Ethical Consequences Of Offshore Outsourcing

Improved Essays
The consequences of offshore outsourcing extends beyond the unemployed workers and it affects the customers, consumers, and the society as a whole. It is affecting the nation. The major controversial effect and impact of offshore outsourcing is the loss of American jobs to foreign workers, which makes the unemployed people depressed and lose sense of self-worth or confidence. Then, the majority of these types of workers is forced to rely on government aid and assistance to run a household.
If the concept outsourcing is considered through a purely capitalistic perspective, then the ethical conflicts can be perhaps ignored. Because, through offshore outsourcing, the developing nations benefit from increased employment and American corporations

Related Documents

  • Improved Essays

    ‘The death of distance: Outsourcing, white collar exodus’ film involves many companies moving their call centers and contracts to foreign countries, this is called outsourcing. They particularly look at areas in southern Asia, for example countries like India, Malaysia, etc. This is a lot cheaper for big companies because it allows them to cut their wage salary lower because the quality of living is lower in LEDC’S (less economically developed countries). United States of America is a MEDC (more economically developed country), this means if a lot of companies are outsourcing to south Asian countries this can have a negative impact on globalization of the United States. This is due to outsourcing, and this is because of major companies setting up their call centers in other countries than USA.…

    • 954 Words
    • 4 Pages
    Improved Essays
  • Great Essays

    From the business point of view it is important to understand that outsourcing is part of globalization, and it benefits the company’s efficiency and it saves money in labor. Many Americans believe that outsourcings hurt Americans economy and are against the idea of taking Americans jobs to other countries. Bryson, a global economist for Wells Fargo said: “When jobs move from a factory in the South to one in Guatemala or China, it certainly has a negative impact on that community in the short run… But in the long run it makes things more efficient." (Hargreaves, 2012)…

    • 1324 Words
    • 5 Pages
    Great Essays
  • Improved Essays

    Imagine going to work just like any other day and finding out that you will soon be without a job. This is the reality that many Americans are waking up to every day. In the article, Penalize Companies that Export Jobs, author Michael Riordan explores this issue. Mr. Riordan is an MIT educated physicist and a former employee of the corporation that is highlighted in the article. The article outlines the plans of Carrier Corporation, to move its production facility from Indianapolis Indiana to Monterrey Mexico.…

    • 762 Words
    • 4 Pages
    Improved Essays
  • Improved Essays

    Countries like India and China are ahead of the United States in education and could be more qualified for the jobs Americans are trying to obtain with the degrees earned in the United States. Also, outsourcing to foreign countries can save business thousands, if not millions of dollars. Jobs can be outsourced and the American employee will be left unemployed. Alan Blinder says, “ You can’t hammer a nail over the Internet.” (Page 396)…

    • 1153 Words
    • 5 Pages
    Improved Essays
  • Improved Essays

    OUTSOURCING Joel Gomez Florida International University CGS 3095 Section November 2015 Abstract Whether or not to outsource?. This topic has been in major debate as it has massive ethical effects around the world. This paper will not only go in depth into the pros and cons of outsourcing, but it will also discuss the ethical effects that it has on the world and what should be considered in the future. • Introduction Outsourcing is a major trend that continues to grow within companies to reduce the cost of products and services().…

    • 1175 Words
    • 5 Pages
    Improved Essays
  • Improved Essays

    In order to keep profits high, companies are outsourcing jobs to other countries such as Japan and China. The reason being is large companies are always…

    • 1064 Words
    • 5 Pages
    Improved Essays
  • Improved Essays

    Therefore, we have to borrow money to cover the difference (Levy and Scott 22). Outsourcing of American jobs is inevitable. As a country, America needs to figure out a way to keep the balance between exporting and importing of goods. In a sense, outsourcing manufacturing jobs forces young American teens to go to college to pursue an education and a degree or go work at the local restaurant or fast food joint.…

    • 762 Words
    • 4 Pages
    Improved Essays
  • Decent Essays

    The effect of economic globalization on sweatshops is when outsourcing arises. When a developed nation for instance, North America moves their corporations to developing populations, companies decrease their labor production costs. A negative impact on finances is when America’s economy becomes negatively affected, when factories…

