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17 - Ethics Issues in Outsourcing to Emerging Markets: Theoretical Perspectives and Practices

from Part III - Normative and Utility Perspectives

Published online by Cambridge University Press:  18 December 2019

By
Rose Hiquet  and
Won-Yong Oh
Edited by
Onyeka Osuji ,
Franklin N. Ngwu  and
Dima Jamali
Onyeka Osuji
Affiliation:
University of Essex
Franklin N. Ngwu
Affiliation:
Pan-Atlantic University, Nigeria
Dima Jamali
Affiliation:
American University of Beirut
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Summary

Offshoring has become a popular practice for multinational corporations (MNCs), with emerging markets being regarded as attractive locations. Although offshore outsourcing has economic benefits, it also involves several ethical issues, such as poor working conditions, child labour and environmental pollution. To identify implications for how to establish ethical practices in MNCs’ offshoring operations, we discuss theoretical perspectives (i.e., institutional, instrumental and normative) on MNCs’ motivations for being socially and environmentally responsible. Based on a review of these perspectives, this chapter provides practical guidelines for both MNCs and policymakers, including (1) re-designing governance, (2) establishing industry-level action and (3) developing institutional capacity. Developing both public (e.g., government regulation) and private (e.g., corporate code of conduct) governance mechanisms is important. Also, MNCs should take collective action at the industry level. Lastly, MNCs should provide resources and capacity to outsourcing companies and local communities to contribute to alleviating ethical concerns in emerging markets.

Keywords

Corporate Social ResponsibilityEmerging MarketsMultinational EnterprisesOffshoringSustainability
Type
Chapter
Information
Corporate Social Responsibility in Developing and Emerging Markets
Institutions, Actors and Sustainable Development
 , pp. 336 - 347
Publisher: Cambridge University Press
Print publication year: 2019

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