Ethical Considerations of Outsourcing

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Table of Contents

Introduction
Discussion
Conclusion

Introduction

To begin with, it should be stated that the matters of outsourcing the main manufacturing forces is the common practice for the up-to-date business. Originally, outsourcing is resorted to in order to decrease the manufacturing costs and the salaries of the workers, consequently, Ohio Art had to outsource its main manufacturing forces to Chinese Kinki factory. On the one hand it helped to solve the problem with the lack of the working force, nevertheless, the working conditions and employment obligations are essentially violated. As for the relations between Ohio Art and KinKi factory, it should be stated that these relations are regarded as mutually beneficial, nevertheless, they can not be regarded as fully legal.

Discussion

The ethical issues of the decision of outsourcing the manufacturing forces to China, it should be stated that the chief management of Ohio Art do not have any ethical responsibility towards their workers. As it is stated in the case study, this decision was not unexpected, and the company experienced essential expenses in this business sector. From the point of view of the Trade Theory, it should be stated that outsourcing is regarded as one of the most effective tools for decreasing the expenses in the case of necessity. Outsourcing substitutes the comparatively unrestricted political financial resources with essential factor mobility. The fact is that, the concept of international fragmentation of the manufacturing forces and all the related activities are often regarded as the key issues. These have implications for intra-country income distribution, employment, migration, research and development, regulation etc. Originally, the stakeholder’s responsibility is not an essential factor for stopping the outsourcing activity, nevertheless, the obligations towards workers should be satisfied.

From the point of view of the unsatisfying working conditions, it should be stated that Mr. Killington could not be unaware on these conditions, as this incorporates salary of the workers and the expenses for HR policy implementation. The differences of running business on the territory of the USA and on the territory of some other country should have been calculated previously to the start of the outsourcing of business and manufacturing, consequently, all the ethical responsibility is on the Chief Executive Office in general – the team, which was engaged in arranging all the business procedures.

Surely, the responsibility can not be imposed on the Ohio Art in general, as decision was taken by the restricted executive management group. Nevertheless, if the reporters have written the truth, there is no ethical responsibility at all, nevertheless, if the workers are dissatisfied with the working conditions, Ohio Art will be able to cancel the contracts with them, and employ new workers. Taking into consideration that lots of Chinese citizens would agree, his cancellation will not be a problem.

The only thing which Ohio Art is forbidden o do is to stop manufacturing and running business. Originally, business is like a small war, and all the means are correct, if they do not contradict with the criminal justice. Anyway, this step was forced, and people, who work for KinKi knew what they were applying for.

Conclusion

Finally, it should be stated that the ethical considerations of this case are hard to define as negative. The fact is that, this decision was the forced measure for the company could survive, moreover, people from the country with high unemployment got an opportunity to earn their living.

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Ethical Considerations of Outsourcing

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