Offshoring occurs when a firm’s operations are done in a different nation aiming to take advantage of the costs benefits. It also helps to enhance the corporate profitability. As the company shift its sources of labour in low-income countries, ethical issues emerge due to the wages and working conditions (Gordon " Zimmerman, 2010). The parent company decide to use offshoring in order to evade payment of huge amount of taxes in their home country. In addition, most companies hire people from poorer countries at lower cost hence earning huge profits. Manufacturing companies also participate in pollution of the environment in the host nation because the standards and policies are quite weak (Gordon " Zimmerman, 2010). Some also provide poor working conditions for their employees in the host nation leading to ethical concerns.
Should there be legislation-prohibiting offshoring?
In my opinion, there should be no legislation prohibiting offshoring because it would worsen the ability of companies to manufacture products at lower prices contributing to higher costs of local products (Gordon " Zimmerman, 2010). For government services, the taxpayers would be forced to pay higher for similar services or benefit from less service at identical price.
Would it be constitutional? Why or why not?
Enacting laws that prohibit offshoring in a state may infringe on the US Constitution. Such legislation could be declared unconstitutional for taking over the authority of the federal government to develop US foreign policy and manage global commerce (Gordon " Zimmerman, 2010). The US Supreme Court has in the past struck out laws preventing offshoring arguing that such statutes contravene the Constitution and jeopardize the obligations of the country pursuant to trade agreements.
Is offshoring "socially responsible" for society as a whole as well as a company's own stakeholders? Why or why not?
Offshoring is socially responsible for society as a whole and company’s own stakeholders because it acquire the responsibility of the shareholders of the firm in decision making in accordance with whether the firm services will be offshored or not (Gordon " Zimmerman, 2010).
When US companies outsource their manufacturing offshore, do they have a responsibility to use factories that provide safe and fair environments for their workers?
The most important factor to workers is having a proper working environment. The US firm has a duty in ensuring that offshoring ethics are preserved, and hence these factories are liable for sustaining fair and safe environment for their workers (Gordon " Zimmerman, 2010).
References
Gordon, C., " Zimmerman, A. (2010). Fair shares: A preliminary framework and case analyzing the ethics of offshoring. Science and engineering ethics, 16(2), 325-353.
