Introduction
Today, businesses need to keep track of global events to inform their decision-making. There is a wide range of emerging economic, environmental, geopolitical, societal, and technological global risks that shape the business environment. One of them is involuntary human migration that can be defined as coerced displacement of a person or a group of people from their home region. Dadush and Niebuhr (2016) write that forced migration flows are largely mismanaged on a global scale, which leads to profound negative political and economic externalities around the world.
According to Dadush and Niebuhr (2016), mass forced displacement in countries such as Syria, Iraq, Afghanistan, Eritrea, Somalia, and Mali is a human rights crisis of the first order. The causes for forced displacement are typically endemic: in the majority of the countries, these are military conflicts, civil wars, and political instability (Dadush & Niebuhr, 2016). The endemic nature of the crisis means that refugees and asylum-seekers are not likely to return to their home country any time soon.
Experts are only starting to realize the scale of international implications caused by involuntary migration. As explained by Dadush and Niebuhr (2016), there is a risk of political radicalization and instability in both the countries that refugees are fleeing and the countries that choose to accept them. Forced migration has a high likelihood of becoming a public health concern as a steady, overwhelming inflow of foreigners from emerging countries often means the spread of infectious diseases.
On top of that, the European Union might have to reconsider its visa-free Schengen zone policies to control the movement of those displaced by war, hunger, and conflict. While policy-makers are working on comprehensive legislation regarding the emerging crisis, businesses are forced to make sense of the complex realities on their own. This report describes the impact of involuntary migration on affected countries. It also addresses how the issue will pertain to the ethical decision-making of the organization and introduces a training plan to enhance corporate social responsibility.
Affected Countries
There are two types of forced migration: internal and external displacement. This report only takes into consideration external displacement – a situation when people are forced to flee their home country for another one. The narrowness of definition is explained by the need to emphasize the global impact of the selected issue. According to BBC News (2016), the top three countries where migrants are coming from are Syria, Afghanistan, and Iraq.
During the rise of the refugee crisis in 2015, the EU received 370,000, 170,000, and 120,000 first-time asylum applications from the three countries respectively. Although Germany had the most asylum applications in 2015 (567 per 100,000 people), Hungary ended up with the biggest relative share of refugees (1,800 per 100,000 people) due to its smaller size and modest population (BBC News, 2016).
Some experts say that the high inflow of displaced people from Asia and the Middle East pose a threat to Hungary’s economy. Hurst (2015) writes that despite being far from the main economic hub of the EU, in recent years, Hungary enjoyed stable economic growth and investor confidence. With the start of the refugee crisis, Hungarians raised concerns regarding investors’ attraction to the region. They also pointed out the economic growth rate that now lagged behind the regional average (Hurst, 2015).
On the other hand, as reported by Hurst (2015), the workforce in Hungary is contracting due to the declining birth rate and aging population. In this case, migrants might as well supply the country with work cadres. However, the hopes to strengthen the Hungarian workforce with skilled migrants might be futile. According to BBC News (2016), 90% of refugees use Hungary as a stepping stone to access the wealthier West. To recapitulate, the economic impact of involuntary migration on Hungary is ambiguous and have yet to manifest itself.
Germany is the country that welcomed the largest number of refugees and coordinated the EU’s efforts to manage the crisis. Between 2015 and 2016, the wealthiest country of the European Union took up the responsibility to house around 1.3 million people fleeing their countries amidst military conflicts (Trines, 2019). Five years from now, the heavy financial burden of this decision is inarguable. Besides, the presence of the refugees has struck a heated public debate and caused a political backlash against the ruling political party.
Many Germans were disappointed with Merkel’s politics, which, apparently, created a breeding ground for anti-EU populism. Soon the German political arena became highly polarized as the ruling party saw the rise of its unlikely opponent – the right-wing party Alternative for Germany (AFD). In 2019, the situation is still challenging, even though refugees are integrated into the German labor market better than ever before. Still, some 450,000 people are under- or unemployed, and finding decent opportunities for them is a herculean task due to their poor German language knowledge and lack of marketable skills (Trines, 2019).
