Should Galaxy Wire Stay in Green Fork or Go to India?
Added on 2021-04-17
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qwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnEthical Theory and BusinessCase Analysis: Outsourcing at any cost? DoCorporations Ever Have a Moral Obligationnot to Outsource(Student Details: )
Ethical Theory and BusinessIntroductionOutsourcing is defined as practice where the company hired another entity for performingtheir tasks, for providing their services, or handling the operations which were earlier performed by the own employees of such company (Baker, 2010). It is usually undertaken to ease up the operations of the business, by getting it done from skilled workforce, and at the same times, allowing for the costs of the company to be brought down. It is an unavoidable result of globalization (Oshri, Kotlarsky & Willcocks, 2015). Despite the numerous economic advantages brought through it, it is an issue of concern, particularly in ethical context, as was highlighted in Galaxy Wire’s case. AnalysisThe case of Galaxy Wire involved an ethical dilemma before the top management of the company, where they started their business in Green Fork. Due to the earlier apprehensions of the individuals of Green Fork, the company promised that it would stay in the town and that it would treat its employees like their family. After running the business in Green Fork for seven years, in a very successful manner, Galaxy Wire came across the opportunity of running their business in a more economical manner. This involved outsourcing their business to India, where along with saving costs, they got quality work. However, this would have meant that they would go back on their promise made to the people of Green Fork and would prove to be like every other distrustful large company (Denis, Arnold, Norman & Tom, 2018). After a lot of considerations with the people of Green Fork, an arrangement was finalizedwhich would mean that the employees and even the general community of Green Work would goPage 2
Ethical Theory and Businessback, their finances would be cut down, and even their health insurances would be lowered. Going to India also was a risky venture, particularly when the companies were already returning from India, along with the workforce of India being untested. So, in both of the options which were available to Galaxy Wire, they were presented with an ethical dilemma. This was because both of these options were neither wrong nor right, and both of these could not be adopted simultaneously (Garber, 2008). By staying in Green Fork, Galaxy Wire would lower the standards of living of that town, just to maintain its employment conditions, and by going to India, Galaxy Wire could make profits at the cost of breaking their promise, and increasing the unemployment rate in Green Fork bringing down the standards of living of the people in that town (Denis, Arnold, Norman & Tom, 2018). SolutionGalaxy Wire has the option of leaving Green Fork and outsourcing its work to India. Thisis because the company is under no legal or moral obligation to stay in that town. The CEO of Galaxy Wire had promised that they would stay in Green Fork and would be an integral part of the community of the town. And they did so for seven years (Denis, Arnold, Norman & Tom, 2018). With the growth of the company, the town grew. However, at this stage where both the available options would hurt the people of Green Fork, it is better for the company to shift its operations to India, thereby increasing their revenues, and giving better standard of life to peoplein India. This is also important in context of upholding the rights of the other stakeholders, particularly the investors. The investors want return on their money and the company cannot hurtthe other stakeholders at the cost of employees only. This option also brings with it the merit of helping a developing nation do better. Page 3
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