This lesson is a review of the Bayer Crop Science case and the decision model they made in coming to their conclusion. [MUSIC] Welcome. In this module we're going to discuss the topic in Rome should we do as the Romans do? That is, how should companies and managers operate in foreign countries when the morals and the values and the culture are quite different from their own. Should they continue doing things the way they always have done them, or should they adapt to this different culture? And we're going to discuss the case, it's a Motorola case, what price safety. But before we do that, we're going to take one last review of the Bayer Crop Science case, which was in our last module. If you remember the Bayer Crop Science case, it looked like an either/or dilemma. Either Bayer accepts the Indian customs of child labor, which is throughout all of these small farms throughout the country, or it pulls out. Which would make its employees happy, although it might make its shareholders a little uneasy. And Bayer really needs those cotton seeds and these are the best cotton seeds in the world. So if you do a stakeholder analysis, we had to the weigh the question of increasing shareholder value versus child labor, which many of you will find abhorrent. These are little children. And then we measure that against ancient community customs. This has been going on for we don't know how long, thousands of years maybe. And it's just thought of as, quote, normal, unquote. Those are the kinds of issues Bayer itself had to wrestle with. And then there's an issue here of relativism. Should Bayer go along with the Indian custom and accept the rural practices? So how should Bayer, what should Bayer do in this case? Now, Bayer rejected, thought about this, by the way, a very long time, and consulted their employees, their managers, all over the world. And they decided they weren't going to accept the either/or dilemma. They weren't going to accept the Indian custom of child labor, and they weren't going to pull out because they wanted those cotton seeds, and they wanted to work with those farms. So they weighed the value of the children and their stakeholder value. And their own mission and the need for the cotton seeds. So all those were important, so what did they do? Very interesting, they worked with each village and with each farmer and explaining the importance of education for their children. Because their children would do better if they were educated. And they also then gave them extra funds to hire adults and guess what? The farmers found out the adults were actually better than the children. Yes, that's really true. And so it offered premiums to the farmers for not employing children. At the same time, while demonstrating the increase of productivity of the farms it also employed an Indian non-government organization that ran schools to come in and give special education to these children. Because these children, because they weren't in school, couldn't go to the government school because they were so far behind. So they got them up to snuff so they could all go to government school. Now, what's wonderful is almost all child labor in the Bayer Crop Science farms has been eliminated. And they set up a model that the Indian governments in these various states are beginning to look at and see how important it is for all of India. >> [MUSIC]