- #Ethical aspects of strategic financial management code
- #Ethical aspects of strategic financial management series
There are numerous ethical issues that a producer could possibly face in a supply chain process. So below are some of the ethical issues faced by the parties involved in the supply chain process. What may seem as a legitimate course of carrying out the business may be perceived as an unfair trade practice by the other. Tensions arise in supply chain mainly due to the perceived understanding of ‘fair play’ between various parties. With different parties involved in the supply chain process there is always a question of who is being fair and otherwise. On a broader note, they are characterized by the involvement of different entities/parties in the loop. The supply chain process is about movement of goods from one end to the other end. All these are emphasized or should be so that the supply chain process that starts from the producer’s end smoothly transitions to the other links of the supply chain process. These two planning process are for mid-term and short-term respectively. While strategic planning is generally done to realize a long-term prospect and devised by a pro-active top management, the operational planning and the administrative level are done at the middle and the lower management respectively. An organization in order to reap the benefits of a successful supply chain has to do three kinds of planning. All of the above links could be possibly kept intact by an organization provided there is a belief in the culture called planning. Production control and resource managementĪll of these are vital links of the supply chain which needs constant monitoring so that it will be a seamless process.
The functions of supply chain management are broadly classified as: But supply chain management is a process which involves goods, place, time, quantity and cost all acquired in right proportions. The management of supply chain is called supply chain management in plain text.
#Ethical aspects of strategic financial management series
This movement incurs a series of costs for the various entities involved. The supply chain consists of a series of links that enable the movement of product from the producer to the customer. Proactive management will always look to analyze every link of the supply chain and thereby reduce cost by adopting best practices and morality simultaneously. Product innovation, cheaper but suitable alternatives of existing raw materials, effective supplier shortlisting process etc., are some of the measures a successful company adopts and practices.Ī laissez-faire attitude of top management to tackle such issues prevailing in the market will only add to their misery. So steps/strategies taken by companies depends on management. So what are the factors contributing to unhealthy decision making of companies? Growing demand for low cost products, fierce business competition, easier availability of counterfeit products etc., are major drivers, according to companies.
Acting ethically responsible is a Corporate Social Responsibility (CSR) activity by itself, for a company. Monitoring whether the codes are put into practice makes the process more effective.
#Ethical aspects of strategic financial management code
Laying the code of conduct is only the initial step.
Nike felt that the code of conduct that it laid down for its suppliers/contract manufacturers needed to be more stringent after this case. This would prove to be an image buster for the company later as the company founder Phil Knight admitted that his products have become synonymous with labour exploitation after facing backlash in U.S. An agreement with the contract manufacturer consisted of ‘no liabilities’ towards labor conditions at the manufacturing site. Nike was famous for outsourcing manufacturing operations to a cheaper destination and became a trendsetter with this practice as they could get the business done at a fraction of the cost that they would incur at any plant in the US. Cost has been the single driving force behind the unethical behavior of certain corporations. The reason for such ambiguity in prioritizing values is due to the fact that corporations are focused on containing cost. In spite of advances in technology, supply chain even at a global level is based on the interaction between people which gives rise to ethical issues at several stages of the process. In business, financial necessities have been prioritized over certain values such as ethical behavior and social responsibility.
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