October 8th, 2004
Outsourcing: mentor capitalist addresses social policy
AlwaysON: Ram Shriram pitches a socially responsible approach to outsourcing that addresses those laid off due to offshoring when adopted as company policy:
Distinct from government policy, we propose that companies as part of their social responsibility apply a Voluntary Offshoring code of conduct. In this approach, companies that have plans to go offshore involving displacement of existing workers in the United States shall go through a voluntary process: one that includes a clear determination of the people impacted and the anticipated economic benefits to the company. This net benefit shall then be split three ways: say, 50% shall accrue to the company for its use; say, 25% shall be used to compensate affected U.S. workers as a cash payment; and say, 25% shall go into an industry fund that shall provide scholarships for retraining and education for displaced workers.
But would executive teams sign-up? Well from the looks of it, most likely not.
