ETHICAL CONSIDERATIONS OF HR SOURCING

As described by Carroll (1991), every business has bonded with a social responsibility in society and it can be defined in term of the economic, legal, ethical and philanthropic responsibilities that companies may partake. In the present contemporary world paradigm rapid changes in the economic and social context have drawn greater attention to the satisfaction of stakeholder expectations due to it is huge impact on the success and sustainability of the firm (Molteni, 2003 cited in Mella and Gazzola, 2015). It is now has become mandatory requirement for companies to recognize the importance and need to consider concepts such as: ethical, moral, ethical programs, ethical behavior, social responsibility and equity, further they endeavor to implement these in to organizational culture (Nunes and Simescu, 2010). These factors have led to a growing interest in, and to the evolution of, the concept of social responsibility, with a shift from the respect of stakeholder expectations to the responsible behavior of firms, which is intended to bring out and strengthen the social citizenship of the firm (Vaccari, 1998). According to the Gbadamosi (2004) business ethics consider as a set of rules that specify how businesses and their employees ought to behave this perception of business ethics in a company create an ethical climate. According to Roberts (2003, p.168) the firms need to maintain good reputation if they want continue to meet the expectations of their key stakeholders, because of that most companies includes a high level of corporate social responsibility.

 Individual business leaders are increasingly being held responsible and accountable for their ethical behavior. It is a decisive factor for any organizations to comprehend that the costs of unethical actions would be high, both legally, and from the perspective of brand image and reputation. The organization or the firm must satisfy the conditions of existence of the social structure, since only continuity and the development of the individuals that compose this structure can allow the organization to behave ethically and maintain its equilibrium as a long-lasting institution.

 Ethics is the aspect of conduct governing behavior of an individual or a group. There are two things involved while making ethical decisions; normative decisions which suggest that something is, better or worse, right or wrong, good or bad and secondly, morality which refers to the accepted standards of behavior by the society (Dessler, 2008). To combat the stigma against outsourcing, businesses are turning towards ethical sourcing. The continued global pursuit of low-cost sources of supply and ethical sourcing responsibility will remain high on the agenda. If businesses fail to source fairly or ethically, they can run the risk of consumer backlash, resulting in mass boycotting of products and services. As we are increasingly doing business in a more globalized manner, outsourcing is becoming more important to maintain a competitive advantage in highly competitive industries. There is a myriad of benefits to outsourcing but it is important to understand the implications of outsourcing and in doing so, outsource ethically and fairly. Ethical sourcing means the business ensures that the products they source are obtained in a responsible and sustainable way, the workers involved are treated fairly. Environmental and social impacts are taken into consideration with ethical sourcing. Ethical sourcing has become important for mitigating operational risk and upholding a good brand reputation (Melanie,2019).

 

 

 

Reference;

Mella, P.  Gazzola, P. (2015) Ethics builds reputation. International Journal of Markets and Business Systems, Vol. 1,(No.1). Available from https://www.researchgate.net/profile/Patrizia-Gazzola-2/publication/280309857_Ethics_builds_reputation/links/5784ff6908ae3949cf537e3c/Ethics-builds-reputation.pdf?origin=publication_detail, [Access on 28^th April 2022].

Carroll, A.B. (1991) ‘The pyramid of corporate social responsibility: toward the moral management of organizational stakeholders’. Business Horizons,  Vol. 34 (Issue. 4,July–August) pp.39–48. Available from https://www.sciencedirect.com/science/article/abs/pii/000768139190005G, [Access on 28th April 2022].

Nunes, C.S.S.M. and Simescu, A.S. (2010) ‘Ethics and corporate social responsibility – a strategic approach within the organization’, Studies and Scientific Researches – Economic Edition, (No. 15,2010) pp.467–472. Available from http://sceco.ub.ro/index.php/SCECO/article/view/159 [Access on 28^th April 2022].

Vaccari, A. (1998) "tools of governance and communication of responsibility" for social enterprises and institutions. editore Liocorno, p.p 227-246. Available from https://www.rivisteweb.it/doi/10.1447/5866, [Access on 28^th April 2022].

Gbadamosi, G. (2004) ‘Academic ethics what has morality, culture and administration got to do

with its measurement?’. Management Decision, Vol. 42(No.9) pp.1145–161. Available from https://eprints.worc.ac.uk/80/ [Access on 28^th April 2022].

Roberts, S. (2003) ‘Supply chain specific? Understanding the patchy success of ethical sourcing

initiatives’. Journal of Business Ethics, Vol. 44(No. 2) pp.159–170. DOI:10.1023/A:1023395631811 [Access on 28^th April 2022].

Melanie (2019) The Ethical Implications of Outsourcing You Need to Know.[online]United Kingdom:

Unleashed Software. Available from https://www.unleashedsoftware.com/blog/ethical-implications-outsourcing-need-know [Access on 28^th April 2022].