Dell
Essay by 24 • December 12, 2010 • 939 Words (4 Pages) • 1,031 Views
I am a communications and ethics expert asked to offer my remarks on the ethical situation DELL faces because of the company's decision to outsource further more Information Technology positions to India. The ethical foundation of outsourcing has endured heavy criticism since the practice first grew in popularity circa the late 1990's. DELL, along with a rapidly growing number of corporations, looks to India for well-educated and quality-driven employees at a fraction of the cost. In 2004, roughly 400 of the Fortune 500 companies cut costs by accessing India's enormous pool of well-trained, English speaking talent for a variety of positions, not limited to call centers. (CNN) On the contrary, many advocates in disagreement with the practice insist that outsourcing is detrimental to the American workforce. I understand the pressure associated with your current position and, after careful consideration, would like to offer my most ethical recommendation.
Operating under the assumption that DELL will dedicate themselves to growth and to the further advancemnent of India's global technology, I find the decision to be ethical based on the potential benefits both domestically and abroad. Pressure from investors to minimize costs while maintaining high customer satisfaction is an inherent demand of corporate society. Outsourcing to India, if managed efficiently, enables corporations to reduce labor costs significantly. To ensure an ethical resolution, DELL must remain dedicated to our economy and contribute any savings to further the development of global technology. If this is accomplished, India will also benefit; creating thousands of jobs and improving the quality of life are two contributions DELL could make to Indian society.
Controversy surrounding DELL's decision to outsource is a result of historical conflict between patriotism and global awareness. Patriotic Americans, who believe corporate America should be required to act exclusivley in the best interest of our economy, argue that too many jobs are sacrificed by offshore outsourcing. On the other hand, the recent globalization of business is a powerful movement that enables all nations to build mutually advantageous business relationships which often benefit world society. Another critical conflict exists between homeland-security and economic prosperity. With enormous amounts of personal information exchanged with call center employees, American consumers have zero tollerance for questionable security. Credit card numbers, drivers licenses, and social security numbers were all at risk when a dishonest call-center employee sold customer information to an undercover British reporter. (washington post) These types of fundamental conflict drive the growing debate on the ethical implications of moving operations to foreign soil.
As with any decision that tests ethical boundaries, Dell must identify all parties which would be effected as a result of any change in their internal structure. Performing a stakeholder analysis is critical to an accurate evaluation of an ethical dilemma such as the one DELL faces. Most importantly, DELL must remained focused on serving the best interests of their equity owners and investors. Stock-holders are the considered the priority in corporate environments and they should be protected from ethical mishaps. Satisfying the stock-holder is a daunting task; DELL investors demand high returns and should be highly regarded when considering any decision with a questionable ethics foundation. As always, DELL customers are a top priority. Customers are the driving force behind any product or service and their best
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