Consequentialism and utilitarianism applied to corporate outsourcing ethics

Consequentialists Theories

Principles of Consequentialism and Utilitarianism

According to proponents of utilitarianism, whatever is right in a society produces the greatest happiness. Here, utilitarianism does not only refer to the useful of activities but rather a scope at which an activity produces the good. This theory accounts for the definition of good or happiness as that which is highly pleasurable (Gustafson, 2013). This theory provides an interpretation of numerous experiences of pleasure and various intrinsic values like knowledge, friendship, and honesty. This theory is based on the basic principle that an action that involves a heroic sacrifice but does not boost the general happiness if ethically wrong.

Consequentialism is one of the normative ethical school of thought that rests on the principle that the consequences of behavior are the sole basis for any judgment regarding the wrongness or righteous of that behavior. Therefore, according to consequentialists, a morally right conduct is that which elicits good consequence or outcome. This theory sees morality as primarily all about generating the right overall consequences. By "overall consequences" (Gustafson, 2013) the theory implies all things the action generates, must be good. Therefore, from a philosophical perspective consequentialism views a moral 'rightness' or act of any action regarding the consequences of that act.

The Dilemma of Outsourcing from a Utilitarian Perspective

Outsourcing is becoming an efficient approach to reducing a company's cost, and this is vital to remain competitive in any industry. Nevertheless, the practice has elicited conflicting debates around the world due to the ethical issues related to it. Various theories can be used to analyze the practice of outsourcing from an ethical angle. This section uses the most common approach: the utilitarian perspective. This ethical system has been adopted by a vast majority of economists. The main argument fronted by the utilitarian concept is the greatest good for the greatest number (Renouard, 2011).

In this case, the primary reason for outsourcing and offshoring is because most jobs need an educated workforce. It is believed that the U.S. academic system, at the secondary and primary levels, is not competitive globally. Some scholars comparing educational success among nations reveal that U.S. students fall at a lower end of the spectrum as far as science and math skills are concerned. Statistics indicate that because an estimated 90% of students educated in the U.S. studied in government institutions, the politicians have been accused of being partly responsible for the decline in U.S. academic standards. Today, most of the scientists working in the U.S. are immigrants from other nations such as China. Moreover, in some programs such as science, most students are from foreign nations. The current permissive immigration policies are allowing highly educated students to enter the U.S. Were it not for these policies, and then the situation would have been much chronic, unlike the way it appears today.