Question

Provide 3 reason related why Motorola Corporate stakeholders may decide not to relocate in China?

One of the reason is worker welfare

Answer 1

Motorola’s corporate stakeholders (includes creditors, suppliers, unions, directors etc. ) are mostly based in USA and may decide not to relocate in China due to the following reasons:

1. Worker welfare – Labor laws are lax in China while they are quite stringent in USA. Any decision to relocate to China will adversely affect the welfare of Motorola’s workers in the long run.
2. Possibility of reduced levels of sustainability – Stakeholders are weary and cautious with regards to a tangible possibility that sustainability levels will be lower in China. This is because China is not a revolutionary power but a revisionist power.
3. Overall level of stakeholders’ interests and protection is likely to fall in China – China does not keenly accept global rules and standards with regards to business, corporate governance and management. As such stakeholders think that their interests will be hurt in China and hence they may decide not to relocate in China.