Transcript Business Ethics - Australian Graduate School of Management

Business Ethics
Ethics and Supply Chain Management
Prepared by:
Daniel Jolly
Iris Hu
Rini Ernawati
Virginia Lam
Responsibility of the dominate firm in
a supply chain
Should they be responsible for the ethical conduct of its suppliers?
• Being “big means “extra
responsibility”
• Backward Integration
• Marketing Tool
• Competition
YES!!
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.
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.
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…
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.
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.
Nike’s Policy
Why no greater leeway in Labor Policies????
“A RIGHT DOES
NOT MAKE A
WRONG RIGHT”
• 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)
Q&A