As for countries outside the EU, probably, the nation that was most affected by the 2015 events was Turkey. As of 2017, the Syrian civil war displaced some 12 million people, with six of them seeking asylum outside the country. Turkey became their primary destination – either for resettlement or transition to wealthier, European countries. Altında ̆g, Bakis, and Rozo (2017) state that the initial waves of involuntary emigration from Syria started in the second half of 2011. Small groups of people continued to arrive until mid-2012. Yet, it was not until 2014 that the movement intensified, resulting in 3.1 million Syrians registering in Turkey under the governmental protection program.
Despite the criticism of the Turkish government in relation to refugee crisis management, it appears that the inflow of displaced migrants has had a moderately positive effect on the Turkish economy. Altında ̆g, Bakis, and Rozo (2017) show that refugee migration boosted business creation, especially those with foreign ownership.
The scholars explain that refugees must have been intending to permanently resettle after leaving Syria, which is why they were invested in building local businesses. Besides, they were also helping local firms by using their goods and services for resettlement, which most positively affected the construction sector. Yet, the effects are mostly confined to SMEs (small and medium enterprises) and informal businesses.
Ethical Decision-Making
Customers, business partners, and stakeholders appreciate honest, ethical, and transparent businesses. Business ethics have come into prominence in recent years due to the changing customer preferences. Shaverien (2018) writes that consumers under 30, most of whom belong to Generation Z, feel a stronger affiliation to companies that adhere to strict ethical standards. Apparently, a brand’s success in adopting corporate social responsibility translates into better sales.
According to Shaverien (2018), six out of ten young consumers do a background check before purchasing a company’s goods or services. Moreover, today’s customers believe in the importance of their voice. 71% of surveyed participants are convinced that they can impact a company’s practices through criticism on social media.
All in all, customers are repelled by unethical practices and attracted by brands that remember about the “triple bottom line.” Said triple bottom is an approach to business that emphasizes commitment to social, environmental (or ecological), and financial ends (Gonzalez-Padron, 2015). In the context of this report, the part of the framework that our company would be most interested in is social. Involuntary migrants suffer from having their lives uprooted, unemployment, and lack of marketable skills in a foreign country.
By helping them, big corporations not only change their lives for the better but also prevents the emerging crisis from escalating. Besides, migrants prove to be studious, diligent workers with a strong commitment to their goals and the goals of the company. Dadush and Nibehur (2016) claim that there is evidence that refugees adjust more rapidly than other categories of migrants – they work more hours and learn the language of the country faster.
Strong business ethics demonstrate that a company values fairness and equality. For this reason, ethical businesses have better chances at fruitful, mutually beneficial relationships with stakeholders as the former feel cared for and respected. One of the stepping stones toward building a socially responsible business is introducing an ethics program.
Such a decision would present plenty of benefits: it will create a common vision for the entire company, improve existing employees’ soft skills, and contribute to the positive brand image. However, the effects of business training tend not to last unless their immediate and long-term results are controlled. For this reason, it is important to conduct compliance auditing to make sure that the business ethics program reached its goals.
Training Plan for Ethical Considerations
Target Audience for the Present Program
The present training plan is intended for big corporations based in the countries that are directly affected by involuntary migration. The previous sections of this report discussed the situation in Germany, Hungary, and Turkey, but other European and Middle-Eastern economies could also benefit from adopting the plan.
It is assumed that those big corporations have outlets in regions that host a large number of refugees with high rates or under- and unemployment. Said companies are ready to hire more involuntary migrants and might have an apprenticeship/ career track ready. Besides, they understand the importance of diversity in the workplace and know that improving it will help them build an image of a virtuous, progressive company.
The Goals Of the Training Program
Therefore, the goals of the current training program is to create a favorable environment for diversity in the workplace. The long-term vision for the company includes becoming one of the best companies for minorities. Gompers and Kovvali (2018) opine that diversity improves a company’s internal culture and, as a result, attracts better talent. Finally, on a larger scale, the program is a stepping stone toward resolving the refugee crisis in the said countries by boosting newcomers’ integration.
