Outsourcing Pollution, With No Thought for Ethics
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
Due to global financial crisis…. companies and individuals are affected, many workers are being separated from their jobs. This happens globally, not just in US and UK. We can’t blame anyone but instead let’s unite, help each other to start all over again and get good results.
Phil
Due to global financial crisis…. companies and individuals are affected, many workers are being separated from their jobs. This happens globally, not just in US and UK. We can’t blame anyone but instead let’s unite, help each other to start all over again and get good results.
Phil
Due to global financial crisis…. companies and individuals are affected, many workers are being separated from their jobs. This happens globally, not just in US and UK. We can’t blame anyone but instead let’s unite, help each other to start all over again and get good results.
Phil
Due to global financial crisis…. companies and individuals are affected, many workers are being separated from their jobs. This happens globally, not just in US and UK. We can’t blame anyone but instead let’s unite, help each other to start all over again and get good results.
Phil
We can all do our little bit to help but what is the point if car manufacturers are still producing cars that do not help the environment. Cash for clunkers was a good idea and was said to of helped in a big way. But who says in a few more years the new cars that we produce wont have to be swapped for a upgrade car so to speak? I think it is all wats for the government to make more money of us.
We can all do our little bit to help but what is the point if car manufacturers are still producing cars that do not help the environment. Cash for clunkers was a good idea and was said to of helped in a big way. But who says in a few more years the new cars that we produce wont have to be swapped for a upgrade car so to speak? I think it is all wats for the government to make more money of us.
We can all do our little bit to help but what is the point if car manufacturers are still producing cars that do not help the environment. Cash for clunkers was a good idea and was said to of helped in a big way. But who says in a few more years the new cars that we produce wont have to be swapped for a upgrade car so to speak? I think it is all wats for the government to make more money of us.
We can all do our little bit to help but what is the point if car manufacturers are still producing cars that do not help the environment. Cash for clunkers was a good idea and was said to of helped in a big way. But who says in a few more years the new cars that we produce wont have to be swapped for a upgrade car so to speak? I think it is all wats for the government to make more money of us.
Victoria and Lew, thanks for your thoughtful comments. Personally, I don’t know if Ford is such a great example. At the same time they were talking hybrid cars and Green initiatives, they were pushing–hard–monster SUVs like the Expedition. These gas-guzzling, steel-consuming behemoths are not exactly walking the talk. As for sound management, well, they made this little trip to Washington asking fo a large infusion of taxpayer dollars…
Victoria and Lew, thanks for your thoughtful comments. Personally, I don’t know if Ford is such a great example. At the same time they were talking hybrid cars and Green initiatives, they were pushing–hard–monster SUVs like the Expedition. These gas-guzzling, steel-consuming behemoths are not exactly walking the talk. As for sound management, well, they made this little trip to Washington asking fo a large infusion of taxpayer dollars…
Victoria and Lew, thanks for your thoughtful comments. Personally, I don’t know if Ford is such a great example. At the same time they were talking hybrid cars and Green initiatives, they were pushing–hard–monster SUVs like the Expedition. These gas-guzzling, steel-consuming behemoths are not exactly walking the talk. As for sound management, well, they made this little trip to Washington asking fo a large infusion of taxpayer dollars…
Victoria and Lew, thanks for your thoughtful comments. Personally, I don’t know if Ford is such a great example. At the same time they were talking hybrid cars and Green initiatives, they were pushing–hard–monster SUVs like the Expedition. These gas-guzzling, steel-consuming behemoths are not exactly walking the talk. As for sound management, well, they made this little trip to Washington asking fo a large infusion of taxpayer dollars…
Your post is of intriguing thought. It has never occurred to me that corporations are “shifting our manufacturing operations overseas, not only because of lower costs, but also because these countries do not have effective anti-pollution laws.” It is especially true to say, “when there’s money to be made, it’s understood that you want to be among the profits.” During the recent economic turmoil, news such as the peanut salmonella outbreak and the Satyam scandal, exemplifies corporations and executives’ single mindedness on boosting sales and profit making. While it is true that some corporations rank profits over ethical values, I would like to use Ford Motors as an example to demonstrate its commitment to the environment and how it upheld corporate social responsibility over the years.
