Outsourcing: Is It Ethical Essay

Outsourcing has become a precise hot base in our country over the last few years. Many the Statesns assimilate this topic as very controversial and unhonorable. Outsourcing is too known as the offshoring of American airs. These problems atomic reckon 18 being direct to unusual countries all over the world. Under George Bushs administration the American economy deep in thought(p) 1.6 million jobs.Outsourcing to other countries is not limited to one business welkin or profession almost all professions argon beginning to whole step the effects of outsourcing. Many politicians, economists and business people ar having very het up(p) debates in regards to outsourcing. There be some who demand that outsourcing is good for the American economy. There are others who strongly disagree and argue that outsourcing is an action taken by greedy companies that disrupt the economic futures of legion(predicate) people and these actions are purely un honest.Outsourcing experience d in America is highly debatable because we ca-ca a moral responsibility to adhere to values in society, and to put forward human development. Advancing capitalism, by cutting monetary values and increasing profits, comes at a cost to society when values and moral standards are neglected.Outsourcing in itself is not illegal or un honourable, scarce the repercussions of outsourcing experienced in America are considered to be unethical for the fol broken ining reasons American citizens, educated in America for the purpose of employment in America, are displaced from jobs by foreign unravelers outsourcing lacks regulation to protect personal and sensitive information and the American governing body offers no effective solutions to address these repercussions by re-training and re-employing displaced workers, and by offering incentives for businesses not to outsource.Not only are Americans affected by outsourcing in vocation and future earnings, but their sense of security is affe cted too. Businesses that outsource American client information, to be stored and processed in a foreign country, a lot do so without disclosure to their clients. The foreign country adheres to a varied set of regulations concerning data or information protection, and this puts American citizens at guess to identity theft or fraud. The actual long-term damage of job outsourcing on future innovation and individual earning power remains to be determined.Income levels are frozen and cannot compete with inflation. Workers lose leverage to negotiate just net incomeincreases or promotion. Foreign employment policies, such as token(prenominal) wage, and working conditions differ. Businesses that are outsourcing can set a minimum wage in developing countries that would never be accepted as a minimum wage in America.When most of us think of outsourcing we immediately think of manufacturing jobs. The loss of jobs in the manufacturing sector has been publicized through the media, which has called upon the ethical issues involved. Ethical concerns for outsourcing manufacturing jobs range from human rights violations to standard of living issues. Even though manufacturing may be the highest sector affected by outsourcing, in that respect are some(prenominal) more professions beginning to feel the effects such as engineer and design, lofty Tech Jobs and the Accounting Industry.Engineering and Design some may believe that the jobs lost to foreign countries are those that are low paying and those that many would not want any appearance. However, this is far from the truth. Highly proficient workers in the engineering and design fields are starting to feel the effects of outsourcing. The decision to outsource engineering run is driven by money and the want to cut costs.For example, an office in India imparts design and engineering capabilities such as finite element analysis, 2D drafting and 3D modeling, design sheet metal parts and complex molds, kinematics sim ulation along with other skills. Engineering fasts are beginning to see the benefits to outsourcing to foreign companies to do design work.Tom Epply, president of Continental Design and Engineering stated, my flavor out is that Im trying to save a business for my customer. Its either this or he can take a shit his head stuck in the sand and possibly lose the business. Im trying to look at the bigger picture. The engineers in India can do the routine work, sequence the engineers her can do the research. Many engineering consultants feel the same way as Tom Epply, outsourcing is inevitable and we need it to survive. But does this make it ethical?Outsourcing engineering services can save companies money, however, there are many that disagree. The NSPE (National cabaret for Professional Engineers) has issued the following statement the outsourcing of engineering should be through with(p) only when the talent cannot be found in the US.If outsourcing of engineering work is done, it should be done using the same rules, regulations, and laws that employers and employees are subject to in the US.If a company outsources because of corporate greed and selfishness of top executives then this is very unethical but if outsourcing is done out of competitive necessity and the require of the employees, it should be considered and viewed as ethical. There are some who believe that there is a shortage of American engineers and this might contribute to the haste in outsourcing engineering work. However, there are plenty of people here in the US who can do the work.There are few engineering firms around the country that are struggling with the issues of outsourcing work or retentivity their work inside the US. These companies leave alone be forced to weigh the pros and cons and square off what is ethical for their firm.High Tech JobsThe need for technology and IT (information technology) firms has grown chop-chop and will concern to grow in the future. These firms h ave been hit grueling with outsourcing to foreign countries. There was a time when person with a decimal point in computer programming did not have to worry rough having a job. Most everyone thought that computer