ipl-logo

Strategic Outsourcing: Sweatshop And Globalization

842 Words4 Pages
bulb-icon

Recommended: Consequences of globalization

Sweatshop and Globalization
According to Lairson and Skidmore, globalization is a process of deepening and tightening of the interdependence among actors in the world economy such that the level and character of participation in international economic relations have increased exchange in significant ways. Globalization touches all aspects and affect anyone in this world. The times and technological developments are main factors that is the cause of the rapid globalization. The effects of globalization were diverse, some are positive and some are negative. After all, it can be said that globalization is unavoidable like it or not.
One case related to globalization is this sweatshop. With globalization, the level of competition between companies …show more content…

Definition of outsourcing specifically defined by Maurice F Greaver II, in her book Strategic Outsourcing, A Structured Approach to Outsourcing: Decisions and Initiatives, "Strategic use of outside parties to perform activities, traditionally handled by internal staff and resources." According to that definition, Outsourcing is seen as an act of diverting some of the company 's activities and decision rights to outside providers, where these actions are bound in a contract of cooperation. In Indonesia, outsourcing regulated in Law Number 13 Year 2003 on Manpower (Ketenagakerjaan). Under article 66 of Law No.13 of 2003 outsourcing is allowed only to support activities, and activities that are not directly related to the production process. Namely cleaning service, catering, security / security units, business support services in the mining and oil, as well as the transportation business workers / laborers. But in fact the companies also apply to workers who perform outsourcing core business but did not get the treatment that according to the agreement. So that outsourcing be a bad thing for the workers as companies exploit their related or can be categorized sweatshop. I found someone statement about his experience being outsourced employees (a PC operator at Pertamina) where he …show more content…

In terms of human rights, sweatshops is bad impact and detrimental on the workers of their rights. Economically, they do not get welfare because the benefits or sallary are not obtained in accordance with the level of work that they do. However, the government has set certain laws which regulate this issue in such a way, but the company also has certain conditions that make them are not always in line with the applicable regulations. The government is in a difficult position because on the one hand they want to protect their people but on the other hand the State also requires these companies. In short, the government of the host country cannot as easy as it to intervene every activity of the company. If government intervene, the related companies will choose to locate elsewhere that have human resources that can be paid cheap. Surely it would be detrimental to the host country as the government requires revenue for national development in the form of taxes from these

Show More
Related
564 Words | 3 Pages

Rachael Martinelli Case Study 8-2: The Outsourced Work 1. Is BE bound by the terms of the project labor agreement, which it did not directly sign, including the duty to submit this labor dispute to final and binding arbitration for resolution? I believe that Bolton Engineering (BE) should not always be bound to the terms of the project labor agreement, that they did not directly sign. Bolton Engineering should only be bound to these conditions if they are working onsite. They did not directly sign the with the labor union so they should only have to follow the labor union when they are working on the premises of Rocket Motor Corporation.

Read More
133 Words | 1 Pages

It is ridiculous that both sweatshop owners and corporations are filled with so much greed that they cannot hold their factories to a certain standard. Cases like the Triangle Shirtwaist Factory and the factory that collapsed in Bangladesh, killing over one thousand people, ever happen. Those who keep their escaping employees cooped up when the building they are working in is about to implode should be tried for mass killings. How can somebody be so selfish, and let profit get in the way of thousands of lives ending? This is a violation of Human Rights.

Read More
1207 Words | 5 Pages

Sweatshops are a major a major epidemic in today’s society. Sweatshops can be found in almost any part of the world, especially overseas. In this article I will tell you everything that I studied about sweatshops, and let you decide if you want to help solve this devastating problem. A Sweatshop is a factory in which poverty stricken people, mainly women and children, work long hours for extremely low wages.

Read More
1296 Words | 6 Pages

In the novel Blue Gold, by Elizabeth Stewart, there are multiple examples of sustainable prosperity as well as human rights and globalization. Sustainable prosperity is a concept that reflects a comprehensive, long-term vision for a community. This concept is presented to each and every one of us by asking the question, ‘Is what I’m doing now setting up a sustainable and positive environment for future generations?’ Within the novel, sustainable prosperity is shown when the petition is created for Sylvie and her family. Human right is also something that is presented within the novel; human rights are the rights that should belong to every person, such as water, food, shelter etc.

Read More
195 Words | 1 Pages

Comparative advantage is having the ability to perform an activity at a lower opportunity cost than another person or business, it’s the fundamental force behind international trade. Globalization is the practice of international trade and production of goods and services to other countries. Globalization is the financial aspect and is associated with the world’s economy. Outsourcing is a practice used by different companies to reduce the costs by transferring portions of work to outside suppliers rather than producing good within. The way Globalization and economic comparative advantage relate to the practice of outsourcing is the benefit of less-developed countries use comparative advantage in labor costs.

