International and Comparative HRM: BHL6002

oursework Two: Case Study Information
Kenworth Hotels
You are the HR Manager of ?Phoenix Hotels?, a UK based chain of boutique hotels with a head office based in Bath. The CEO, Michael Kenworth, started the business 20 years ago by buying a large run-down guesthouse in his home town and has since developed the company into a chain of seven hotels in the UK. Kenworth Hotels are considered to be up-market accommodation, each property having a small spa and restaurant with a common a la carte menu offered at a reasonable price. The hotels are typically situated in rural locations and tend to attract guests who are primarily leisure travelers seeking a relaxed intimate atmosphere and quality service. The hotel chain prides itself on offering a quality product and excellent customer service.
Michael Kenworth is the head of the organization and there are three further family members on the board of directors. Although the organization has grown over the years the culture is still very much that of a family-run business with Michael Kenworth viewed by staff as a somewhat strict but fair ?father figure?. However, although decisions are made centrally management prides itself on its commitment to employee participation and involvement. Staff at all levels are encouraged to put forward their views and suggestions, and monthly ?team circles? are held in each hotel where groups come together to discuss operational and quality issues. The organization also has a firm commitment to equitable HR policies and as such the same (or similar) practices are adopted in every hotel wherever possible. The organization employs a relatively diverse workforce, and although salaries are no more than average for the sector (for example a hotel manager earns ?45,000 per annum) there is an emphasis on continuing professional development and consequently the organization offers generous training and development opportunities.
Kenworth Hotels have enjoyed a successful and profitable year and have recently acquired a rural hotel in southern Spain which they wish to add to the chain as their first overseas operation, with a view to developing the hotel chain further in the overseas market as a long term strategy. Most of the local staff will be remaining at the hotel but Michael Kenworth and his senior management team wishes to recruit a hotel manager from their UK staff base, in order to ensure familiarity with the organization?s operational procedures and values. The position will be advertised internally to staff who are currently employed in a supervisory or deputy management role and thus the successful candidate will be effectively offered a promotion upon accepting the assignment. He or she will be expected to lead the changeover of the new hotel over a six week period and then sign a twelve month contract as hotel manager. This is a very important position as the success (or not) of the hotel will
have a direct bearing on whether Kenworth Hotels decide to acquire other hotels in Spain or other European countries (and possibly further afield). Upon returning from the assignment the successful candidate will be offered a management position in the UK commensurate with his/her new skills, experience and knowledge base. In terms of reward, the average salary for a hotel manager in Spain is ?30,000 which it is noted is significantly less than the UK salary he/she would enjoy. Michael Kenworth and the senior management team are looking for a consistent approach to rewards (for reasons of equity and to ensure that there is sufficient incentive to work overseas) and also want to see a range of incentives offered over and above base pay as long as such incentives are appropriate to the circumstances of the position.
Finally, the new overseas hotel is in a rural area of southern Spain but within travelling distance of coastal tourist resorts and thus attracts a number of tourists (predominately British and German). There is a lively expat community living in the region and a local school (the private international school is situated ten miles away). The level of English language proficiency amongst the locals is fair but not as advanced as within the coastal resorts. The supervisory teams who are remaining at the hotel speak a good standard of English but the general staff are less proficient. Medical facilities and transport links in the region are very good, and crime is low relative to the more developed towns and resorts in the area.
As HR Manager of Kenworth Hotels you are responsible for devising an appropriate recruitment and selection, training and development, and rewards strategy for the role of Hotel Manager on assignment to the new hotel situated in southern Spain.
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BHL6002 2013-14
Coursework Two: Guidance Notes
? The report must be 3,000 words in length.
? The assessment is in report format and should be structured with appropriate headings and sub-headings. The report should include a contents page and if necessary, appendices.
? The weighting between parts (i) (ii) and (iii) is as follows:
o Part (i) – 25%
o Part (ii) – 25%
o Part (iii) – 50%
? Therefore parts (i) and (ii) should be approximately 600 words. Part (iii) should be approximately 1200 words (400 words each for recruitment and selection, training and development, pay and reward). The remaining 600 words should comprise of an introduction of approximately 200 words and summary/conclusion of 400 words.