The world is all about going green and saving the environment now. People are shocked by the fact that the environment they are living in might not be able to endure the damages we are making any longer. In response to that, hybrid cars seemed to be the new hit item. Just this spring, Ford Motors introduced Ford Fusion, a retooled, restyled, fuel-efficient midsize car. Despite its $5.9 billion loss in the fourth quarter of 2008, that it is revamping its balance sheet and a share of its stock costs less than a Big Mac, Alan Mulally, CEO of Ford Motors, still pushed forth the higher capital investment of producing hybrid cars. In this year’s Wall Street Journal’s ECO:Nomics Conference in Santa Barbara, California, Mulally was introduced as “the one American auto industry CEO who is not taking bailout money.” Mulally admitted that “the hybrids are very tough economically.” While the company might not be doing well in its financial books, Ford is still considered as an industry leader.
In fact, Ford Fusion is not the company’s first attempt to stir itself to a more environmental friendly corporation. As early as 1983, Ford launched the Ford Conservation and Environmental Grant award, which aims to encourage and commend environmental programs. The award was made global to include China in 2000. In addition, William Ford Jr., Ford Executive Chairman, along with Alan Mulally, announced that they would take a 30% pay cut for the next two years. Ford’s board of directors will also drop their compensation for two years and there will be no more performance bonuses for salaried workers and senior executives. Ford and Mulally believed that “these are necessary actions to help us emerge as an even stronger, profitably growing Ford Motor Company for the benefit of us all.”
I believe Ford Motors is a great example of sound management team and corporate social responsibility. I hope this adds some optimism that maybe there are still companies out that who would not sacrifice their morals for profits.
Your post is of intriguing thought. It has never occurred to me that corporations are “shifting our manufacturing operations overseas, not only because of lower costs, but also because these countries do not have effective anti-pollution laws.” It is especially true to say, “when there’s money to be made, it’s understood that you want to be among the profits.” During the recent economic turmoil, news such as the peanut salmonella outbreak and the Satyam scandal, exemplifies corporations and executives’ single mindedness on boosting sales and profit making. While it is true that some corporations rank profits over ethical values, I would like to use Ford Motors as an example to demonstrate its commitment to the environment and how it upheld corporate social responsibility over the years.
The world is all about going green and saving the environment now. People are shocked by the fact that the environment they are living in might not be able to endure the damages we are making any longer. In response to that, hybrid cars seemed to be the new hit item. Just this spring, Ford Motors introduced Ford Fusion, a retooled, restyled, fuel-efficient midsize car. Despite its $5.9 billion loss in the fourth quarter of 2008, that it is revamping its balance sheet and a share of its stock costs less than a Big Mac, Alan Mulally, CEO of Ford Motors, still pushed forth the higher capital investment of producing hybrid cars. In this year’s Wall Street Journal’s ECO:Nomics Conference in Santa Barbara, California, Mulally was introduced as “the one American auto industry CEO who is not taking bailout money.” Mulally admitted that “the hybrids are very tough economically.” While the company might not be doing well in its financial books, Ford is still considered as an industry leader.
In fact, Ford Fusion is not the company’s first attempt to stir itself to a more environmental friendly corporation. As early as 1983, Ford launched the Ford Conservation and Environmental Grant award, which aims to encourage and commend environmental programs. The award was made global to include China in 2000. In addition, William Ford Jr., Ford Executive Chairman, along with Alan Mulally, announced that they would take a 30% pay cut for the next two years. Ford’s board of directors will also drop their compensation for two years and there will be no more performance bonuses for salaried workers and senior executives. Ford and Mulally believed that “these are necessary actions to help us emerge as an even stronger, profitably growing Ford Motor Company for the benefit of us all.”
I believe Ford Motors is a great example of sound management team and corporate social responsibility. I hope this adds some optimism that maybe there are still companies out that who would not sacrifice their morals for profits.
Your post is of intriguing thought. It has never occurred to me that corporations are “shifting our manufacturing operations overseas, not only because of lower costs, but also because these countries do not have effective anti-pollution laws.” It is especially true to say, “when there’s money to be made, it’s understood that you want to be among the profits.” During the recent economic turmoil, news such as the peanut salmonella outbreak and the Satyam scandal, exemplifies corporations and executives’ single mindedness on boosting sales and profit making. While it is true that some corporations rank profits over ethical values, I would like to use Ford Motors as an example to demonstrate its commitment to the environment and how it upheld corporate social responsibility over the years.
The world is all about going green and saving the environment now. People are shocked by the fact that the environment they are living in might not be able to endure the damages we are making any longer. In response to that, hybrid cars seemed to be the new hit item. Just this spring, Ford Motors introduced Ford Fusion, a retooled, restyled, fuel-efficient midsize car. Despite its $5.9 billion loss in the fourth quarter of 2008, that it is revamping its balance sheet and a share of its stock costs less than a Big Mac, Alan Mulally, CEO of Ford Motors, still pushed forth the higher capital investment of producing hybrid cars. In this year’s Wall Street Journal’s ECO:Nomics Conference in Santa Barbara, California, Mulally was introduced as “the one American auto industry CEO who is not taking bailout money.” Mulally admitted that “the hybrids are very tough economically.” While the company might not be doing well in its financial books, Ford is still considered as an industry leader.
