Journal of Business Ethics 95 (2):167 - 189 (2010)

We contribute to the study of offshoring and outsourcing by examining how stakeholders' ethical evaluations of these decisions are influenced by both their roles and the issues embedded within the decisions. Although offshoring and outsourcing have been studied from a transactional perspective, the moral issues embedded within these decisions can profoundly affect how the organization is perceived by outside stakeholders. First, we contend that investors use different moral paradigms compared with consumer stakeholders, as a result the stakeholder role an individual occupies significantly influences their ethical evaluation of offshoring and outsourcing decisions. Next, we examine whether embedded issues of product quality and information security increase the moral intensity of offshoring and outsourcing decisions, thereby negatively influencing ethical evaluations. Using vignettes, we find that respondents viewed either offshoring or outsourcing less favorably than relocation. Surprisingly, respondents viewed offshoring with data security risks more negatively than offshore outsourcing with quality risks, suggesting that the issue of information security has a greater moral intensity than the issue of product or service quality for both consumer and investor stakeholders. Thus, we show that that embedded issues play a significant role in stakeholders' ethical judgments of business decisions, such as offshoring and outsourcing
Keywords offshoring  outsourcing  internationalization  ethics  moral intensity  product quality  information security
Categories (categorize this paper)
DOI 10.1007/s10551-009-0353-0
Edit this record
Mark as duplicate
Export citation
Find it on Scholar
Request removal from index
Revision history

Download options

PhilArchive copy

Upload a copy of this paper     Check publisher's policy     Papers currently archived: 70,130
Through your library

References found in this work BETA

The Stakeholder Model Refined.Yves Fassin - 2009 - Journal of Business Ethics 84 (1):113-135.

View all 16 references / Add more references

Citations of this work BETA

Global Labor Justice and the Limits of Economic Analysis.Joshua Preiss - 2014 - Business Ethics Quarterly 24 (1):55-83.

Add more citations

Similar books and articles


Added to PP index

Total views
79 ( #146,602 of 2,506,442 )

Recent downloads (6 months)
1 ( #416,997 of 2,506,442 )

How can I increase my downloads?


My notes