Multi-National M&A Successes & Failures – a CSR (or ESG) Lens

Corporate Social Responsibility versus Environmental, Social, and Corporate Governance
By:  Admin SHERPA On November 4, 2021 [addtoany]

During this series, I will discuss Mergers and Acquisitions in a Global Marketplace and the Heightened Need for Corporate Social Responsibility (CSR) or Environmental – Social – Governance (ESG) Awareness.

I will cover numerous topics which impinge on M&A from a people-first perspective, some of which include:

  • The differences between CSR and ESG at a high level, and insights into why organizations migrate towards ESG.
  • Cultural issues such as mores, gender, diversity, equity, inclusion, unspoken nuances, holidays, religion, taboos, levels of formality, personal space, MeToo in a global context, and the concepts of castes and classes.
  • Size disparities of firms in the acquisition or merger. What is prominent in one country is small in another. Is it an acquisition? Is it a merger? What’s the difference? No matter the firm’s size, concepts such as name recognition or company colors and branding can be essential for continued success.
  • Larger firms acquiring smaller firms. Respect for stakeholder interests and preserving the best of the organization you are acquiring. Strategy goes beyond the initial acquisition. A strategic approach also includes researching what a smaller organization has to offer aside from the obvious. Maybe, they have a process, policy, or system that might work for the overall larger organization. Processes, policies, or systems can be applied in both directions. Look for the wins!
  • Micro, small, and medium enterprises (MSMEs) being approached for acquisition and the pros and cons to consider. Can your culture be preserved, and what makes your organization special?
  • Dealing with redundancies. Planning reductions-in-force (RIFs) humanely and by law based on location. Notice periods, leave statuses, and numerous other factors may have an impact on the approach.
  • Compensation, benefits, and perks. There are variances by country and, often, by area within a country regarding pay structure, currency, benefits, leaves of absences, expected perks, and more. This topic is an ever-changing landscape.
  • Technology enablers and speedbumps. Technology is fantastic when it works as anticipated … and when people know how to use it. Some people are not tech-savvy, while others have not had the opportunity to hone their skills.
  • Terminology – exploring verbiage that can kill or build culture and relationships. Moving from “Us and Them” to “We” may be one of the most significant challenges with mergers and acquisitions. Getting to the “We” or “One Team” mentality as quickly as possible can reduce the friction between multiple organizations in the process of becoming one and, perhaps, align competing priorities.

 

Come along with me to explore Multi-National M&A Successes and Failures through a CSR / ESG lens. I’d love to have you participate by commenting below, mentioning your examples, asking questions, or adding insights.  Also, please follow, share on social media, and stay tuned for my next article.

Copyright 2021 B. Howell and SHERPA Institute. All rights reserved – please cite and link to this web page.

 

 

 

 

 

 

 

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