Ethics of Outsourcing

Many times, business organizations encounter the dilemma of ethical decision making. “If a CIO says ‘I’ve never faced an ethical issue’, they’re not living in the real world,” says Larry Ponemon, chairman and founder of the Ponemon Institute, a security and privacy research think tank based in Arizona.

Though business relationships are more economic in nature, their moral and ethical dimensions have an equal impact on profitability. When it comes to the ethics of outsourcing, matters become more complicated, as parities involved are continents away. A judicious choice between the right and the wrong person to do business with will determine the future of your outsourcing venture.

Why is it important to do business with organizations that are ethical?

Ethical compliance presents a strong public image and upholds the integrity and character of an organization. Whether personal or professional, not many of us will 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 functioning of a business.

When things go wrong!

This is the acid test. The way your outsourcing partner reacts during a crisis is the best indicator of whether it is ethical or unethical. When there is mutual trust and responsibility towards each other, a crisis management mechanism will automatically evolve. Ethics creates a space for itself and in ensuring the smooth running of businesses.

Legal aspects

Legal perceptions may differ from one nation to the other and ambiguity could arise when a dispute occurs, leaving both parties in a fix. The association becomes easier when the parties have a legal, moral and ethical obligation to comply with the agreement, with due respect to international law.

Information Security

The core concern of outsourcing ethics is confidential information security. Privacy and security fall under the ‘no compromise zone’. Sujoy Chohan, a consultant at IT research specialists, Gartner Company, says, “If there is any industry which is investing in security tremendously, it is the offshore industry, whether it is India or elsewhere”.

Chief Privacy Officers are highly concerned about proper information security practices. If your outsourcing partner does not have adequate information security measures, it might be wise to stay clear of them.

How does an outsourcer identify organizations which are doing ethical business?

Everyone claims to be ethical. Though a clear definition of the parameters for identifying organizations with ethical conscience will be a difficulty, some factors are vivid.

Vendor reliability

It is nothing but trust that makes someone want to outsource. Weigh the dependability and reliability of the organizations to which you want to outsource.

A clear definition and practice of the ethical rules and privacy policies of the organization like non-disclosure of trade secrets, secrecy and non-disclosure contracts with staff, third party service providers and visitors is a prerequisite. This will reassure the outsourcer that it is safe to do business with a partner who is miles away.

Employee Credibility

Information security will largely depend on the people who handle the information. Organizations that implement tough employee credibility measures have a direct implication on its outsourcing ethics.


Clear and open communication channels are another sign of an ethical company. When a project does not go the right way, an ethical partner will always keep you informed of the problem and possible solutions and time needed.


A thorough enquiry should be made about the organization and their nature of work management. Talking to the employees and references will give a clear idea about the professional approach of an organization. Check if the following requirements are met by your outsourcing partner:

oProper information security systems

oAppropriate quality certifications such as ISO 9000 or SEI CMM

oAppropriate programs to protect the trade secrets of its clients, partners and their customers


oTraining and upgrading the security skills and awareness of employees.

oSafety of electronic data storage

oPresence of a whistleblower

oProper arrangement with third party service providers

How does being ethical help in reducing the risks of offshore outsourcing?

You can always find companies that offer services at very low costs. An ethical concern might seem to be a costlier choice. However, the price difference could be deceptive as the variation will only be in the initial cost. In the long run, the overall cost will prove to be much lower when you are working with an ethical partner.

Ethical vs. Unethical partnership

Unethical partnership:

oThe cost of maintaining the project and the relationship will be high

oLack of trust

oStrained relationship

oNon disclosure of facts

oLack of transparency

Ethical Partnership:

oReduced costs

oReduced risk

oCommon focus

oRelationship equilibrium

oKnowing the risks and managing them together

oProper management systems

Client responsibilities

Before making an outsourcing decision, the outsourcer should also be clear about the responsibilities that he should share. This will help in building a healthy relationship base.

owillingness to discuss

omanage expectations

olast agreed document should be the basis

obuild flexibility to contracts

oopenness to intermediate scope and price review

Make sure that all the loop holes which can disrupt the outsourcing process are dealt with. The benefits of outsourcing are sure to show up with safe outsourcing practices.

Understanding Group and Personal Ethics – Nu Leadership Series

Men cease to interest us when we find their limitations. The sin is limitations. As soon as you once come up to a man’s limitations, it is all over with him.


In today’s society, personal and group ethics shape the value formation in organizations. Ethics and organizational culture can impact the success of an organization in the following ways: (a) group cultures influence ethical behavior more than the sum of their individual ethics, (b) ethic reasoning is a logical sequence where policies come last, making policies the result of ethical reasoning, not a substitute for it, and (c) ethics and culture gaps can only be reduced by preventing their root causes at the beginning of the process. Ethics in organizations are influenced more by the group ethics system (culture) than by the sum of the individual personal ethics systems.

Ethic plays a critical role in leadership. Ethics is defined as the code of moral principles that governs the behavior of a person/group to what is right. People will not respect a leader low in integrity. A leader can’t trick them with promotions or bribe them with money. In the long run, character does count in an effective organization. Draft, an organization management expert, explains that leaders at the highest management levels develop internal moral standards that can often allow them to break laws if necessary.

