Outsourcing and offshoring are viable business strategies, yet can be controversial in the company and the community. What role, if any, does risk management play in assessing the cultural, ethical, and mitigating issues that arise when a company outsources overseas? Provide a current example.
Discussion for your question:
Risk management plays a large role in assessing the cultural, ethical, and mitigating issues that arise when a company outsources overseas. One of the biggest issues deals with unemployment in the U.S. Some companies outsource unethically, and they leave their workers without jobs. This increases the rate of unemployment, shows poor corporate governance, and is an unethical practice. The company's premise is that the outsourcing saves the company money. The problem is not necessarily that they do it, but rather how they do it. If we are dealing with an ethical company, that company will relocate ...
This solution discusses management's role in risk management with regards to outsourcing. The cultural, ethical, and mitigating issues are thoroughly discussed.