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10/11/18, 4(38 PMCollection – MSA 603 Strategic Planning for the Admin ...

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Thread: DB4 Post: DB4 Author:

Posted Date: October 10, 2018 8:51 PM Status: Published Overall Rating:

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Christina Lacroix

It is ethically defensible to outsource production when the outcome of not outsourcing would negatively impact stakeholders. Organizations define their most important stakeholders, often the shareholders, as they invested capital. While some risk is assumed by shareholders as a fiduciary managers have an obligation to the shareholders to protect their interest when possible. A company risks shareholder investment (access to capital) and jeopardizes all other stakeholders such as employees, suppliers, and creditors. An organization cannot risk itself and the other stakeholders depending upon in order to save employees. The organization should do its due diligence in securing its outsourced labor force to ensure fair treatment, working conditions, adults, and freely choosing the work. In developing countries there are risks of unregulated or poorly regulated work forces where the workers are mistreated, or children, and the environment is unsafe.

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