Read More
1825 Words | 8 Pages

How have sweatshops benefitted society or caused harm to it? This research paper will identify and analyse the significance of sweatshops, reasons for its prevalence and compare its positive and negative impacts on society. Literature review A sweatshop is a term for a workplace that violates local or international labour laws, such as providing workers with atrocious working conditions and minimal compensation (New World Encyclopedia, 2008).

Read More
703 Words | 3 Pages

They can make sure that they do not buy products from a company where sweatshops are used. They may opt for Fair Trade certified products which would benefit workers and farmers. They may educate others about fair practices and also check websites of companies. They may use social networking sites to spread awareness. “No one wants to buy products made with sweatshop labor, but it is hard to know what to avoid, and where to find green and Fair Trade products.

Read More
1557 Words | 7 Pages

3. Globalization Throughout the last decades, globalization became a real phenomenon, but history tells us that it is actually not a new social, historical phenomena, but has, under different names and manifestations, been with us for a long time. It is actually not only the continuation of the liberalization of international trade, which began in the mid-19th century with the launch of cross-border trade over long distances and later with intensive large-scale mobility of labor and capital. During capitalism, globalization has amplified due to the lust for profit, which is driven by capitalists across the globe. Indeed, globalization has significantly strengthened ever since.

Read More
1269 Words | 6 Pages

It will further elaborate on the ongoing debate about what role laws and regulations should take on the growing issue of sweatshops and child labor, and how they can be improved on without disabling the poverty-stricken foreign workers, who may rely on this type of work to support their families. The proceeding essay will take on the cause and effects as well as a few pros and cons of sweatshops in the United States regarding the beginning of sweatshops and the effects on people involved. A few of the main ideas will include contributors that began sweatshops and how it has evolved, why laws and regulations were implemented and if they’re making a difference or not, as well as the pros and cons that come along with the

Read More
1001 Words | 5 Pages

Outsourcing lets outside countries grow their economy. US Companies are providing a substantial standard living to foreigners. Generating employment for outsiders but disregarding American employees. According to Lee Don, a philippine social worker, “More than 1 million Filipinos now work at call centers and in related outsourcing businesses, mostly serving American companies” (Don). American people lose their sense of security.

Read More
812 Words | 4 Pages

Outsourcing, according to the dictionary definition, is ‘the contracting or subcontracting of noncore activities to free up cash, personnel, time, and facilities for activities in which a company holds competitive advantage. Companies having strengths in other areas may contract out […] aspects of their businesses to concentrate on what they do best and thus reduce average unit cost’. (Businessdictionary.com) In other words, it is just a strategy of transferring particular business functions or tasks to outside suppliers instead of completing them internally. In today’s business world, this practice is widely used by considerable number of companies, especially those operating on the global level – outsourcing enables firms to focus on their main long-term goals by relieving them from marginal activities that are being entrusted to external organization.

Read More
940 Words | 4 Pages

Introduction: Globalization is a system that outcomes in fine or negative results and it creates thoughts of efficiency and it deals with acceptance and courting. Early contemporary globalization is one manner of amendment and unification. The distinction between early and current globalization is the application of expansionism and its method via control of international alternate and the flows of data. In our society, globalization plays extensive position to modifications and improvement. Early cutting-edge globalization is volatile and it creates pressures on the enterprise because of growth method and procedures.

Read More
1855 Words | 8 Pages

What is outsourcing? Outsourcing is the act of allocating specific business processes to a professional external service provider. Most of the times an organization cannot handle all aspects of a business process internally. Furthermore some processes are temporary and the organization does not intend to hire internal professionals to perform the tasks.

Read More
1050 Words | 5 Pages

Literature Review on Fundamental Theories IT outsourcing is a topic that not in short of theories. During the last 3 decades, a large amount of empirical work across the last three decades has been guided by three main categories of theories. Those theory groups further developed into different schools which are the base for analyzing the impacts of outsourcing activities. In this research, empirical work based on three most important theories from economic (Transaction cost theory), strategic (Resource- based theory) and social category( relational/ social theories ) were selected for an in depth discussion. No claims are made that any one theory outperforms others.

Read More
1644 Words | 7 Pages

GLOBALIZATION, TECHNOLOGY AND LAW Globalization and Technology Globalization has completely transformed the way in which the world and its people interact. Earlier there were several roadblocks in the ability to communicate and interact with the people worldwide. But now, the world is becoming more and more globalized in all spheres: Business, financial, social, economical, etc. Over the years, a lot of technological advancements have come into picture including the changes in the field of Information Technology, having a significant impact on the global landscape.

Read More

More about Strategic Outsourcing: Sweatshop And Globalization

Related Topics

Open Document