Ethical Consideration in Supply Chain Management
As the market becomes more globalized, instances of evil practices and exploitation also surface. Hence, it becomes even more important to consider several ethical issues that come forward every day. Ethics in the supply chain are chiefly the following:
Eradicating child labor is a mandatory ethic, given that child labor is both illegal and inhuman.
Maintaining safety and hygiene is imperative in the supply chain, not only for ensuring consumer safety but also for the employees working in the supply department.
Working hours should be humane, and payment should be at par with the effort given by an employee. Creating a workplace that offers genuine job satisfaction can be ensured by keeping in mind such ethics.
Employees are the most valuable resource of any organization. Hence, should give non-discriminatory behavior and humane treatment to all members of the staff.
The organization should make strict policies against bribery and corruptive malpractices.
Awareness about the environment should be present in every educated human being, and more so for a business organization that reaps the benefits of the natural resources. It should put sustainable usage of resources and anti-pollution policies into use.
Individual company laws or national laws generally addressed the aforementioned ethical issues. However, such issues come under international regulations now.
Unethical Behavior in the Supply Chain
Forceful labor, slavery, and the trafficking of humans are some of the most unethical practices in the supply chain. Slavery is the treatment of human beings as if they are objects or properties. It is the ultimate degradation of a human and should be left in the medieval ages. When labor is given by someone in the face of threats or coercion, it is called forced labor. Human trafficking, in turn, is buying human beings by deceiving, threatening, or coercing into various forms of exploitation. If the most basic human rights are not adhered to by an organization, it makes the business unethical.
Slavery is sometimes deeply buried in the chain of supply. While it is tough to be exposed to complex marketing networks, they should regularly conduct investigations to unearth.
Ways to Ensure that the Supply Chain is Ethical
Organizations, big or small, should always keep an eye on ethical factors and codify the risk areas. One example of a company that complies with the Code of Business Conduct is Coca-Cola. The company also expects the same behavior from its suppliers as well as every individual employee. It should also maintain transparency throughout the supply chain. Companies should know every detail of their suppliers, including all their tiers. Transparency is a huge part of ethics, and companies need to know who their suppliers are. They should be able to identify such instances when ethical codes are not abided by. The modern shopper is curious to know how the product got into the shelf from the factory, and they do not shy away from asking questions. To sum up, the key idea to maintain supply chain ethics is to know the suppliers. It is hard to track overseas suppliers, but comparatively less effort than before has to be made for the same in the present world. It can be ascertained if the suppliers are compliant with regulations and have proper operations.
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