Hersheys commitments to its stakeholders through ethical behavior are outlined in the code of ethical business conduct. We present a framework for supply chain management. Ethical business practices in purchasing and supply. Despite all technological advances, global supply chains are always based on the interaction of people. And, if the ethical supply chain is defined by where companies are investing their resources, then it appears that a lot of that effort today is focused on issues related to the supply base. Previously consisting of only two people in 2007, primarks current 75 member ethical trade team is of vital importance when it comes to monitoring supplier factory standards and addressing any issues concerning. And if they dont have the systems in place to measure themselves, that responsibility falls on you. Download our ebook to learn how case management software can help you conduct more effective ethics and compliance investigations. Corporate social responsibility in supply chain management. When using the low cost strategy for supply chain management, the firm should invest aggressively to reduce production. Discuss the influences of the global competitive environment on operations management 6 one reason for global operations is to gain improvements in the supply chain. Common ethical issues in the workplace toxic culture.
Ethical aspects in purchasing and supply management. Brand image computing giant apple has recently hit the headlines owing to concerns regarding the treatment of staff working in the factories belonging to their suppliers based in far east. For companies with many suppliers and subsuppliers in many different countries it may be a challenge to get an overview of the supply chains. A company with an ethical supply chain will choose suppliers that respect the environment and their employees and reward suppliers pursuing good practice and incentivise others to do so. Ethical issues in supply chain supply chain doesnt merely involve moving of raw materials or products in a systematic flow to end in the delivery of the final product.
Ethical issues prevailing in the field of supply chain management. Make corporate social responsibility csr a priority. International journal of logistics systems and management, 17 4. With supply chain being at the core of business operations, these issues can directly affect the company in substantial ways. Cooper successful supply chain management requires crossfunctional integration and marketing must play a critical role. The world of business, some say, just was not built with social responsibility in mind. The aim of the research is to explore the intersection between social issues, corporate social responsibility csr actions and performance outcomes.
By carson powell food suppliers are having to make the tough shift from restaurants to grocery stores as covid19 keeps restaurant doors closed. The challenge is to determine how to successfully accomplish this in tegration. It involves interaction of human beings at each step giving rise to a number of issues. Supply chain management articles library scm supply chain. In spite of advances in technology, supply chain even at a global level is based on the interaction between people which gives rise to ethical issues at several stages of the process. The best and most successful organisations recognise that they will only prosper in the long term if they satisfy the aspirations of their stakeholders. The global supply chain of a mobile phone ethical consumer. Stick to supply chain and purchasing standards that meet or exceed your ethical convictions, choices that go beyond what is required by law. Supply chain managers face issues on a daily basis which require direct attention and quick response. Ethical issues in a supply chain management the unseen behind the scenes.
The importance of supply chain ethics and compliance. Conduct supply chain audits that provide a map of where your supplies come from and how they are produced. Ethical supply chains work for people and the environment in two basic ways. Getting visibility to the end of the supply chain is virtually impossible, says mr sayce. Managing supply chain uncertainty with emerging ethical. Oct 01, 2017 by investing in an ethical supply chain, businesses position themselves to engage with a driven, engaged customer base. Ethical supply chain management supply chain management.
Ethics and production ethics in production is a subset of business ethic that is meant to ensure that the production function or activities are not damaging to the consumer or the society. Major issues facing supply chain managers and how to mitigate. Operations management sustainability and supply chain. Jul 18, 2014 alongside moral issues of unscrupulous supply chains, the reputational damage to a company can be difficult to shake. And wherever people interact, a kaleidoscope of ethical issues emerges. Ten tips and principles for ethical sourcing in supplier.
International journal of operations and production management, 36 10. Ethical issues in operations management springerlink. Nigel mckay, head of procurement and supply chain at lend lease, talks about the many ethical issues that the construction industry might face. Apr 20, 2017 ensuring suppliers and their factories uphold primarks code of conduct is where the retailers ethical trade team comes in. Ethics violations in inventory management are committed by. Knowingly giving inaccurate information to clients or prospective clients concerning pricing of. To increase supply chain value this study proposed an algorithm capable of improving value creation process which can result in satisfaction of all groups of stakeholders. What are the ethical issues in supply chain management. Ethical issues in inventory management ezinearticles. It can be an issue with a supplier, an issue with the production process, or customers, the participant said. Ensuring your supply chain is sustainable and ethical raconteur. Jul 07, 2014 in spite of advances in technology, supply chain even at a global level is based on the interaction between people which gives rise to ethical issues at several stages of the process. This data is available from business information and risk management companies. May 01, 2009 focus on ethical supply chain management early.
Sustainable and ethical practices for the fast fashion industry. We are committed to engaging with suppliers that respect human rights, provide safe and inclusive workplaces, and promote a sustainable future. Here are some of the bigger issues that affect supply chain managers. By investing in an ethical supply chain, businesses position themselves to engage with a driven, engaged customer base. Ensuring suppliers and their factories uphold primarks code of conduct is where the retailers ethical trade team comes in. Mar 09, 2017 ethics in supply chain management various ethical issues in scm. But the world is changing, becoming more conscious, and business models will have to shift with it. The supply chain has become vital to organisational success that companies now compete as supply chains rather than as individual entities. Oct 22, 2017 clearly there are other reasons for implementing an ethical supply chain, many of which produce discernible benefits for a companys balance book. Kenya flower industry case study, nret natural resources and ethical trade programme, nri report no.
