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Business Ethics

Business Ethics. Ethics and Supply Chain Management. Prepared by: Daniel Jolly Iris Hu Rini Ernawati Virginia Lam. Being “big means “extra responsibility” Backward Integration Marketing Tool Competition. YES!!. Responsibility of the dominate firm in a supply chain.

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Business Ethics

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  1. Business Ethics Ethics and Supply Chain Management Prepared by: Daniel Jolly Iris Hu Rini Ernawati Virginia Lam

  2. Being “big means “extra responsibility” • Backward Integration • Marketing Tool • Competition YES!! Responsibility of the dominate firm in a supply chain Should they be responsible for the ethical conduct of its suppliers?

  3. General Motor’s Policy on gift, entertainment & gratuity Is this policy sufficient to ensure ethical conduct when managing with suppliers? Role Play 1 • Covered by Policy! • No GM employee can accept gift, entertainment or other gratuity from any supplier or bidder • It applies to all employees regardless if they are involved in purchasing activities.

  4. General Motor’s Policy on gift, entertainment & gratuity Is this policy sufficient to ensure ethical conduct when managing with suppliers? Role Play 2 • Covered by Policy! • Gray areas include inexpensive mementoes (logo pens, cups, caps or items with nominal value) maybe accepted. • Questionable situation should be discussed with supervisors • If there is a reason to accept gifts of real value, they should be reported to management and returned to GM.

  5. General Motor’s Policy on gift, entertainment & gratuity Is this policy sufficient to ensure ethical conduct when managing with suppliers? Role Play 3 • Many gray areas not covered by Policy! • Personal relationship????? • I’m sure you can think of many of ideas…

  6. Nike’s Policy What is Nike Doing Right ???? • Environmental Policies ! • Establishment of NEAT and MESH to answer the problems the sports industry poses to the environment. • Consistent environmental responsibility across global market • Other companies have followed Nike’s lead.

  7. Nike’s Policy What is Nike Doing Wrong? • Sweatshop Labour ! • Criticized for contracting with factories that use sweatshop labour in countries such as China, Vietnam, Indonesia and Mexico. • As late as 1996 Nike has violated minimum wage and overtime laws in Vietnam. • Criticised for use of child labour in Cambodia and Pakistan. • Accused of poor working conditions, exploitation of cheap overseas labour and forced labour camp like work conditions.

  8. Nike’s Policy “A RIGHT DOES NOT MAKE A WRONG RIGHT” Why no greater leeway in Labor Policies???? • Environment, employees, contractors, suppliers are stakeholders • Nike has an ethical and moral responsibility to all stakeholders • Doing right for one side does not allow Nike the right to do wrong to another side (not a mutually exclusive tradeoff). • Nike ethical reputation is built on the consistency of its policies (not just the environment at the detriment of labor policies)

  9. Q&A

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