Why an Outsourcing Code of Ethics is Required

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Outsourcing ethics address acceptable business behavior — not in the etiquette sense, where we’re concerned with what’s professional — but in the industrial and legal sense, where we’re concerned with industry standards and laws. And as mentioned in our outsourcing book, almost every industry suggests a set of standards that businesses are expected to follow.

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Most people have an idea of what’s acceptable in the online industry, for instance, and they honor them for the most part. But because this industry is constantly changing, you’re forced to adapt to an environment that continues to grow, and that can cause some confusion in determining what is and isn’t allowed. You’re still responsible for actions that violate existing standards and laws no matter how much they change, however, making the need for your own ethics policy more important than ever.

An Outsourcing Code of Ethics Protects You

With your own outsourcing ethics policy, you can prevent incidents similar to JCPenny’s outsourcing fiasco since it can answer the who, what, when, where, why, and how of outsourcing. It can also give you significant leverage should you ever need to prove your real intentions in the face of a pending penalization. To be effective, your ethics policy must outline how your efforts will comply with (1) existing company policies, (2) national laws, and (3) industry expectations. For netrepreneurs, those expectations are whatever it takes to maintain an Internet presence.

Google’s Webmaster Guidelines, for example, provide a sound example of expectations for companies that want to maintain a stable presence in Google’s index. Another good example is the set of policies set forth by the outsourcing service that you’ll work through. If you’re working in a specialized field, such as the medical field, even more policies apply. Cumbersome for sure, but you have to remember, these rules exist to protect you and your customers. Failing to comply could endanger a person’s well-being, even if you’re simply providing information.

Outsourcing Code of Ethics Outline

Build your own outsourcing code of ethics with the following outline:

1. Title
2. Cover letter that introduces the content.
3. Table of contents
4. Introduction that explains why the code exists, describes the code’s scope, and identifies the people who must follow the code
5. Code provisions that answer questions surrounding your company existing policies, national laws, and industry expectations
6. Additional resources defining where to get more information

Outsourcing Code of Ethics Enforcement

A Good Read: Managing Business Ethics

Nothing enforced is nothing gained of course, so when outsourcing, incorporate the most important ethical issues in your contract so that your provider is not only aware of them upon signing, s/he is legally required to abide by them. If one of those issues requires full compliance with current FCC laws, for example, stress that those laws be followed in your outsourcing contract. The same contract should also identify who’s responsible for damages occurring from non-compliance.

You’ll simply have a better chance at nabbing a successful outsourcing experience by following and incorporating your industry’s standards into your contracts. Search your local directory for trade associations related to your industry, and then call one to learn how to access relevant policies. Study them, follow them, and enforce them.

External Resources:

1. Decision-Making for Personal Integrity & Social Responsibility
2. Business Ethics: Ethical Decision Making & Cases
3. Understanding Business Ethics