A leader’s unethical conduct brings about his own demise and shame of his organization. Therefore, it can be shown that effective leaders must have accountability mechanisms in place so that they won’t hit any ethical mine fields. Can you imagine what happens in an organization without accountability?

Each individual brings their own personal beliefs into the workplace. Leaders are not the exception. An individuals family background, traditions, spiritual values, and experiences impact how the make moral decisions. At the medium development point, individuals learn to conform to the expectations of moral behavior defined by their peers and society. Most leaders at this junction are willing to following laws and society expectations.

However, the highest levels of value formation are individuals who develop their own internal set of standards. Therefore, these individuals develop their own ethical principles that become more important in their decision-making than any external expectations. This high arching principle allows them to make unethical decisions, such as break laws or compromise organizational values, because it allows them to sustain their moral principles internally. Obviously, values will continue to play a critical role in organizational development in the future.


CNN (2005). Reid: White House owes an explanation. Received on October 31, 2005 from

Ciulla, J.B. (1998). Ethics: The Heart of Leadership. Westport, CT: Praeger.

Draft, R. (1995). Organization Theory & Design. Congress gets low ratings on ethics, honesty.

Harris, J. (April 12, 2005). In recent scandals, a rethinking of capital’s conventional wisdom. Washington Post.

Heuser, B. (2005). The Ethics of Social Cohesion. Peabody Journal of Education. 80(4), pp.8-15.

Kern, C. (2003). Creating and Sustaining an Ethical Workplace Culture, Pepperdine University.

King, S. (2006). The Moral Manager. Public Integrity. 8(2), pp.113-133.

Lester, W. (2005). Associated Press. Congress gets low ratings on ethics, honesty.

Nelson, M. (1994). Why Americans hate Politics and Politicians. Virginia Quarterly Review. 70(4), p.636, 18p.

Yukl, G. (2002). Leadership in Organizations. Delhi, India: Pearson Education, Inc.

© 2006 by Daryl D. Green

Tyrannosaurus Rexina and the Ethics of Creative Physics

Apparently, the fossil record is telling us that the female Tyrannosaurus Rex was much larger than the male and during mating season he had to tread very carefully. It seems the female needed to consume larger amounts of calcium to produce strong eggs, which also contributed to the extra size of her formidable weaponry. The basic design program of this killer dinosaur paid little attention to the evolution of its tiny arms, but the wishbone structure in the chest suggests that a great evolutionary plan of some sort was slowly moving toward the creation of futuristic bird life.

The evolution of humanity had a seemingly merciless blueprint guiding it toward worship of a loving merciful ethical God. However, intuition to do that eventually did occur amidst a violent claw and tooth prevailing mentality. The present path toward a loving and caring evolutionary direction has atomic weaponry signposts signalling some obsession to share our destiny with the dinosaurs. In order to avoid extinction we can re-examine the original dinosaur blueprint instructions more carefully to understand how to scientifically upgrade our destiny accordingly. The ancient Platonic tradition of Greek philosophy’s Science for Ethical Ends supplied us with the mathematics to do this.

The Greek philosophers, Thales and Pythagoras, travelled to Egypt to study mathematical political ethics from the teachings of the Mystery Schools of Maat, the mythical Goddess for mercy, compassion and justice, who prevented the universe from reverting to chaos. The Egyptian Second Kingdom’s use of sacred geometrical mathematics to incorporate mercy, compassion and justice into political law had been studied by Greek philosophers during the 5th Century BC. The Platonic tradition of Greek philosophy knew that very ancient monsters had become extinct and established a mathematical science to guide ennobling government during the 3rd Century BC, so that human civilisation would not also become extinct.

The engineer Buckminster Fuller derived his synergistic world-view from that mathematics, in contradiction to the Einsteinian world-view, which demands the complete extinction of all life in the universe. Fuller’s book entitled Utopia or Oblivion, was based upon Plato’s spiritual (holographic) sacred geometrical mathematics.

During the 5th Century BC the philosopher of science, Anaxagoras postulated his theory of creation, realising that evolution on earth lacked ethical moral purpose. He considered that an intelligent Creator, used a whirling (gravitation) force to act upon primordial particles in space to make the worlds of our universe, causing them to spin to evolve mind. This God then left our region of the universe in order to create further universes elsewhere. The three universities that followed the Platonic tradition of Greek philosophy set about to fuse ethics into Anaxagoras’ scientific model of reality and used the Egyptian mathematics for mercy, compassion and justice to construct the Western atomistic Science for Ethical Ends. The Ho Kepos university referred to it as the Science of Universal Love, its teachers were called saviours, following the Egyptian mathematical ethic to prevent the universe from reverting to chaos which was based upon love and kindness within family life.

