The traditional view of business as a profit-generating machinery is no longer in parallel to the current world-view. Friedman's contention that the sole responsibility of a business was to increase its profits may have been applicable to businesses in the 70's, but it's considered an outdated view by many companies today.
In more than four decades, the world economy has become so interdependent that it's not possible for businesses in more developed countries to ignore the value of outsourcing. Outsourcing to an offshore location is even more profitable.
All employees hired have the same level of skills and training as their onshore counterparts, but they're paid less than the usual rates in the United States, Canada or Australia. That amount is more than enough to raise their purchasing power, and give their families a more comfortable way of life.
Outsourcing and social responsibility go hand-in-hand. It creates jobs in developing countries like the Philippines. It provides long-term employment to professionals who will, otherwise, remain unemployed because of the lack of sustainable job opportunities in their country.
Don't misunderstand this statement. There are jobs, but most of the companies in the Philippines practice contractualization and end-of-contract hiring. What these professionals need is security of tenure in a job that makes use of their technical knowledge and skills. Moreover, they need to be employed in a socially responsible company that values their expertise in their respective fields.
Social responsibility is as fundamental as profit generation to the survival of a business. Getting involved with the community and making it possible for the youth to find long-term employment are a few of the ways that a company can nurture its manpower pool. At the same time, this effectively strengthens the company's image as a "good business to work for" among its prospective staff.
Costco's Chief Financial Officer Richard Galanti explained this avant-garde mindset in business better. He said, "From day one, we've run the company with the philosophy that if we pay better than average, provide a salary people can live on, have a positive environment and good benefits, we'll be able to hire better people, they'll stay longer and be more efficient."
Financial security, a positive work environment, and a good benefits package are the perfect ingredients for retaining quality employees. In the case of an impact sourcing service provider like Rethink Staffing, employees are viewed as integral to the company's operations. Their well-being and financial security are important to the management. In turn, our employees become our brand ambassadors. They're first in the line to showcase the good that our mission has done and help us spread the values of a socially responsible outsourcing company.