Adobor reasons that as large corporations and individual researchers who outsource to outside companies lose the ability to control the ethical standard, thereby, accountability gets lost in the process (Adobor, 2012). Outsourcing has become the common standard in the pharmaceutical industry. Additionally, the industry as seen demand for the globalization of drug research (Adobor, 2012). The globalizations of drug research have shifted from an academic research setting to commercial research organizations. Moreover, the literature states that pharmaceutical companies are having a difficult time recruiting patients for drug trials in their home country. Additionally, they are also coming across the same difficulties find patients for drug trials in other countries because governments have tightened restrictions and compensation laws (Adobor, 2012). Drug companies are also in need to speed development of drugs citing that development and gaining approval can take almost a decade. It is implied that it might be tempting for the organization or contractor to cut corners to push deadlines. Adobor concludes that for the most part both parties involve do adhere to moral and ethical standards laid out by regulatory and government agencies, however, the implications are still there for ethical standards to be violated …show more content…
Domestic and foreign governments are concerned about the negative economic impact of outsourcing in their country. The biggest concern is tax evasion which is thought to be the main reason organizations seek to outsource in other countries (Janevski & Velkovski, 2014). Moreover, for outsourcing firms to be competitive depends on the financial and economic strength of geographic location of the firm and the ability to attract global businesses (Janevski & Velkovski, 2014). Additionally, this competition is beneficial as it contributes to innovations and reduces the costs of these services provided. However, the literature also points out that this can raise concern because if the cost is lower it can reduce regulatory and supervisory standards (Janevski & Velkovski, 2014). The literature concludes that outsource firms with special tax and regulatory policies that are favorable for foreign investors are most beneficial for organizations and can avoid some of the risks involved when outsourcing activities (Janevski & Velkovski,