The placement of automation as suggested by Rick White is likely to impact the company negatively. Ethically speaking, outsourcing labor denies work to the citizens of a nation, causing them to lose income. Companies do have a moral obligation to take care of those that work for them and society in general. For this reason and despite the attractive results of automation, it is necessary for the company to consider retaining a portion of its workforce. The automation of the production process has financial consequences, and this may extend beyond the proposed savings with new equipment.
Acquiring new equipment over human labor does encourage saving on costs in the short run. It does not all the same, encourage saving in the long term seeing as the depletion of machines often comes with the costs of replacement, maintenance and repair may, and this may affect a company’s finances. Furthermore, machines unlike human beings are prone to obsolescence. They must be replaced constantly or updated in line with the most current technology. It goes on to deny the company a feel of communication and unison (Weygandt, Kimmel & Kieso, 2015). Machines, unlike human beings, are not something a manager can maintain a relationship with. While that may pose as an advantage, it is also an ethical concern as it degrades human integrity and the need to maintain proper and growing experiences and human relationships.
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Conclusively, outsourcing does appear to be the most reasonable option for the company to take in the meantime, in just as far as costs are concerned. Business, should nonetheless, be concerned with more than just the mere production of goods and services and then, with their sale off at a profit (Weygandt, Kimmel & Kieso, 2015). For it to be sustainable, then it must be contributive to society and benefit the same. It is such social responsibility that encourages roles of companies as part of the physical and social world. Such ethical contributions indeed make life better for human beings. It is thus advisable to the US Company in question, to employ other means of cost cutting in running business.
References
Weygandt, J. J., Kimmel, P. D., & Kieso, D. E. (2015). Financial & Managerial Accounting . John Wiley & Sons.
