solved Discussion Topic: The Ethics in Outsourcing Decisions:In today’s business environment,

Discussion Topic: The Ethics in Outsourcing Decisions:In today’s business environment, many companies have elected to
outsource work overseas in order to reduce costs and increase profit.
Concurrently, this reduces the number of available jobs and level of
disposable income in the American economy, potentially causing a
reduction in the sales of their products.Do you feel these decisions are sound business practices being employed by the company or not?Do the discussion and response each posted #1-3 down below.Posted 1Quantitatively, outsourcing is a sound business practice, It allows companies to reduce labor costs and focus their capital on their main business functions. This, in turn, can increase profits.
Qualitatively, however, outsourcing is questionable. It is difficult to
quantify customer trust. It seems like as the number of overseas call
centers has grown, so has the number of scan artists impersonating
legitimate companies. Brand and company loyalty can also be hurt by
outsourcing, especially if the consumers take a harsh view on the loss
of domestic jobs (Hayes, 2020). Additionally, outsourcing lowers
barriers to entry and increases competition, which benefits the
consumer, but hurts the companies that are unable to hold their own
(Hayes, 2020). Finally, it eliminates domestic jobs in favor of cheap
overseas labor, but as this continues the labor costs in the countries
being outsourced to will increase, eliminating the advantage they
originally provided (Hayes 2020).
Overall, I think outsourcing is a sound business practice only in terms
of profit for the individual company. In terms of economy and labor, I
think it is questionable.Posted 2Outsourcing
is a big part of business today. It does save a company, but the
company must cut back on the quality of the product since the parts to
make the product are cheaper overseas then it is here in the U.S. The
U.S. gives the country money back for making the product in that
country. Although making product in other might be good for the company
in some ways it is bad for the company. Since there are people that do
not want to buy product that were made in another country which can hurt
a company. The decisions to come back to the U.S. will help the company
grow. It will also bring back jobs as well and having jobs here will
help to cut down on unemployment. Even though in the U.S. minimum wage
is a lot higher in the U.S. compared to other country so that is
something to take into consideration when looking at start up cost of a
company.Posted 3Outsourcing
work overseas has been a major issue for some time now. Many people
have boycotted companies, due to their involvement with foreign
sweatshops. Working conditions are hazardous and harsh. Children and
adults are overworked with little pay and benefits. It’s unethical for
employees to be treated that way, but I believe that should be a
separate issue from the business decisions being made. Unfortunately,
running a successful business would require one to make tough decisions
that do not please everyone. In the present day, it is unrealistic for a
company to produce all of their products in the US and offer them to
consumers at a fair price. If work wasn’t outsourced, I’d expect the
cost of goods and services to go up in value. Imagine the cost of your
favorite products doubling. That doesn’t allow for much disposable
income. I feel that the decision to outsource work is completely thought
out because it is some of the larger organizations that engage in
outsourcing. They know exactly what they are doing. With high corporate
taxes and desired wages in America, outsourcing will always be the most
effective way to minimize expenses. It also keeps the US connected to
the global market, allowing Americans to obtain foreign goods at a
discounted price. Well-known establishments like Nike, Apple, Cisco
Systems, Walmart, and IBM who possess strategically planned out business
structures, conduct manufacturing overseas. Because of this, consumers
are able to afford the electronics and goods they desire so much. If
Apple products were only manufactured in the United States, it would be
more expensive to produce which means that the price to buy those
products would also increase drastically.undefined