2. Business ethics
Ethical issues
Ethical practices – Procurement, Manufacturing, Marketing
Ethical code
Ethical issues in SCM
Supplier Ethics Management
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3. “The study and examination of moral and
social responsibility in relation to business practices and
decision making in a business”
Dictionary.com
Not limited to company alone
But involves
Suppliers
Manufacturers
Marketing and distribution
Customer care
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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
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5. Procurement Conduct
manifestation of organization culture
Selection of Suppliers
no personal bias
Supplier’s Practice
understanding supplier’s supply chain
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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
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7. Societal
- Public
- Employees
Environmental
- Animals
- Mother earth
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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.)
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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
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11. Principles governing morality and acceptable behaviour
- Personal behaviour
- Corporate behaviour
Ethical code in terms of
Relations with stakeholders
Environment and Society
International Business
Mergers and Acquisitions
Governance
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12. Ethical codes and compliance
Limitations of Ethical audits
Commercial vs. ethical agendas
Governance – large no. of suppliers
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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.
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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.
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Agricultural practices – intensive farming- heavy use of fertilizers n inorganic chemicalsMatsushita dec05-nov 06
Labor includes child labor, forced labor and labor compensation
Conduct ethical audits
Supplier Ethics Management is the management of suppliers and supply relationships with strategies, programs, and metrics that better align supplier business conduct with purchaser standards, with the goal of reducing the purchaser's overall risk of corporate integrity failure in the supply chain."Corporate integrity failure" embraces any enterprise-level scandal involving aviolation of Compliance,ethics, or corporate responsibility standards.
Supplier Ethics Management is the management of suppliers and supply relationships with strategies, programs, and metrics that better align supplier business conduct with purchaser standards, with the goal of reducing the purchaser's overall risk of corporate integrity failure in the supply chain."Corporate integrity failure" embraces any enterprise-level scandal involving aviolation of Compliance,ethics, or corporate responsibility standards.