The Objectives of the Training Program
The key objectives of the training program are:
- informing staff about the current situation on the national market, providing statistical data regarding the refugee crisis, and explaining its impact on businesses;
- outlining the benefits of increasing migrant employment and discussing what newcomers have to offer to businesses;
- conducting diversity training: learning the basics of intercultural communication, debunking hurtful stereotypes, and removing stigma;
- adjusting human resources management practices: finding ways to integrate the new agenda into HRM. Human resource management does not always know how to best evaluate foreigners’ skills and certifications, especially if the education system in their home region differs significantly from that in Germany, Hungary, or Turkey. The present objective seeks to bridge this gap and make hiring practices more robust.
The Learning Methods/Activities of the Training Program
What our company should avoid when conducting the training program is leaving the employees with the impression that they are being lectured without being given a voice on their own. To prevent such a situation, the main learning method should be problem-based learning that hinges on the assumption that students process information better if they are offered the vehicle to promote student-centered learning of rules, frameworks, and principles.
Apart from becoming more autonomous in handling information, students that are taught using the problem-based method have the opportunity to develop their communication skills as well. Therefore, the main activities of the training program will be case studies in small discussion groups. The training will be conducted in a series of sessions with presentations led by employees. If possible, local refugees and other migrants in the process of integration could be invited to share first-hand experience.
Evaluation and Auditing of the Training Program
The training will be evaluated based on the Kirkpatrick Taxonomy that consists of four key elements: reacting, learning, behavior, and result. Immediately after the training, a short survey can help to collect feedback and understand participants’ experiences. The survey shall identify where the conditions and expectations for learning were fully met. The presence of the second element, learning, is verified with quizzes or practical tests. Depending on how much time the company has at its disposal, the learning part might end in a presentation.
The third phase takes part after the training: the company might want to check whether employees adhere to the new code of ethics. Finally, the results will demonstrate whether the brand has achieved its diversity goals and become a more welcoming place for people of all walks of life. Ultimately, the training program will be audited by an external, independent auditor (Usnick & Usnick, 2013). He or she will ensure that the company follows its internal guidelines regarding the treatment of involuntary migrants in the workplace.
Key Findings
Involuntary migration is one of the major emerging global crises that businesses will have to reckon with. Millions of people worldwide are displaced from their home regions due to devastating events and unlivable conditions. Among the countries that are most affected by involuntary migration are Hungary, Germany, and Turkey.
The economic impact of the refugee inflow is ambiguous. On the one hand, it does fill in gaps in the workforce, but on the other hand, it might destabilize the political environment and repel investors. The proposed training program advises companies that have enough resources to help with involuntary migration as part of their corporate social responsibility. The training entails theoretical information and practical case studies that teach human resources management skills in the light of ongoing events.
References
Altindag, O., Bakis, O. and Rozo, S., 2019. Blessing or burden? the impact of refugees on businesses and the informal economy. The Impact of Refugees on Businesses and the Informal Economy, 1-20.
BBC News. (2016). Migrant crisis: Migration to Europe explained in seven charts. BBC. Web.
Dadush, U. & Niebuhr, M. (2016). The economic impact of forced migration. Web.
Gompers, P., & Kovvali, S. (2018). Diversity dividend. Harvard Business Review.
Gonzalez-Padron, T. (2015). Business ethics and social responsibility for managers. Web.
Hurst, G. (2015). Migration crisis poses a risk to Hungary’s economy. Institutional Investor. Web.
Shaverien, A. (2018). Consumers do care about retailers’ ethics and brand purpose, Accenture research finds. Forbes. Web.
Trines, S. (2019). The state of refugee integration in Germany in 2019. WENR. Web.
Usnick, L., & Usnick, R. (2013). Compliance program auditing: The growing need to insure that compliance programs themselves comply. Southern Law Journal, 23(2), 311-327.