Category: Ethics-International

Editor’s note: Holly McCarthy submitted this provocative guest post, and I’m running it in the hope of starting some dialogue. I share some of Holly’s concerns about outsourcing (particularly about using it to duck around environmental laws), but also believe there can be ethical ways to do it, and that when done properly, it can be an important leg up to the hardest-pressed communities at the bottom of the world’s pyramid. Curious as to what others think.
–Shel Horowitz

Guest post by Holly McCarthy When we talk of business ethics, we’re generally referring to the right way to do business, the moral way that leads to principled profit. But the advent of globalization has brought on a new kind of ethical value that we must bow to, but one which we tend to ignore because it doesn’t concern us directly. I’m talking about the process of outsourcing, a practice that’s pretty common these days because of the low cost of labor in countries like India, China and the Philippines.

Issue number one: The first unethical aspect of outsourcing is that we’re ignoring our own talent and paying people overseas just to cut costs. Our people are languishing without jobs and yet we’re shifting more and more jobs overseas. There are times when we even tend to hand over sensitive information to unknown faces who are connected to us through just a computer and an Internet connection, thus putting at risk our customers’ privacy and identity. Besides this, we are closing down offices in our country only to open new ones in other countries, thus effectively contributing to development on foreign lands and stagnation in our own.

Issue number two: We’ve also taken to shifting our manufacturing operations overseas, not only because of lower costs, but also because these countries do not have effective anti-pollution laws. We are luring them to ruin with huge amounts of money, and the sad part of this whole shady situation is that those who gain from this venture are not the ones who are affected by the effluents that result from the manufacturing process. It’s the poor and indigent people who live off the land who are hurt the most – they cannot afford bottled water like the rest of us and so must still drink from the stream that’s been polluted; they cannot afford to sit inside air-conditioned rooms and so must breathe in the polluted air; they cannot afford medication, and so they must suffer respiratory illnesses and other ailments in silence.

Outsourcing is and has always been a sore point with developed nations like the USA and the UK. The burgeoning of talent in developing countries, talent that is available at a fraction of the cost incurred in hiring local labor, had made organizations take the easy way out. Of course, when there’s money to be made, it’s understood that you want to be among the profits. But there’s an ethical line that cannot be crossed, and it’s up to you to decide where you want to draw it.

This post was contributed by Holly McCarthy, who writes on the subject of online universities. She invites your feedback at hollymccarthy12 at gmail dot com