Drawing upon John Rawls's concept of the veil of ignorance, develop an ethical code that will (a) guide the decisions of a large oil multinational toward environmental protection, and (b) influence the policies of a clothing company to outsourcing of manufacturing process.
Under what conditions is it ethically defensible to outsource production to the developing world where labor costs are lower when such actions also involve laying off long-term employees in the firm's home country?
Ethical Code in International Business
Ethics can be defined as the codes of conducts, which specify the guidelines for good life and right behavior of individuals in their personal lives or while working in an organization. It specifically focuses on "leading a good and satisfying life" (Sahakian & Lewis, 1993).
Business is an activity, which is performed to generate profit and some of the organizations are concerned with making profits only without considering the business ethics in their operations (Posters, 2003). Business ethics are those standards that define the core values of an organization to be integrated in its practices, policies and decision making process (Hartman, 2004). In some organizations, these standards are kept written and circulated among all the employees while in some others, these standards are not written (Sahakian & Lewis, 1993). In simple words, business ethics defines the difference of right and wrong actions and guide an individual as well as an organization to opt for right decisions (Posters, 2003).
Business ethics enables an organization to develop company's policies in accordance with legal, ethical and social standards (Hartman, 2004). Organizations having ethical business environment have more trust between the management. Their business is more predictable and less risky and the employees of such organizations are capable of taking proper decisions in critical situations also (Sahakian & Lewis, 1993).
Business ethics not only defines the relationship of business with its employees, but also with its customers, suppliers, shareholders, business partners, environment and community also (Hartman, 2004). Use of ethics in the process of decision making expects a foresight and sensitivity to effect of alternatives and the ability to assess ...
The solution examines John Rawl's concept of the veil of ignorance. The condition which is ethically defensible to outsource production to the developing world is determined.