Homework Sourse3 Under what conditions is it ethically defensible to outsou
Solution
Answer: 1
Utilitarian Theory – The utilitarian theory stats that an action which has a maximum utilization impact or which helps to utilize for various people (maximum) is known as an ethical action. So basically the ethical tag on an action can be put based on the outcome of the action. Thus an action which results maximum use, then the action is known as ethical action.
Kantian Theory – Kantian theory states that an action is ethical if the action is performed with meeting the moral, means it should be right action, without considering whether it has maximum utilization/ benefit or happiness among the people. It purely depends upon the nature of the action and it should be morally correct. The action should meet rights of human being and should not utilize any person for business purposes.
Business Code of Ethics – Business code of ethics is defined as the code of conducts being used at the organization level, to ensure the ethical culture in the organization. These business codes planned to achieve the ethical environment in the organization. These are the well written statement of codes, which guides the employees during the ethical scenario in the organization. The purpose of these codes of conduct is to have well-written codes which needs to be followed by all the employees to develop the ethical culture and ethical environment in the organization.
Business outsourcing to developing countries : The outsourcing of production to other developing countries because of lower labor costs is an effective option for the organization, to develop higher revenue and profit for the organization. Thus the company will generate high profit and it will become stronger in the market and will achieve further expansions in their journey.
Though this option looks attractive and pulling our interest towards it, but the company also has social responsibility, and it cannot let their long time working employees to leave the job or will be on laying off due to lack of sufficient production in home country. This will affect the image of social responsibility of the company. So as per ethical standards, the company cannot posses an action which will have adverse effects on multiple people. So an action is called unethical action, if it has impacts on the larger group of population or if it affects larger group of population in the community or country. The company may will to select best profitable option in order to provide best return to their stakeholders.
If the company do not outsource production to developing country to develop higher revenue, than the company may suffer and may not generate required profit. So in this condition, we can let the company to die rather than letting the company to grow.
So it does not looks ethical, that company outsource production to developing country and laying off at home country, just to earn higher revenue and profit, as there is bigger impacts on the long term employees who had strong contribution in company success due to their handworks.
Answer 2:
Yes, we do feel that facilitating payment should be ethical.
The reason for the need of ethical payment facilitating is because the way of providing payment to parties, by another business parties, it looks to be a business cycle and a business transaction. Hence there is commercial transaction between two parties, thus it will lie in the area of commercial business practices of the nation. A commercial business should be ethical and with due approval from the legal authorities of the country departments. One cannot execute payment facilitating without commercial process setup and expertise
