Business Ethics & Law: Galaxywire Outsourcing Case Study Analysis

This discussion post analyzes the ethical implications of outsourcing, using the case of Galaxywire. The company, after seven years of operation in Green Fork, decided to outsource customer services and other operations to India, leading to potential layoffs. The community and government negotiated with Galaxywire to retain the business, emphasizing the importance of job preservation and community well-being. The post examines the impact of outsourcing on the employees, the community's response, and the role of the government in attracting and retaining businesses. It argues that the community made the right decision by negotiating, prioritizing the citizens' needs, and highlighting the company's moral duty to its employees. The analysis also touches on the broader global perspective of outsourcing and its impact on national economies and corporate reputations. The student references relevant literature, including works by Boatright, Pettet, and Arnold, Beauchamp, and Bowie, to support their arguments.

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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The business practices reflects on the associates as well as own corporate reputation. In
India, if employees get to know about the step, they will remain perplexed as the organisation
can do the same to Indian employees. Community of Green Fork indeed taken the right step for
not banning or discouraging outsourcing perhaps, they have to force the organisation and make
them remember about the promise they made after establishing their corporation in Green Fork.
This impacts on the management they will formulate strategies that will provide benefits to both
the employees and organisation. In order to increase the customer base and revenue, organisation
prefers outsourcing. This helps them to thrive their business effectively and efficiently.
In this context, the Galaxywire.net an American organisation establishes their business in
Green Fork. After seven years, the business thriving and management decided to outsource its
customer services, web designing and other operations in India, creating massive lay-off in
Green Fork. In order to prevent the situation, the government and community made certain deal
with the organisation to retain them in the territory. They made negotiation which lead to
increase in their profits by reducing the excess expenditure. With the new negotiation policy, the
organisation will be able to save $7 million in the first year, $8 million the second, and $9
million yearly thereafter (Arnold, Beauchamp and Bowie, 2012). Furthermore, the employees
decided to 15 per cent cut from their current salary which increases the saving amount. After
making such negotiation, it will be the duty and responsibility of the organisation to sustain in
the Green Fork environment and provides them employment.
Thus, from the analysis of the case study, it can be understood that community made the
right choice of negotiating with Galaxywire. They seek the betterment of their citizens. It is the
duty and responsibility of organisation to consider the condition of employees and then make
effective decisions.
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REFERENCES
Books and Journals:
Arnold, D.G., Beauchamp, T.L. and Bowie, N., 2012. Ethical theory and business. Pearson
Higher Ed.
B. Pettet. 2009. Company Law. 3rd ed., Harlow: Pearson Education.
Boatright, J.R. 2011. Ethics and The Conduct of Business. 7th ed., Upper Saddler River, NJ:
Prentice-Hall
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