? Please note that your references and any appendices you chose to include will be marked but are NOT included in the overall word count.
? The report is written in your capacity as HR Manager at Kenworth Hotels, and is written for the attention of the MD, Michael Kenworth and his senior management team.
? Part (i)
? In this section of the report you should outline the issue with regard to globalization and equity, in that international business operations may result in inequitable and unethical practices. This necessitates the requirement for ethical practice and a floor of global labour standards through the objectives and mechanisms of the ILO. You should demonstrate how international firms can assist in these aims through their codes of conduct and CSR strategies.
? Part (ii)
o With regard to MNC strategy and structure, you should demonstrate your understanding of the three main types of strategy (multinational, global or transnational) and how each strategy results in different types of structure and HR practice. You should also demonstrate your understanding of how strategies are determined by the balance between the competing pressures to achieve strategic integration, local responsiveness and global innovation facing MNC?s. This can result in HR practices either converging or diverging, which in turn necessitates an explanation of how the extent of differentiation or convergence is influenced by three levels of analysis: global effects, local/national effects and organisational effects.
? Part (iii)
o In this section of the report you should design a recruitment and selection, training and development, and a pay and reward strategy appropriate for the position of Hotel Manager at the overseas subsidiary of Kenworth Hotels.
o You should identify the significance of using expatriate managers and the importance of adopting a strategic approach to this process.
o You should identify the key skills, knowledge and characteristics required based on an analysis of the person required, the circumstances of the position and the company itself
o You should devise and appropriate and relevant training and development strategy for the position.
o The training and development component of the strategy should include detail on specific courses/programmes on:
 Leadership competencies ? the?hard? and ?soft? skills required for the position
 Cross-cultural awareness training requirements
o You should also devise a pay and reward strategy suitable for the position.
o The pay and reward strategy should include components on:
 Pay ? base and variable/contingent. A rationale should be provided on how the pay should be calculated (i.e. balance sheet or market rate approach) and how total pay is allocated between base pay or variable/contingent pay.
 Allowances – cost of living (COLA), housing, cars, hardship;
 Benefits – pensions, welfare schemes, holidays or respite leave, company car;
 non-financial benefits – career development planning, opportunities for advancement; intrinsic motivators; cross-cultural awareness training.
? The report should be appropriately referenced using Harvard referencing, and a reference list provided at the end of the report. Do not include books in the list unless you have referenced them in the body of the coursework.
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International and Comparative HRM BHL6002
2013-14
Coursework Two: Information, Assessment and Marking Criteria
Report (3,000 words)
As HR Manager at Kenworth Hotels, prepare a report to the senior management team to include the following:
Introduction and Terms of Reference 200 words
Part (i) 600 words
? Explain how international companies, alongside other international bodies, have a role to play in achieving greater equity and improved labour standards globally, including the use of codes of conduct. This brief will inform the firm’s approach to CSR (corporate social responsibility) as it begins its process of internationalisation.
Part (ii) 600 words
? Discuss how the need to balance both local and global requirements will impact upon the choice of strategy and structure adopted by Kenworth Hotels as it internationalises, and in turn how this will influence the HR policies and practices adopted in the new subsidiary.
Part (iii) 1200 words
? Devise a strategy for the recruitment and selection, training and development, and pay and reward of the new role of Hotel Manager in the subsidiary hotel. Explain the importance of adopting a strategic approach to this process and how this might be achieved in practice.
Summary/Conclusion 400 words
Submission Details:
? The deadline for submission into the i-zone is Wednesday 30th April 2014.
? Provisional coursework results will be available from Monday 16th June 2014.
Assessment Learning Outcomes (mapped to module descriptor):
? Discuss the conceptual problems of both comparative and international analysis of organisational HR practices and national employment systems
? Critically evaluate the convergence-divergence debate, identifying the main issues and theories relating to globalisation and the internationalisation of the firm.
? Compare and contrast the different strategies and structures of multinational corporations including international management recruitment, training and reward strategies
Key Skills: The key skills addressed through this assessment are communication, numeracy, technology, learning and study, problem solving.
IMPORTANT: Students should refer to the assessment criteria and marking criteria provided below in relation to this assessment.
