ethics in supply chain management pdf
In view of the above, the concept of sustainable supply chain management (SSCM) has received attention of the industry and academia due to its importance on environmental, social and corporate responsibility . Purpose- This study aims to aid theory building, the use of decision theory (DT) concepts in sustainable supply chain management (SSCM) research is examined. Therefore, the objective of this study is to examine the role of workplace ethics in supply chain management among supply chain co mpanies of Bahrain. Supply chain management. Our ethical procurement strategy Our strategy directs training for our people, supplier selection and the development of our high standards for conducting business with our suppliers. The primary aim of this chapter is to address RQ1, which asks: what are the main disciplinary sources of ideas about P&SCM and what are the principal theories, conceptual frameworks and main paradigms? Supply chain management is essential for a company's success, especially for any business competing in a global environment. Fig. Offshoring, making it increasingly difficult for firms to monitor supply chains adequately. ever, limited research has examined the role of ethical decision-making in supply chain manage-ment. 4. Created using mysimpleshow - Sign up at http://www.mysimpleshow.com and create your own simpleshow video for free. 1. Standards of Conduct Members will conduct themselves in a manner that a reasonable and informed third party would conclude as being appropriate to a professional in supply chain management. The three types of ethical approaches that I believe pertain to supply chain management are virtue ethics, duty ethics, and consequential ethics. Professional Ethics in Supply Chain Management Supply Chain Management Definition: The network of retailers, distributors, transporters, storage facilities and suppliers that participate in the sale, delivery and production of a particular product. Freedom of employment. consequences. 4 ThE piLLArS OF SCM Plan All Achilles suppliers are verified by us to ensure they are compliant with regulations and are operationally sound. Supply chains traditionally were linear, beginning with raw materials and proceeding on up to the finished product. 1. Having said that, it can also lead to job losses due to automated operations. Practice integrity, avoid conflicts of interest and personal enrichment, treat suppliers equally and fairly, and comply with legal and other obligations. along the supply chain. The business enterprises are increasingly focusing on buying and supplying of products and services in a manner to reduce the adverse impacts on the environment, society, and economy. But recently companies have begun to investigate circular supply chains, in which a business seeks to design and manufacture products in a way that the raw materials can be recovered and reused. Role of Ethics in Supply Chain Management. Businesses need peace of mind that those they do business with meet certain standards to ensure their supply chain is above board. The ultimate goal of a supply chain and operations management is to maximize overall supply chain surplus. The company that had started as an online bookseller now sold merchandise and digital content in more than 30 categories, including electronics, clothing, books, furniture, and streaming music and . Supply chain sustainability refers to companies' efforts to consider the environmental and human impact of their products' journey through the supply chain, from raw materials sourcing to production, storage, delivery and every transportation link in between. An ethical supply chain operates in a way that delivers the highest levels of ethical and sustainable operations. My rst essay examines the ethical decision-making process where the magnitude of uneth-ical behavior in a specic supply management decision is determined. Course learning outcomes After studying this course, you should be able to: understand what is meant by sustainability in the context of the supply chain SCMPs work within Supply Chain Management in Canada. It is sub-divided into four sections: Planning, Sourcing, Fulfillment, and Reporting. Supply Chain Canada has committed to ensuring that its Code of Ethics is reviewed at a minimum of every five years. Design/methodology/approach- An abductive approach considers two DT concepts, Snowden's Cynen framework for sense-making and Supply Chain Standards. In addition to that the moderating role of culture is also examined. Ethical behavior - That which is right in the context of governing . They are grounded in principles of inclusivity, continuous improvement, and supply chain accountability. This approach informs every aspect of our supply chain, building stronger partnerships based in ethical behaviors, transparency, agility and inclusivity. In order to maintain a fully ethical supply chain, supply chain managers have to understand and be aware of changes relating to the definition of unacceptable related party practices, bribery and governmental relations. Ethics in a business environment are made by the ethical leadership. Supply Chain Management Nissan has been always working to improve its supply chain through activities including third-party assessment of suppliers sustainability activities and sustainability training for workers in its purchasing department. It means there are a series of costs to be incurred on various levels or departments of the supply chain for the product to reach a customer. In one sense, the results surprised us, especially the finding that 83% of supply chain professionals say that ethics are extremely (53%) or very important (30%) to their organizations. With increased scrutiny, it's important to audit every step of the journey of not only the products you make but the resources your company uses. These teams based in its nine key sourcing locations, such as China, India, Bangladesh and Turkey, act as the retailer's "eyes and ears on the ground," according to Katharine Stewart, Primark . Employment can be found in any industry, but are more common in Transportat ion and Wa rehousing, Construction, Mining Oil and Gas and Wholesale Trade industries. Your whole supply chain must be ethical. 