Free Essay

Ethics and Outsourcing

In:

Submitted By ajdoz9475
Words 704
Pages 3
Introduction This Internet article, Advantages & Disadvantages to Outsourcing IT, offers a quick summary on the pros and cons of outsourcing. Outsourcing allows vendors who specialize in their field to adequately plan and implement a particular subset of tasks. The outsourced vendors also have specific equipment and technical expertise, most of the times better than the ones at the outsourcing organization. (Williams, 2008). This article also discusses the utilization of outsourcing can lead to a decrease in financial overhead and operation costs. Services are contracted out, the need for office space, through rent or ownership, is greatly reduced or eliminated, as is the need for parking and travel. Outsourcing, also, eludes the need to hire individuals in-house; hence recruitment and operational costs can be minimized to a great extent. According to the article, the biggest concern is the inability/challenge of ensuring the most effective and efficient processes are employed to meet the organizations requirements. Operation can be hindered or difficult due to the geographical distance, time zone difference, and lack of face-to-face communication. Outsourcing lends to a lack of onsite expertise, this can be problematic as the organization grows. (Williams, 2008). While the issues abound, the largest issue is the risk and exposure an organization has when dealing with a third party, outsourcing risks poses a risk in breaching of confidentiality and other malicious use of system access. Overcoming these drawbacks will rely on identifying the right business processes for outsourcing, finding the best outsourcing provider.
Where Outsourcing and Ethics Meet
Implementing new technologies, upgrading infrastructure or any other myriad of projects can be a daunting task. To be effective, the process of developing and executing a new project will probably be a team effort, and in effect require input from across the company. Many organizations are increasingly reliant on technology to introduce better business practices, communicate and collaborate ideas and manage projects around the world around the globe and increase productivity and profits. With its benefits, comes its pit falls – failure to implement ethical controls, standards/policies can result in team de-motivation, unproductively and staggering out-of-pocket expenses. In this environment, ethics govern the control of the project or operations, avoid abuse and basic poor decision-making; organizations must strive to harmonize the personnel that accomplish the missions and objectives.
The Rules and Roles
In a virtual team environment, business ethics manifest both as written and unwritten codes of moral standards that are critical to the current activities and future aspirations of a business organization. They can differ from one company to another because of differences in cultural perspectives, operational structures and strategic orientations. The guiding framework of business ethics permeates all levels of the organization. It is about having the wisdom and a duty to determine the difference between right actions and wrong decisions – especially when the boss is not looking. Immanuel Kant (1724-1804) is one many philosophers that had a theory of deontological or duty-based ethics. (Williams, 2008)
Conclusion
As with any team, standards and conduct are governed and enforced by directives, operating procedures, and/or rules that clearly outline job responsibilities and performance expectations. Success or failure of a virtual team is often dictated by the guidance given and the team’s willingness to conduct business accordingly. Those providing oversight of these virtual teams must be cognizant of virtual team efforts and reward or discipline as necessary.
Through its very concept, it is assumed that the majority of communication amongst the team and managers will be via collaboration tools, like e-mail. Electronic communication, e-mail, text, video-teleconferences and other correspondence dictate the usage of etiquette. In the virtual environment, it is important to state things as clear and concise as possible, teams should avoid drafting correspondence in all capital letters, and unnecessary bolding and underlining. Professionalism through non-verbal communication is key to the team’s ultimate success.

Reference:

Meehan, C. (2011) Advantages & Disadvantages to Outsourcing IT. Retrieved on April 23, 2013 from http://smallbusiness.chron.com/advantages-disadvantages-outsourcing-it-764.html

Williams, W. (2008). Kantian ethics: What Immanuel Kant was talking about. Retrieved April 23, 2013 from http://www.helium.com/items/1018797-kantian-ethics-what-immanuel-kant-was-talking-about

Similar Documents

Free Essay

Ethics Outsourcing

...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...

Words: 3472 - Pages: 14

Premium Essay

Outsourcing Ethics

...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...

