Outsourcing Ethics

604 WordsNov 6, 20133 Pages
As companies look for ways to strategically perform better in their respective industries many chose to outsource job functions. Outsourcing allows companies to grow and expand their business around the world. Many have attributed outsourcing to lowering operating costs, a method to increase expertise and gain additional technology, and as a way to improve efficiency and services. These advantages can help a company gain a competitive advantage over industry participants. When a company strategically plans to outsource ethical consideration must be acknowledged; especially when outsourcing is offshore. As a display of corporate citizenship a company must do their part to address ethical concerns related to this practice. Building a long…show more content…
I would show compassion to the employees of outsourced locations by acknowledging their relationship based cultures, those related to their families, ancestors, and communities. This helps build a trusting relationship and the quality of the service will increase as employees know that you care and don’t just view them as workers. Often time companies find themselves under strict regulations and scrutiny when they have misappropriated those regulations. Some companies have opted to outsource to avoid environmental regulations and fines in many locations. Another basic principle advises companies that plan to outsource to “seek to do no harm to the ecological systems of the world” regardless of what environmental regulations may not be in place in the location of choice for outsourcing. By making ethical choices as such help to build and protect the company’s image. It shows that they have good character in the decision that they make and how they impact the environment. Companies receive backlash from choosing to outsource job functions when it causes a reduction in their workforce from layoffs. It can be hard to justify layoffs in turn for cheaper labor when you are removing individuals from the workforce who have been loyal and dedicated to the company. Addressing potential unethical behaviors related to outsourcing before they are problematic is a way to protect the company and build a
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