Ethics of Outsourcing Essay

1500 Words6 Pages
Ethics of Outsourcing What is ethics and how is it related to today's world of business? Merriam-Webster's Online Dictionary defines ethics as "the discipline dealing with what is good and bad with moral duty and obligation." In today's globalized society, it seems as though monetary profits are valued higher than making ethical decisions. Outsourcing has become an unavoidable result of globalization. From General Motors to IBM, we can experience the effect of outsourcing in many different sectors of our lives. Outsourcing has brought many economic advantages, and it has greatly enhanced productivity and growth of industries across countries. However, despite such benefits, outsourcing also generated a variety of social, political,…show more content…
Among many of the multi-national corporations, IBM has been one of the pioneers of outsourcing in the IT industry. William M. Bulkeley (2004) explains in the article "New IBM Jobs Can Mean Fewer Jobs Elsewhere," that IBM purchased Daksh eService in 2004 to absorb 6,000 Daksh employees to expand IBM's India-based workforce. Truthfully speaking, the primary goal of most multi-national corporations is to acquire financial benefit. For that matter, thousands of US workers replaced to cheaper laborers in China or India help the outsourcers to reduce the manufacturing costs. However, the ethical issue springs from the fact that not everybody benefits from the offshore outsourcing. The estimated 200,000 service jobs shipped abroad means the extensive number of US workers who lost their livelihood. Although outsourcing has become a fast developed trend around the world, it became a threat to American workers. However, in business, the ethical issues are often neglected to create economic gains. After all, international business has opened huge markets for the United States products and has provided customers with new and cheaper goods. Bulkeley (2004) argues that IBM engrosses about $15 billion a year from outsourcing, which is 17% of the total revenue. With the advancement in shipping and telecommunications, it is easier than ever before to sell products and services across the world. If
Open Document