing local demands and global vision. New York: The Free Press.

    Google Scholar 

  • Quintanilla, J., & Ferner, A. (2003). Multinationals and human resource management: Between global convergence and national identity. International Journal of Human Resource Management, 14(3), 363–368.

    Article  Google Scholar 

  • Rawls, J. (1958). Justice as fairness. Philosophical Review, 67(2), 64–94.

    Article  Google Scholar 

  • Rawls, J. (1971). A theory of justice. Oxford: Oxford University Press.

    Google Scholar 

  • Rawls, J. (1993). Political liberalism. New York: Columbia University Press.

    Google Scholar 

  • Rawls, J. (1999a). A theory of justice (Revised ed.). Cambridge, MA: Harvard University Press.

    Google Scholar 

  • Rawls, J. (1999b). The law of peoples, with the idea of public reason revisited. Cambridge, MA: Harvard University Press.

    Google Scholar 

  • Rawls, J. (2001). Justice as fairness. A restatement. Cambridge, MA: The Berlknap Press of Harvard University Press.

    Google Scholar 

  • Richards, M. (2000). Control exercised by US multinationals over their overseas affiliates: Does location make a difference? Journal of International Management, 6(2), 105–120.

    Article  Google Scholar 

  • Rosenzweig, P. M. (2006). The dual logics behind international human resource management: Pressures for global integration and local responsiveness. In G. K. Stahl & I. Björkman (Eds.), Handbook of research in international human resource management (pp. 36–48). Cheltenham: Edward Elgar.

    Google Scholar 

  • Rosenzweig, P. M., & Nohria, N. (1994). Influences on human resource management in multinational firms. Journal of International Business Studies, 25(2), 229–251.

    Article  Google Scholar 

  • Roth, K., Schweiger, D. A., & Morrison, A. J. (1991). Global strategy implementation at the business unit level. Operational capabilities and administrative mechanisms. Journal of International Business Studies, 22(3), 369–402.

    Article  Google Scholar 

  • Runciman, W. G. (1966). Relative deprivation and social justice: A study of attitudes and social inequality in twentieth-century England. Berkeley, CA: University of California Press.

    Google Scholar 

  • Scanlon, T. M. (2003). Rawls on justification. In S. Freeman (Ed.), The Cambridge companion to Rawls (pp. 139–167). West Nyack, NY: Cambridge University Press.

    Google Scholar 

  • Scheffler, S. (2005). Choice, circumstance, and the value of equality. Politics, Philosophy & Economics, 4(1), 5–28.

    Article  Google Scholar 

  • Scherer, G., & Palazzo, A. G. (2007). Toward a political conception of corporate responsibility: Business and society seen from a Habermasian perspective. Academy of Management Review, 32(4), 1096–1120.

    Google Scholar 

  • Scherer, A. G., Palazzo, G., & Baumann, D. (2006). Global rules and private actors: Toward a new role of the transnational corporation in global governance. Business Ethics Quarterly, 16(4), 505–532.

    Article  Google Scholar 

  • Schiminke, M., Ambrose, M., & Noel, T. (1997). The effects of ethical frameworks on perceptions of organizational justice. Academy of Management Journal, 40(5), 1190–1207.

    Article  Google Scholar 

  • Schuler, R. S., Budhwar, P. S., & Florkowski, G. W. (2002). International human resource management: Review and critique. International Journal of Management Reviews, 4(1), 41–70.

    Article  Google Scholar 

  • Schuler, R. S., Dowling, P. J., & De Cieri, H. (1993). An integrative framework of strategic international human resource management. Journal of Management, 19(2), 419–459.

    Google Scholar 

  • Schuler, R. S., & Rogovsky, N. (1998). Understanding compensation practice variations across firms: The impact of national culture. Journal of International Business Studies, 23(1), 159–177.

    Article  Google Scholar 

  • Schwartz, S. H. (1999). A theory of cultural values and some implications for work. Applied Psychology: An International Review, 48(1), 23–47.

    Article  Google Scholar 

  • Selmer, J., & Leung, A. S. M. (2003). Are corporate career development activities less available to female than to male expatriates? Journal of Business Ethics, 43(1/2), 125–136.

    Article  Google Scholar 

  • Sen, A. (2009). The idea of justice. London: Allen Lane-Penguin Books.

    Google Scholar 

  • Sparrow, P. S., Brewster, C., & Harris, H. (2004). Globalising human resource management. London: Routledge.

    Google Scholar 

  • Spender, J. C. (1996). Making knowledge the basis of a dynamic theory of the firm. Strategic Management Journal, 17(Winter Special Issue), 45–62.

    Google Scholar 

  • Stahl, G. K., Miller, E., & Tung, R. (2002). Toward the boundaryless career: A closer look at the expatriate career concept and the perceived implications of an international assignment. Journal of World Business, 37(3), 216–227.

    Article  Google Scholar 

  • Stevens, M. J., Oddou, G., Furuya, N., Bird, A., & Mendenhall, M. (2006). HR factors affecting repatriate job satisfaction and job attachment for Japanese managers. International Journal of Human Resource Management, 17(5), 831–841.

    Article  Google Scholar 

  • Stigzelius, I., & Mark-Hebert, C. (2008). Tailoring corporate responsibility to suppliers: Managing SA8000 in Indian garment manufacturing. Scandinavian Journal of Management, 25(1), 46–56.

