Subcontracting Ethics
Many times, business organizations are faced with the dilemma of making ethical decisions. “If a CIO says ‘I’ve never faced an ethical issue,’ they’re not living in the real world,” says Larry Ponemon, president and founder of the Ponemon Institute, an Arizona-based security and privacy research think tank. .
Although business relationships are more economic in nature, their moral and ethical dimensions have the same impact on profitability. When it comes to the ethics of outsourcing, things get more complicated, as the parities involved are continents apart. A judicious choice between the right person and the wrong person to do business with will determine the future of your outsourcing company.
Why is it important to do business with organizations that are ethical?
Ethical compliance presents a strong public image and upholds the integrity and character of an organization. Whether personal or professional, not many of us will want to associate with unethical people. It makes much more sense to do business with ethical organizations as it has a direct bearing on the overall operation of a company.
When things go wrong!
This is the litmus test. How your outsourcing partner reacts during a crisis is the best indicator of whether or not they are ethical. When there is mutual trust and mutual responsibility, a crisis management mechanism will automatically evolve. Ethics creates a space for itself and to guarantee the proper functioning of companies.
Legal aspects
Legal perceptions can differ from nation to nation and ambiguity can arise when a dispute occurs, leaving both parties in a bind. The association becomes easier when the parties have the legal, moral and ethical obligation to fulfill the agreement, with due respect to international law.
information security
The primary concern of outsourcing ethics is the security of confidential information. Privacy and security fall into the ‘uncompromised zone’. Sujoy Chohan, IT Research Specialist Consultant, Gartner Company, says: “If there is any industry that is investing heavily in security, it is the offshore industry, whether it is in India or anywhere else.”
Chief privacy officers are very concerned about proper information security practices. If your outsourcing partner does not have adequate information security measures in place, you may want to stay away from them.
How does a subcontractor identify organizations that are doing ethical business?
Everyone claims to be ethical. Although a clear definition of the parameters to identify ethically conscious organizations will be difficult, some factors are vivid.
supplier reliability
It is nothing but trust that makes someone want to outsource. Weigh the trustworthiness and trustworthiness of the organizations you want to outsource to.
A clear definition and practice of the organization’s ethical rules and privacy policies, such as non-disclosure of trade secrets, secrecy, and non-disclosure contracts with staff, external service providers, and visitors, is a prerequisite. This will assure the subcontractor that it is safe to do business with a partner that is miles away.
Employee credibility
Information security will largely depend on the people handling the information. Organizations that implement strict employee credibility measures have a direct implication on their outsourcing ethics.
Communication
Clear and open communication channels are another sign of an ethical company. When a project is not going the right way, an ethical partner will always keep you informed about the problem and the possible solutions and the time needed.
Query
A thorough inquiry should be made into the organization and its nature of work management. Talking to employees and references will give a clear idea about the professional approach of an organization. Check if your outsourcing partner meets the following requirements:
o Appropriate information security systems
o Appropriate quality certifications such as ISO 9000 or SEI CMM
o Appropriate programs to protect the trade secrets of your clients, partners and your customers
oInfrastructure
oTraining and updating security skills and awareness of employees.
oSecurity of electronic data storage
oPresence of a whistleblower
o Appropriate agreement with third party service providers
How does being ethical help reduce the risks of offshore outsourcing?
You can always find companies that offer services at very low costs. An ethical concern might seem like a more expensive option. However, the price difference could be misleading as the variance will only be in the initial cost. In the long run, the total cost will turn out to be much lower when you work with an ethical partner.
ethical vs. unethical association
Unethical Association:
oThe cost of maintaining the project and the relationship will be high
o lack of confidence
tense sentence
o Non-disclosure of facts
oLack of transparency
Ethical Association:
o Reduced costs
o Reduced risk
oCommon Approach
o Balance Ratio
Know the risks and manage them together
o Appropriate management systems
customer responsibilities
Before making an outsourcing decision, the outsourcer must also be clear about the responsibilities that must be shared. This will help build a healthy relationship foundation.
willingness to discuss
manage expectations
last agreed document should be the basis
obuild flexibility into contracts
mid-range opening and price review
Make sure any gaps that can disrupt the outsourcing process are addressed. The benefits of outsourcing are sure to appear with safe outsourcing practices.