What are the ethical concerns involved in outsourcing?



Q.4:- What are the ethical concerns involved in outsourcing?

 

Answer:-



Outsourcing has also raised some ethical concerns. For reducing the overall cost of production, the industries of developed countries outsource their production activities to less developed and developing countries where labour is abundant and available at lower rates. The labour force in these countries are child or women and working conditions are unhygienic and even unsafe. The companies cannot do so in their developed home countries due to stringent laws forbidding use of child labour.
This raises the ethical concern whether this sort of cost cutting by using child labour justified. Similarly there is a concern over the ethical aspect of outsourcing the work to countries where gender based wage-discrimination is done and hence women are paid lower wages.