    Article  Google Scholar 

  • Stroh, L. K., Black, J. S., Mendenhall, M. E., & Gregersen, H. B. (2005). International assignments: An integration of strategy, research and practice. London: Lawrence Erlbaum.

    Google Scholar 

  • Sullivan, W. M. (2007). Ethical universalism and particularism. A comparison of outlooks. In W. M. Sullivan & W. Kymlicka (Eds.), The globalization of ethics (pp. 191–211). New York: Cambridge University Press.

    Chapter  Google Scholar 

  • Taylor, R. S. (2004). Self-realization and the priority of fair equality of opportunity. Journal of Moral Philosophy, 1(3), 333–347.

    Article  Google Scholar 

  • Tharenou, P. (2010). Women’s self-initiated expatriation as a career options and its ethical issues. Journal of Business Ethics, 95(1), 73–88.

    Article  Google Scholar 

  • Toh, S. M., & DeNisi, A. (2003). Host country national reactions to expatriate pay policies: A model and implications. Academy of Management Review, 28(4), 606–621.

    Google Scholar 

  • Toh, S. M., & DeNisi, A. (2005). A local perspective to expatriate success. Academy of Management Executive, 19(1), 132–146.

    Google Scholar 

  • Toh, S. M., & DeNisi, A. (2007). Host country nationals as socializing agents: A social identity approach. Journal of Organizational Behavior, 28(3), 281–301.

    Article  Google Scholar 

  • Trompenaars, F. (1993). Riding the waves of culture: Understanding cultural diversity in business. London: Economist Books.

    Google Scholar 

  • Trompenaars, F., & Hampden-Turner, C. (1997). Riding the waves of culture: understanding cultural diversity in business (2nd ed.). London: Nicholas Brealey.

    Google Scholar 

  • United Nations. (1948). Universal declaration of human rights. Retrieved March 20, 2012 from http://www.un.org/en/documents/udhr/.

  • United Nations. (1966a). International covenant on civil and political rights. Retrieved March 20, 2012 from http://www.un.org/millennium/law/iv-4.htm.

  • United Nations. (1966b). International covenant on economic, social and cultural rights. Retrieved March 20, 2012 from http://www.un.org/millennium/law/iv-3.htm.

  • Van Parijs, P. (2003). Difference principles. In S. Freeman (Ed.), The Cambridge companion to Rawls (pp. 200–240). West Nyack, NY: Cambridge University Press.

    Google Scholar 

  • Vance, C. M., & Paderon, E. S. (1993). An ethical argument for host country workforce training and development in the expatriate management assignment. Journal of Business Ethics, 12(8), 635–641.

    Article  Google Scholar 

  • Wolf, R. P. (1990). Understanding Rawls. Princeton, NJ: Princeton University Press.

    Google Scholar 

  • Wong, M. M. L. (2005). Organizational learning via expatriate managers: Collective myopia as blocking mechanism. Organization Studies, 26(3), 325–350.

    Article  Google Scholar 

  • Xianzhong, H. (2007). Justice as virtue: An analysis of Aristotle’s view of justice. Frontiers of Philosophy in China, 2(2), 265–279.

    Article  Google Scholar 

  • Zanoni, P., & Janssens, M. (2003). Deconstructing difference: The rhetoric of human resource managers. Diversity Discourses’ Organization Studies, 25(1), 55–74.

    Article  Google Scholar 

  • Zarraga, C., & Bonache, J. (2005). The impact of team atmosphere on knowledge outcomes in self-managed teams. Organization Studies, 26(5), 661–681.

    Article  Google Scholar 

Download references

Acknowledgments

The authors wish to express their profound gratitude to Domènec Melé (section editor) and two anonymous reviewers, for their insightful comments and suggestions that have improved the article considerably. The authors would like to thank the Spanish Ministry of Economy and Competitiveness for their financial support for this research (Grant ECO2011-29863).

Author information

Authors and Affiliations

  1. Department of Business Management, University of Valencia, Av. Tarongers, s/n, 46022, Valencia, Spain

    Victor Oltra

  2. University Carlos III of Madrid, C/Madrid, 126, 28903, Getafe, Spain

    Jaime Bonache

  3. Henley Business School, University of Reading, P.O. Box 218, Whiteknights, Reading, RG6 6AA, UK

    Chris Brewster

Authors
  1. Victor Oltra
    View author publications

    You can also search for this author in PubMed Google Scholar

  2. Jaime Bonache
    View author publications

    You can also search for this author in PubMed Google Scholar

  3. Chris Brewster
    View author publications

    You can also search for this author in PubMed Google Scholar

Corresponding author

Correspondence to Victor Oltra.

Rights and permissions

Reprints and permissions

About this article

Cite this article

Oltra, V., Bonache, J. & Brewster, C. A New Framework for Understanding Inequalities Between Expatriates and Host Country Nationals. J Bus Ethics 115, 291–310 (2013). https://doi.org/10.1007/s10551-012-1397-0

Download citation

  • Received:

  • Accepted:

  • Published:

  • Issue Date:

  • DOI: https://doi.org/10.1007/s10551-012-1397-0

Keywords

Search

Navigation