Assessment Criteria
Students will be marked according to the following assessment criteria:
? The student should demonstrate relevant knowledge and understanding of the requirements for global labour standards and the mechanisms that can be employed to help achieve this, with particular reference to the ILO and MNC’s codes of conduct.
? The student should demonstrate relevant knowledge and understanding of how the competing tensions faced by MNC?s between integration and local responsiveness impact upon HR policies and practices.
? The student should demonstrate the ability to identify the key components of an effective total reward strategy given the specific organizational context outlined in the case study.
? The student should devise an appropriate recruitment and selection strategy, and training and development strategy for the specific international management assignment as outlined in the case study.
? The student should demonstrate the ability to apply their knowledge of key facts and theories to the practical organizational context outlined in the case study.
? The student should demonstrate the ability to carry out relevant research to evidence their report. This should include the correct use of referencing throughout the report.
? The report should be appropriately structured and presented.
Marking Criteria
IMPORTANT: Students must satisfy themselves as to the assessment criteria and academic standards required to achieve certain grades as outlined above. It is the student?s responsibility to seek clarification on any of these matters prior to submitting their coursework.
Students will be awarded their grade based upon the academic standards outlined below:
Grade A 80+
? As 70+ criteria but in addition answer demonstrates an excellent understanding of the question and the complexity of the issues involved relating to parts 1 and 2.
? Evidence of creativity and wide reading beyond core subject matter.
Grade A 70-79
? Comprehensive and accurate account of the issues relating to parts (i) (ii) and (iii).
? Very good analysis and evaluation of:
i. the relationship between MNC strategy and HR policies and practices;
ii. the role of the ILO and MNC’s in achieving greater equity and labour standards globally; and
iii. adopting a strategic approach to recruitment and selection, training and development and pay and reward.
? Very good application of factual knowledge and/or application of theories/models to the practical situation of the case study organization.
? Clear evidence of wide reading and well-referenced.
? No significant omissions or errors.
? Very well written and structured.
Grade B 60-69
? Clear understanding of the question and includes the most pertinent issues relating to parts (i) (ii) and (iii).
? Good analysis and evaluation of:
i. the relationship between MNC strategy and HR policies and practices;
ii. the role of the ILO and MNC’s in achieving greater equity and labour standards globally; and
iii. adopting a strategic approach to recruitment and selection, training and development and pay and reward.
? Good application of factual knowledge and/or application of theories/models to the practical situation of the case study organization.
? Evidence of extra reading beyond lecture material.
? Few significant errors or omissions
? Well written and structured.
Grade C 50-59
? Answer demonstrates understanding of the basic issues with regard to
parts (i) (ii) and (iii).
? Reasonable attempt at analysis and evaluation of:
iv. the relationship between MNC strategy and HR policies and practices;
v. the role of the ILO and MNC’s in achieving greater equity and labour standards globally; and
vi. adopting a strategic approach to recruitment and selection, training and development and pay and reward.
? Basic application of factual knowledge and/or application of theories/models to the practical situation of the case study organization.
? Report aimed primarily at the level of available lecture and seminar material.
? Some significant errors or omissions.
? Material appropriate and logically structured.
Grade D/E 35-49
To obtain a D grade (i.e. a ?pass? mark 40-49):
? (i) The answer will demonstrate an understanding of the basic issues and some evidence that appropriate material has been selected.*see note below
? (ii) The answer may follow a logical structure with the overall framework sensible.*see note below
However, an answer afforded a D/E grade will also demonstrate to varying degrees:
? No evidence of extra reading
? No evidence of evaluation or analysis of the issues
? Significant errors or omissions
? Poor planning
*Note: If the answer does not meet criteria (i) and (ii) to an adequate standard the student will instead be awarded a higher E grade (i.e. 35-39)
Grade E/F 1-34
An answer afforded a lower E (30-34) or F grade will demonstrate to varying degrees:
? Significant errors and omissions present throughout
? Poorly structured and written
? Little or no understanding of the question
? Little or no relevance to the question
? Inadequate material presented

 
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Report Planning

Assignment 1: Report Plan – Stage One 30%
Due Date: Tuesday 1st April. Assignment 1 is to be submitted by 5:30pm Tuesday 1
st April
to the electronic drop box labelled Assignment 1 in Learn Online (Moodle).
