entry strategy - page 1
Keywords: Choose any ethical dilemma which arises from western MNCs outsourcing some of its operations to India and show how a consequentialist and a deontologist would consider its resolution differently and how this might in turn lead them to make different recommendations for action.
By sohib on 16/04/2010
Level: Bachelor Honours Degree (BA, BEng, BSc etc)
Page Number: 1 of 4 pages: 1 2 3 4
Outsourcing has become a very hot and controversial issue in the United States in recent years. As the global economy and technology has continued to grow and become more advanced, so has the outsourcing, often called off shoring of American jobs to foreign countries around the world (Zhu et al 2001). It is important to mention here that outsourcing of jobs overseas is not limited to one sector as it has been witnessed in the past that jobs are being outsourced in each and every business and profession (Kakabadse and Kakabadse (2005). Companies feel that if the cost of production reduction could be achieved, the products would become more competitive as by selling them at lower rates also the company would be able to gain sufficient profit margin (Quinn and Hilmer 1994). This has resulted in a heated debate among the various thinkers in the developed or western countries about outsourcing. McGee (1994) provides that protectionism in the form of curbs on outsourcing may result in loss of competitiveness of companies in the market.
The theory of consequentialism indicate the moral theory which provide that the consequences of a particular action should be the basis for any valid moral judgement about that action while deontology derives the rightness or wrongness of an act from the character of the act itself rather than the outcomes of the action (Mulgan 2001). There are the concerns of critics which say that when the jobs will move to low cost countries like India, Philippines and Brazil it will tantamount to loss of jobs in countries outsourcing the production. This may result in difference of opinion of consequentialist and deontologist. While the consequentialist would say that it has wrong consequences for the persons working in western countries while beneficial for the companies outsourcing it. A deontologist theorist on the other hand will either support or reject the outsourcing on the basis that it is either right or wrong to outsource the job irrespective of its consequences. Kotlarsky and Oshri (2008) provide that attractiveness of a country increases due to the reason that it has lower cost of production as compared to the home country. Willcocks and Lacity (2009) says that the prime consideration of corporate leadership is to keep the company competitive and offshore outsourcing help the companies in making substantial savings on costs, improve profitability and ensure value addition for shareholders. Not surprisingly then, most
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