Social Responsibility in Supply Management
PROC 5000 - OA S1 2011 Procurement and Acquisitions
Professor Claude Wiedower
Table of Contents Abstract…………………………………………………………………………….1 Technology and ethical behavior...............................................................................1 Overcoming the perception of unethical behavior ...................................................2 Establishing an environment that foster ethical behavior..........................................4 Establishing an ethics policy......................................................................................5 Establishing an ethics training
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When trust is damaged employee performance declines, employee loyalty declines, employee theft rises and the relationship a company had with its clients ultimately fails.
Overcoming the Perception of Unethical Behavior Ethics in supply management is very important not only for the organization but in terms of labor, the customer, the environment, buyers, and suppliers.
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For the supply managers, the internal and well as external environment can be highly competitive and the desire to succeed is often accompanied with many pressures. Considering this, it is imperative that supply managers as well as upper management have a clear and concise understanding of all ethical as well as professional standards required. Integrity, in the decision making process, is critical and even the appearance of an impropriety can be damaging to management as well as the organization. As stated in our text, “The results of a perceived impropriety may become, over time, more disruptive or damaging than an actual transgression. It is essential that any activity or involvement between the supply management professional or potential supplier be strictly avoided.” (Burt, Petcavage, Pinkerton, 2010). For example, in a case involving several supply managers, two officials met unknowingly with a representative of a firm that submitted the proposal. Although, there were no discussions relating to the proposal while meeting, the mere suggestion of an impropriety was a
The author Robert Solomon argues that ethics has to an integral part with regard to business management. He does not believe that business management must include unethical or illegal methods to be able to succeed. Solomon preaches that business management is not as simple as obtaining revenue. “Businesses need to abide by fair policies and their owners have to be ethical in dealing with their customers” (Shaw p. 37). The author acknowledges that while illegal practices in business management could bring positive results at first, eventually the business is bound to fail. This is why Solomon recommended eight important policies that can help businesses in integrating ethics into their operations.
Explanation: The $10 test was at first resented by workers. They didn 't like being checked up on. As time passed, workers adjusted to the standards of the test and began to
We will begin this paper discussing whether or not Company Q’s actions have been socially responsible. In the scenario Company Q has chosen to throw out day old food instead of allowing it to be donated. The reason for their decision was to deter theft from the employees who may take the food instead of actually donating it. This in my opinion is socially irresponsible of Company Q. Company Q’s store has indeed faced some challenges, seeing as it is in a high crime area. More often than not high crime areas are also low income areas, a combination that surely both directly and indirectly effects the profits of the store. Profits are important as any business needs to be profitable obviously, but it should never be at the expense of people. People are one of the most vital parts of any business as you need them as consumers, and of course aid in running the business as employees.
Company Q is a small local grocery store chain who has made poor decisions when it comes to social responsibility. Company Q’s business is suffering because the owners’ do not know the heart of running a business, Social responsibility. When opening a business it is not all about the money. Sure it is nice to think about growth and reaping the benefits of a bigger bank account, but the first thing that is important in business is the consumers. Who is buying what you are selling? What will make consumers buy more, comeback, or tell friends? Businesses flourish around consumers. So if it is money you are after, then consumers are who you need and want. So in business in order for Company Q to get what they want and need, they will need to give the consumer what they want and need, social responsibility. Give back, it has always been said “It is better to give than to receive.” After careful review of Company Q's business actions, this company lacks social responsibility in many areas.
Company Q’s attitude toward social responsibility reflects a negative reputation on them as a corporation in their current community. The geographical location in a major metropolitan area should sustain the business with a solid consumer base and maintain reliance of current investors. However, they closed two stores in high crime areas for consistently losing profits, waning investor trust and damaging employee faith. The decision to close the stores limits their ability to be socially responsible to its stakeholders and potentially contributes to the areas crime level.
Companies today are heavily influenced by the demands of customers and stakeholders. Corporate social responsibility (CSR) refers to the social and environmental responsibility policies and practices developed by an organization to increase its positive influence and reduce its negative activity towards society (Parks, 2008). The business approach and corporate philosophy of an organization is easily altered due to economic pressures, technological improvement and stakeholder needs and demands. "Going green" or being eco-friendly is one such demand. Environmental and sustainability concerns originate most often from governments, consumer activists, and the general public (Schlosser, 2008). Thus, organizations must implement sustainability into daily practices. In addition, sustainability alters the nature of competition and drives companies to think differently about products, processes, and technologies (Parks, 2008).
