Ethical Issues in Business Operations. Name: Course: Date of submission 1. According to Ron Hira and Anil Hira in their book Outsourcing America, keenly look at the issue of outsourcing. Outsourcing, has had adverse effects on the global economy and technology. This is because of outsourcing of jobs to foreigners. This outsourcing, has cut across the board affecting all forms of jobs. Despite this, outsourcing remains an integral part of the economy. It has enabled economies such as the American economy to grow despite the loss of jobs for the locals. Apart from loss of jobs for locals, outsourcing has impacted the accounting industry positively since outsourcing …show more content…
According to Anthony Allen CSCP in his article on Reasons and benefits of outsourcing a supply chain, says that often times a supply chain management is not a core part of the issues that the company needs to deal with. It is thus prudent to leave it to experts to handle it. Outsourcing, enables the company to run efficiently since outsourcing experts in a particular area may reduce the time of undertaking a certain activities since experts that are outsourced are experts in that particular field. Outsourcing also enables flexibility in operations. In the current, business environment, there are many labour laws that slow down operations such as when a company wants to downsize. A company that outsources can adapt more quickly to such scenarios of rising or slowing demand. This practice is valuable to companies and they therefore use it since it enables to manage their risks. For instance when a company is introducing a new product there is usually uncertainty whether the product will do well in the market. Outsourcing of employees in such a case cushions a company from such worries. Outsourcing improves service delivery. This is because the company outsources professionals that they may require in the running of their company, without having to go the tiring face of training professionals to undertake these tasks. Outsourcing also offers lower regulatory costs this because offshore workers are paid less and also significantly lowers regulatory costs for programs such as unemployment insurance. There are challenges experienced in outsourcing leads to bleeding of in house workforce since it creates a sense of uncertainty for them they therefore live with a lot of fear and thus may not be in a position to deliver for the company. Selecting the right service provider may pose as a challenge this may lead to frustrations since the selected provider may not make the cut. There are also legal issues that emerge leading to legal tangles and lack of understanding of the