Last updated: 5 August 2026

Quick answer: Ethical offshoring means building an offshore team through fair employment, appropriate local compensation, job security, professional development and responsible working practices. It should create sustainable value for both the business and the people doing the work, rather than treating labour-cost reduction as the only objective.

Offshoring has an image problem, and in many cases, that reputation has been earned.

Ask someone to picture an offshore team and they may imagine a high-pressure call centre, a contractor without meaningful benefits or a worker in Manila or Ho Chi Minh City treated as a lower-cost line item rather than a colleague.

Those models still exist. However, they are not the only way to build an offshore team.

When Sharesource talks about ethical offshoring, we recognise that the word “ethical” needs to be supported by real employment practices, not simply added to a marketing message. Every provider can say that it values people. The more important question is what those values look like in practice.

What does extractive offshoring look like?

Extractive offshoring focuses primarily on obtaining labour at the lowest available cost.

It may involve paying only the minimum the local market will accept, relying on insecure contracting arrangements, offering limited benefits and treating frequent employee turnover as a normal operating cost.

It can also mean hiring someone to complete a narrow set of tasks without investing in their longer-term development, workplace experience or career progression.

These practices may not always be unlawful. However, they can create a relationship in which most of the value flows towards the buyer or provider while the offshore team member carries much of the insecurity.

What does ethical offshoring look like?

Ethical offshoring begins with recognising offshore team members as people building meaningful careers, not simply as a source of lower-cost labour.

In practice, this can include:

• employing people through appropriate local employment arrangements
• providing compensation that supports a good standard of living in the local market
• offering relevant benefits, leave and workplace protections
• investing in professional development and career progression
• creating psychologically safe and inclusive working environments
• giving offshore team members meaningful access to their client team
• being transparent about employment practices, expectations and responsibilities

The purpose is not to remove the commercial benefits of offshoring. It is to ensure those benefits are not created by transferring unreasonable cost or insecurity to the people performing the work.

Why does B Corp certification matter?

Sharesource chose to become a Certified B Corporation because we wanted our commitments to be assessed against an external framework rather than relying only on our own claims.

B Corp certification evaluates a company against social, environmental and governance standards. These include areas such as fair work, stakeholder governance, human rights, environmental responsibility and community impact.

Certification does not mean that a company is perfect. It means the company has agreed to meet defined requirements, undergo external verification and continue improving its impact over time.

For clients assessing an offshoring provider, certification provides an additional source of evidence. It does not replace proper due diligence, but it gives buyers something more substantial to examine than a company’s marketing language.

The business case, not just the moral case

Ethical offshoring is not only about doing the right thing. It can also support stronger business outcomes.

When people experience fair treatment, stable employment, development opportunities and genuine inclusion in the client team, they may be more likely to remain with the organisation and build deeper knowledge of the client’s systems, customers and ways of working.

Greater continuity can reduce the disruption associated with repeated recruitment, onboarding and retraining. It can also help clients retain institutional knowledge and build more mature working relationships with their offshore team members.

However, ethical employment alone does not guarantee a successful offshore team.

Clients still need to provide:

• clear roles and expectations
• appropriate onboarding
• regular communication
• capable management
• access to information and systems
• opportunities to contribute and develop
• fair and constructive performance feedback

Ethical offshoring works best when responsible employment practices are supported by responsible client leadership.

Is ethical offshoring right for every business?

Not necessarily.

Offshoring may not be suitable when a role cannot be performed securely across locations, requires constant physical presence or when the organisation is not ready to manage a distributed team.

Businesses should also be realistic about what offshoring can achieve. It is not an instant solution to unclear processes, poor management or unrealistic workloads.

A provider can create the employment foundation, but the client still plays a major role in whether the team member feels included, supported and able to succeed.

The more useful question is therefore not simply, “Should we offshore?”

It is, “How can we build an offshore team that creates sustainable value for everyone involved?”

For businesses exploring a values-led team in the Philippines, Vietnam or Colombia, Sharesource can help assess what a responsible offshoring model could look like in practice.

Frequently asked questions

What makes offshoring ethical rather than extractive?

Ethical offshoring balances commercial value with fair employment and responsible working practices. It considers compensation, benefits, job security, professional development, employee wellbeing and inclusion rather than focusing only on obtaining labour at the lowest possible cost.

Is B Corp certification required to offshore ethically?

No. A company can follow responsible employment practices without being B Corp certified. However, certification provides external verification against recognised social, environmental and governance standards, making it easier for clients to assess whether a provider’s claims are supported by evidence.

Does ethical offshoring cost more?

It can cost more than a model based on minimum compensation, insecure contracting and limited employee support. However, businesses should compare the total value of each model rather than the initial employment cost alone. Employee continuity, accumulated knowledge, lower recruitment disruption and stronger team integration may create longer-term value.

Is ethical offshoring the same as outsourcing?

Not necessarily. Outsourcing commonly involves purchasing a managed service or defined business outcome from an external supplier. Offshoring refers more broadly to work being performed from another country. Under Sharesource’s model, offshore professionals work as integrated members of the client’s team while being locally employed and supported.

How can a business evaluate an ethical offshoring provider?

Ask for specific evidence about employment arrangements, compensation practices, benefits, professional development, retention, employee feedback, governance and workplace standards. Independent certifications can support this assessment, but clients should also speak with the provider and examine how its stated commitments operate in practice.

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