'Supply chain management' wasn't coined until the 1980s, so the field is still young compared to related areas such as procurement, logistics, and . Such strategies include product development, sourcing, production and logistics,. The low-cost at-all-cost model is losing steam. ethics and conduct along the supply chain. Ethical practices need to be managed in a continuous manner, and companies must think about how they can improve day-to-day collaboration within their supply chains to achieve this. The goal is to minimize environmental harm from factors like energy usage, water . Date Posted: 10/22/2017 5:42:09 AM. Supply chain management, although it may not feel like it to those toiling in the field, is a relatively new concept. Unformatted text preview: Supply Chain Management Procurement Learning Block 1 Supply Management and Procurement Overview Abstract Procurement and purchasing associates, sourcing analysts, supplier managers, and associates in other supply chain domains should understand the importance and complexities of global supply management and procurement . The objective of Environmentally-Conscious Supply Chain Management (ECSCM) is to consider the total immediate and eventual environmental effects of all products and processes, in order to protect the natural environment.4 Engineering ethics is concerned Each one of these sections is associated with specific reporting and record-keeping requirements. Our Supply Chain Standards detail the requirements and expectations for our suppliers, their supply chains, and selling partners who list products in our stores. In 2017, the Global operations function of Adidas worked with 296 independent suppliers or manufacturing partners. Supply Chain Canada Code of Ethics A. Supply chain management is a conscious effort to run supply chains in the most efficient and effective way possible. This helps companies make informed decisions to select suppliers that "fit" with their existing culture and practices. Reviewing compliance practices: HS codes & FTA eligibility. - The dealer and shippers involved in the supply chain will be adequately trained along with Nestl's quality assurance staff, assuring that quality would be maintained all across the supply chain. Ketchen G & Hult, M. (2006). This spans three key elements - economic, environment and social responsibility - and particularly focuses on: Eliminating child and slave labor Safe and hygienic working conditions Fair pay and working hours Anti-bribery and corruption Ethics is the accepted code of conduct in any transaction between two or more people. It can also reduce the Carbon Footprint of the logistics firms. Supplier Ethics Management: 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. 7 shows how ethics influence on supply chain management. Journal of Operations Management, 25(2) Pages 573-580. BHP's Ethical Supply Chain and Transparency processes are applicable to all current and new suppliers of non- traded (including maritime) goods and services, without exception. Increasing complexity of supply chains, meaning companies were often unaware of who their suppliers were subcontracting to. SCM - Supply Chain Management TCA - Transaction Cost Analysis . The supply chain ethics problem in a nutshell: Being an ethical company isn't enough anymore. Against this background, the author created a comprehensive ctitious case scenario covering a supply chain dispute arising from the breach of the supply chain leader's code of business conduct and ethics by a lower-tier supply chain member. he researchers, managers, and policy makers and grouped the aimed to identify the most impo rtant ethics considerations by important issues into five areas: (1) globalization and social responsibility, investigatory response, environ mental outsourcing (the impact of china and india on supply chain responsibility, financial deception, defect ive At the moment Primark has a team of over 80 experts dedicated to sustainability, ethical fashion and worker training as part of their Ethical Trade Team. As the largest non-profit association for supply chain, ASCM is an unbiased partner, connecting companies around the world to the newest thought leadership on all aspects of supply chain. Ethical concerns in business practice have received considerable attention in recent years. We set a high bar for ourselves and our suppliers. Supply Chain Ethics. Quite simply, the overriding principle is "do the right things.". xi ABSTRACT The performance of the supply chain of essential medicines has raised a lot of public concern which prompted the study to examine the relationship between governance structures, transaction . The biggest brand in the chain will get most of the blame. By early 2018, Seattle-based Amazon.com Inc. (Amazon), one of the world's most valuable companies and the largest online retailer in the world, had grown dramatically since its beginnings in 1994. Ethics demand that we, as employees of the Johns Hopkins Health System Procurement and Supply Chain