Words: 617 - Pages: 3

Premium Essay

Mba575 Final

...INTERNATIONAL ETHICS AND WORKING CONDITIONS 1 Introduction: The Purpose of Outsourcing Today many companies look to outsourcing in a variety of countries in order to remain profitable and competitive. In today’s competitive market, as companies compete to stay profitable, many will search for countries that can produce the products they need at the lowest possible price. Ethical awareness pertaining to employment in countries where salaries are below those in the United States has come to the forefront. The Ethical Issues of Outsourcing Internationally Business ethics is the accepted principle of right or wrong governing the conduct of business people (Hill, 2013). Outsourcing refers to a company that contracts with another company to pro ide services that might otherwise be performed by in-house employees (www.webopedia.com). Outsourcing continues to increase as companies struggle to stay competitive and profitable. There is a continued increase for companies to find new ways to cut overhead expenses and increase profits so companies can look to creating new products, along with providing shareholders with profitable returns on their investments. Reasons for Outsourcing Outsourcing can be complicated as business relationships are more economic in nature, allowing for moral and ethical issues to be present. Ethical issues in outsourcing internationally arise as business relationships continue to become more economic and many of those involved are...

Words: 721 - Pages: 3

Premium Essay

Ethics and Social Responsiblities

...Ethics and Social Responsibility in International Business 1 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 .................................................

Words: 6734 - Pages: 27

Premium Essay

Journals

...rewarding hard workers cultivated in me the culture of hard work and a positive view towards life. From my tender age, I learned that the work was the way of life and the only way through which individuals could better their lives. On academic grounds, I must state that the teachings by our teachers towards work had a lot of impact on me. They taught work as a virtue and changed my perception towards work. Family provided me with my first interaction with the work. My parents could divide the work and go ahead to reward those who did good work. It instilled in me the culture of giving my best when it came to working. I realized that when you give your best at work then you set yourself on the path of reward and greatness. Individually, my work ethics encompasses the aspects of positive outlook. This way, I am always looking forward for new and challenging opportunities that would improve my skills and prowess in my profession. The other is respect for...

Words: 4580 - Pages: 19

Premium Essay

Business Ethics Across Cultures Article Review

...------------------------------------------------- Business Ethics across Cultures Article Review Meghan Kraft XMGT/216 Deborah Pryer November 22nd 2015 Business Ethics across Cultures Article Review For centuries countries have been sharing their goods, services, cultures, and ways of life with those who visit or decides to do business with their country. While most would assume that people in another land speaking a different language, following a different religion, and eating different food would more than likely perceive and behave differently from than our own; the truth is that even though these differences may be perceived, very little is done to actually understand them appropriately unless it is deemed necessary. It is obvious that through globalization, that not just one, but each and every country has its own problems with ethics regarding business. It is made quite clear that there is a common scourge in business practices worldwide. It is also very clear that we are victims to the same faults that occur in humanity on a global scale. However, what is quickly becoming equally apparent, for international businesses and corporations to deal successfully with a foreign contractor, business, or even government; the proper measures must be taken to understand the differences in ethical perception and to work to accommodate those differences. Failure to do so leave many of these companies and businesses vulnerable for international ethical dilemmas that are quickly...

Words: 1600 - Pages: 7

Premium Essay

Bibliography

...sentences summarizing the main points or ideas found in the item. It should then include your own statement evaluating the quality of the item and/or relating the item to your own research topic. For a longer annotated bibliography, it is appropriate to divide into sections or topics, and to title those sections as seems fitting.    Note: These annotations are for illustrative purposes only and have no relationship to the content of the sources. The citations are from the sample list found at the end. 1 http://owl.english.purdue.edu/owl/resource/614/03/ Sample Annotated Bibliography Annotated Bibliography AICPA sets ethical standards for outsourcing. (2005). Journal of Accountancy, 199(1), 8. Retrieved from http://www.journalofaccountancy.com/ This article discusses the new standards for outsourcing developed by the AICPA ethics committee. The standards are summarized, and a brief discussion is included of the implications going forward for...