In fact, Ford Fusion is not the company’s first attempt to stir itself to a more environmental friendly corporation. As early as 1983, Ford launched the Ford Conservation and Environmental Grant award, which aims to encourage and commend environmental programs. The award was made global to include China in 2000. In addition, William Ford Jr., Ford Executive Chairman, along with Alan Mulally, announced that they would take a 30% pay cut for the next two years. Ford’s board of directors will also drop their compensation for two years and there will be no more performance bonuses for salaried workers and senior executives. Ford and Mulally believed that “these are necessary actions to help us emerge as an even stronger, profitably growing Ford Motor Company for the benefit of us all.”
I believe Ford Motors is a great example of sound management team and corporate social responsibility. I hope this adds some optimism that maybe there are still companies out that who would not sacrifice their morals for profits.
Your post is of intriguing thought. It has never occurred to me that corporations are “shifting our manufacturing operations overseas, not only because of lower costs, but also because these countries do not have effective anti-pollution laws.” It is especially true to say, “when there’s money to be made, it’s understood that you want to be among the profits.” During the recent economic turmoil, news such as the peanut salmonella outbreak and the Satyam scandal, exemplifies corporations and executives’ single mindedness on boosting sales and profit making. While it is true that some corporations rank profits over ethical values, I would like to use Ford Motors as an example to demonstrate its commitment to the environment and how it upheld corporate social responsibility over the years.
The world is all about going green and saving the environment now. People are shocked by the fact that the environment they are living in might not be able to endure the damages we are making any longer. In response to that, hybrid cars seemed to be the new hit item. Just this spring, Ford Motors introduced Ford Fusion, a retooled, restyled, fuel-efficient midsize car. Despite its $5.9 billion loss in the fourth quarter of 2008, that it is revamping its balance sheet and a share of its stock costs less than a Big Mac, Alan Mulally, CEO of Ford Motors, still pushed forth the higher capital investment of producing hybrid cars. In this year’s Wall Street Journal’s ECO:Nomics Conference in Santa Barbara, California, Mulally was introduced as “the one American auto industry CEO who is not taking bailout money.” Mulally admitted that “the hybrids are very tough economically.” While the company might not be doing well in its financial books, Ford is still considered as an industry leader.
In fact, Ford Fusion is not the company’s first attempt to stir itself to a more environmental friendly corporation. As early as 1983, Ford launched the Ford Conservation and Environmental Grant award, which aims to encourage and commend environmental programs. The award was made global to include China in 2000. In addition, William Ford Jr., Ford Executive Chairman, along with Alan Mulally, announced that they would take a 30% pay cut for the next two years. Ford’s board of directors will also drop their compensation for two years and there will be no more performance bonuses for salaried workers and senior executives. Ford and Mulally believed that “these are necessary actions to help us emerge as an even stronger, profitably growing Ford Motor Company for the benefit of us all.”
I believe Ford Motors is a great example of sound management team and corporate social responsibility. I hope this adds some optimism that maybe there are still companies out that who would not sacrifice their morals for profits.
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We can’t stop the large corporations from outsourcing unless our gov’t. thru disincentives dissuades them , but ,at present, we can’t anger our creditors like
China. SI o no?
As David Hume pointed out, there is no connection between an Is and an Ought…
It would be better for more people in this country not to outsource but obviously the large Corps..could care less.
We can’t stop the large corporations from outsourcing unless our gov’t. thru disincentives dissuades them , but ,at present, we can’t anger our creditors like
China. SI o no?
As David Hume pointed out, there is no connection between an Is and an Ought…
It would be better for more people in this country not to outsource but obviously the large Corps..could care less.
We can’t stop the large corporations from outsourcing unless our gov’t. thru disincentives dissuades them , but ,at present, we can’t anger our creditors like
China. SI o no?
As David Hume pointed out, there is no connection between an Is and an Ought…
It would be better for more people in this country not to outsource but obviously the large Corps..could care less.
We can’t stop the large corporations from outsourcing unless our gov’t. thru disincentives dissuades them , but ,at present, we can’t anger our creditors like
China. SI o no?
As David Hume pointed out, there is no connection between an Is and an Ought…
It would be better for more people in this country not to outsource but obviously the large Corps..could care less.