Business Ethics: Examining the Morality of Overseas Labor Practices

This essay explores the ethical implications of corporations utilizing cheap overseas labor. It begins by acknowledging that while outsourcing can be a cost-saving strategy, the practice often raises moral questions. The essay delves into the debate of whether it is immoral for corporations to use cheap overseas labor, discussing the viewpoints of both sides. It examines the impact on workers' wages and living standards, as well as the potential for exploitation. The author argues that while outsourcing may be beneficial for corporations in terms of profit and shareholder satisfaction, it can be considered unethical if it results in poor working conditions and low wages for overseas workers. The essay references various sources, including business articles and academic papers, to support its arguments and provides a comprehensive analysis of the complex issue. The essay concludes that while not always immoral, the use of cheap overseas labor can be considered unethical, especially when it undermines the working class and prioritizes profit over fair labor practices.

Running Head: MORAL OR IMMORAL 0
Business, Society and Environment

MORAL OR IMMORAL 1
Is it immoral for corporations to use cheap overseas business
Usually it is immoral for corporations to use cheap overseas labour. However, it can
also be useful or moral for the firms using cheap overseas labour (Kokemuller, 2018).
Outsourcing has become an important part of today’s business world and becoming a reality.
In today’s era, corporations try to outsource the functions that help them in reducing the cost
and increasing value. Outsourcing of labour is a type of procurement strategy in which
corporations outsource the materials from other countries with lower labour as well as cost of
production. Corporation do so to cut down their operating expenses. In various countries,
labours for the search of job are being hired at low cost. Still, there are places where
unemployment is persisting at a higher rate that forces the labour to get the job even at lower
cost. Now a day companies are hiring labours from other countries in order to down their cost
(Rehin & Sreedharan, 2017). As a result, this is a type of unethical behaviour towards the
working people. This creates the dissatisfaction among the labours who already earn too low
for maintaining their living standard. However, some firms hire cheap overseas labour for
their personal gain only. It is not totally immoral but the firms who are doing this can be
called greedy.
Taking into account the US corporations, they are boarded with this practice to earn
the maximum profit with increment in satisfaction of shareholders and success of the
corporations. Therefore, using the cheap overseas labour has become a common practice for
the US corporations. In some cases, this practice can be immoral also. “Business week”
points out that procurement of cheap overseas labour is immoral due to the reason that many
US corporations are guilty of slackness in controlling and monitoring the quality of working
in the overseas operations (Anderson, 2018). Many authors argued that sweatshops are ethical
as they helps in improving the economy by raising the standard of living (O’brien, 2014). As
a result, it assists in better utilization of resources globally. It can be greedy to use the cheap
overseas labour but not immoral. It is true that all the corporations satisfy their stakeholders
so that they stay in business.
It is unethical on the side of labour who works hard to earn something. Various
domestic companies are moving their production offshore so to get some cheaper labour. It is
immoral in some sense because labours are being paid less for their efforts. The reality
besides outsourcing cheap labour is that the profit margin for corporations increases.

MORAL OR IMMORAL 2
Additionally, it is unethical when domestic company move its product somewhere else,
which is undermining the working class who are expected to buy their product. Jobs of
working class also lost when production is being exported. In this case, working with no job
has to accept the job with lower pay also. In these cases, it is immoral to pay less to the
workers for their personal benefit.

MORAL OR IMMORAL 3
References
Anderson, g. (2018). Are Corporations Immoral for Using Overseas Labor?. Retrieved from:
https://hubpages.com/politics/forum/123439/are-corporations-immoral-for-using-
overseas-labor
Kokemuller, N. (2018). Is Outsourcing an Ethical Practice?. Retrieved from:
https://smallbusiness.chron.com/outsourcing-ethical-practice-80639.html
O’brien, B. (2014). Pros and cons of outsourcing your manufacturing in the international
business environment. Retrieved from: http://www.tradeready.ca/2014/trade-
takeaways/pros-cons-outsourcing-your-manufacturing-international-business/
Rehin, K. R., & Sreedharan, R. (2017). People Management in Today's Dynamic Era: A
Closer Look. Splint International Journal of Professionals, 4(2), 32.