A review of the literature on the process of outsourcing indicates that, overall, this practice is often met with considerable disdain by domestic workers. Scholars argue that the principle perception that pervades the decision to outsource is that the organization is sacrificing good American jobs for cheap labor. Although access to cheap labor may save the organization money, this money is saved at the expense of hard working Americans (Cadbury, 5-6). In short outsourcing is unethical because it effectively places profits above people.
Even though outsourcing is clearly an ethical issue for employees, scholars examining this issue argue that outsourcing is not an ethical decision for the organization. Rather, the decision to outsource is often the most viable method to keep the organization financially viable over the long-term (Cadbury, 6). The pressures of globalization have forced organizations to cut prices and profits, such that they can only remain competitive with cheaper labor. While many believe that outsourcing has a negative impact on the American economy, research in this area had not demonstrated this to be the case. In fact, outsourcing can have a positive impact on the organization, prompting greater revenues and profits and a reinvestment in operations (7). Further statistics demonstrate that over the long-term, the net job loss for American workers has not been significant given the total amount of outsourcing that has taken placed in recent years (8).
When placed in this context, it becomes evident that Hershey's efforts to outsource operations do not appear to represent an ethical issue. Although many American workers currently losing their jobs would argue that the organization has acted unethically, the reality is that outsourcing has become a viable business practice that must be defended in order to ensure that American companies can survive over the long-term. Thus, while it may be difficult for some workers to accept, outsourcing at Hershey does not appear to be an ethical issue for scrutiny.
The Issue of Unhealthy Food
While the issues of outsourcing and offshoring clearly have widespread ethical implications, there are other issues that are raised in the context of Hershey's current efforts. Based on the data provided above, Hershey is aggressively seeking new markets for its chocolate products. Specifically, the organization is currently targeting India as a principle means to bolster its business. Although the size of the market clearly makes this move attractive, the question that is raised in this context is whether or not it is ethical for the Hershey organization to aggressively market and sell product which can have negative health effects. Researchers argue that the negative health effects of chocolate have become so prominent in the U.S. that Hershey has lost a considerable amount of sales because of efforts on the part of Americans to live healthier lives (Beirne, 11). Given that the same products are being sold in foreign countries, it does not seem feasible to argue that these products will have any less of an impact on overall health.
At the core of this issue lie the ethical responsibilities of the organization when it comes to promoting products which have questionable health value. Junk food has become vilified in the United States because of its overall negative health benefits. While one could easily argue that chocolate will not cause any ill health effects if consumed in moderation, the aggressiveness of the Hershey organization in promoting and developing its products may not allow for "moderation" to prevail as a consumption practice. Given that the organization understands the health implications associated with product consumption it seems reasonable to argue that the Hershey Company is walking a very thin ethical line. This ethical line becomes even more precarious when one considers the aggressive nature of Hershey's campaign to make chocolate the preferred treat in Indian society.
Slave and Child Labor
The final issue that must be addressed in the context of this investigation is that of slave and child labor. While it is important to note that Hershey has not yet been implicated in child and slave labor operations in the acquisition of its raw materials and the production of its final products, there is considerable evidence which suggests that the organization has used these labor practices in order to improve operations and reduce overall production costs (Orr, 25). With this in mind, it is reasonable to assume that Hershey may engage in some ethically questionably labor practices. Although these types of labor practices clearly have no ethical merit, a review of child labor...
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