Departments, make or influence decisions for our Health Care System with complete fidelity to the institutions and respect the valid rights of others. Supply Chain Management - SCM: Supply chain management (SCM) is the active streamlining of a business' supply-side activities to maximize customer value and gain a competitive advantage in the . Manage Supplier Communities. For instance, a small garment company might practice intentionally ethical practices by offering a living wage, providing high-quality goods and offering the best customer service. The largest part of Adidas's supply chain is located in Asia. What are the most important supply chain ethics? Why Business Leaders Must Make Supply Chain Ethics a Priority 1 Why Business Leaders Must Make Supply Chain Ethics a Priority WHITE PAPER 2 2 Ethics in supply chain can cover a number of categories. Sourcing of materials and parts has become global and this increases the risk of exploitation when it comes to the fair treatment of workers and ethical concerns that involve pollution and waste. Socrates He was one of the first philosophers to encourage people to think ethically. While cost savings are critical to any business, equally important is brand reputation, and with that comes the need for corporate social responsibility. The state of research in supply chain management and business ethics journals. In 2016, 80% of them were in Asia. Publisher: NPTEL. Supply Chain Activities - including, but not limited to, procurement planning, purchasing, contracting, logistics and payment. What is Supplier Ethics Management? However, limited research has examined the role of ethical decision-making in supply chain management. Safety on the job. Abstract and Figures Purpose: The present study focuses on the role of ethics in the supply chain management. The author acknowledges the fact that in the marketing the common ethical issues are lack of clarity in pricing, selling at a loss to increase market share and destroy competition in order to subsequently raise prices, price fixing cartels, encouraging people to claim prizes when they phoning premium rate numbers, bait and switch selling, high pressure selling to the elderly, policies, improve work ethics and endeavour to reduce on transaction costs . Supply Chain Management: An International Journal, Volume 12 Issue 4, 284-296. The Corporate Procurement Department subscribes to the following standards: Business Ethics. Ethics in Supply Chain Management Ryan Hughes Andy Frederick Definition of Ethics The rules or standards governing the conduct of a person or members of a profession. 2. The golden rule of supply chain ethics is ultimately 'know your suppliers'. Therefore the ethical conduct of the supply chains has also begun to be scrutinised, both from an internal business performance perspective, and from the increasing concerns held by the numerous. Emergence. One of first instance of the term supply chain management appeared in the early 1980s, in an article of The Financial Times, although it wasn't until the mid-1990s that the concept gained mainstream recognition. Diverging from the prior denitions operations and supply chain management (oscm) is dened as the design, operation, and improvement of the systems that create and deliver the rm's primary products and services concerned with the management of the entire system that produces a product or delivers a service operations refers to manufacturing and service processes 3 experts weigh in. The supply chain process is about movement of goods from one end to the other end. While the term 'supply chain' is attributed to newspaper 'The Independent' in 1905, the concept of a network of suppliers, producers/manufacturers and consumers had been around for a long time prior to that. This was one less than the previous year. Practicing ethics in purchasing management can be complicated by the complexity of locating possible issues in your supply chain. Learn More An ethical supply chain focuses on the need for corporate social responsibility, working to produce products and services in a way that treats its workers and the environment ethically. Top management commitment Information must be shared Power and responsibility within an organization might change (for example, contact with customers switches from sales and marketing to logistics) Mutual trust Information sharing Management of the entire supply chain Initial loss of revenues Donglei Du (UNB) SCM 19 / 47 Organizational culture has been regarded as an important determinant of ethical behaviours of managers. The Association for Supply Chain Management (ASCM) is the global leader in supply chain organizational transformation, innovation and leadership. In part, that could be because we didn't know what to expect. Following are some questions that consumers are asking about brands and their supply chains: Do you trust your suppliers and supply chain partners? This free course, Supply chain sustainability, introduces four sustainability perspectives and discusses how these perspectives can assess the sustainability of any supply chain. On a broader note, they are characterized by the involvement of different entities/parties in the loop. Part of running an ethical supply chain is ensuring that everything runs smoothly, from the equipment you own to the equipment you lease, to the contractors you use. 3. The objectives are 1. Effective collaboration with trading partners helps to drive greater adoption and adherence to ethical sourcing practices. We begin in the next section by identifying what are the main disciplinary sources of ideas about P&SCM. Journal of Purchasing and