What are the ethical concerns involved in outsourcing?

cbse
emerging-business

#1

Ethical concerns : Take the example of a shoe company that, in order to cut costs, outsources manufacturing to a developing country where they use child labour/women in the factories. Back home, the company cannot do so due to stringent laws forbidding use of child labour. Is cost cutting by using child labour in countries where it is not outlawed or where the laws are ‘weak’, ethical ? Similarily, is it ethical to outsource the work to countries where there exists wage discrimination on the basis of sex of the worker .