...report is written in efforts to evaluate ethics of outsourcing and the dilemmas involved. | Ethics of Outsourcing Outsourcing has been the target of many positive as well as negative topics amongst many Americans. The United States economy has taken many hits and efforts to reduce costs have resulted in increased outsourcing in labor as well as service industries. The ongoing debate of whether outsourcing is unethical does not fall only in the act of outsourcing itself but also in the terms to which outsourced employees are treated. The question of whether mass layoffs are justifiable or ethical toward employees who are dedicated to corporations for so many years and whether resorting to illegal labor is ethical are also derivatives of outsourcing. We continue to ask ourselves if this form of cost reduction and its effects on the U.S. employees morally ethical? In these challenging economic times, there has been a large array of speculations towards the subject of outsourcing jobs to other offshore destinations. Outsourcing has been going on around the world for a large amount of time before now. Though it seems to be more of a negative topic of discussion during the fall of the American economy, it is important to realize the positive global impacts it has created. It is still considered a morally challenging topic, but there are both advantages and benefits that are being reaped around the world from outsourcing. Outsourcing has been a leading marketing tool for allowing...
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...distrust between employees and new Clerk Stan Accord. The organization has the opportunity to make the changes necessary to meet the desired end-state goals through mediation, scheduling changes, and outsourcing of computer data and storage. The organization can realize these changes with minimal emotional response by employees and management through careful meditation of the situation that has not occurred to this point. County residents will find the new organization provides more services than before in a more flexible format. Describe the Situation Issue and Opportunity Identification Throughout the scenario the idea of discrimination comes into play with multiple parties. Discrimination is perceived between Stan and Dennis, Stan and Dan, as well as perceptions of female employees. The next issue is Dennis taking a competitive stance against Stan believing he can perform the functions with a better understanding of the needs of the community. The final issue at hand deals with the lack of mediation or arbitration used between the parties. Instead the parties decided to handle issues publicly and with high emotional tolls on both sides. Stakeholder Perspectives/Ethical Dilemmas The stakeholders in the scenario each have unique situations they are faced with and ethical considerations based on those situations. Stan Accord for instance believes that modernization and a greater physical presence in the county offices is the solution when dealing with Dennis Munger...
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...Abstract For the past four decades, outsourcing has provided organizations in running aspects of production and operations (Corbett, 2004). Designed to help build better businesses, stronger economies, and improve conditions in developing countries, outsourcing has become a popular business concept. The purpose for this paper is to review outsourcing as a viable business concept, identifying how outsourcing is used, benefits and setbacks, and options available for business support. The author will examine the concepts driving companies to use outsourcing as a worthwhile business strategy, utilizing several sources showing progression from initial conception to present day use. With today’s rapidly changing environment, one must question how outsourcing will adapt, allowing for continued success. Introduction In recent years, consumers have felt the impact of outsourcing on a personal level as they contact technical support for computers, satellite, and other services. While the ideas have been utilized for decades, outsourcing has become more common today as companies attempt to downsize without compromising success. The following will examine the concepts driving companies to use outsourcing as a worthwhile business strategy, utilizing several sources showing progression from initial conception to present day use. Outsourcing Overview Outsourcing involves transferring work or tasks to an external party, allowing for partnerships with other organizations (Power, Desouza...
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...Adversity of Outsourcing: Outsourcing from the Employee’s Perspective Schillen & Steinke Mitigating the Adversity of Outsourcing: Outsourcing from the Employee’s Perspective Sarah J. Schillen Seattle Pacific University USA sschillen@gmail.com Gerhard Steinke Seattle Pacific University USA gsteinke@spu.edu ABSTRACT This paper explores how outsourcing activities and decisions put the well-being of the remaining employees at risk, ultimately affecting productivity and creating further costs to the employer. It highlights four potential threats to remaining employees: trust, job satisfaction, motivation, and stress. The paper provides several suggestions for mitigating these impacts, including communication to retain trust, acting ethically to ensure satisfied employees, seeking an understanding of employee perspectives to build employee motivation, and providing good planning along with training and development to reduce employee stress. INTRODUCTION Globalization provides organizations with more options than ever before. Business leaders are continuously encouraged to adapt, reevaluate, and strategically improve processes and approaches. Best practices are reinvented rapidly in attempt to keep up with market trends. The quest to recognize new methods for increasing revenue has become the inspiration for exploring new management techniques and strategies. One such rising trend in the advent of global markets is that of outsourcing. Common purposes for outsourcing include improvements...