Length: Maximum 10 pages (Double line spacing with 12 point Times Roman font)
including all diagrams, tables and references.
Value: 30%
Topic/s: Report Planning: A major international business enterprise. This stage of the
project requires you to select a major international business enterprise and
examine its experience in the light of the concepts and theories introduced in
the early part of this unit (i.e. Chapters 1, 2, 3, 4, 6, 7 and 8) of the text by
Cavusgil et. al. These chapters cover foundation concepts and selected aspects
of the environment of international business studies.
Details: The task is to create a Report Plan as a way of building your research skills by
adopting a systematic approach to the task. This involves library and electronic
database searching, description and evaluation of a range of sources, brief
summaries of material, analysis of the significance of data sources and steps
that will help you clarify and define the main issues relevant to the company
that you select.
This exercise will allow you to use your research sources to develop a viable
plan for research for the Project Report. (The skills learnt here should be
transferable to all other units you study).
You MUST NOT write an essay for this stage of the assignment; brief notes
are appropriate. You need to develop your research skills so that you can
construct a research plan and creates notes that explain how the material in the
listed chapters can be used to understand the experience of and challenges
facing your selected company.
Following these steps should help you complete Assignment One. Listed here
as A-F for your convenience.
A. Identify a major international business enterprise
Use the library data bases to be sure that you will be able to access and
understand the materials you require for the project. You will need to consider
several companies before making a final choice. A crucial consideration in your
choice will be the extent to which the company chosen allows you to explore its
experience using the concepts of this unit.
• Explain why you have chosen this company? Some factors that might
influence your choice are:
• A firm’s role in the global pattern of trade
• Comparative and competitive advantage as they apply to the firm
• Does its activity represent some aspect of New Trade Theory? If so
examine the implications of such theory for its pattern of international
businesses.
• Theories of Foreign Direct Investment and the Eclectic Paradigm
• Does the firm represent an example of the Stages Models of
Internationalisation?
• Its organisational form
• Effects of and implications of culture, legal and economic systems in
the countries in which the firm operates.
• And other concepts or ideas from the relevant chapters of the Cavusgil
et. al. text.
Once you have settled on a company you should list the main issues that are
pertinent to this company and offer examples to illustrate. The emphasis that
you give to international business concepts will be depend upon the relevance
of each to the company that you have chosen. You need use your judgement
here and that judgment needs to be informed by careful reading of the text and
selected journal articles.
B. Search Library Catalogues
Consult a range of catalogues including University of Canberra and the
National Library of Australia (NLA). Data bases such as those for journals and
companies (e.g. Global Mint). These will contain books and articles relevant to your chosen company and the generic international business issues that
confront that company.
C. Use quality items published on the internet:
Find some sources that meet these criteria
• It is authoritative
• The site is clear about its own sources and reliability
• It is up to date or provide material that most likely not been published
in other formats (e.g. refereed journals)
D. Statistics and secondary data used to illustrate your argument.
Look for suitable statistics and data to include in your report. Show the reader a
few examples of the types of evidence you will use in your Report. Cite the
sources and availability of the data, and show how you might compile and
display it. A summary table you have constructed or a diagram that richly
illustrates main points in your research would be ideal.
E. Progress so far – time to pause and reflect.
Reflect and carefully evaluate your progress. Have you covered all the points
adequately and do are you beginning to form a thesis or main line of argument
for your Project Report? Check that you have used the theory of the early part
of the unit to examine key issues confronting your company.
F. Plan for the Project Report
Now as the final step for the this Assignment One construct a plan with section
headings, sub-headings, bullet points or phrases and short paragraphs that
reflect your development of the report and your line of argument up to this
point. It needs to be more than a list of points; the reader should be able to
discern clearly your line of argument from your plan.
An assessment evaluation sheet will be provided on the Moodle site. Read it for
guidance on the presentation of your work. Check you have covered all the
points in this sheet before you hand in the assignment.
Take care to use correct citation methods: use Harvard Author/Date (Check the
UC library site for full information on these methods).

