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Ethics in SCM

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Publicado en: Empresariales, Tecnología
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Ethics in SCM

  1. 1. Swatanu Mohan SatpathyRoll – 108PGDM2010-12
  2. 2.  Business ethics Ethical issues Ethical practices – Procurement, Manufacturing, Marketing Ethical code Ethical issues in SCM Supplier Ethics Management December 1, 2011 2
  3. 3. “The study and examination of moral andsocial responsibility in relation to business practices anddecision making in a business” Dictionary.comNot limited to company aloneBut involves Suppliers Manufacturers Marketing and distribution Customer care December 1, 2011 3
  4. 4.  Truthfulness in marketing – Advertisements Use of animals in product testing – Cosmetics Research Agricultural practices – Intensive Farming Honesty in information providing – Enron Degree of safety – Nokia BL 5C battery Donations – CSR Labour issues – Child labour December 1, 2011 4
  5. 5.  Procurement Conduct manifestation of organization culture Selection of Suppliers no personal bias Supplier’s Practice understanding supplier’s supply chain December 1, 2011 5
  6. 6. How to establish ethical procurement practices? Purchasing code of conduct Integrate ethical purchasing to existing management Rewards and performance reviews Top management support in establishing ethical code Business environment and culture of source country Training to employees and staff Proper communication to all levels Ethical audits – surprise visits to factories, warehouses December 1, 2011 6
  7. 7.  Societal - Public - Employees Environmental - Animals - Mother earth December 1, 2011 7
  8. 8. How to establish ethical manufacturing practices? Labour Health and Safety - EHS* standards Abuse and Discrimination - transparency Freedom of Association Environmental Impact Monitoring Clear communication, no cheating Quality Confidentiality*EHS – Environment, Health, Safety (EPA etc.) December 1, 2011 8
  9. 9. Issues Price-war against competition Misleading advertisements Piracy Ambush marketing Compromise safety Compromise quality December 1, 2011 9
  10. 10. How to establish ethical marketing practices? Sales manager – assigning roles without bias Sales associates – accountability Proper labels and warnings on products Clarity in information Quality Assurance testing December 1, 2011 10
  11. 11. Principles governing morality and acceptable behaviour- Personal behaviour- Corporate behaviourEthical code in terms of Relations with stakeholders Environment and Society International Business Mergers and Acquisitions Governance December 1, 2011 11
  12. 12.  Ethical codes and compliance Limitations of Ethical audits Commercial vs. ethical agendas Governance – large no. of suppliers December 1, 2011 12
  13. 13.  Management of suppliers Align supplier’s business conduct with purchaser’s standards Reduce “ corporate integrity failure ” Scandal arising because of supplier’s fault is tough to handle as you are not at fault but have to face the music. December 1, 2011 13
  14. 14. Supplier Integrity CorporateCompliance Ethics Responsibility Laws Internal ExternalRegulations values values www.corporatecompliance.org December 1, 2011 14
  15. 15. Ethics & compliance officers advice to Procurement Make ethics & compliance a factor in supplier selection. Target and segment suppliers by importance and ethics risk. Create and maintain compliance profiles of targeted suppliers. Assign E&C personnel to major supply-relationships. Conduct regular assessments of supplier ethics. December 1, 2011 15
  16. 16. December 1, 2011 16

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