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...Outsourcing Jobs to Low Wage Countries Research and Key Issues Business outsourcing, a practice that was previously shrouded in controversy has become commonplace, not only among technology firms but also the IT departments of established companies in various industries. The bulk of overseas outsourcing, a practice that involves companies in economically developed nations shipping jobs to businesses in developing countries, has expanded after the practice became fashionable during the period of economic boom in the mid 1990’s. During this time, the outlook of the practice remained relatively unchanged, though this seems to be changing. For instance, firms that deal with outsourcing are starting to consolidate, resulting in larger providers who offer a wider range of services. Niche providers are also coming forth. Additionally, developing nations such as China and India are in direct competition with one another (Sornarajah 277). India has been the traditional outsourcing –services leader. Initially, outsourcing was the preserve of the larger companies, but now even the smaller and mid-size businesses are beginning to outsource jobs. Additionally, the previous practice was to outsource large projects, for instance call-center operations and basic application development. Today, as outsourcing is becoming more commonplace, companies are beginning to outsource smaller projects such as research and development (R&D) and scientific projects to external providers. Many developments...
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...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 term relationship with the outsourced company will aid in cultivating the competitive advantage. The following ethical principles can ensure the longevity of the relationship. One of the first principles states “seek not harm indigenous cultures” the company must become aware of the culture where they chose to outsource their business to. Understanding the cultures is a way to avoid ethical problems that could arise from not acknowledging cultural norms; rule-based or relationship based. Rule-based relationships support the basic principle that “seeks to uphold basic human rights.” To ensure you have engaged and satisfied employees display a courtesy for justice, equality, and their basic human rights. Not only must the culture and rules of...
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...product and evaluate the ways in which the object could be regarded as ‘good’, and ‘bad’. You may choose a specific case to evaluate; or build a hypothetical case using suitable real world examples. A competitor firm has outsourced its production abroad. You could do the same. You are the major employer in the town where you are located. You have to decide whether also to outsource your production. Introduction The industry that my firm operates within is the winter clothing industry. The company supplies clothing to multiple clothing retailers across the U.K and selected areas of Europe mostly around the French and Swiss Alps. The company’s factory is based in Brackley and employs 2500 local employees. Our company has a strong ethical and moral feel and image due to a strong involvement in charity fund raising and organising events for under privileged children to get involved in sports and activities they wouldn’t usually have the opportunity to do. We are seen locally as an incremental part of the local infrastructure and through feedback sheets its apparent that on the whole our employees are happy and our staff turnover and productivity reflects this. The main issue we have recently encountered is that in October 2011 the minimum wage went up 15p to £6.08 an hour therefore increasing the cost of labour and due to the rise in oil prices to £61 has increased the cost of production due to 80% of our clothing being made for gore-tex and other heat insulating plastic...
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...“Outsourcing-Offshore” Outsourcing is said to have emerged a few thousand years ago with the production and sales of food, tools, and other household appliances. As soon as small communities and societies began to form, people with specialized professions began to trade with each other for goods and services. It can be said that each worker was outsourcing some activities to others. Research shows that even in the industrial age, a few thousand years later, very few companies outsourced any of their operations. Companies in the 1800s and 1900s were vertically integrated organizations, taking care of their own production, mining, and manufacturing from raw materials to finished goods as well as then shipping the goods to company owned retail outlets. These companies often handled their own taxes, employed their own lawyers, as well as designed and built their own buildings without outside assistance. This model does not apply to all companies during that time period, but it gives a general idea of the time. The history of outsourcing portrays that as onshore outsourcing continued manufacturing outsourcing of low-tech items such as toys, shoes and apparel goods began to take place. After this manufacturing higher value items like high-tech components and consumer electronics began to appear. In fact outsourcing history demonstrates that manufacturing was the first activity that began to move to offshore destinations in a quest for lower costs. Globalization began during...
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...Is Offshore Outsourcing of Medical Business Practices Ethical? Abstract The healthcare industry is one of the largest in the United States. The United States spends an estimated $2 trillion annually on health care expenses, more than any other industrialized country (Johnson, 2010). The growth of this industry is expected to continue well into the future. However, today more than ever, healthcare providers are faced with many financial pressures. Offshore outsourcing offers companies substantial savings on costs which improves profitability. Managed care organizations and healthcare providers realize how outsourcing business processes to experts allows them to focus on their core business without worrying about back-office functions (Namasivayan & Bell, 2006). Despite the cost savings, it is important not to overlook some of the issues that may be associated with outsourcing. Is Offshore Outsourcing of Medical Business Practices Ethical? The healthcare industry is one of the largest in the United States. The United States spends an estimated $2 trillion annually on health care expenses, more than any other industrialized country (Johnson, 2010). The growth of this industry is expected to continue well into the future. As the baby boomer population gets older and medical treatments become more and more advanced, those needing medical care will increase exponentially giving rise to an already growing field. Yet, despite...
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...their long term workforce. Global Communications has to take action and respond to the external threats in the telecommunications industry if they are to remain competitive. Whereas these changes may bring success they are full of challenges. Examples of these challenges include implementing the new strategies so they succeed in improving the company’s current position in the telecommunication industry and effectively deal with pending litigation from the Union who strictly opposes the outsourcing of call centers to Ireland and India as this will contribute to laying off employees in the United States. The corporate cost cutting and layoffs will have a negative impact on moral, thus affecting the productivity of the remaining employees. To mitigate these risks Global Communications will conduct a strategic analysis that will assist the firm in improving and developing their strategic plan. The analysis will include an examination of the firm’s performance in the current market, their impact...