programmers were in demand and would eternally have a job. In 2000, the unemployment rate for computer programmers was 2.0%.By 2004, this number rose to 9.5%. One company that US jobs are being sent to is India Web Developers. This companys website has an entire section devoted to convert companies of why they should outsource their web development needs to India.In the early(prenominal) America was seen as a global leader in regards to technology. in a flash the question is Is the US losing their position as the technology leader by outsourcing these jobs? In order for the US to keep their high status, there will need to be more investment in education and article of faith of math and science. Without education and a capable workforce, we will lose advanced jobs a nd our place as innovators globally.The Accounting IndustryThe outsourcing of accounting functions, such as tax returns, book keeping and auditing, have become a multi-million clam industry around the world.Reports of the scope and size of the outsourcing market vary greatly, but the largest outsourcing companies claim that thousands of returns were processed during the 2003 tax season.Estimates indicate that totals now may be well into the hundreds of thousands. Accounting firms are feeling more and more insisting to outsource some of their work and lower their costs. On the website for SurePrep, which is an offshore supplier for tax return services, they provide the following pitch to certified public accountants and accounting firms What if you could prepare a thousand more tax returns without adding point one more stave member? And what if you could prepare those returns for up to 50 percent less than what it costs you right now? You can with SurePrep.And with more or less unlimited ability to prepare and process returns, you can increase volume, cypher profits, and grow your practice. This proposal is definitely hard for any firm to top dog on. What company would pass up increasing their volume and profits without adding cater? There are many additional benefits that an outsourcing firm may provide for accounting firms including 1. Qualified part time help2. Huge cost advantage to outsourcing3. Faster turn- around time and increased productivity with returns plan of attack back in less than 48 hours. 4. CPA firm freed up due to reduced tax preparation workloads. Leaving time for staff to chance ways to offer clients new services. 5. Tax outsourcing can coiffe as a catalyst for business transformation, enabling a firm to outsource other accounting functions such as bookkeeping. Due to these benefits, many firms are beginning to outsource overseas. Although these benefits may seem great, there are still some risks and ethical concerns cerebrate to outsourcing.According to the AICPA (American Institute of cognizant Public Accountants), the chief concern is the Code of Professional Conduct that CPAs are required to follow. According to Richard Miller and Alan Anderson, AICPA members have responsibilities related to the practice of using third parties to provide services in engagements for clients. basal among them are security and confidentiality of information, due professional care and compliance with pabulum of the Code of Professional Conduct. In addition, members must monitor security procedures that third-party providers have put into place to ensure they remain effective.It will be strong for accountants toensure that financial information of their clients remain confidential and secure. Also, firms will find it hard to ensure that the outsourcing companies are qualified to complete the job. According to the AICPA, firms need to exercise due care to make sure their clients information are handled correctly and se curely. They also state that there is no specific ethical requirement that the member disclose to the client that they are using the services of an outside provider. ConclusionOutsourcing is a legal business activity modify America. And it is an inevitable response to globalization and international trade. The outsourcing of American jobs will continue to be a great subject to debate here in the United States. Our politicians will continue to debate the topic and decide if there should be laws set to help or hinder companies from outsourcing jobs. There are many officials that believe that outsourcing will help our country and economy and that zero bad could come from outsourcing.It is a general rule in political economy that in order for an economy to grow, old jobs must be destroy so that new jobs can be created. There are also those who believe we should at all cost protect our current jobs. High unemployment in America has renewed complaints that outsourcing to countries such as India hurts American workers.It seems that outsourcing American jobs is not going away and will only increase. Knowing this there are a few questions we should all ask ourselves, Is outsourcing an ethical practice, Is outsourcing for the bushel purpose of reducing cost ethical and What responsibilities do US companies have to the employees they have laid off due to outsourcing? George Bush once said, What do you say to someone in this country who has lost his job to someone overseas whos being paid a fraction of what that job paid here in the United States? Good question plant Cited(n.d.). Retrieved from SurePrep Http//sureprep.comAnderson, A. W. (n.d.). Legal and Ethical Considerations. Retrieved 8 2011, August , from American Institute of bear witness Public Accoutants ttp//www.aicpa.org/download/ethics/outsourcing.pdf Boykin, D. (November, 12 2006). Offshore Outsourcing Stirs National Debate. Retrieved 5 2011, August , from http//www.nspe.org/etweb/10304feature.asp Bringham , N. (November, 122006). Outsourcing High-Tech JobsWhy benign neglect isnt working. Retrieved August 5, 2011, from Computer professional for Social Responsibility http//www.cpsr.org/pubs/workingpapers/1/IToutsourcing Harrison, K. (n.d.). mold Design.Retrieved 5 2011, August, from Machine Design http//forums.machinedesign.com/eve/forums/a/tpc/f/7000036462/m/6290025372 McGhee, B. W. 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