Barclays Banking Essay

1192 WordsOct 16, 20135 Pages
Nathan Pratt Professor Troy Harter Business Ethics March 14, 2013 Manufacturing Outsourcing In the 2012 election season, Mitt Romney drew attention to his business practices due to his implementation of job outsourcing. Many manufacturing jobs from his companies have been outsourced to countries like China to construct parts for a fraction of the cost that they could have been created in the United States. Especially at the beginning, for a business to succeed, it is critical to have a high margin on the product that you sell. If a widget must be sold at $5 each, then the owner must choose between keeping manufacturing jobs in America, making it for $3 each, or sending it to China, making it for a mere $1 each. The transfer of labor is cheaper and an overall better utilization of resources. The free market supports this concept because it allows the market to evolve and business owners to make the most money through global competition. Some arguments against these practices are those such as principles of rights and duties. A struggle could arise where a CEO is caught between trying to please his or her shareholders by bettering margins, while also keeping a moral compass on the well-being of the company’s stakeholders. The free market greatly supports the effort to get the shareholder a return on his or her investment. It is rarely allowed to function within the context of the United States, but when it does, it means change. Businesses must evolve to continue to exist and business owners do this by offering new or enhanced products. Outsourcing is just one of the many changes that owners utilize to achieve lower costs. Others among these are new knowledge and new technology, which also facilitate products to be manufactured with fewer resources and less labor. Among the many benefits, this can create a negative effect on those workers and business owners

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