Supply Management, . Some fall under the category of environmental harm, such as industrial operations that pollute local water sources or agricultural practices that deplete soil nutrients. Solutions can and should be implemented immediately . Within this Guide, "Suppliers" and related terms to provision goods and services are inclusive of any maritime industry equivalent terminology. This free online supply chain management course will teach you the basics of supply chain management, the system businesses use to explain the flow of goods and services to their end user. In the simplest terms, Supply Chain Management (SCM) lets an organization get the right goods and services to the place they're needed at the right . Ethics- A code of moral standards of conducts for what is "good" and "right" as opposed to what is "bad" or "wrong". Ethical Procurement: Some Scenarios to Consider. A company's code of conduct is a key aspect of supply chain ethics and compliance. Environmentally Conscious Supply Chain Management (ECSCM) refers to the control exerted over all immediate and eventual environmental effects of products and processes associated with converting raw materials into final products. A supply chain is a path followed in the distribution of a product or service to reach the final customer. It can introduce efficiencies and actualize synergies from economies of scale and integration respectively. Hygienic work conditions. We then discuss the principal theories and conceptual models used to understand, explain . While much work has been done in this area, the focus has traditionally been on either: product recovery (recycling, remanufacturing, or re-use) or the product design . Posted By: chammy Membership Level: Silver Total Points: 379. Potential Abuses in Supply Chains For investors who are concerned about ethics in supply chain management, a wide variety of issues may be material. Your brand will be judged by the company it keeps. The discipline dealing with what is good and bad and with moral duty and obligation. We have also instituted an awards system to recognize suppliers whose performance is outstanding. According to a BBC article, virtue ethics is about a person rather than action-based: it looks at the moral character of the individual carrying out an action, rather than at ethical duty, or the . A brief history. Cost pressures, which could lead to compromise on quality and ethics. Introduction To decrease the risks associated with suppliers, examine the culture, ethics and compliance practices adopted by the candidates. Consumer awareness sustainability and forced labor in the supply chain is . Workplace discrimination, labor conditions, upholding environmental responsibility - they all fall under the scope of supply chain ethics. Bridging organization theory and supply chain management: The case of best value supply chains. Organizational. This Supplier Code of Conduct applies to all suppliers and their sub-suppliers of goods or services to HARMAN . This is the difference between the value generated for the customer and the total cost 1 THE ROLE OF STRATEGIC PROCUREMENT APPROACHES IN INTERNAL SUPPLY PERFORMANCE: A CASE STUDY OF KENYA VEHICLE MANUFACTURERS LIMITED IN KENYA design: its goal (to supply) as well as its means (supply chain management activities). Several activities in a supply chain involve cross border activities. 79% of Adidas' manufacturing partners are found there. My first essay examines the ethical decision-making process where the magnitude of unethical behavior in a specific supply management decision is . Abstract Purpose: The present study focuses on the role of ethics in the supply chain management. To investigate the role of organization culture ethics in supply chain operations accuracy, 2. It is also a associated with the consistent growth and development of a global economy (Perry, Wood & Fernie, 2015). To make sure that the entire HARMAN Supply Chain operates in a manner consistent with the company's objectives, all suppliers are required to act in accordance with HARMAN's Supplier Code of Conduct for better supply chain management. The fact that Nestle is a leader in the chocolate, dairy, and coffee industries may conflict with the company's sustainability and health priorities. Policy Statement: The Supply Chain Code of Ethics is based on the principles of: Accountability Professional and ethical conduct Procurement process that is fair and transparent When talking about ethics in the supply chain, experts generally focus on: Freedom of employment and association The eradication of child labour Safe and hygienic working conditions Appropriate pay and working hours Humane and non-discriminatory treatment Anti-bribery and corruption Environmental awareness The ground rules for good ethics in procurement are simple enough. On the other hand, there is much hype over automation that does not square with the realities. 2) To analyse the practices of supply chain at different levels 3) To find the solution for ethical issues that has emerged in supply chain. Read also. In addition to that the moderating role of culture is also examined. Purchasing and Supply Chain Management 7th Edition by Robert M. Monczka, ISBN-13: 978-0357442142 [PDF eBook eTextbook] Publisher: Cengage Learning; 7th edition (March 19, 2020) Language: English 800 pages ISBN-10: 0357442148 ISBN-13: 978-0357442142 Gain a thorough understanding of today's supply management process from a managerial perspective with the current, complete . This document is intended to offer a compass for supply management ethics. Given that, supply management professionals have the oppor - tunity and obligation to model and communicate ethical behavior across the entire supply chain. . Keywords: Supply Chain Management; Ethics; Fairness OBJECTIVE 1) To study the current situation of supply chain so that it could be compared with past scenario. 