The Ethical Supply Chain– Is It Viable?

Topics: Business ethics, Supply chain management, Supply chain Pages: 12 (3276 words) Published: June 24, 2013
Final Report:

Ethics and Values in Management
Term Paper
Team: B1
The Ethical Supply Chain & global outsourcing – Is it Viable? Submitted To: Prof. Govinda Sharma

Submitted by:

Submitted by:

Table of Contents

Recommendations to resolve Ethical Issues and Dilemmas3
With Employees3
With Suppliers3
With Competitors4

Case examines that Wal-Mart, while performing the daily supply chain processes, is not ethical to its Suppliers, competitors, employee, customers & in turn stakeholders . This article presents the recommendations to help Wal-Mart make ethical decisions while dealing with different elements of supply chains. The recommendations can be briefed as below. Wal-Mart should check that its supplier factories & auditing systems implemented for them whether they are in compliance periodically with the company’s own Ethical Standards program. Wal-Mart should try to improve working conditions and wages of company’s retail employees. Workers should be allowed to exercise their basic rights. When things go wrong in business, Wal-Mart should take the responsibility for its actions and accountability for its influence over supply chain elements. Wal-Mart, should urgently address greater transparency and accountability in its every dealing with stakeholders. In addition, Wal-Mart must acknowledge that ethical standards are not just a method to improve public relations and image. Ethical standards must be incorporated into the business strategy and tackled with the same innovation and competitiveness as they bring to other areas of their operations. Wal-Mart must recognize that their purchasing polices are a part of the problem, encouraging wage and hours violations. Wal-Mart’s auditing program should be significantly modified so that auditors have the time and tools to accurately report factory ratings. Incentives need to be changed so that stakeholders correctly reflect the needs and desires of management and owners. Progress needs to be defined and the program evaluated by a consistent set of standards so that progress can be tracked.

Workers should be positively engaged into the audit process of stakeholders. Thereby increasing transparency lending credibility to the program. Workers, when informed of their rights, are the best auditors because factory conditions have a direct impact on their lives.

Recommendations to resolve Ethical Issues and Dilemmas
With Employees

a) Wal-Mart should budget money for payroll when an employee works overtime as they have the enough the money to do so. Employees have the right to healthy life. They should be motivated to work more in case there is a need instead of stopping their promotions if they fail to work overtime. Wal-Mart should follow a approach which enforces existing labor standards that hold multiple entities jointly responsible for any work performed in the business .This will help the managers get rid of the obligation to force any particular person or a group to work beyond capacities to meet the target. b) To treat the workers fairly, they should be given adequate breaks which will enhance their productivity & concentration at work. This will eventually turn out to be a “Win-Win” situation. We should bear in mind that “All work and no play makes Jack a dull boy”. c) Not paying for the healthcare facilities violates the oft-heard conservative principle that we shouldn’t have social programs, and people should work and get their necessities from a job’s income. It also violates the oft-touted free market principle, as above, by gaining an advantage that other companies do not get, by their...

References: [ 2 ]. James Howell 's Proverbs in English, Italian, French and Spanish (1659).
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