Outsourcing and Ethical Dilemma

OUTSOURCING AND ETHICAL DILEMMA

INTRODUCTION

In America, an increasing number of corporations are taking their businesses overseas. In fact, one recent study found that the number of multinational companies has swelled from 7,000 in 1975 to over 40,000 today. In addition, the net income of U.S. companies from operations outside the States now accounts for about half of income earned at home, compared to just 10 percent in 1950.The number of startups venturing overseas is skyrocketing, because it is becoming increasingly easy to do business overseas. Even small businesses are beginning to take advantage of this new rush of business venture overseas. One of the many benefits of overseas outsourcing products is the flexibility of the manufacturing companies.

For example, China industrial corporations provide an abundant workforce where manufacturers can hire the most skilled employees at an extremely competitive wage. However, this growth has since contributed to significant growth of ethics issues in the corporate world, which ultimately affects the real world.For decades, there has been constant pressure on corporations to perform under good ethics, however in the years past, such pressure has become considerably consequential with the advent of mass media. For example, mistakes of a corporate executive can have international repercussions and make a CNN headline story, thereby making it possible for millions of people to know about who committed some violation. While the ethical problems corporations face when taking their business overseas are excessive, it is increasingly difficult for us to pin point the source of issues given the location of the business, and the economy, political view and interest of the area where the corporation seeks to thrive (even though we all know the root of the issue is finding a way to make more money and loose less).

One of the common known issues most corporations face is transnational bribery. Transnational bribery consists in offering or giving of money, valuable goods or other benefits as favors, promises or advantages to foreign government’s official for procuring that official do or omit any action addressed to influence on economic or business transaction which has relationship with his public function.According to the IMF, when corrupt behavior is so pervasive and entrenched, it can become the norm. In these systemic cases, corruption can even affect the design and implementation of policies, and skew regulatory or state decisions. The bottom line of the issue is that in many developing countries and other countries that deal with corruption in the government, corporations tend to lean the way of the government and ultimately become corrupt too for reason of getting certain perks from that government. Corporations arent doing enough to ensure that their employees are being taken care of overseas, and tend to hold little to no liability on employees that are underprivileged and poor in these areas.

Also when conflict such as war, terrorism and political corruption occurs, these companies tend to not say a word and continue to make profit. Corporate ethical issues overseas take places all around the world due to the flexibility and the loopholes of regulation laws, and laws that they can get away with. For example, major companies may consider South America a huge opportunity in terms of revenue.

However, it’s also typically the most profitable region for companies that do business there, and one of the best opportunities for quick growth. However, many regions within South America are suffering economically and cultually. Over the past decade, political unrest, transnational crime, drug trafficking and wars, and economic mismanagement reversed the encouraging democratic and economic reforms begun in the 1980s. Major companies that invest heavily in Latin America do little to provide funds to build the community around their businesses. In fact, in the last decade the conversation regarding these regions in South America has become stricter, with many major international organizations, such as the World Bank, International Monetary Fund, World Trade Organization and Organization for Economic Cooperation and Development, pushing governments to reduce corruption.

Corporations can easily reduce ethical issues by enforcing policies that are already in place in their company. They should ensure that their employees are getting the appropriate care fair wages in order to increase morale in confidence of the company to the people. Promoting regional prosperity through free trade and economic reform can also reduce issues. Corporations should also be monitored by international watchdogs, and should be transparent with how they are benefiting the community around their business if they even are. There should be a measure in place to rating the level of good impact a business brings overseas.

CONCLUSION

In closing, the basis of my position is not to condemn corporations for taking their business overseas. I believe that it does provide job opportunities for families and economic growth for the area of the location. It brings a great asset to communities as far as sustainability is concern. My problem is the notorious history of major companies bringing bad ethics to the table just because it is in their advantage to. Corporations should be able to reflect on their business ethics and strive to maintain the integrity of their practices.Good practices paints a good image in the eyes the people affected by it.

REFERENCES

  1. Bianchi, A. (n.d.). Take your business global. Retrieved March 31, 2018, from https://money.cnn.com/2007/07/12/magazines/fsb/going_global.fsb/index.htm?tagname=fsbURGBiddle, L. (n.d.).
  2. Corruption in Latin America: Political, Economic, Structural, and Institutional Causes. Retrieved March 30, 2018, from https://cdr.lib.unc.edu/indexablecontent/uuid:d28e0e16-d999-4759-9508-efae5c0c4c1cG. (2004).
  3. GPO Import. Retrieved March 31, 2018, from https://www.importchinaproduct.com/benefits_overseas_business_offshore_outsourcing_manufacturing.htm
  4. Lipton, D., Werner, A., & Gonclaves, C. (2017, September 21). Corruption in Latin America: Taking Stock. Retrieved March 31, 2018, from https://blogs.imf.org/2017/09/21/corruption-in-latin-america-taking-stock/
  5. Manfroni, C. A., & Werksman, R. S. (2003). The Inter-American Convention Against Corruption:. NY: Lexington Books.
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Outsourcing And Ethical Dilemma. (2019, May 15). Retrieved July 28, 2021 , from
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