Every year in the United States there are many business’s that shut down due to unethical practice. There are many people who run a small business or even a multimillion business that don’t know exactly what ethics are. Ethics are rules which I will go into detail later. There are many reasons why we should follow those rules, how it effects the reputation of the company, what are the outcomes of ethical actions, and what are the outcomes of unethical actions.
Corporate social responsibility incorporates environmental, social, and economic dimensions that provide leadership and differentiation opportunities for perceptive organizations. However,
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)
Is the deception of consumers worth making a profit? The Ford Pinto, popular car of the 1970s, made a profit off of a vehicle that endangered the lives of hundreds of people. In his essay “Pinto Madness” Mark Dowie, author and Pulitzer Prize nominee, exposed the unethical decisions made by Ford Motor Company. When it came to their customer’s safety and profit for the company, Ford made a decision that led to consequences their customers had to pay the price for. Should the business be held accountable for these actions? In his essay “The Social Responsibility of Business Is to Increase Its Profit” Milton Friedman, powerful economist, discusses what a business should prioritize in the economic system. Friedman declares what a business is responsible for and the guidelines they must follow. Due to Friedman’s view, he would not have condoned the actions and decisions that the executives at Ford Motor Company took.
The supplier code of ethics provides a minimum set of ethical and environmental standards that suppliers must meet. This will only not benefit the government on its ethical procurement objectives but will also benefit the supplier. With a supplier code of ethics fair cost comparisons are ensured. The suppliers must meet minimum local or internationally accepted standards for wages, overtime, labour rights and legal compliance so that any cost advantages between competing suppliers are not at the workers’ expense. Suppliers who offer products or services with sustainability benefits at a commercially competitive cost will be recognized during the supplier selection process for competitive bids. The preference for green and ethical products helps promote innovation for sustainable products and helps encourage a market for green and ethical purchasing.
Social responsibility is an ethical framework and suggests that an entity, be it an organization or individual, has an obligation to act for the benefit of society at large. Social responsibility is a duty every individual has to perform so as to maintain a balance between the economy and the ecosystems. Ethics are moral principles that govern a person 's or group 's behavior. I like the way Wilhelm Autischer, the CSR project manager for an Austrian business describes social responsibility by dividing it into three different dimensions, economic, social, ecological. The economic dimension, not only to help the company, but also to be able to help the industry that the company is in by raising the bar of expected behavior. The social dimension refers to internal change like the way employees are treated and how they treat each other. The third dimension the ecological dimension is an attempt to secure a healthy and productive ecological environment for future generations and the future of the company. Ethics and social responsibility are almost the same thing; ethics are more focused on the individuals inside the company. Main aspects of ethics are coming to know what is right or wrong in the workplace and doing what 's right.
The first journal that we choose is Social Responsibility and Professional Ethics in Management: Does it Matter? This journal is written by Prof. Dr. Cene Baves. In this journal it has discussed about the relation between social responsibility of business, managerial ethics and economic environment. What is the main purpose of having social responsibility and ethics in management? According to Friedman (1970) he stated in his interview that “the social responsibility of business is to increase the company profit.” There are 24 European Unions excluded Malta, Cypus and Latvia involved in this research. Secondary data at national level has been used.
It is nearly impossible to pick up any newspaper and avoid reading a section that deals with the unethical or even illegal conduct of the people who run our companies. Whether it’s stock manipulation, dubious accounting practices, or discarding of environmental waste, the stories keep on emerging. Ethical standards mostly relate to performance or behavior that is not covered by law, and the rule of law covers behaviors that may not necessarily be covered by moral or ethical standards. The principles for social or ethical conduct are embodied within each member of staff as well as within the business itself. Ethics are “the code of moral values and principles that rule the behavior of a
A business may possess inferior employees but the huge amount of loyalty would have can send a very insignificant business to amazing heights. Likewise, those employees with unsubstantial amount of loyalty may cause tremendous business to collapse.