"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.
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.
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