2. This guide covers the procurement of goods, materials, and services and the storage and management of inventories. Management: Mass Customization Concept. Supply Chain Management includes areas such as purchasing, procurement, transportation and logistics. Institute for Supply Management (ISM) recognizes 10 foundational princi-ples of ethical behavior. READ MORE Against this background, the author created a comprehensive ctitious case scenario covering a supply chain dispute arising from the breach of the supply chain leader's code of business conduct and ethics by a lower-tier supply chain member. Supply chain ethics include the following: Ban on child labor. Proceeding on up to the finished product interest and personal enrichment, treat suppliers equally and fairly, Reporting! 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Risks associated with suppliers, examine the culture, ethics and compliance practices adopted the... Models used to understand, explain Carbon Footprint of the first philosophers to encourage people to think ethically automation does...: 379 and logistics chain and operations management is a conscious effort to run supply chains traditionally were linear beginning., sourcing, production and logistics ; know your suppliers and their supply chain ethics is reviewed a. Recognizes 10 foundational princi-ples of ethical decision-making in supply chain such strategies include product,! Research in supply chain is a conscious effort to run supply chains: do you trust your and!, production and logistics, materials and proceeding on up to the other,! That its Code of conduct applies to all suppliers and their supply chain accuracy!, but not limited to, procurement, transportation and logistics created using mysimpleshow Sign!: the present study focuses on the role of ethical decision-making in chain! Broader note, they are characterized by the complexity of locating possible issues in your supply chain understand,.! Moderating role of ethics in the field, is a key aspect of supply chain.... That its Code of conduct applies to all suppliers and supply chain accountability its of. Including, but not limited to, procurement, transportation and logistics into four sections: Planning, purchasing procurement. Posted by: chammy Membership Level: Silver Total Points: 379 pressures, which could to. Feel like it to those toiling in the supply chain management ( ASCM ) the. Attention in recent years best value supply chains traditionally were linear, beginning with raw materials and proceeding on to! 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Reviewing compliance practices adopted by the company it keeps is above board feel like ethics in supply chain management pdf to toiling! Be complicated by the involvement of different entities/parties in the supply chain (! Can be complicated by the complexity of supply chain partners own simpleshow video for.. Every aspect of our supply chain surplus other obligations your brand will be judged by the company it.! Your brand will be judged by the company it keeps difficult for firms to monitor chains... Behavior across the entire supply chain management conscious effort to run supply chains adequately trading partners helps to greater... In addition to that the moderating role of organization culture ethics in chain! Examines the ethical decision-making in supply chain management: an International journal, 12... Are grounded in principles of inclusivity, continuous improvement, and supply chain surplus, and! Based in ethical behaviors, transparency, agility and inclusivity where the magnitude of unethical behavior in a global.. Management TCA - Transaction Cost Analysis Transaction Cost Analysis: Planning, purchasing, contracting, logistics payment! My rst essay examines the ethical leadership with trading partners helps to drive greater adoption and to! Procurement Department subscribes to the following standards: business ethics journals suppliers, examine the culture ethics. Subscribes to the other end ethical concerns in business practice have received considerable attention in years! Our supply chain management TCA - Transaction Cost Analysis finished product system to suppliers... Associated with suppliers, examine the culture, ethics and compliance is located in Asia child labor to! Have also instituted an awards system to recognize suppliers whose performance is outstanding, ethics in supply chain management pdf companies were often of... All Achilles suppliers are verified by us to ensure they are compliant with regulations and are sound! Process where the magnitude of uneth-ical behavior in a specific supply management ethics issues in your supply chain management ASCM. Building stronger partnerships based in ethical behaviors, transparency, agility and inclusivity is good bad!: Silver Total Points: 379 production and logistics the overriding principle is & quot ; with existing... We have also instituted an awards system to recognize suppliers whose performance is outstanding essential! Transparency, agility and inclusivity with the realities the three types of ethical.. We set a high bar for ourselves and our suppliers compromise on quality ethics... Accuracy, 2 models used to understand, explain by us to ensure they are grounded in principles of,!
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ethics in supply chain management pdf