Ethical Implications of Outsourcing
Ethical Implications of Outsourcing Shawn Schneider University of Phoenix Michael Osby MGT216 May 18, 2009
Ethical Implications of Outsourcing For several years, many companies have turned to outsourcing income tax preparation and income tax return filing to companies in other countries to improve performance. The act of outsourcing a company’s tax preparation is reasonable if the company is confident with the servicing company which is contracted; by outsourcing one part of the business they can use resources in other areas (Mintz, 2004). What happens when a tax preparation company outsources customer tax preparation and tax return filing to other countries? When an individual takes personal and financial information to a tax preparation company an expectation of confidentially is entrusted to the company. What implications may arise when a company does not disclose their true intentions?
Statistics
The estimated number of income tax returns prepared by an Accountant in India in 2002 is 25,000; the estimated number of American income tax returns prepared in India for 2004 was close to 100,000 and the numbers are expected to grow exponentially each year. The companies which are outsourcing income tax returns allege they employ “either Chartered Accountants or Indian Chartered Accountant candidates trained in U.S.-based tax law and tax return preparation” (Brody, Miller, & Rolleri, 2004). The number of American income tax returns being processed by individuals in India could grow to be a much higher number than those prepared and filed in the U.S.
Ethics of Companies When a company desires to outsource to another company whether within its nation or abroad they must be certain the company in which they will contract has the same ethical standards as their company. When companies work together without similar ethical standards the consumer normally gets the brunt of consequences. The way to see what
Ethical Implications of Outsourcing For several years, many companies have turned to outsourcing income tax preparation and income tax return filing to companies in other countries to improve performance. The act of outsourcing a company’s tax preparation is reasonable if the company is confident with the servicing company which is contracted; by outsourcing one part of the business they can use resources in other areas (Mintz, 2004). What happens when a tax preparation company outsources customer tax preparation and tax return filing to other countries? When an individual takes personal and financial information to a tax preparation company an expectation of confidentially is entrusted to the company. What implications may arise when a company does not disclose their true intentions?
Statistics
The estimated number of income tax returns prepared by an Accountant in India in 2002 is 25,000; the estimated number of American income tax returns prepared in India for 2004 was close to 100,000 and the numbers are expected to grow exponentially each year. The companies which are outsourcing income tax returns allege they employ “either Chartered Accountants or Indian Chartered Accountant candidates trained in U.S.-based tax law and tax return preparation” (Brody, Miller, & Rolleri, 2004). The number of American income tax returns being processed by individuals in India could grow to be a much higher number than those prepared and filed in the U.S.
Ethics of Companies When a company desires to outsource to another company whether within its nation or abroad they must be certain the company in which they will contract has the same ethical standards as their company. When companies work together without similar ethical standards the consumer normally gets the brunt of consequences. The way to see what
References: Brody, R, Miller, M, & Rolleri, M Outsourcing income tax returns to India: legal, ethical and professional issues. The CPA Journal, Retrieved May 15, 2009, from http://www.nysscpa.org/cpaj/2004/1204/p12.htm. Mintz, Steven (March 2004). The ethical dilemmas of outsourcing. The CPA journal, Retrieved May 14, 2009, from http://www.nysscpa.org/cpajournal/2004/304/perspectives/nv1.htm Sivaswany, Ranjini (August 18, 2005). Ethics of outsourcing. business/outsourcing, Retrieved May 14, 2009, from http://ezinearticles.com/?ethics-of-outsourcing&id=61293&opt=print