b1 term paper presentation

7/28/2019 B1 Term Paper Presentation

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Ethics & Values in Management

The Ethical Supply Chain & Global

Outsourcing

Is it Viable?

Submitted by: Group B1

(12083) (12108)(12120) (12112)(12095) (12104)

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Proposal

Businesses dont compete but supply chains compete

How to engage complex supply chain demands to pleasestakeholders into a cohesive & profitable business idea?

Is it viable to have an ethical supply chain & global outsourcing?

Example:

Is Wal-Mart ethical to its Suppliers, competitors, employees and

Customers?

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EthicalModel/ProcessDominant Firm

Supply chain should be responsible for the ethical conduct of itsElements

Why? The most powerful value chain member bears the greatest burden

of responsibility

With greater power comes greater responsibilities

Economic responsibilities: Supply Products and Services

Legal Responsibilities: Obey Laws

Ethical Responsibilities: Conduct business in a way that is morallyconsistent with the beliefs of society

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Ethical issues

Labor practices (child labor, discrimination, wages, unions, working

hours, health & safety)

Irresponsible marketing (marketing to children, misrepresentation)

Supporting oppressive regimes

Honesty, trust, respect & fairness in corporate relations

Bribery & corruption

Sustainable Supply Chain Management

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Ethical issues in Wal-Mart Supply Chain

Wal-Marts logistics systems

With Employees:

Payment of overtime working (Right to compensation)

No mandated breaks, lunches & availing missed breaks(Fairness)

Not adequate salary or healthcare provided (not fair to society or

competitors)

Employing minors or child labor(Right to education)

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Continued..

With Suppliers:

Harsh or stringent working conditions & treatment (consumers being

a part of accessory to slavery)

Workers may lose their job(Deprived of livelihood)

Dilemma:

Either to lose a job or work in such conditions

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Continued..

With Competitors:

Wal-Mart getting huge subsidies(Unfair)

unfair usage of undocumented workers to obtain their labor at a

much cheaper rate

Sourcing at a cheaper price from downtown stores, selling it in even

cheaper rates to people there & stopping it later when

competitors went out of business

Dilemma: (for governement)

Whether they decide on small shops or large stores for subsidies

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Observations

Unreasonable deadlines for orders and demands for ultra-low prices

Wal-Mart being a retailer (& not factory) shifts the blame of factory

monitoring and remediation issues to suppliers

Wal-Mart considers these products outside the purview of the

auditing program

Wal-Mart argues that it is too difficult to monitor and enforce their

standards because of inconsistent laws and the biases of factoryowners

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Recommendations to resolve issues &

dilemmas

With Employees:

Budget money for payroll when an employee works overtime

Enforce existing labor standards that hold multiple entities jointly

responsible for any work performed in the business

All work and no play makes Jack a dull boy".

Provide healthcare, social programs ,emergency care

Gaining a competitive advantage of being social responsible by not

employing child labor

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Continued..

With Suppliers:

Address auditing program to enable auditors to fully investigate

factories and gain a realistic depiction of operations

To publicly disclose information on suppliers qualification rating

Set goals to measure compliance & progress of suppliers with the

set policies. Extend the period of contract or provide an incentive to

motivate suppliers

With Competitors:

Wal-Mart should not need any money from cities, states, or

communities or ask for subsidies to government. It should involve in

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Continued..

To improve supply chain:

Enforce Existing Laws Making Multiple Entities Jointly Responsible for

Labor Violations

Adopt innovative laws to create greater transparency in contractingrelationships

1.Establish a presumption of employer status

2.Pass responsible contractor laws that apply across all industries

3.Require screening for subcontractor labor law violations when

corporations compete for public contracts

4.Pass hot goods laws that permit seizure of goods and stop-work

orders in a supply chain with labor standards violations:

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Continued..

Wal-Mart should adopt and follow strong codes of conduct making a

mandatory ethics compliance training

Document the Scope of Contracting-Out and Its Impact on the LaborForce and the Economy Overall

Provide a Dispute Resolution System

Reform the Pricing Process and Commit to Long-Term

Relationships with Suppliers

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Continued..

Commit to Sourcing From Union Shops and Worker Co-Ops

Worldwide

Ethical Purchasing in practicea checklist

1. Ethical purchasing strategy:

2. Map the supply chain

3. Ethical business practices

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Conclusion

Commitment to its shareholders, customers, and stakeholders

Ethical standards are not just to improve public relations and image

Ethical standards to be incorporated into the business strategy

Wal-Mart must commit itself to transparency with real, multi-

stakeholder involvement and protect freedom of association

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Does one Good Act Balance a Bad One?

Low prices are no excuse.

There is no way one right can make up for a wrong - this is a

form of rationalization.

Wal-Mart can make a difference by being ethical, but only if they try.

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