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Global Business And Ethics Term Paper

¶ … ethical issue of outsourcing, or sending jobs overseas, and its affects on the world economy and cultures. Outsourcing has become a very common practice in the 21st century. Outsourcing is quite simply the practice of sending jobs to remote call centers and other locations in foreign countries, while eliminating jobs in the United States. The ethical issues surrounding outsourcing and the resulting globalization are complex, and pose risks and consequences for the companies who choose to outsource. Globalization has created the ability for employers to hire and train workers around the globe, often at extremely reduced salaries and benefit levels, thus saving the employer thousands and even millions of dollars. The practice is so widespread that many financial institutions routinely send data to overseas locations, income taxes are prepared in India and sent to customers remotely, and medical records are interpreted by workers clear across the globe. The ethics and moral issues of these outsourced jobs are many, from privacy concerns for consumers, to pay and workplace ethics of the employers over their employees. In the process, outsourcing is changing the way companies do business, and how ethically they treat their employees, as well.

The first ethical concern companies have not been addressing is the failure to address the concerns of U.S. employees who lose their jobs as a result of outsourcing. One expert writes, "The plight of the people being laid off is cause to wonder whether other considerations, traditionally omitted from the balance sheet, should be examined -- considerations such as ethics" (Breslin, 1999, p. 24). Often, these outsource victims cannot find another job, or a job that pays what their previous position paid. Author Breslin continues, "From a financial perspective, some employees who are forced to take jobs in private industry lose their retirement and health insurance benefits as well as witness a reduction in salary, even after factoring in severance" (Breslin, 1999, p. 27). These separated employees may never...

Gradually, as more people lose their jobs, they stop buying consumer goods, and the entire economy suffers. Many large corporations have outsourced entire operations and the communities have suffered because of their outsourcing.
Globalization offers businesses opportunities that never existed before, and that is changing the culture of the world. Another writer notes, "International business operates in an interdependent global economy where market functions are influenced by national political and cultural diversity" (Kline, 2005, p. 7). American corporations doing business in areas such as India are changing the cultural climate of the country. Indians are becoming more westernized, they are bringing new earnings and development money into the country, and they are changing how they live and work, i.e., their culture. The implications of this illustrate how globalization is westernizing the world, and few business leaders are addressing that aspect of the ethics of doing business in other countries. Author Kline continues, "Private international corporations bring an entire ethos that may differ significantly from traditional societal norms, especially for non-Western societies" (Kline, 2005, p. 171). Thus, the entire society shifts away from their traditional culture, and this will have long-term, lasting affects on a country and its peoples.

Many Indians may see the proliferation of call centers and other outsourced businesses as a good thing, at least initially, because they are providing jobs and bringing modernity to the country. However, these jobs are usually low paying and tedious, and the quality and consumers often criticize knowledge of the employees when dealing with them. They are also changing the face of India and her people. The situation is similar to the colonial period of world expansion, when countries like Great Britain entered a country, made…

Sources used in this document:
References

Breslin, D.A. (1999). On the ethics of outsourcing. Retrieved 1 Oct. 2009 from the Defense Acquisition University Web site: http://www.dau.mil/pubs/pm/pmpdf99/breslind.pdf. 24-27.

Kline, J.M. (2005). Ethics for international business: Decision making in a global political economy. London: Routledge.

Shamis, G.S., Green, M.C., Sorensen, S.M., & Kyle, D.L. (2005). Outsourcing, offshoring, nearshoring: What to do? Journal of Accountancy, 199(6), 57+.
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