1. International HR Executive Development Program CAHRS – September 30 – October 5, 2001 EXPATRIATES AND BEYOND Expatriate and Labor: Issues and Policy William R. Sheridan Senior Director National Foreign Trade Council 2 West 45 th Street Suite 1602 New York, NY 10036 T: 212/399-7128 F: 212/399-7144 wsheridan @nftc.org

2. Global Markets Citizenship and Sustainable Development CENTER FOR HR MANAGEMENT STUDIES Fairleigh Dickenson University December 14, 2001 William R. Sheridan Senior Director National Foreign Trade Council 2 West 45 th Street Suite 1602 New York, NY 10036 T: 212/399-7128 F: 212/399-7144 wsheridan @nftc.org

3. OVERVIEW The NFTC and global business issues The NFTC and global human resources management Sustainability Challenge Facing Corporations Expatriates: issues and trends Expatriate studies and surveys Expatriates as an investment Experiences and Learnings Role model employers Current studies Global labor: issues and trends NGOs vs. MNCs Q& A

4. The NFTC and Global Business Founded in 1915 Continues as advocate for open market access for cross-border investment trade 500 sponsors – all sectors of the economy Member companies are present throughout the world Current issues: Expansion of the NAFTA Trade with China/WTO Unilateral trade sanctions Tax treaties with Japan and the U.K. Bilateral social security totalization agreements Foreign service corporations Global talent management

5. The NFTC and Global Human Resources Management Global presence of member companies Relationship with U.S. Department of State and other U.S. and non-U.S. Government agencies Working committees and roundtables  Expatriate Management  Global Compensation  International Benefits  Asia Pacific  China  Latin America Global Human Resources Advisory Board In-Bound/Out-Bound Business Sponsored Immigration Issues Sourcing Global Talent (11E) Cost Management Coalition of HR Management Associations

6. SUSTAINABILITY “…To meet the needs of the present without compromising the ability of future generations to meet their own needs.” United Nations World Commission on Environment and Development (The Brundtland Commission), our Common Future, 1987

7. CORPORATE SUSTAINABILITY Company’s ability to achieve its business goals and increase long-term shareowner value by integrating economic, environmental and social opportunities into its business strategies. From participants of “Symposium on Sustainability – Profiles in Leadership” that took place in NYC in October

8. CHALLENGE FACING CORPORATIONS “Globalization and open markets are being challenged, climate change is creating a political transatlantic divide, innovation and technology are being questioned. All this is placing new demands on business for transparency and social responsibility. And as we prepare for the [UN] World Summit [on Sustainable Development] in 2002, it is ever more important for companies to show leadership and engage in partnerships to more faster toward sustainable development.” (Remarks on Sept. 5, 2001 by Bjorn Stigson, World Business Council for Sustainable Development president and International Herald Tribune.)

9. Studies and Surveys Financial Incentives Survey (1992) Dual-Career Couples (1994) Expatriate Selection (1994) Expatriate Management – Search for Best Practices (with Towers Perrin) (1994) Doing Business in China (with Towers Perrin) (1996) Global Managed Care (with Towers Perrin) (1997) Maximizing Your Expatriate Investment (with CIGNA International and World at Work) (2000, 2001)

10. Expatriates as an Investment Moving focus from Cost Management to Return on Investment Understand cost components Accounting firm cost accounting/forecasting software Six Sigma process management Difficulty with measuring “Before/After” impact End-to-end process Better selection, preparation, mentoring and repatriation Need to connect to career planning Cost of ineffective planning/utilization

11. Expatriates: Issues and Trends Expansion into new, “foreign”, markets Technology/Knowledge Transfers Talent development Resistance to relocation Diversification of expatriate population/assignments Dual-career couples Demographic/Geographic challenges Cost management Process management – use of technology Trends – increase in “short-term” assignments

12. Experiences and Learnings Causes for failed assignments Costs of failed assignments (financial, personal, business opportunity) Preventative measures Life experience Expatriate Management Committee Not rocket science Communications/expectations setting Use of technology

13. Role Model Employers Armstrong World Industries -- Selection ABN-AMRO -- Mentoring Abbott Laboratories – Career Planning Black & Decker -- Communications Chevron -- Intranet Chubb & Son -- Repatriation Citibank – Dual Careers Colgate-Palmolive –Vendor Management Ford – Process Management GE – Six Sigma IBM -- Intranet Intel – Intranet/Vendor Management JP Morgan/Chase Bank – Cost Management Merrill Lynch – Process Management Morgan Stanley – Cost/Vendor Management Motorola -- Selection Nokia – Family Support Nortel -- Selection PepsiCo – Process Management P&G – Use of Technology Philip Morris International -- mentoring Shell – Family Support Solar Turbines (Caterpillar) -- Selection 3M -- Repatriation Texas Instruments – Crisis Management Unilever – Career Management Xerox – Process Management

14. Current Studies Annual Global Relocation Trends  Impact of economic downturn on number/type of assignments Women expatriates – career management issues Metrics of success Relationship of cross-cultural preparation and business/assignment success

15. Global Labor: Issues and Trends Shift of manufacturing to low cost locations Rising expectations – global media European Works Councils Cross-Border HRIS – Data Flow Demographics in North America, Western Europe and Japan Immigration – Resurgence of labor organization Left-Behinds “Gray Dawn” Corporate Citizenship and the Internet

16. NGOs vs. MNCs Managing “challenges” across the globe (Coca-Cola and Greenpeace) Use/abuse of Internet The costs of being “good” global corporate citizens Internet training needs and processes

17. Questions and Answers