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Thread: Ethical Outsourcing

  1. #11
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    Default Re: Ethical Outsourcing

    I don't see the ethics of outsourcing being the responsibility of the employer. If one country's people are getting taken advantage of then it is the government's job to give them better options. Better yet, the government should already have been doing a good enough job to not put their people in a state of easy exploitation to begin with.

  2. #12
    Diamond Member Corzhens's Avatar
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    Default Re: Ethical Outsourcing

    Quote Originally Posted by Norm View Post
    I don't see the ethics of outsourcing being the responsibility of the employer. If one country's people are getting taken advantage of then it is the government's job to give them better options. Better yet, the government should already have been doing a good enough job to not put their people in a state of easy exploitation to begin with.
    We really cannot say that people of the host country are being taken advantage by the outsourcing country because in any way you look at it, those foreign businesses are giving jobs to the locals. The Philippines is well-known for call center agents, claiming we have the best work force that's why almost 5% of employment in the city is the contribution of those foreign companies. With the exploitation, it may not be the right word because the call center companies are giving high salaries to the call center agents that is equivalent to a supervisor's wage in regular offices.

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    Default Re: Ethical Outsourcing

    Quote Originally Posted by Corzhens View Post
    We really cannot say that people of the host country are being taken advantage by the outsourcing country because in any way you look at it, those foreign businesses are giving jobs to the locals. The Philippines is well-known for call center agents, claiming we have the best work force that's why almost 5% of employment in the city is the contribution of those foreign companies. With the exploitation, it may not be the right word because the call center companies are giving high salaries to the call center agents that is equivalent to a supervisor's wage in regular offices.
    I agree completely. I think companies provide these opportunities and any exploitation is the responsibility of the government to combat, not a business that doesn't even live in the same country and has no idea or duty to keep the locals protected. It's the government's responsibility to set up the rules and like I have mentioned, setting a good enough standard of living that exploitation would become less appealing just for survival.

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    Default Re: Ethical Outsourcing

    The thing about outsourcing is that a lot of times, outsourced work pays double or even triple what these workers might make. It might seem sketchy or exploitative when considering what the job is worth, but the entire reason that it works is because it is often a fantastic deal for the people doing the work compared to what they have available.

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    Default Re: Ethical Outsourcing

    Quote Originally Posted by TheFunneler View Post
    The thing about outsourcing is that a lot of times, outsourced work pays double or even triple what these workers might make. It might seem sketchy or exploitative when considering what the job is worth, but the entire reason that it works is because it is often a fantastic deal for the people doing the work compared to what they have available.
    Agreed. I know this is the case for most but I wonder if it's true for all though. I imagine the people in China making iPhones don't get paid that much, not only in relation to the job but also as a standard in their locality.

  6. #16
    Diamond Member Corzhens's Avatar
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    Default Re: Ethical Outsourcing

    Quote Originally Posted by TheFunneler View Post
    The thing about outsourcing is that a lot of times, outsourced work pays double or even triple what these workers might make. It might seem sketchy or exploitative when considering what the job is worth, but the entire reason that it works is because it is often a fantastic deal for the people doing the work compared to what they have available.
    I agree that it is some kind of exploitation when you outsource a job to a country with a lower economy. Since the standard of pay there is much lower so you actually have an advantage. But come to think of it, you are paying that outsource more so it is an advantage to him. And to think that the standard of living in that poor country is much lower than yours so the outsource has a great advantage than the others of his level of work.

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    Default Re: Ethical Outsourcing

    Exactly, it might be considered exploitation, but from both sides of the coin, both parties are benefiting beyond what they would have otherwise. It is technically the best option, but it is frowned upon because we do not have the system in place to support international labor switches without destabilizing a ton of different economies

  8. #18
    Diamond Member Corzhens's Avatar
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    Default Re: Ethical Outsourcing

    Well, it is just like the so called job matching where the labor is matched with the vacant position. We can take it like a prototype where the call center agent is very qualified and the need for that kind of call center agent by a company is in dire situation therefore they are willing to pay more for the available labor. The only possible problem is the unemployment in the country that would result when the big company outsources the job to a foreign country instead of hiring their local workers for the vacant positions.

  9. #19
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    Default Re: Ethical Outsourcing

    Quote Originally Posted by Corzhens View Post
    I agree that it is some kind of exploitation when you outsource a job to a country with a lower economy. Since the standard of pay there is much lower so you actually have an advantage. But come to think of it, you are paying that outsource more so it is an advantage to him. And to think that the standard of living in that poor country is much lower than yours so the outsource has a great advantage than the others of his level of work.
    I don't think exploitation is a fair label for it but instead it's just capitalism which to me means that you only are capitalizing on the limits of what is legally acceptable. To me exploitation means going past those limits into causing people harm or risk in a way that doesn't offer them benefits equal to it, which may be considered even more of a gray area even though still not necessarily illegal.

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    Default Re: Ethical Outsourcing

    Quote Originally Posted by Corzhens View Post
    Over here, I don't think there is a case like that - terminating employees in favor of outsourcing. What they do is to tranfer the current employees in that particular section (intended for outsourcing) before they do the actual outsourcing. And the transferred employees still continue doing their chore in their original section until the outsource is put into place. Outsourcing is only being done by big companies because small companies cannot afford to transfer their employees for lack of vacancy.
    Well yes, that is true. What I meant to say, though, is that if from the outset you outsourced all of your business functions, meaning you outsourced everything when your company was still small until the time it grew so big, you'd basically be ethical in that regard.

    In the United States, for instance, big-time companies outsourced their manufacturing departments to China and India where labor is cheap and fast. In effect, there were mass layouts and a lot of able American laborers were displaced from the workforce. That scenario, although it benefited large companies like Nike and Apple, is unethical in the sense that locals lost their jobs just because companies wanted to cut back on costs.

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