Question

What are the ethical concerns involved in outsourcing?

Answer 1

• There are numerous ethical concerns that are involved in outsourcing. One of these concerns is related to the use of the cheap-labour tactic in order to reduce the overall cost of production.
• This tactic is mainly followed by industries in developed countries, which outsource their production activities to less developed and developing countries, where labour is abundant and available at lower rates.
• The labour force in these countries, which may include destitute women, child labourers and unskilled labourers, is exploited to the maximum by industries in their pursuit of higher production targets.
• Labour laws in many poor nations are not very strict, which results in the exploitation of labourers.
• Hence, outsourcing often neglects the ethical, moral and social well-being of labourers in less developed countries.