Under What Conditions Is It Ethically Defensible To Outsource Production To The Developing World Where Labor Costs Are Lower When Such Actions Also Involve Laying Off Long-term Employees In The Firm's Home Country?


1 Answers

Anonymous Profile
Anonymous answered
This question is likely to stimulate some lively discussion, particularly if students have personally felt the impact of this practice.  Many American companies are outsourcing not only blue collar work, but white collar positions to the developing world.  Students are facing a tenuous job market where positions that they may have sought when they began their college degrees are being “shipped abroad.” Some students will argue that companies have to do what is best for all stakeholders, and if that means taking advantage of cheaper labor costs elsewhere, then that is the appropriate strategy.  Others however, will probably argue that companies owe a social debt to their home countries, and that loyalty from long term employees should be rewarded.

Answer Question