Ethics in supply chain Swatanu Mohan Satpathy Roll – 108 PGDM2010-12
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Ethics in supply chain
Swatanu Mohan SatpathyRoll – 108PGDM2010-12
April 8, 2023 2
Business ethicsEthical issuesEthical practices – Procurement, Manufacturing, Marketing
Ethical codeEthical issues in SCMSupplier Ethics Management
Flow of Presentation
April 8, 2023 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 aloneBut involves Suppliers Manufacturers Marketing and distribution Customer care
Business Ethics
April 8, 2023 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
Ethical Issues
April 8, 2023 5
Procurement Conduct manifestation of organization cultureSelection of Suppliers no personal biasSupplier’s Practice understanding supplier’s supply chain
Ethical Practices - Procurement
April 8, 2023 6
How to establish ethical procurement practices?
Purchasing code of conductIntegrate ethical purchasing to existing managementRewards and performance reviewsTop management support in establishing ethical codeBusiness environment and culture of source countryTraining to employees and staffProper communication to all levelsEthical audits – surprise visits to factories, warehouses
Ethical Practices - Procurement
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Societal - Public
- Employees
Environmental - Animals
- Mother earth
Ethical Practices - Manufacturing
April 8, 2023 8
How to establish ethical manufacturing practices?
LabourHealth and Safety - EHS* standardsAbuse and Discrimination - transparency
Freedom of AssociationEnvironmental ImpactMonitoringClear communication, no cheatingQualityConfidentiality
*EHS – Environment, Health, Safety (EPA etc.)
Ethical Practices - Manufacturing
April 8, 2023 9
Issues
Price-war against competitionMisleading advertisementsPiracyAmbush marketingCompromise safetyCompromise quality
Ethical Practices - Marketing
April 8, 2023 10
How to establish ethical marketing practices?
Sales manager – assigning roles without bias
Sales associates – accountability
Proper labels and warnings on productsClarity in informationQuality Assurance testing
Ethical Practices - Marketing
April 8, 2023 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
Ethical Code
April 8, 2023 12
Ethical codes and complianceLimitations of Ethical auditsCommercial vs. ethical agendasGovernance – large no. of suppliers
Ethical Issues in SCM
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Management of suppliersAlign supplier’s business conduct with purchaser’s
standardsReduce “ 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.
Supplier Ethics Management
April 8, 2023 14
Supplier Ethics Management
Supplier Integrity
Compliance
LawsRegulations
EthicsCorporate
Responsibility
Internal values
External values
www.corporatecompliance.org
April 8, 2023 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.
Supplier Ethics Management
April 8, 2023 16
Thank You
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