Global Outsourcing: a Closer Look Into Etchics and Corporate Social Responsibilites

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Global Outsourcing: a Closer Look into Ethics and Corporate Social Responsibilities

Angga Adhyatmika (ADAPF103J)
Alysia Putrivani (PUALD111J)
MMM132 – Management
John Williams
Trimester 3, 2011
Monday, 16 January 2012

Table of Contents
Executive Summary
1.0 Introduction1
2.1 Overview of Task1
2.2 Purpose of Report1
2.0 Ethics & Corporate Social Responsibility2
3.3 Ethics2
3.4 Corporate Social Responsibility (CSR)2
3.5 Importance of CSR: Consumers & Corporations3 3.6 Benefits of Encouraging ethical practices3
2.4.1Employee Contribution3
2.4.2Profitable Relationships4
2.4.3Non-Economic Rewards4
3.0 Importance of Global Outsourcing5
4.7 Benefits of Outsourcing5
4.0 CSR Issues Surrounding Global Outsourcing5
4.1Underage Workers64.1.1Child Labour in Development 6
4.1.2Organisation Facing Child Labour 6
4.2Health Issues7
4.2.1Worker’s Health Dangers7
4.2.2Organisation Facing Health Issues7
4.3Lack of Safety & Regulations8
4.3.1Risky Workplace8
4.3.2Organizations Lacking Safety8
4.4Physical and Emotional Abuse9
4.4.1Rights Abuse94.4.2Organisations Facing Worker Abuse9 5.0 Conclusion10
6.0 Recommendation 11
References12

Executive Summary

The purpose of this report is to advise the Board of Directors of the benefits that global outsourcing may present to a company, along with the various ethical and CSR issues that may arise from it; to aid the board in decision making. In order to determine whether or not outsourcing would be a viable option to gain profits, market share or reduce manufacturing costs: the report will discuss corporate ethics and CSR; regarding its importance in the workplace and what benefits the company can gain. it will also discuss what benefits outsourcing may acquire, and what CSR issues may arise from outsourcing globally. It was found that encouraging ethical practices in the workplace, and making management decisions that concern the welfare of the society results in various long-term benefits. And that although outsourcing may have its benefits towards management, there are certainly significant ethical issues that arise from global outsourcing, such as child labour, health issues, lack of safety, and physical and mental abuse. The report suggests that the Board should consider outsourcing their vacuum pumps as it is a potential to increase profit, market share and even cut manufacturing costs. But doing so, the Board must have social responsibilities, and make ethical decisions to account the society’s welfare, to avoid the rise of ethical problems that may jeopardize the company.

1.0Introduction
1.1This report will discuss ethics and the relationship between corporate social responsibilities (CSR) and global outsourcing; how it allows the firm to have a competitive advantage in the global marketplace. Because Kroenke (2007, p.319) believes that ‘outsourcing is done to save costs, to gain expertise, and to free up management time’. Hence, these incurred benefits of outsourcing may improve management in various aspects, which may be worthwhile for the company to consider implementing. To review whether or not outsourcing is beneficial for the company, this report will analyse: the benefits of business ethics and CSR, and its relation to global outsourcing and the issues that surround it by referring to existing organizations. 1.2The purpose of this report is to advise the board to make decisions, by addressing the benefits of global outsourcing to the company and acknowledging the ethics and CSR issues that may arise from it.

2.0Ethics & Corporate Social Responsibility
This section will discuss what are ethics and corporate social...
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