The code covers issues from conflicts of interest and antitrust to fair trade, sustainable supply chain management, and workplace diversity. Building an ethical supply chain has always proved challenging. Nov 14, 2018 and, if the ethical supply chain is defined by where companies are investing their resources, then it appears that a lot of that effort today is focused on issues related to the supply base. Ethics in production is a subset of business ethic that is meant to ensure that the production function or activities are not damaging to the consumer or the society. Managing supply chain uncertainty with emerging ethical issues. When we speak of ethics violations we immediately think about executive management, or some sort of wall street scandal, and rarely do we realize that it happens more frequently from the bottom half of the workforce than the glass tower. To improve this situation, companies need to map their supply chains, identifying hotspots for issues such as human rights, gender diversity and political stability, he says. One of the interviewees talked about supply chain being in the middle when a difficult situation or crisis arises. Rob handfield, executive director of the supply chain resource cooperative and professor of operations and supply chain management. Oct 03, 2016 the purpose of this paper is to empirically investigate effective management strategies for 14 sources of supply chain uncertainty, with a particular emphasis on uncertainties or strategies that involve ethical issues. Business ethics ethical issues ethical practices procurement, manufacturing, marketing ethical code ethical issues in scm supplier ethics management december 1, 2011 2 3.
Jun 18, 2012 nigel mckay, head of procurement and supply chain at lend lease, talks about the many ethical issues that the construction industry might face. Communication throughout the supply chain is improved, as all parties are aware of faulty products, are responsible for taking corrective action and can view issues in realtime. The purpose of this paper is to empirically investigate effective management strategies for 14 sources of supply chain uncertainty, with a particular emphasis on uncertainties or strategies that involve ethical issues. Issn 17427967 it is advisable to refer to the publishers version if you intend to cite from the work. Multicase study data are collected from 12 companies in. Partly thats because that stuff is hard to control. The supply chain network, in terms of responsibility and risk, is in the middle. Amazon supply chain standards manual amazon is guided by four principles. I worry about supply risks in general, whether its from natural disasters or things like a troubled supplier or a variety of issues with the whole supply chain risk piece, one participant said.
Ethical issues in supply chain management commerce essay. Map your supply chain environmental supply chain management starts by mapping the supply chain and assessing the environmental impact of products and services with a life cycle approach. This is a report that discuses the ethical issues in the supply chain management of kyerico company and its implications of such issues on the society as a whole. Alongside moral issues of unscrupulous supply chains, the reputational damage to a company can be difficult to shake. The ethical issues raised in its supply chain business essay. The challenge is to determine how to successfully accomplish this integration. Therefore the ethical conduct of the supply chains has also begun to be scrutinised, both from an internal business performance perspective. The paper argues that buyer firms must take the lead in this effort, since the endproducts are associated with their names. An interesting application of ethical scm comes from kat, the association for controlled alternative animal husbandry, the. The fashion industry is viewed by many as problematic in terms of sustainable and ethical sourcing. When considering a joint venture jv, the potential foreign and domestic partners should emphasize the importance of establishing an ethical supply chain management process early in the contractual negotiation stagewhen trust is being built between the two companies. Case study on primark sustainability, ethics, supply chain. Like other ethics there is a certain code of conduct or standards to be followed, however ensuring that the ethics are complied with is often difficult.
Given the potential impact of social media on a companys value, that makes sense. An efficient supply chain is responsive to changing priorities by keeping costs in line, schedules on time and, more importantly, giving companies the room to scale for growth. Marks and spencer plc is an international seller with 718 locations across the world. Top tips for business on ensuring ethical supply chains. The negative effects of shifting food supply chains. Many of the executives expressed broad concerns regarding supply chain risks. The social dimension of sustainable development and its impact on supply chains have so far received less attention than the environmental dimension. There is an interesting tradeoff between the desirability of a high standard of ethical behaviour, both in principle and in operation, and the necessity for costcutting and aggressive competition. Ethics in supply chain management various ethical issues in scm. Ethical business practices in purchasing and supply management. Introduction to operations and supply chain management. In response to these threats, nike took several steps to improve conditions in the factories. This includes checking for company directors who are politically exposed persons posing a higher risk for involvement in bribery or corruption, any company sanctions etc. One of the issues covered by ethical scm are animal rights, which are not covered by social supply chain management, a closely related area.
Simangunsong, eliot and hendry, linda caroline and stevenson, mark 2016 managing supply chain uncertainty with emerging ethical issues. Ethical issues in supply chain management consultivo. Feb 08, 2016 its hard to hold other members of your supply chain accountable if they dont know how theyre doing. Clearly there are other reasons for implementing an ethical supply chain, many of which produce discernible benefits for a companys balance book. Ethical supply chain management is among the most neglected areas of our field.
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