Ethics of Outsourcing Essay

1641 WordsJun 2, 20137 Pages
Ethics of Low-Cost Country Sourcing Operations & Logistics Management Position Paper Outsourcing in combination with good ethics is what makes a company strive in other countries. However, many companies do not bring to the countries they are conducting business with the ethics of their own country. Low-cost country sourcing is a procurement strategy in which a company uses foreign companies with lower wages to produce resources for manufacturing. By finding companies that operate on leaner budgets than domestic operations, a company may be able to reduce operational expenses. Low-cost country sourcing is a part of a company’s global sourcing strategy (WebFinance, Inc., 2011). Labor is the most expensive cost to a company, and a goal for most companies is to lower the cost of labor. Outsourced jobs are usually unskilled jobs in manufacturing and agriculture; however, “safe” jobs in engineering and healthcare are being shipped overseas. The forces of increasing productivity and profits can lead a company to implement shady business practices to get ahead of the competition (Hartman, 2006). Outsourcing has the benefit of providing jobs to people in regions that may be poor or lack opportunities for economic growth; however, outsourcing takes away jobs from the country the company originated from making those regions poor and decrease economic growth. A company also has to take into consideration the social responsibilities and environmental factors of outsourcing. It is important for an employer and employees to obey their own personal morals and professional codes of ethics. There are many strengths and weaknesses to a company and country due to the ethics of low-cost country sourcing. Many have had concerns about social responsible outsourcing, and companies are adopting ethical standards for their own operations. More people are looking at

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