 
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Report Planning

Assignment 1: Report Plan – Stage One 30%
Due Date: Tuesday 1st April. Assignment 1 is to be submitted by 5:30pm Tuesday 1
st April
to the electronic drop box labelled Assignment 1 in Learn Online (Moodle).
Length: Maximum 10 pages (Double line spacing with 12 point Times Roman font)
including all diagrams, tables and references.
Value: 30%
Topic/s: Report Planning: A major international business enterprise. This stage of the
project requires you to select a major international business enterprise and
examine its experience in the light of the concepts and theories introduced in
the early part of this unit (i.e. Chapters 1, 2, 3, 4, 6, 7 and 8) of the text by
Cavusgil et. al. These chapters cover foundation concepts and selected aspects
of the environment of international business studies.
Details: The task is to create a Report Plan as a way of building your research skills by
adopting a systematic approach to the task. This involves library and electronic
database searching, description and evaluation of a range of sources, brief
summaries of material, analysis of the significance of data sources and steps
that will help you clarify and define the main issues relevant to the company
that you select.
This exercise will allow you to use your research sources to develop a viable
plan for research for the Project Report. (The skills learnt here should be
transferable to all other units you study).
You MUST NOT write an essay for this stage of the assignment; brief notes
are appropriate. You need to develop your research skills so that you can
construct a research plan and creates notes that explain how the material in the
listed chapters can be used to understand the experience of and challenges
facing your selected company.
Following these steps should help you complete Assignment One. Listed here
as A-F for your convenience.
A. Identify a major international business enterprise
Use the library data bases to be sure that you will be able to access and
understand the materials you require for the project. You will need to consider
several companies before making a final choice. A crucial consideration in your
choice will be the extent to which the company chosen allows you to explore its
experience using the concepts of this unit.
• Explain why you have chosen this company? Some factors that might
influence your choice are:
• A firm’s role in the global pattern of trade
• Comparative and competitive advantage as they apply to the firm
• Does its activity represent some aspect of New Trade Theory? If so
examine the implications of such theory for its pattern of international
businesses.
• Theories of Foreign Direct Investment and the Eclectic Paradigm
• Does the firm represent an example of the Stages Models of
Internationalisation?
• Its organisational form
• Effects of and implications of culture, legal and economic systems in
the countries in which the firm operates.
• And other concepts or ideas from the relevant chapters of the Cavusgil
et. al. text.
Once you have settled on a company you should list the main issues that are
pertinent to this company and offer examples to illustrate. The emphasis that
you give to international business concepts will be depend upon the relevance
of each to the company that you have chosen. You need use your judgement
here and that judgment needs to be informed by careful reading of the text and
selected journal articles.
B. Search Library Catalogues
Consult a range of catalogues including University of Canberra and the
National Library of Australia (NLA). Data bases such as those for journals and
companies (e.g. Global Mint). These will contain books and articles relevant to your chosen company and the generic international business issues that
confront that company.
C. Use quality items published on the internet:
Find some sources that meet these criteria
• It is authoritative
• The site is clear about its own sources and reliability
• It is up to date or provide material that most likely not been published
in other formats (e.g. refereed journals)
D. Statistics and secondary data used to illustrate your argument.
Look for suitable statistics and data to include in your report. Show the reader a
few examples of the types of evidence you will use in your Report. Cite the
sources and availability of the data, and show how you might compile and
display it. A summary table you have constructed or a diagram that richly
illustrates main points in your research would be ideal.
E. Progress so far – time to pause and reflect.
Reflect and carefully evaluate your progress. Have you covered all the points
adequately and do are you beginning to form a thesis or main line of argument
for your Project Report? Check that you have used the theory of the early part
of the unit to examine key issues confronting your company.
F. Plan for the Project Report
Now as the final step for the this Assignment One construct a plan with section
headings, sub-headings, bullet points or phrases and short paragraphs that
reflect your development of the report and your line of argument up to this
point. It needs to be more than a list of points; the reader should be able to
discern clearly your line of argument from your plan.
An assessment evaluation sheet will be provided on the Moodle site. Read it for
guidance on the presentation of your work. Check you have covered all the
points in this sheet before you hand in the assignment.
Take care to use correct citation methods: use Harvard Author/Date (Check the
UC library site for full information on these methods).
