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Outsourcing Morality

Outsourcing Morality

Ron Brown and Bill Clinton

All the benefits of virtue without the costs.

Remember when you had to do something virtuous to signal your virtue? Some of the virtuous way back when did virtuous acts and didn’t even tell anyone else about them. If you go into older museums and other civic monuments and look at donors’ names on plaques, you’ll find anonymous donors. They didn’t get a wing named after them, there were no press releases, they just gave to a good cause and that was its own reward. If they were alive today, they wouldn’t have Twitter feeds. Private virtue and public anonymity—incomprehensible!

At least plutocrats who plaster their names where they donate are donating their own money. Perhaps the most odious form of virtue signaling demands everyone’s taxes fund a chosen cause, then claims the same moral stature as the plutocrats. Strictly speaking this can’t be virtue signaling. There’s no virtue, only coercion and theft. The merit, if any, of the cause never justifies the immoral means used to fund it.

Gresham’s law of virtue: phony virtue drives out the real thing. It’s partly mathematical—what the government steals cannot be donated—but it goes much deeper.

There’s an intergenerational understanding rooted in biology: parents take care of children when they’re young; children take of parents when they’re old. Rearing children and caring for aging parents impose inconvenient burdens, but for most of history people had little choice, the only alternative was neglect and abandonment. Enter the state. In most Western countries responsibility for both child rearing and elder care has in whole or in part shifted to it.

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CIBC CEO explains why bank is replacing Canadian staff with workers from India

CIBC CEO explains why bank is replacing Canadian staff with workers from India

CEO Victor Dodig acknowledges that ‘outsourcing isn’t a popular decision’

CIBC CEO Victor Dodig sent a memo to staff on Friday to explain why the bank sometimes needs to outsource work to other countries.

CIBC CEO Victor Dodig sent a memo to staff on Friday to explain why the bank sometimes needs to outsource work to other countries. (Jeff McIntosh/Canadian Press)

CIBC’s CEO issued an internal staff memo Friday to address a CBC News story revealing that the bank is eliminating up to 130 Toronto finance jobs and outsourcing the work to India.

The article, which ran on Thursday, generated more than 2,000 comments on the CBC News site — many of them taking a negative view of CIBC’s decision to send the jobs overseas.

“I understand that outsourcing isn’t a popular decision,” wrote CEO Victor Dodig in the memo to employees. “It’s an emotional topic that I don’t want to shy away from because that’s not the culture that we have.”

The story only came to light because some CIBC workers facing layoffs complained to CBC News. They were particularly upset that they have to train other local CIBC employees who then train the workers in India who will be taking over the jobs.

“It feels like no one cares for us,” said one employee.

It’s not about the money

In his memo, Dodig laid out why the bank sometimes outsources jobs to other countries. Some affected employees said they believe CIBC is doing it in this case to save money — at a time when the bank had pulled in $1.4 billion in profit in the last quarter.

“It’s not as simple as you may read that it’s about cutting jobs or costs,” wrote Dodig. He said that outsourcing complements the work done by CIBC staff by helping manage peaks in demand, ensuring work can be done around the clock and helping the bank adapt to changing business needs.

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