Ethical Issues In Supply Chain Management Commerce Essay

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According to Weiss (2009), due diligence refers as the process of assessing a long term organizations decision by getting the information about the legal, economical and other matter that essential for the other party of the state. Besides, due diligence is also used most frequently when we trade a business, as the buyer spend some occasion that going through the financial condition of the business, legal requirement, customer account, and other compulsory documents. So, the potential buyer needs to legalize their estimation of the business to see if it is truly a good decision (Weiss, 2009).

According to Madura (2007), supply chain management refers as the complex of seller, distributors, transporters, storage services and suppliers that contribute in the transaction of sale, delivery and manufactured goods. In the others word, Supply Chain Management (SCM) is also manufacturer the right goods and services to the put their needs at the precise time, in the manner of good quantity with the reasonable cost. This process is also related with the efficiently organization that involves administration relationships between the suppliers and customers, to controlling the supply, forecasting demand and getting constant feedback on the customers (Madura, 2007).

According to Trevino and Nelson (2007), business ethics refers as the significant prepared assessment of how the people and the organization should act in the world of business. Furthermore, it also engages with investigating the suitable limitation on the pursuit of self-interest or profits, when the actions of individuals or firms that may concern to others.

Discuss the relationship among all three concepts

Discuss the stakeholders that might be involved in supply chain management

Stakeholders' satisfaction in supply chain should be more noted by managers since value creation through supply chain activities can be considered as a competitive advantage in the competitive market. In contrast to the traditional supply chain management, nowadays there is a fierce competition among supply chains rather than firms. To increase stakeholders' satisfaction, it is needed to evaluate supply chain performance to determine how much value can be created. Thus, using an effective method is essential to evaluate supply chain value. Although many methods, frameworks and techniques are utilized in the literature using variety of indices identified by experts and executives to measure supply chain performance, usually they applied indices concerning just a specific group of stakeholders such as customers or shareholders without any technical method to have stakeholders' satisfaction in mind. In this study a framework was proposed to link stakeholders' satisfaction and supply chain performance evaluation by applying review of studies concerning evaluation of supply chain from a value perspective. To increase supply chain value this study proposed an algorithm capable of improving value creation process which can result in satisfaction of all groups of stakeholders.

What are the ethical issues in Supply Chain Management?

Marks and Spencer


Marks and Spencer Plc is an international seller with 718 locations across the world. This company sells footwear, clothing, souvenirs, home equipments and foods which is managed by the St. Michael trademark in its supply chain of 294 stores in the United Kingdom (Marks and Spencer plc, 2012). The company also possesses the clothing retailers which are known as Brooks Brothers and the Kings Super Markets chain in the United States of America. Marks and Spencer is also used the direct mail to the customer as means for marketing goods such as home equipments, boutique and many more. Marks and Spencer also has a monetary services business which are providing the personal loans, unit trust management ,account cards, life assurance and pension allowances. Marks and Spencer UK retail is now have been made up into seven businesses of units which are the children wear, women's wear, menswear, lingerie, beauty, home and foods. The retail business itself is also made up of approximately 60% in clothing and 40% in food (Marks and Spencer plc, 2012).

Supply Chain Understanding.

As a retailer, Marks and Spencer is the furthest downstream within the general supply chain of raw suppliers to expenditure. As such, supply chain activities are focused to upstream chain due to the suppliers. The organization of these supply chains also engages more than just the primary stage for the suppliers of goods. There are only a few large suppliers that form the volume of the supply base from 1000 of different supplier to Mark and Spencer. In case of UK, most of the food supplier are locally supplied whereas the clothing supplier are based to the globally. The supply chain is supervised through the seven division of the business on an independent base. Suppliers to the business are supervising through the procurement roles for each of the business division. Each of business division was integrate for both buying and selling purposes within the teams orientated towards particular groups of customer. The relationships of supplier are managed by ongoing process through the product buyers and technology expertise that run within each of the business divisions.


Marks and Spencer has a single selling point that differentiates it from other high street retailers. One of the examples are all goods it sells are its own product whether food or non-food. They do not purchase in well-known goods from other companies. So, the core of impact for the supply chain is that Marks and Spencer has the potential for larger organize for influencing and running their issues such as strength, quality and safety and environment, which opposed to a supply chain that supply other product within its business. In this way Marks and Spencer has enhanced to recognize their own supply chain.

Argue issue from the multiple dimensions.


As Chief Executives Officer (CEO),





Media Supplier


The Application of Due Diligence

Understand the business ethics as human interactive practice

According to (Ferrell, et al, 2011) human rights have been shown to have a constructive impact on the business act to enhanced stakeholder relations, constructive business reputation and branding name, and also the employee incentive. It is defines the business ethics as the function of ethical principles to business actions. A promise to both business ethics and human rights will be determined by moral values such as the responsibility, self-respect, fairness, equality, and respect. Doing a business ethically is essentially involves by respecting the human rights in the way of business process. A company desires need to be considered as ethical will require being mindful of human (Ferrell, et al, 2011).

Understand the 3 P's (People, Planet and Profit)

According to Slaper (2012), he has been discussed about Elkington's theories which are known as the Triple Bottom Line. It is defines as accounting structures that integrate into three scopes of performance which are the social, environmental and financial. This is be different from other established frameworks as it comprises on environmental and social actions that can be complicated to allocate in appropriate manner which means of the measurement (Slaper , 2012). These theories are also usually known as the three Ps which are the people, planet and profits. In the aspects of profit, the economic variable should to be changeable that the agreement with the three P's and the cash flow. It could seem at revenue, taxes, business weather aspects, employment, and variety aspects (Slaper , 2012). For instance, job enlargement, personal loan, cost of unemployment rate, the percentage of each division and many more. In the aspects of planet, the environmental variables should signify the dimensions of natural resources that reflected on the possible authority to its feasibility. It could slot in the air and water cleanness, energy consumption, natural resources, solid and toxic waste, and terrain use. Ideally, having wide range of development that available for each of the environmental variables which will assists the organizations to identify the impacts of a certain projects (Slaper, 2012). For instance, electricity consumption, fossil fuel consumption, solid waste management, hazardous waste management, and many more. In the aspects of people, it is focused on social dimensions of a society that could include with the capacity of learning, health, quality of lifestyle and community assets. For instance, the comparative shortage, unemployment rate, middle house income and many more. Beyond the basis of determining the sustainability on the three aspects, the flexibility of the total bottom line that tolerates the society to relate the theory in a manner of appropriate to their specific desires (Slaper , 2012).

Any regulatory regarding supply chain management

According to Jennings (2012), the U.K. Bribery Act has came out into the force in April 2011. This act is generally seen as the most far accomplishment piece of rule and regulation on fighting bribery across the world and locally with several necessities that goes beyond than the US's Foreign Corrupt Practices Act (FCPA). In the aspects of supply chain viewpoint, it is significant that the act has a further defensive authority. So it is relates to UK citizen or the people from anywhere in the world as well as any business that running in the United Kingdom(Jennings, 2012). Perhaps, it does not differentiate between direct or indirect corruption, it makes a company accountable to make the payments that made by suppliers. It also makes the payments illegal (Jennings, 2012). Transparency International provides an outstanding foreword to how the act to be control by the companies' supply chains (Jennings, 2012).