    • 218 Words
    • 1 Pages
    Decent Essays
  • Improved Essays

    Large companies lose interest in domestic labor mainly because of taxes, benefits, and workers’ skill. The Government is continuity raising income taxes for both the employees and employers. Also, manufacture companies have grown exhausted because they have to carry many burdens other than wages and taxes such as insurances for workers and their dependences, unemployment insurance, or 401k match; while they can the same productivity and quality hiring cheaper labor overseas. As a result, manufacture companies see that they are paying more for labor in America than other countries, and that greatly affects their company’s revenue. However, if American workers can offer better skills and productivity, which makes the same or better revenue for their employers, manufacture companies would definitely rethink about foreign labor.…

    • 1104 Words
    • 5 Pages
    Improved Essays
  • Improved Essays

    Outsourcing helps keep the cost of production low by getting cheaper imported goods or human resources in developing countries such as China, hence it help the everyday life of low-income customers. However, moving potential jobs to another country and destroying small American companies hurts the U.S. economy. It also leads lower wages and replaces those who working in American manufacturers with non-skilled retail labor. 
For example, Five Rivers Electronics which owned TV manufacture in America was severely attacked by Chinese imports. 7.…

    • 742 Words
    • 3 Pages
    Improved Essays
  • Great Essays

    Identify the problem While companies have been outsourcing various activities for centuries, in recent decades, the increased growth of products and services that businesses have moved offshore has not only contributed to increased global economic growth and prosperity but also has faced much controversy and debate while Americans today attempt to protect the domestic business against offshoring. The overall problem includes transportation costs, disruption in innovation and productivity, reduction of quality of products and services, job displacement, and more importantly the loss of 3.3 million domestic jobs (Sao & Gupta, 2013). From an ethical standpoint, Kantian ethics states that people should never treat other as a “means to end, but…

    • 2963 Words
    • 12 Pages
    Great Essays
  • Improved Essays

    Essay On Offshoring

    • 792 Words
    • 4 Pages

    Blinder makes valid points on the rise of offshoring and how our economy may suffer from it. What he fails to mention is the fact that with America having such a dense population, the public can have a major effect on whether offshoring occurs, and if so to what degree it occurs. Self-protectionism is a key issue in American politics, such as the “Buy American Act”, and it is not to be taken lightly. Many jobs have already been lost to other countries through outsourcing. The self-awareness Americans have that offshoring is becoming an epidemic that will further threaten the American way of life, may be reason enough for companies to reconsider offshoring.…

    • 792 Words
    • 4 Pages
    Improved Essays
  • Superior Essays

    Unemployment in the United States is a serious problem that continues to grow due to a number of reasons. The first major cause is due to job out sourcing overseas, particularly China where the labor costs are extremely low. The next big reason for unemployment in the U.S. is because of the high taxes which rank close to the worst of any country in the world. (A. Krulick, Debt.org)…

    • 1064 Words
    • 4 Pages
    Superior Essays
  • Improved Essays

    External Ethical Issues

    • 940 Words
    • 4 Pages

    Ethics can be described as an acceptable code of conduct or behaviour someone exhibits or is expected to display in a society. That behaviour is dictated by various scenarios or situations that are different in nature. For example in a company there are various ethical issues that dictate how the company runs. These ethical issues can be internal or external in nature. Internal ethical issues mainly involve the shareholders of a company, employees and the management.…

    • 940 Words
    • 4 Pages
    Improved Essays
  • Improved Essays

    In a business environment, there are many moral and ethical principles that surround business practice (Robbins et al, 2013). Firms are motivated by growth, expansion and profit, and as these rules bind business practices, many can be disregarded or avoided by individuals or entire firms, to cut corners in the pursuit of wealth. Competition drives efficiency, innovation, growth and raises incomes, however it also makes firms look to cut costs, their prices and indirectly destroy entrepreneurial opportunity. Businesses have to have the willingness to be ethical, as there will always be cheaper, easier, unethical ways to save money and time, but competition, as opposed to greed, promotes ethical behaviour in the long run (Shleifer, 2004). As competitive pressures lead firms to unethical behaviour, it also raises incomes and consumer’s…

    • 1407 Words
    • 6 Pages
    Improved Essays