Ethics add Value when Outsourcing

Ethical compliance presents a strong public image and upholds the integrity and character of an organization.  Whether personal or professional, not many of us want to associate with unethical individuals.  It makes a lot more sense to do business with ethical organizations as it has a direct influence on the overall function and profits of a business.  Few of us welcome the idea of associating with ‘deceitful’ individuals or parties in our personal lives – that should mandate when it comes to decisions about outsourcing.

What to look for in a well-managed outsource provider.

Legal guidelines for ethical and corporate behavior are noticeable different between counties.  Variance needs to be recognized and understood from the get-go to avoid embarrassment in the event of questionable behavior accrues.  Likewise, partners must be conversant with all obligations governed by international law.  Understanding business cultures are just as important as understands one’s bill of materials or product process sheet when outsourcing.

One consideration in the world of outsourcing is information and product security.  For example, when partnering with any company to produce your company’s ‘secret product’ one must have safeguards in place assuring the product is protected from copycats.  Outsourcing with reputable companies limits product coping and maintains integrity between partners.  Understanding business culture is essential when considering a company to partner.  It’s critical that you do your homework and understand what you are getting into when partnering with another company.  Never assume, always question everything and never be content with the status quo.

Wear your code of conduct.

The code of conduct employ with your partnered company should reflect the code of practice you employ with your own staff.  No matter what the position is within a company, all employees work more productive when they understand the company’s ‘code of conduct’.  Why you ask; unethical behavior absorbs more resources then good behavior.  The failure of many great companies illustrates this statement clearly.  When you wear the badge of conduct it’s carried over to partnered companies as well limiting mistakes, misunderstandings and errors.   An ethical leader reaps valuable rewards from productive employees; gains loyalty and ultimately a smoother and more profitable business.

But just because you’ve outsourced and are now having your widgets made in China, doesn’t mean your hands are washed of responsibility.  Maintaining good business relations with your partners are important on all levels and continuous.  Never adopt the ostrich attitude by burying your head in the sand hoping for things to be successful.  Don’t “roll the dice,” read the Weegee Board or assume anything.  Plain for the unexpected and allow for variances.  History tells us that unethical behavior restricts long term success and only patches poor management decisions short term.  So good practices, fair and ethical trading between partners are guidelines that all companies and businessmen and women should observe when outsourcing.