Comparative ethics

Comparative Ethics
Indiana Wesleyan University
MGMT-512A Human Resources Management
Dr. Tonya SaheliOctober 20, 2013
I have read and understand the plagiarism policy as outlined in the syllabus and the sections in the Student Bulletin relating to the IWU Honesty/Cheating Policy. By affixing this statement to the title page of my paper, I certify that I have not cheated or plagiarized in the process of completing this assignment. If it is found that cheating and/or plagiarism did take place in the writing of this paper, I understand the possible consequences of the act/s, which could include expulsion from Indiana Wesleyan UniversityComparative Ethics
Outsourcing of labor has increased steadily in the United States over the past thirty years, taking advantage of low cost wages for production in developing countries. Since that time the trend has become evident in other countries such as Germany and the United Kingdom. Although wages are considerably lower in those locations than in the United States, in order to stay globally competitive, outsourcing has become a necessity in those countries as well CITATION Daq \l 1033 (Daquila Ph.D., 2012).
The Leadership Dilemma
A leadership dilemma exists when making a case for outsourcing while taking into consideration the impact to the local community. The leader must maintain a balance between all stakeholders; owners, employees, suppliers, customers, and the community as a whole. In today’s world the economic and social costs are at the global level, when losing jobs in one location results in those jobs being created somewhere else, the greatest gain results for most and loss for fewer because those higher paying jobs in the U.S. may employ twice the number of people in another country CITATION Daq \l 1033 (Daquila Ph.D., 2012).
Negative Impact of Outsourcing
By the mid-1900’s, 25 percent of the employed population worked in the manufacturing sector. In the state of Michigan, the “Big Three” automotive makers, General Motors (GM), Ford, and Chrysler, were the largest employers. As a result, the state reported annual revenues of $218 billion in 1997, and the following year produced 23 percent of all U.S. cars and trucks. Once outsourcing of many manufacturing jobs that supplied the automotive industry hit a high point and the industry hit a low point in production, the result was the highest unemployment rate in 2011, at 10.9 percent CITATION Daq \l 1033 (Daquila Ph.D., 2012). This example is indicative of overall impact to a specific industry when its counterparts elected the outsourcing option.
Positive Impact of Outsourcing
Although impact to the United States’ unemployment rate is a factor, on a global perspective, statistics on sending work to India shows that outsourcing has the potential to increase to U.S. income by 12-14 cents for every dollar of work sent offshore, and a total local gain in India of 33 cents for every dollar of U.S. outsourcing, representative of a win-win for both countries CITATION Bra13 \l 1033 (Brandeis University, 2013). One viewpoint is that outsourcing provides U.S. companies to redirect their focus to higher-level strategy, or research and development, which potentially leads to additional jobs for everyone. Another argument for outsourcing is to send jobs where they are needed and wanted, increasing focus on creating a world where everyone improves performance. The more trivial low-paying tasks can be off-shored to locations that consider them to be high-paying for most of their workforce. In countries where people are in poverty a job paying a mere $3.00 a day is the difference between being feeding a family or not CITATION Bra13 \l 1033 (Brandeis University, 2013).
Ethical Framework Comparison
Justice as Fairness
When determining whether outsourcing of local manufacturing to a developing country is the right decision, utilizing the ethical framework of Justice as Fairness considers both the rights of individual to equitable liberties as well as socio-economic inequalities (Johnson, 2012, p.162). Within this framework elements of both advantages and disadvantages are present. While choosing to offshore some level of production may impact individuals in the local communities, the increase in employment for those living in impoverished conditions in developing countries demonstrates a concern for the less fortunate. As described as a disadvantage of this model, the local group may feel losing their job to off-shoring is unjust and unfair (Johnson, 2012, p.163).
Altruism
Within the ethical framework of Altruism, the elimination of local jobs by outsourcing to a developing country could be considered helping others whatever the personal cost. This framework assumes a higher level of performance would result, and display societal-focused behaviors such as contributing to promote social welfare (Johnson, 2012, p.172). Considering this framework for making an ethical comparison to outsource or not is balanced, as both advantages and disadvantages are present. While making the conscience decision to move labor to another country is important to both societies and their leaders, it is also impossible to meet the needs of both sets of individuals, resulting in conflict both from the leader perspective and the impacted individuals.