Words: 594 - Pages: 3

Premium Essay

Leg 500 Wk 5 Midterm Exam

...definition of ethics: a. a fairly clear cut set of guides for decision making. b. a set of relatively unclear principles regarding what we must do. c. a set of relatively unclear principles regarding what we should do. d. religious views about the world. 2. Laws must be static and unyielding in order to provide stability for a society. a. True b. False 3. Choose the statement regarding duty to rescue that is false: a. There is no general duty to rescue an individual. b. One basis for not imposing individual rescue liability is: An individual should have a right of freedom of action, privacy and personal autonomy not to intervene and perform rescue. c. Under a liberal–communitarian approach, citizens owe a duty to the state to rescue other citizens based on reciprocal rights and duties. d. When one taunts another person who then puts themselves in danger in response to the teasing, the teaser has a duty to rescue the other. 4. All of the following are considered exceptions to the general rule that there is no duty to rescue except: a. Contract – lifeguards, for example, have signed contracts agreeing to rescue people in exchange for pay and benefits. b. Witnessing an accident – this creates a duty to step in and help the injured c. Child abuse- statutes in nearly all states require that one report suspected child abuse. d. Endangerment – if one puts another in danger, then he/she is obligated to rescue that person. 5. Which of the following views on outsourcing would...

Words: 1050 - Pages: 5

Premium Essay

Legal and Ethical Considerations in Marketing, Product Safety, and Intellectual Property

...Assignment 3: Legal and Ethical Considerations in Marketing, Product Safety, and Intellectual Property Samuel Morgan Professor: Christina JG Williams, Esq. LEG 500 – Law, Ethics, and Corporate Governance May 21, 2015 Abstract The relationship between legal and ethics has long been strained and confusing to understand. In today’s business, ethics actually consist of a subset of major life values learned since birth. Many in business use these life values to make decisions that have been passed down from family, educational and religious institutions. However, the message is not the same and each business person will apply their own unique interpretation. Nevertheless, everyone must have an ethical base that applies to conduct in the business world and in personal life. Assignment 3: Legal and Ethical Considerations in Marketing, Product Safety, and Intellectual Property Legal and Ethical considerations are a viable element in marketing, product safety and intellectual property, yet there continues to be the secret and unpredictable element that each organization cannot control, the employee. Ethical or unethical behavior is not entirely an issue of the character of the employee; it is determined by a lot of factors. Employees or people are influenced by the forces surrounding them – their peers, their superiors, the reward system, group norms, and organizational policies and values. In this assignment, we will revisit the organization PharmaCARE...

Words: 3933 - Pages: 16

Premium Essay

Mattel Toys

...little children get become very ill. While Mattel had policies in place, it did not meet its ethical responsibility to its stakeholders and customers. Mattel has an ethical and corporate responsibility to manufacture a product that is safe for children, to take responsibility when their products are found to be unsafe and to follow government and company regulations to ensure safety. Mattel was believed to be one of the most trusted toy companies around the world that operated in 155 countries. They produced some of the most famous toys for children, such as Barbie, Cabbage Patch Kids, Fisher-Price, and many, many other amazing toys. Beyond concerns about marketing to children, Mattel, Inc. was making a serious commitment to business ethics. For example, Mattel started a code of conduct called "Global Manufacturing Principles” (Mattel.com). These philosophies required all business partners to commit to ethical standards that relate to safety, wages, and adherence to local laws However, recently Mattel was involved in a product quality and safety dispute. Since August 1, 2007, Mattel has recalled in 30 million toys because of its quality and safety defects. Mattel lost not only their profits but also trust, an important role in corporate social responsibility. Corporate social responsibility, according to the Lawrence/Weber text, is defined as ‘the idea that businesses should be held accountable for any of its...

