Outsourcing Case Study

Case Study:

Outsourcing at Any Cost? Do Corporations Ever Have a Moral Obligation Not to Outsource?

Paula Gray Lemons

California Southern University

Ethics in Business/MGT 86519

October 25, 2013

Dr. Danielle L. Babb

Introduction

This case study is about Galaxywire.net, an Internet service provided that chose as its central location a community in Green Fork, Illinois. The city was very receptive and in dire need of the business development due to the unemployment rate soaring at sixteen percent; therefore, the officials offered a package that consisted of 300,000 low-interest loan for employee training and a 50 percent tax abatement for the first 10 years. In addition, the company secured a new 2.3 million dollar federal grant in order for them to construct a secondary building for day care and executive suites. In exchange for these lucrative deals, the CEO promised they would stay and be an important part of the community and that their employees were family and each worker was considered as important as the highest-level executive in the company (Beauchamp, Bowie, & Arnold, 2009).

Analysis

Through this study, in order to answer the major question of the case study in regards to the moral obligation of Galaxywire.net, one must answer some smaller questions.

The first question is does Galaxywire.net have a moral duty to keep its promise to stay in Green Fork so long as it can do so profitably? Why or why not? If so, is accepting even the first offer from the city and workers too much to ask?

The next question is could entire white-collar professions be lost to lesser-developed countries if the outsourcing trend continues? Would this be fair to Americans?

The next question is should the community have focused its attention instead on the state and federal government, asking it to discourage or even ban outsourcing?

And the last question is should the employees simply take this loss as a valuable opportunity to seek new careers instead of...