OFFSHORE LABOUR OUTSOURCING
The practice of hiring external service providers for the provision of labour
Potential cost saving for companies
Job loss for Australian workers
Potential quality sacrifice for consumers
Violation of rights for foreign workers
Community dissatisfaction from ethical breaches
-Domestic job loss
-Exploitation of foreign workers
-Legal grey areas
BRAND & REPUTATION IMPACTS
Offshore labour outsourcing is difficult to regulate and monitor. It can result in contradictions to a company's ethical branding strategy and sacrifice corporate reputation.
90% of clothing brands sold in Australia are likely to profit from child labour- SMH 2013
Whilst there are laws that regulate areas of offshore outsourcing such as the 'Australian Prudential Regulation Authority standards', and 'ASX reporting requirements' these do not relate to the ethical concerns of foreign labour. Despite the prominance of offshore workers across most business markets in Australia.
-Government incentives to return labour to the domestic market. -Increased consumer awareness and pressure. -Laws that require the disclosure of sources of raw material and any outsourced components of the supply chain. -Legal regulations regarding the ‘fair’ production of all products sold in Australia.
Off shore labour outsourcing is difficult to regulate. It presents ethical concerns on both domestic and global levels. It can lead to negative brand association. Greater domestic legal requirements should be implemented.