Galaxywire Outsourcing Case Study Analysis

Business Ethics &
Law

Discussion Question 3
If the community have focused on banning the outsourcing, it impacts on the behaviour
of organisation and its top management. Banning is not considered as solution to the present
problem (Boatright, 2011). In this context, the community just did the precise thing to negotiate
with the organisation. If the organisation is flourishing and wants to expand its business
activities, it will be not ethical for community to stop the organisation for expansion.
Galaxywire.net has provided the employment to seven years to the people of Green Fork, where
the area was suffering from high rate of unemployment. Though, outsourcing of the business
activities will benefit the company, it will provide harm and demotivation among the existing
employees.
The company has promised to stay in the area and it is their moral duty to continue their
business activities in Green Fork. From the case study, it was identified that employees have
sacrificed benefits and ready for pay cut, this implies that they need the job in order to fulfil their
basic needs. Banning and discouraging outsourcing impacts on corporate culture of Galaxywire
where management becomes stricter towards employees flexibility. It was the duty and
responsibility of the government of Green Fork to make efforts to attract more corporations
towards the area. This will provide benefits to both locals and government. The government
needs to think for the benefits of citizens. Green Fork unemployment rate was high at 10% and
government could not lose the major employer in the territory. Thus, they make the right step to
negotiate with the organisation.
From a global perspective, the mere utterance of the word "outsourcing" sometimes
incites controversy. Some people believe companies have a moral obligation to protect jobs for
Americans above all else. Outsourcing often serves as a major topic of debate during presidential
elections, as both parties suggest that their candidate is more equipped to preserve American jobs
and boost domestic employment (Pettet, 2009). Companies sometimes use ads to point out when
competitors hire a significant amount of foreign workers. The goal is to invoke pro-American
sentiment and to hammer the image of the targeted business. Furthermore, it is the duty and
responsibility of the Galaxywire to promote employment in their own nation rather than seeking
for cheap labour from outside. This will impact on the national economy of the country and
positively impacts on the behaviour of both employees and community.
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