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...Ethics and Social Responsibility in International Business Ethics and Social Responsibility in International Business 2 Table of Contents Introduction ..................................................................................................................... 3 Defining Ethics and Social Responsibility ....................................................................... 3 Do Countries with Lower Ethical Views Attract Businesses? .......................................... 5 Can Ethical Business Practices be Applied Globally? ...................................................... 7 Which organizations are safe guarding ethical practices and is it working? ...................... 9 What are the Ethical and Social Responsibilities of Outsourcing? .................................. 12 What is Outsourcing? ................................................................................................ 13 Outsourcing is Beneficial........................................................................................... 15 What a Company Needs to Know Before Outsourcing .................................................. 17 What Are the Facts Regarding Child Labor?.................................................................. 18 Child Labor Global Statics......................................................................................... 18 Conclusion ......................................................................................................................
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...University Abstract Outsourcing is the catchphrase shaking up the worldwide financial environment. Offshoring or outsourcing has changed the way many businesses and individual coexist today. Each person today, respects many aspects of offshoring/outsourcing and we have learned that more organizations are using different assets from offshoring to pick up a business advantage. With the changing worldwide economy, and the inordinate expenses connected with keeping an employees at a staffed capacity, a large number of today's organizations and partnerships are outsourcing the generation of merchandise and administrations to outside firms with an end goal to cut expenses. While numerous experts contend that this can decimate nearby economies by cutting employments at home. There are numerous disservices to offshoring which affects our American workers and families and the practice of offshoring has taken a turn in the direction of an unethical practice. For laborers in the US, various occupations are lost permently, numerous workers need to increase new abilities, due to dimished wages because of the intensity of abroad laborers. Fundamentally, American laborers are presently compelled to contend on a worldwide level, as are organizations in this global commerce. Offshoring: The Future of American Workers Offshoring and outsourcing are words that many use interchangeably. Nevertheless, there are keen variations between the two. Outsourcing and offshoring are a result...
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...Adeline Gardelle Estelle Dachicourt Max Franke Isidro Vázquez Coralie Jarrige ------------------------------------------------- Globalization ------------------------------------------------- Apple IPhone ------------------------------------------------- Table of contain Introduction I. History and product line II. Some figures III. Apple as part of the Globalization process A. Benefits of outsourcing B. Inconvenient C. Final consequences on the American Economy Conclusion Reference ------------------------------------------------- Introduction Apple Inc. is an American high-tech multinational corporation engaged in researching, designing and producing electronic technology products. Apple Inc. is popular for its unique innovation and mind-boggling development rate. The products include the Mac line of computers, the Apple TV device, the iPhone smartphone, the iPod music player, the iPad tablet and the iWatch smartwatch. In addition, Apple Inc. has developed over 850,000 kinds of unique App software. In recent years, Apple has been a hot topic of concentration for people all over the world. It will be analyzed why and how Apple has become a successful media institution through analysis of the globalization and ideology of Apple. Furthermore, it will be discussed the situation of Apple in China. I. History and product line Apple was founded by Steve Jobs, Steve Wozniak, and Ronald Wayne on April 1, 1976, to...
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...ANS 1- Taking into consideration, all risks (quality, ethical, intellectual property protection, political, cultural) I think the best product to be recommended is Bugabyte lite for the assembly outsourcing by Grunwald and Vogel. This product is in the market for over 6 years and has seen healthy growth for its first four years and has stabilized over past two years. There are competitors with similar product offering, but there is no risk of copying of technology as other competitors are aware of this technology. But in case of Bugabyte, there are more chances of stealing the trade secret and produce their own as it is now a new product. ANS 2- Benefits of outsourcing assembly function: • Quality: Grunwald and Vogel’s expertise and professionalism...
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...external challenges in implementing its overall growth strategy. In order to move forward with cost-cutting measures, Global Communications must communicate lay-off plans to its affected employees. These measures will eliminate jobs in the United States. In turn those jobs will be outsourced to foreign labor sources in India and Ireland where the labor is highly skilled and cost efficient. The management team failed to utilize the union as a powerful support system in broadcasting the lay-off announcement. Due to Global Communication’s lack of communication with the union, management now faces a potentially volatile situation. Damage control measures need to be identified, evaluated and analyzed in order to minimize the negative impact that the union will have on customers, employee morale and the general public. Situation Analysis Issue and Opportunity Identification Global Communication’s management team had a difficult decision to make in order for the company to survive the advancing telecommunication market. The management team devised a growth strategy which required the introduction of new services into the domestic market and expansion into the global markets through a partnership with an international satellite provider. The strategy called for aggressive cost-cutting measures which would result in the United States technical support center closing down and employee lay-offs. The company would outsource the technical support center services...
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