The Ethical Issues Of Outsourcing Labor Essay - 2133 Words.
A major ethical debate involves outsourcing internationally, a practice that is growing in the United States. According to Investopedia, a website that defines business terms, outsourcing is “A practice used by different companies to reduce costs by transferring portions of work to outside suppliers rather than completing it internally.”.
Outsourcing is a very common work life ethical issue which is prevalent in today's organizations which is damaging to the overall employees and the economy as a whole. This ethical issue takes away the rights of its employees and other individuals to be a part of the workforce as it outsources its jobs and activities to individuals of other nations. This problem takes a heavy toll on the lower.
Outsourcing occurs when a business purchases services or products from a foreign supplier or manufacturer, or when a business pays another company to provide services that a business might otherwise have employed its own staff to perform. Businesses outsource for the purpose of cutting costs and raising profits. The origin of outsourcing in America dates back to the 1970's, when IBM developed.
Recently, our North Carolina State Bar issued a Proposed Formal Ethics Opinion relating to the outsourcing of clerical or administrative tasks to individuals in foreign countries. It was responding to an inquiry regarding the use of an Indian company that provides typing and transcription services (2011 F.E.O. 14). If adopted, the opinion will require disclosure of the use of the company and.
While ethical issues are increasingly concerned recently in supply chain management. Globalization is likely one of the factors that contribute to the ransom, which many companies move the production lines offshore to those developing counties for the reason of lower production costs. Concerns on the human right of the workers and the environment protection have been raise in these countries.
Due to globalisation, outsourcing has become a trend in businesses. By outsourcing, it is possible for firms to exploit wage differentials around the world. This then allows for production at a much lower cost, and therefore maximises business profit. However, this approach is argued to be very unethical and shows how profit driven business objectives relate to the the Milton Friedman concept.
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