Assignment 1 Marking Rubric
Criteria    Weight
The extent to which the chosen company allows you to explore content/relevant theories covered in the first half of the course. A small discussion (a few sentences) for each point. At least 8 points are expected.    /20
Relevant Books, Journal articles and reputable business magazines at least 3 of each, Referenced properly using Harvard style referencing and a small discussion under each as to their relevance.    /20
At least 3 internet sites Referenced properly with a small discussion under each as to its credibility.     /10
at least 2 sources of reliable data with a small discussion under each of the reliability of the data and its relevance     /10
A clear succinct insightful thesis.      /10
A logical report structure, headings and subheadings, covering key topics with word allocations for each. The degree to which the plan addresses the thesis.       /30


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Exploration of Business Ethics and CSR in the Saudi Arabian Context: Islamic Finance as an Ethical Alternative?

Topic: Exploration of Business Ethics and CSR in the Saudi Arabian Context: Islamic Finance as an Ethical Alternative?
Order Description
Hello .
I need your researcher to develop a new professional proposal by adding 3,025 words to the below firs draft proposal which already has been written .
The research proposal should comprise that four following components only .
1- Overview of the research.
2- A justification of the proposed study with articulated research objectives and research questions;
3- A review of the extant literature in the proposed field with clear identification of knowledge gaps.
4- A debate on the research methodology to be adopted and the rationale.
———————
*** please don’t write the following the tree components in this work :
1- working timetable for the project with well-defined milestones and possible research activities.
2- A discussion on original contributions that the proposed study is to make to the knowledgebase.
3- A bibliography .
————————————————————————————
The first draft of Proposal is :
Exploration of Business Ethics and CSR in the Saudi Arabian Context: Islamic Finance as an Ethical Alternative?
1. Rationale, Aims and Objectives:
This research will further understanding of the uptake, implementation and attitudes to CSR and business ethics in Saudi Arabia, with a specific concentration on the banking industry. Currently, banking provides a particularly interesting study for the modern scholar, as this dynamic sector encounters changes in Saudi Arabia and across the world. Traditionally, financial services were among the first and fastest sectors to take up Western–style business ethics, due in part to the influx of Western banking companies to Saudi Arabia, and also to the necessary legal and regulatory aspects of banking as an industry (Long, 2005). This at times created a tension between Western ethics, based on contractual and evidential understandings, and those of traditional Saudi society, which rely on more subtle codes of honour and agreement (Samovar et al., 2009). However, with the crisis in the banking industry, financial services are coming under increasing scrutiny and the question of whether and how business ethics, CSR and company policy and culture in banking can be improved is a current one. Islamic Finance has presented itself as an alternative model to the international system, which many perceive to have shown its weakness (Zubairu et al., 2012). This research will study the question of whether Islamic Finance does and can provide a viable and workable system of ethical business in Saudi Arabian banking, suggesting what obstacles need to be overcome and what strengths are in its favour.
2. Methodology:
I will answer the research questions identified above by undertaking both qualitative and quantitative research, data collection and analysis, as follows:
· Literature Review: The full dissertation will comprehensively reference and analyse the current field of studies on business ethics and CSR within organisations in Saudi Arabia. This will not only underpin and expand on the justifications for this research (presented below) but will also provide significant insight into the knowledge achieved by scholars in this area which any new scholar can benefit from. This review will also offer analysis of the available literature, of strengths and research gaps. Previous studies will present data and conclusions for context and cross-comparison.
· Case Studies: Case studies will look at the history, activity and ethically-based procedures and behaviours of four Saudi companies, and the place which CSR and business ethics is given within each. These case studies will provide important contextual information with which to draw conclusions when analysing the data resulting from more qualitative methods.
· Interviews: Key company employees will be invited to participate in semi-structured interviews. These interviews will assess the place of CSR and business ethics within the companies, employees’ awareness of and attitude towards these, and the extent to which the policies of companies are implemented and their objectives achieved. Interviews will be anonymous and transcripts will not be shared with participating companies, although examples and aggregate findings will be. Permission will be asked to record these interviews for research purposes.