Pythagoras introduced harmonic properties of light into this evolution of ethical consciousness concept. During the 18th and 19th Centuries, several of the philosopher scientists discovering electromagnetic field energy forces, realised that the ancient Pythagorean Music of the Spheres, was describing the existence of universal electromagnetic forces acting to evolve compassionate emotion. By using nanotechnology in the 21st Century to examine the functioning of the molecule of emotion, discovered in 1972 by Dr Candace Pert, the evolution of the endocrine fluids associated with the working of that molecule, demonstrate that the Buckminster Fuller’s ethical mathematics is indeed the basis of an evolving Creative Physics programmed so that humans might choose not to become extinct. As Charles Darwin wrote in his Ascent of Man, the emotion of compassion within humanity is so pronounced that it must have some intrinsic evolutionary purpose.

When Her Majesty Tyrannosaurus Rexina governed the world, her death carried the means to investigate that greater mathematical purpose. The wish bone within that ferocious body was not the only clue telling us that evolutionary information existed from the remains of her existence. We can now measure another part of the great monsters of old, with great mathematical precision, in order to debate mathematically about a more ethical evolutionary purpose associated emanating from the savage existence of prehistoric reality. This mathematical reality links the living process to a far greater reality than the 20th Century Einsteinian world-view could possibly have imagined.

The fatty acids of a dinosaur, which died alongside certain minerals, turned into a substance, which when exposed to cosmic radiation began to form into crystals, such as Jasper. This complex procedure recorded the mineral growth of natural fractal patterns. The geometrical properties of geometrical fractals belong to both a non living and a living process. Modern science accepts that while fractal logic can extend to infinity, the Einsteinian world-view prohibits the living process to be linked to this infinite fractal logic as it considers that eventually all life must be destroyed. On the 18th of February, 2011, Cornell University Library announced a major discovery by two Chinese scientists, Liaofu Luo and Jun Lu. They had used mathematics to explain why the protein dance of life within DNA, called a subatomic jitterbug by Buckminster Fuller, contradicted the Einsteinian world-view universal heat death law. Fuller had correctly predicted that a second life-energy system existed, to entangle itself with Einstein’s genius description of a single universal energy system, governed only by chaos.

When the ancient Greeks fused ethics into Anaxagoras’ intuitive myth of creation, in which God had departed, leaving humans free will to discover its divine purpose they transformed its mathematical structure into a dynamical mathematical logic which extended to infinity, contrary to our present general perception of reality. This ethical act of consciousness can be considered to refer to aspects of the Copenhagen definition of quantum mechanics alluded to within Vedic mathematics. The ancient Egyptians fused such mathematics into a political structure, which the ancient Greeks used to create the science for ethical ends so that humanity could avoid extinction. In contrast to this mathematical act of evolving consciousness, we know that our present day understanding of mathematics can only accelerate global chaos. The three Nobel Prizes awarded for mathematical economic logic in 1994 helped to bring about the present global economic collapse. We have enough mathematical data at our disposal to construct the Fullerene Utopia.

An online compilation of the briefing papers for the U.S. Senate Environment and Pubic Works Commitee during 2000, is entitled Outside-the-Box Technologies, Their Critical Role Concerning Environmental Trends, and the Unnecessary Energy Crisis. Among the points raised is that a mathematics for new technologies, beyond the accelerating chaos of the Einsteinian world-view, must be used to develop new technologies to replace American dependence upon the fossil fuel economy. In 2000 an accurate prediction was made in that in eight years the collapse of the American economic system would begin to bring on a global economic disaster.

Under such conditions. the paper considered that other countries, under such economic stress, will attempt to develop or ally themselves with those who have weapons of mass destruction, in order to avoid the collapse of their various individual regimes. Under those conditions, once one is used, or a threat is perceived that they will be used, then existing defence policies will be put into effect, ensuring the end of civilisation. That is also Buckminster Fuller’s mathematically arrived at state entropic oblivion, derived from the Greek definition of evil as being the property of unformed matter within the atom.

In their online paper entitled Mathematics and Peace: Our Responsibilities, the authors Ubiratan D’Ambbrosio and Sao Paulo address the responsibilities of social peace, environmental peace and military peace, by linking mathematics to the functioning of human behaviour and a mathematical definition of relevant global ethics. The same theme is the basis of the book entitled The 21st Century Renaissance, being published by the Science-Art Research Centre of Australia in liaison with Florence University’s quantum biological New Measurement of Humanity Project. In 2010 the two Italian Director’s of this New Renaissance Project were awarded the Giorgio Napolitano Medal on behalf of the Republic of Italy for their quantum biological discoveries concerning the self organising functioning of universal energies as the basis of quantum biology.

Behaving like a Tyrannosaurus Rex in heat may excite young men learning how to implement computer games of mass destruction but it was not a manly thing of the past. Our educational system must quickly bridge the gap between modern science and the ethics of the Classical Greek Humanities. As the molecular biologist Sir C P Snow warned in his Rede Lecture at Cambridge University in 1959, if we maintain our obsession with the law of Chaos, which Einstein considered to be the premier law of all of the sciences, the civilisation will be destroyed.

© Professor Robert Pope,

Advisor to the President Oceania and Australasia of the Institute for Theoretical Physics and Advanced Mathematics (IFM) Einstein-Galilei