Question

do you think companies bear an ethical burden when the contract production to factories abroad and reduce jobs at home?

Answer 1

Outsourcing is the practice of hiring an outside firm or individual to perform contracted work as an alternative to paying employees to do it. Many companies use outsourcing based on expertise and cost-of-labor advantages.

This simple practice of outsourcing certain elements of a business operation fits into the free enterprise system. As part of strategic competitive planning, companies must strike a balance between quality processes and affordability. Outsourcing isn't always a global move. Some small businesses outsource transportation and logistics domestically, for instance. In general, outsourcing simply means you find it more beneficial to contract out tasks rather than hire full-time staff, which doesn't seem to compromise company ethics.

Periods of high unemployment, some companies face media and public scrutiny whether outsourcing domestically or abroad. Fair or not, this pressure stems from the perspective of some citizens that a business should promote employment rather than choosing lower-cost contractor relationships. The way a company treats its outsourcing partners has ethical considerations as well. In general, your business practices reflect on your associates as well as your own company image. Outsourcing puts pressure on your business to monitor and maintain high-quality standards if you want customers to perceive you as a top provider.