Sunday, March 17, 2013

"Detecting Unethical Practices at Supplier Faculty" a discussion of M.Azim Ulfati

"Assess the value of having a Supplier Code of Conduct when outsourcing operational functions to international markets and the enforceability of such a code."
A supplier code of conduct is a set of different cultural, legal, social, ethical and environmental rules and practices outlining the responsibilities of proper practices for an individual, company and sets forth a company’s expectation of vendors contractors and others with whom a company conducts business. It is necessary for the supplier to must meet, comply these rules, guidelines, and requirements and communicate the principles of the supplier code of conduct through out their supply chain of command and do business when outsourcing operational functions to international markets and also to enforce those codes.
Most of the companies adopting codes are involved in the marketing or the manufacture of brand-name clothing and footwear and organize production internationally through outsourcing to subcontractors and suppliers. Companies and industry associations in other labor-intensive industries, such as the toy industry, also adopted codes in response to negative publicity. The enforceability of such codes can pave favorable ground of business for suppliers to do business in a clear and compatible method at the company standard.

"Evaluate whether or not you believe a U.S.-based company outsourcing jobs to foreign markets is ethical.""Support your position."
I think there are two sides of the coin to assess and with assessing those, we know that there is also ethical and unethical issues on each side. There is not good profits and productivity on one side but there is more profits and productivity on the other side of coin for the companies however let’s not forget that this is a capitalism system and free market for the businessmen which has been very successful because it has rewarded the businesses and hardworking workers within the USA and overseas to work, and sell products and services across the globe.
The companies who outsources they are not required to have many facilities in the USA and thus they are not taxed and the government does not make money for the services and supplies and also they do not need to follow the same production requirements as those of companies staying in the USA. When companies outsource they nearly always save money, and are able if they want to reduce the prices of their products or keep them much lower than the competition therefore, it hurts the small companies that can't outsource.
Outsourcing jobs to foreign markets have impacts on the employees who have been with the company for many years and that who no longer is needed in the company in the USA. Is it ethical to fire these people and handout their jobs? The answer is that such unexpected firing or laying-off is unethical in today’s standard business. Companies are very responsible to try their best to continue a possible income for employees within the framework of outsourcing. It is ethical and important for the companies to be honest and have an open communication and good planning and aware their personal in advances for the decisions and cutback and outsourcing jobs of the company. They should be given advance notice so that they shall have enough time to look for an alternative or replacement jobs or think about relocating overseas with the company. They should be notified that how long more they could work in the company. It is also necessary for the company to hold some workshops and training conferences on writing their resumes, interviewing techniques and job opportunities and assist them in finding a new job.

"Assume that you have to make the decision to outsource work to a foreign market. Determine what country would be your best option. Explain your rationale"
As I consider all the ethical code of conducts, and will be outsourcing to farm out jobs from the USA home base to other country for the purpose to cut costs. I would choose India and will transfer the company’s technology development, customer service, financial and administrative jobs because India is the leading recipient of the outsourcing information technology functions like software development and maintenance and business process outsourcing.
Not only that, it also has many prestigious technical universities, but the Indian Institute of Technology stands apart as one of the world's best. India produces 75,000 IT graduates and 2 million English-speaking graduates annually.
Furthermore, labor costs have crept upward over the years but have been offset by falling telecom rates. Typical salaries range from $5,000 to $12,000 for technical staff, while back-office salaries range from $3,500 to $7,500.
And lastly, outsourcing is so ingrained in the fabric here that the Indian government has a national minister specifically for IT. The government favors IT foreign ownership and imposes no export taxes.

No comments:

Post a Comment