Words: 975 - Pages: 4

Premium Essay

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

...Good Business Bad Business and Sustainability The coursework is to complete a discussion of an organisation, policy, or 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...

Words: 2065 - Pages: 9

Free Essay

India Outsourcing and the Ethical Dilemma

...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...

Words: 3299 - Pages: 14

Premium Essay

Outsourcing

...Problems in outsourcing 1. Executive Summary Outsourcing is the way of distributing the work in an organization to the other companies, in case the parent company is not having the expertise in handling the situation. Hence, the companies are entering into different business opportunities, even though they are not having the expertise and thus outsourcing the work in the organization to the other potential companies. The outsourcing may be national or international. Generally the outsourcing will be highly seen in the service industry rather than the manufacturing industry. When the work is being distributed to other companies, there will always be a scope for the cultural variations which will affect the efficiency of the organization. As the service outsourcing deals with the different cultured people involved, it is highly discouraged to tie up the performance of the company with the cross cultural management of the organization. Hence, the companies are adopting the cross cultural management such that the different cultured people, processes and the operations will be run under a same hierarchy which will be monitored by the management of the organization. In this document, the effect of the cross cultural environment will be discussed in the outsourcing department and how they have faced problems in designing a global strategy to handle the outsourcing. The management theories like Trompenaars will be specified in this document to enhance the knowledge of these theories...

Words: 2548 - Pages: 11

Premium Essay

Business Ethics Across Cultures

...Business Ethics across Cultures Etumie Morris January 27, 2013 XMGT/216 Beverly Isaman Business Ethics across Cultures In both The United States and China there have been many ethical dilemmas reported, though some are the same there are numerous difference in which both countries classify as either being ethical or unethical, they to have some things in common. Some of the bigger differences are in their life styles and culture. In this paper I have outlined one of the larger ethical differences and ethical perspectives in relation to business. In china most main ethical concerns are based upon how they live their lives, their goals in life, and also how to conduct themselves if ever they should hold a position of power. However in the business world china has on numerous occasions been found unethical with the way they run their businesses. In plain terms they often violate the essential rights of humans. “During the late 1980s and the early 1990s, China was routinely cited by various international; organizations such as Amnesty International and Freedom Watch for major human rights violations, including torture, beatings, imprisonment, and executions of political dissidents” (Ekonomi, 2007). Despite this, in the late 1990s and early 2000s China received record levels of foreign direct investments, mainly from firms based in democratic societies amongst these was the United States (Ekonomi, 2007). Meanwhile in the United States our ethical issues are of a totally...

Words: 813 - Pages: 4

Premium Essay

The Boeing 787 Experiment

...The Boeing 787 Experiment Joe Appleby Saint Leo University The Boeing 787 Experiment Many of the normality’s of our everyday are often go unthought-of of about what it took to make them a reality. Take flying for instances. Many of us, myself included step on or use an airplane to travel for leisure, to conduct day-to-day business, use for supply chain movement and never even think twice about what goes into making an aircraft. One of what is considered an elite aircraft manufacturing company; Boeing knows all too well what it takes to deliver a premier aircraft to service. Boeing did not arrive at this point easy as they found out when trying to launch their Boeing 787 aircraft. This essay will give a brief company profile of the Boeing Company and in addition the major problem the company experienced when launching its Boeing 787 aircraft and recommended solutions. The problematic area that will be highlighted is Boeings supply chain management, which caused Boeing to rethink its 787 strategy. The History of Boeing The history of Boeing began essentially with the vision of five men. William Edward Boeing, born in 1881 in Detroit, Mich., began building floatplanes near Seattle, Wash. Donald Wills Douglas, born in 1892 in New York, began building bombers and passenger transports in Santa Monica, Calif. James Smith McDonnell, born in 1899 in Denver, Colo., began building jet fighters in St. Louis, Mo. James Howard "Dutch" Kindelberger, born in 1895 in Wheeling...

Words: 2242 - Pages: 9