Implementation of Business Ethics in Supply Chain Management
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Thursday (13/7), the Global Summer Week (GSW) 2023 enters its 13th lecture, presenting Dr Gunalan Nadarajah from Universiti Utara Malaysia (UUM). This lecture takes a specific theme, namely, the ethical concept in supply chain management is explored, as well as the challenges faced in implementing responsible practices. Dr. Gunalan's discussion covers various ethical issues in different supply chain areas, including procurement/purchasing, planning, warehousing, logistics, and information systems.
Dr. Gunalan detailed that critical ethics in procurement/purchasing include abuse of authority and bias, conflicts of interest, diversity of suppliers, transparency, price fixing and collusion, protection of intellectual property, payment and contract issues, and continuous procurement. In order to overcome this problem, organizations are expected to adopt and implement a code of ethics, establish clear guidelines for selecting suppliers, carry out periodic audits, and collaborate with other departments.
Dr. Gunalan explained that in planning, ethical issues relate to worker safety and health, fair compensation, discrimination, environmental impact, supply chain transparency, and quality control. He added that organizations are advised to integrate ethical considerations into their planning process, implement policies and guidelines that prioritize worker safety and sustainability, carry out regular assessments and audits, and collaborate with relevant stakeholders.
In the last discussion, Dr. Gunalan explained warehousing ethics, including working conditions, fair wages and benefits, labour and union rights, discrimination, health and safety standards, supply chain responsibility, environmental impact, and transparency. Organizations can address these concerns by establishing clear ethical guidelines, providing training on labour rights and safety practices, conducting inspections and audits, and implementing transparent reporting mechanisms. The lecture ended with a short but enthusiastic question-and-answer session.
Reportage: Hayfaza Nayottama