· Questionnaires: These will be anonymous and only aggregate data will be shared with participating companies. Questions will seek to indicate what are considered by members of the organisation to be the benefits and problems of CSR and/or business ethics, and their adaptation within their own organisation. Questions will be structured in order to allow for numerical and comparative analysis and a certain amount of personal information will be asked for in order to allow demographic analysis.
3. Literature Review:
Until the international banking crisis much scholarly attention was given to the uptake of western business ethics and CSR practices in Saudi Arabia and to the dynamic between traditional ethical systems and those introduced by multi-national companies to the Middle East (Long, 2005; Samovar et al., 2009, Saudi Aramco, 2012). The presence of traditional Islamic Banking systems was seen largely as an aberration or a hangover from a previous time, which would gradually be phased out as integration and adoption progressed (Aggrawal, 2000).
Increasingly, literature has acknowledged the renewal of Islamic Finance, including its potential to become a viable system outside the Islamic world, essential for a global sector (Wilson, 2007, Chowdhury, 2008). In many ways it has been seen as providing an antidote to failed Western banking practices and its traditional and socially-based ethical systems are seen to have benefits for inclusive banking practices and for the availability of investment in emerging markets and SMEs, which are central to growth and a challenge to Western banking post-recession (Abou-Gamal et al. 2012).
However, scholars perceive that Islamic Banking has some drawbacks in practice, although these will likely shift and change as Islamic Financial practices grow and develop. In particular, transparency and reporting practices have been highlighted as issues, as have trends in organisational responsibility towards employees, contractual obligations, and investment decisions based on, for instance, environmental or global security concerns (Rima and Sarieddine, 2007; Zubairu et al., 2012; Reynolds, 2008). Until these obstacles are to some extent removed it is unlikely that Islamic banking will provide a mainstream alternative to Western banks on the international stage (Wilson, 2007). This dissertation will examine these obstacles and the ways in which they can be mitigated.
4. Resources, data and access
I will need access to a wide variety of scholarly secondary sources in books and journals, available through my University in both hard copy and online. I will also make use of analysis and comment articles in reputable newspapers and trade magazines in order to analyse the current attitudes and responses of the financial community towards business ethics and Islamic Banking in Saudi Arabia. These are more current sources of information than scholarly publications, although largely sources of opinion rather than of fact.
I will require access to four companies in the banking sector – two Western style banks and two Islamic banks. Discussions are on-goingwith several institutions to gain permission for this. I will be able to travel to Saudi Arabia and much of the data can be collected remotely.
References
Abou-Gabal, N., Asim I. Khwaja and Bailey Klinger, (2012), ‘Islamic Finance and Entrepreneurship: Challenges and Opportunities Ahead’, Paper presented at Tenth Harvard University Forum on Islamic Finance: Islamic Finance and Development, March 24-25, 2012, Harvard, MA.
Aggrawal, R. K., and T. Yousef, (2000), ‘Islamic Banks and Investment Financing’, Journal of Money, Credit and Banking 32(1), 93-120
Choudhury, M. A., (2001), ‘Islamic Venture Capital: A Critical Examination’, Journal of Economic Studies 28(1), 14-33
Haron, A., and M. Adli Musa, (2012),‘Recent Financial Crises, Islamic Business Ethics and Prudential Framework’, Paper presented at Tenth Harvard University Forum on Islamic Finance: Islamic Finance and Development, March 24-25, 2012, Harvard, MA.
Long, David E., (2005), Culture and Customs of Saudi Arabia, Greenwood Publishing.
Reynolds, M., and C.Yuthas, (2008), ‘Moral Discourse and Corporate Social Responsibility Reporting’, Journal of Business Ethics 78, 47-64
Rima, T. A., and Y. Sarieddine, (2007), ‘Challenges in implementing capital adequacyguidelines to Islamic banks’, Journal of Banking Regulation 9(1), 46-59
Samovar, Larry A., Richard E. Porter and Edwin R. McDaniel, (2009), Communication Between Cultures, Wadsworth Publishing.
Saudi Arabian Oil Company, (2012), Saudi Aramco Supplier Code of Conduct, SC0C1128.10
Wilson, R., (2007), ‘Islamic Finance in Europe’, RSCAS Policy Papers 02, 1-22.
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