Consideration of selflessness and self‐interest in outsourcing decisions

Abstract

Purpose

The paper aims to discuss the need to balance selflessness and self‐interest issues in outsourcing decisions. This discussion is timely given the tensions that currently exist between those who want off‐shore outsourcing to continue as a means for increasing international trade, and those who only want to conduct business on‐shore.

Design/methodology/approach

A conceptual approach has been taken in this paper in order to highlight key considerations for ethical decision‐making with respect to off‐shore outsourcing.

Findings

Considerations of selflessness and self‐interest are embedded in outsourcing decisions. It is recommended that a balance between making profits and fulfilling social responsibilities is required, ideally, at each stage of decision‐making. Hence, managers should think critically about the reasons behind off‐shore outsourcing decisions, the process of arriving at decisions, and the impact of their decisions on stakeholders.

Research limitations/implications

This is a conceptual paper and further empirical data to validate the stages of decision‐making framework are required.

Practical implications

Failure to take into account the selflessness and self‐interest outcomes of off‐shore outsourcing could potentially off‐set strategic gains by leading to negative media publicity for a company.

Social implications

Ethical considerations as part of outsourcing decisions should result in a transparent, fair and more humane working environment for both the host and the home country representatives involved in the process.

Originality/value

This paper presents an original framework of selflessness and self‐interest considerations when making off‐shore outsourcing decisions. Both Eastern and Western business perspectives have been incorporated as part of the decision‐making framework.

Citation

Zutshi, A., Creed, A., Sohal, A.S. and Wood, G. (2012), "Consideration of selflessness and self‐interest in outsourcing decisions", European Business Review, Vol. 24 No. 3, pp. 287-303. https://doi.org/10.1108/09555341211222521