Biblical Principles
Within the context of the biblical principles authored by scholar Jerry White, there exists a contrast of positive and negative in the decision to outsource. In the first guideline, just weight, can be a positive trait for outsourcing, as under-developed countries are grateful for employment and will accept the challenge, however the payment may not be deemed fair when the U.S. is profiting from the lower pay CITATION Whi78 \l 1033 (White, 1978). The second guideline of biblical business ethics which maintains that honesty is a foundation at all levels of the organization should not be impacted by an outsourcing decision as long as the leader is forthcoming with the information to current local employees, and provides clear and insightful reasons as to why the decision was made CITATION Whi78 \l 1033 (White, 1978).
The third principle defining the value of a business as its service actually may de-value the local employee, as they are being replaced by another service provider and the employer may be construed as not supporting his community CITATION Whi78 \l 1033 (White, 1978). The fourth principle lays accountability for the decision at the foot of the leader. They must do the right thing for the company, the current and future employees, as well as the shareholders and the community CITATION Whi78 \l 1033 (White, 1978). Whether or not outsourcing has a positive or negative impact in realizing reasonable profits would be contingent on the employee pay, cost to produce, and pricing structure for the goods or services provided. If the pay is deemed fair and equitable in the socio-economic conditions of the outsourced location, the company profiting from this labor would be reasonable CITATION Whi78 \l 1033 (White, 1978).
Final Position
Outsourcing of manufacturing from a local community to a developing country can be considered ethical based on the research and consideration of the aforementioned analysis of ethical frameworks. The unemployment rate for the United States, in August of 2011 was at 9.1 percent, nearly double the historical average from 1948 to 2010 of 5.7 percent CITATION Daq \l 1033 (Daquila Ph.D., 2012). However, even though the nation is at a high point in the number of jobs outsourced, a 2013 study by the Boston Consulting Group predicts that production in the United States will increase steadily to $115 billion in exports by 2020 and create an estimated 5 million new jobs, based on the consistent upward trend of U.S. domestic production (PRWeb Newswire, 2013). References
Brandeis University. (2013, April). The Ethics of Outsourcing Labor. Retrieved from International Center for ethics, Justice, and Public Life: http://www.brandeis.edu/ethics/ethicalinquiry/2013/April.html
Daquila Ph.D., G. (2012, November 24). Outsourcing: ethical and cultural dilemmas. Retrieved from http://geralddaquila.com/2012/11/24/outsourcing-ethical-and-cultural-dilemmas/ BIBLIOGRAPHY \l 1033 Halstead, I. (2013, October 17). Manufacturers are starting g to roll back the tide; RESHORING The concept of 'reshoring ' is steadily bringing manufacturing work back to Greater Birmingham. Could office jobs follow? Ian Halstead asks around. Retrieved from Business Insights Essentials: http://0-bi.galegroup.com.oak.indwes.edu/essentials/article/GALE%7CA345810527/d644435023a75a790430a562b8d7fc8c?u=indwesun Johnson, C. (2012). Meeting the Ethical Challenges of Leadership: Casting Light or Shadow (4thed.). Thousand Oaks, CA: Sage
"U.S. Production Rises, Driving Hiring on ManufacturingCrossing.com." PRWeb Newswire 25 Aug. 2013. Business Insights: Essentials. Web. 17 Oct. 2013. BIBLIOGRAPHY \l 1033 White, J. (1978). Honesty, morality, & conscience. Colorado Springs, CO: Nav Press.

References: Brandeis University. (2013, April). The Ethics of Outsourcing Labor. Retrieved from International Center for ethics, Justice, and Public Life: http://www.brandeis.edu/ethics/ethicalinquiry/2013/April.html Daquila Ph.D., G. (2012, November 24). Outsourcing: ethical and cultural dilemmas. Retrieved from http://geralddaquila.com/2012/11/24/outsourcing-ethical-and-cultural-dilemmas/ BIBLIOGRAPHY l 1033 Halstead, I. (2013, October 17). Manufacturers are starting g to roll back the tide; RESHORING The concept of 'reshoring ' is steadily bringing manufacturing work back to Greater Birmingham. Could office jobs follow? Ian Halstead asks around. Retrieved from Business Insights Essentials: http://0-bi.galegroup.com.oak.indwes.edu/essentials/article/GALE%7CA345810527/d644435023a75a790430a562b8d7fc8c?u=indwesun Johnson, C. (2012). Meeting the Ethical Challenges of Leadership: Casting Light or Shadow (4thed.).  Thousand Oaks, CA: Sage "U.S. Production Rises, Driving Hiring on ManufacturingCrossing.com." PRWeb Newswire 25 Aug. 2013. Business Insights: Essentials. Web. 17 Oct. 2013. BIBLIOGRAPHY l 1033 White, J. (1978). Honesty, morality, & conscience. Colorado Springs, CO: Nav Press.