Essay on Ethics And Social Responisbility In Procurement

Ethical business practicese include assuring that the highest legal and moral standards are identified in your relationships with the people in your business community. You know the most important person in your business is your customer. You should always go for long term profit instead of short term profit. A reputation for ethical decisions creates trust in your business among business associates and suppliers. Strong supplier relationships are critical to a successful business. So customer trust is only kept , if they are treated as initially they were promised to be treated.

Supply chains manage the movement of products from the acquisition of raw materials through production and finally distribution to the end user. A properly designed supply chain can create many opportunities to drive down cost and increase revenue opportunities. In order to create a supply chain that is sustainable and flexible it is necessary to identify and align company goals and initiatives with the manufacturing and distribution of products.

Under this task I will explain the ethical issues that business needs to consider in its operating activities and how a business they could improve the ethical of their operations and also I will evaluate the influence of stakeholders exert in one company.

Procurement is a collaborative work between the supplier and the client of the products or services being supplied. This report will take some critical anlysis of article findings such as Razavi et al. (2016) argued that supply chain relationship is built on trust, communication, interdependence, and cooperation between the involved parties. The authors have used a model of Structural Equation Modelling to explain the relationship between the supplier and the customer. Amemba et al. (2013) sought to explore how public institutions and especially the government can be affected by the challenges inherent in their procurement practices. Among the challenges identified by the researchers include ICT adoption, complex procurement process, and ethics and supply relationship

Social responsibility is an important part of business today. Company Q’s current attitude towards social responsibilities seems insensitive. This company has shown that profits drive the success of their business. Company Q is closing two stores in high crime rate areas due to lost revenue. It did not seem the company explored other options that would have less impact on the community and their businesses. By exploring other options they could have improved the stores profits while making an investment in the community. Company Q made no efforts to explore other ideas. By researching different options or processes Company Q could have keep its doors open.

The primary purpose of ethics and social responsibility is imperative to the way we do business and live amongst society. Ethics most commonly know as the rights and wrongs are principles and standards that establish what is know as acceptable conduct within an organization. Organizations have moral and legal duties to implement ethics when developing a strategic plan while considering stakeholders and consumers, they do not want to be lied to or cheated into buying a false product. Unethical companies will use aggressive sales tactics and mischievous ways, of doing business to sell, promote and profit from vulnerable consumers. Unethical organizations believe in these tactics

Consumers increasingly consider the social impact of the money they spend. Some will pay more to support retailers who assert sustainable practices, for instance, by buying products made with recycled material. Others avoid companies notorious for irresponsible or unethical practices, such as outsourcing manufacturing to exploitative sweatshops in under-developed countries. More than ever, retail store owners must consider the ethical and social ramifications of their actions, as well as the actions of their suppliers (Mack, n.d.).

In a typical supply chain, raw materials are procured and items are produced at one

This will be an over view of ethics as it relates to business in our society. Concepts from Philosophy will seek to describe the correlation between actions that are classified as morally right or ethical in our dealings with each other as human beings. Clear and concise examples will be given as well as ways in which to improve upon business ethics.

However, today, the focus on stakeholder’s (apart from the shareholders, these are customers, suppliers and employees) expectations has also grown radically. Accordingly, ethical behaviours such as meeting stakeholders’ expectation objectives, environmental objectives and corporate social responsibility, which is accountability to the society and social responsibility, have resultantly become very important. Failure to comply with ethical behaviours can causes a business to damage its brand value and its reputation, which in turn could lead to reduced profits or even losses (Carroll and Buchholtz, 2014).

Logistics is one of the main functions within a company, and the supply chain is a complex and sometime fragile global endeavor dependent on a network of independent, yet interconnected, moving parts. It requires professional management. Supply chain professionals order the product, build it, move it, ship it, distribute it, and drive the coordination processes with marketing, sales, engineering, manufacturing, finance, and information technology. In short, they make any business effort seem effortless.

Corporate Social Responsibility - The Group’s approach is to make a positive difference to the people, environment and communities in which it works. As part of this policy it ensures that suppliers adhere to the Global Sourcing Principles. This helps to create the right environment for their workers, including working hours and child labour provisions, and animal welfare principles. There is a continuous process to identify ways to reduce waste and the impact on the environment.

Supply chains represent the procurement, production and distribution activities of an organisation. Within a supply chain, these activities are viewed as linked and reliant on one another to produce the final outcome. It is believed that if one component of the chain fails, the whole chain is broken and product/service delivery goals will not be achieved.

Some of these problems in the supply chain often go unnoticed as the number of links between supply network members. Supplier Ethics Management is the “management of suppliers and supply relationships with strategies, programs, and metrics that better align supplier business conduct with purchaser standards, with the goal of reducing the purchaser’s overall risk of corporate integrity failure in the supply chain.“ (www.s-ox.com)

(1) The supply chain managers should address the sustainability issues and should look at the entire supply