Business Outsourcing Essay Examples & Outline

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Business Outsourcing

Should a company outsource? Is the company not causing loss of employment to the local community in order to save costs. These are some of the questions that are often posed by the critics of outsourcing. It is currently widely accepted that indeed outsourcing is not just a cheap operation tactic but rather a strategic business decision (Kehal, 2006). However, it is of the essence to understand that ethics and outsourcing currently continue to be burning issues for many businesses that want to make the move to outsourcing. Ethical principles are in many cases combined with ethical frameworks that provide guidance and support for ethical decision-making (Hamington, 2011). The ethical frameworks are important as they highlight the important aspects of a situation that helps it to be evaluated and highlighted. It is key to note that making ethical decisions is not a separate activity especially when such a decision can have an influence on others.

The first framework to analyze the situation is the maximizing the amount of good in the world. This framework tries to balance the benefits of an action against both the risks and the costs. It is important as it promotes the common good and helps each and every person have a share of the benefits that occur in the society. In fact, there are those that describe this framework as ‘the greatest happiness for the greatest number (Gini & Marcoux, 2012). It can sometimes be used to override the rights of individuals in the society in order to bring happiness to the wider community. According to this framework, outsourcing is plainly unethical as it transfers benefits from the society in favor of decreased cost (Hamington, 2011).

There is not great happiness for the greatest number because most people remain unemployed as the business takes employment elsewhere. This hurts the society as persons feel like the business has abandoned them for increased profits and that the action is unethical.

Making decisions that best suits oneself is the other ethical framework. This ethical framework often considers that people and companies should make their decisions that are informed of self-interest (Treviño, 2003). This framework is a big supporter of respecting the autonomy of both businesses and people when it comes to decision-making abilities. It allows people to make reasoned as well as informed choices. According to this framework, there is nothing wrong with outsourcing. This is because the business has made an independent decision that is centered towards enriching itself. The business according to this framework has not hurt anybody as they have not done something wrong to the society but rather they have outsourced employment elsewhere in order to increase their profits. The sole intention of the business is to make a profit and consequently by, not outsourcing it will not be in tandem with its main objective.

The biblical principles state clearly that there is a need honesty in business and reasonable profits. For this reason, outsourcing can be said to be wrong in regards to this framework (Harris, 2004). This is because the firm is often seen as greedy and wanting to accumulate more profit at the expense of its current employees. This is because the company will automatically have to lay off several employees in the company in order to allow the corporation to outsource. This is in contradiction with the Bible principles of honesty and reasonable profits.

Outsourcing is unethical. This is because the society does not stand to benefit as employment is taken into offshore countries in order for the firm to make more profit. There has also been an issue with the quality of work that is done when it comes to outsourcing with many people arguing that the work done is often below par. Further, outsourcing can also be said to show the greed of the companies, they often try to cut down costs at the cost of hiring capable people in the local community (Halbert, 2012). They, therefore, forfeit their corporate social responsibility of the society by, not re-investing in the society. Consequently, it can be argued that indeed outsourcing is unethical.

The ethical frameworks are important when it comes to making a decision as they help in the determination of standards of behavior that can be considered as ethical. Further, the making of good decisions often requires trained sensitivity to ethical issues and the use of ethical frameworks provides a practiced method of exploration of the ethical aspects of a decision and the weighing of different considerations that often have an impact on the course of progress.

For this reason, the ethical frameworks are important as they enable one to come to a reasonable conclusion. It is critical to realize that when an ethical framework is regularly practiced, the method in many cases becomes so familiar that persons often work through it automatically without necessarily consulting the specific steps. The ethical framework should also be informed with a careful exploration of the problem and aided by different insight and different perspectives of others. It is through this way that good ethical choices can be made in complex situations such as outsourcing.

Hamington, M., & Sander-Staudt, M. (2011). Applying care ethics to business. Dordrecht: Springer.
Harris, R. A. (2004). The integration of faith and learning: A worldview approach. Eugene, OR: Cascade Books.
Gini, A., & Marcoux, A. M. (2012). The ethics of business: A concise introduction. Lanham, Md: Rowman & Littlefield Publishers.
Treviño, L. K., & Weaver, G. R. (2003). Managing ethics in business organizations: Social scientific perspectives. Stanford, Calif: Stanford University Press.
Halbert, T., & Ingulli, E. (2012). Law & ethics in the business environment. Mason, OH: South-Western Cengage Learning.
Kehal, H. S., & Singh, V. P. (2006). Outsourcing and offshoring in the 21st century: A socio-economic perspective. Hershey, Pa: Idea Group Pub.