Critically analyze the ethics of outsourcing manufacturing work to developing countries
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In the manufacturing industry, outsourcing is becoming a deep-rooted approach for companies that want to strategically manage materials in today’s volatile business environment. Globally, the US has the biggest percentage of outsourced jobs with almost 68% of companies delegating their services. In the UK, at least 48% of companies are offshoring business functions mainly due to the labor shortage challenge. According to projections by Deloitte, the global outsourcing market will reach at least $10 trillion by 2022.
Using the principles of utilitarianism, Kant’s categorical imperative, and personal responsibility, this assignment will critically analyze the ethics of offshoring/ outsourcing manufacturing work to developing countries.
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ethics of Outsourcing to developing countries: A Case Study
Key Learning Outcomes
By the end of the case, students should be able to:
- Use ethical principles of Kant’s categorical imperative, utilitarianism, and personal responsibility to critically analyze the ethics of outsourcing manufacturing work to developing countries
- Understand the concept of outsourcing, its advantages, and disadvantages
- Understand why manufacturing companies outsource to developing countries instead of manufacturing in highly industrialized countries
1.0 INTRODUCTION
Boosted by technological advancements and labor challenges in developed countries, the outsourcing industry will continue to experience exponential growth. For multinational companies, developing countries offer a competitive cost advantage compared to manufacturing in highly industrialized countries. When they build plants in developing countries, companies benefit from cheap labor and lower operating costs. In developing countries, Health and safety regulations are often non-existent or inadequate to address the risks involved in manufacturing. They have little incentive to promote environmental ethics, safety procedures, and community investment. Even in regions where regulations exist, firms still find it economically advantageous to avoid compliance and pay penalties rather than meet statutory safety or environmental requirements.
Using the ethical principles of Kant’s categorical imperative, utilitarianism, and personal responsibility, critically analyze the ethics of outsourcing manufacturing work to developing countries.
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