Introduction
Multinational companies especially those dealing with natural resources are often compelled to operate in several places of the world. It is vital to note that the inputs needed by firms can sometimes be found in very interior places and in countries far from the host country. Unfortunately, in places where the minerals and other vital resources are found abundantly criminal groups have sprung up.
In some places, these groups are well organized and have taken control of the resources as their main income earning activity. Consequently, these areas become highly risky to operate in especially for big companies which are known to be financially stable.
Should Firms Venture into Risky Areas
Usually, multinational firms find themselves in situations where they have to choose whether to invest in some areas or not. Terramundo Drilling incorporation chose to involve itself in drilling of diamond in Columbia an area known to be under the control of Revolutionary Armed Forces of Columbia (FARC).
It should be noted that it is upon any firm to ensure that enough care is taken regarding the security of a place to invest. Investing in a place where kidnapping is the order of the day is not such a good idea. To begin with, the amount of money that can be requested by the kidnappers may sometimes be too high for the firm thus leading to increase min operational costs. Terramundo did not make a wise decision to invest in a place where they knew exactly what to expect.
Additionally, it is quite impossible to determine what the kidnappers may demand when they hold somebody hostage. Therefore, Terramundo would not purport to have done research and thus new with certainty the turn of events. On the same note, there is a possibility of people being killed when the deal with kidnapers goes wrong. Consequently, investing in a place with a lot of kidnapping and guerilla activities is certainly not a good decision.
What Employers Should Do if Employees Are Kidnapped
Kidnappers are in their business solely for money. They therefore will not hesitate to hold hostage anybody from whom they will be assured of high sum of money. Consequently, when an employee has been kidnapped management should ensure that they seek for services of experts.
Similarly, high ranking managers are highly discouraged from involving themselves directly in negotiations with the kidnappers. In this regard, Reinhart did not act wisely by personally taking the ransom to the kidnappers. It is understandable that any employer should be concerned with the welfare of his or her employees. However, Reinhart presenting himself to the kidnappers was wrong because kidnappers are always concerned with how they can increase their bargaining power.
Reinhart would have chosen to involve the services of a professional who has information on how to deal with kidnappers. Similarly, he would have used different modes of communication to negotiate with the kidnappers and then send a different person to deliver the ransom. He would have also involved the police who would have known what to do. However, it has been rumored that involving the police reduces the chances of the captive making it alive.
Protection to International Assignees
It is upon international firms especially those operating in risky areas to protect their employee against any perceived danger. It is quite difficult for any firm to accurately guess the amount of money that will be enough to cover for ransoms and keep it a side. Fortunately, insurance firms have come up with a kidnap and ransom insurance coverage. These type of insurance covers the employee incase the kidnappers ask for any amount of ransom. On the same note, the insurance firm has expatriates in negotiations who handle the issue.
On the other hand, firms operating in risky areas need to train their employees on how to handle themselves in those areas. Human resource management should put in place programs designed to educate their international assignees on how to adjust to the cultural and political climate of their host countries.
Additionally, the employees should be informed on the expected behavior incase they are kidnapped. On the same note, the employees need to be aware of the duration it can take to secure their freedom and the measure the company will take in the event when there is a kidnap.
Workplace Support for Employees
Gone are the days when only foreigners used to be victims of kidnaps. Nowadays, even the locals are targeted by kidnappers provided they work for a reputable firm. Therefore both home-country and host-country employees should be accorded the same kind of support regarding their safety.
It is important to note that life is life and whether it is a foreigner or a local kidnapped they both face the same risk. Though many people will argue that foreigners are highly susceptible because they are thought to be rich, it is also quite easy to know a local who is earning more. As shown from the Reinhart case, the majority of people kidnapped were mainly locals.