Question

What do you think is the biggest ethical issue in supply chain? What would you suggest to prevent or rectify this issue?

Answer 1

The biggest ethical issue with the supply chain can be considered to be the role of suppliers in the supply chain. We all know that not all producers are essentially manufacturers. This requires them to be able to purchase their necessary requirement of raw material and goods from other supplier and producers alike. This is where intermediaries of supplier come to play. These suppliers help the firm that needs raw material and procures the goods for them in return for a fee. This would have been an ethical practice if the supplier would have always adhered to the code of ethics which states that the suppliers have to purchase the best possible quality of raw materials, maintain the best level of inventory while essentially, maintaining a good channel of storage, distribution and transportation. Some cheat their clients buy procuring goods of lower quality than required which does not enable the producers to make a good quality product. Not only that, some supplier cut corners while implementing their distribution and storage network and essentially allow the raw material to degrade in quality due to this practice. This is unethical behaviour and therefore, one of the main issues relating to the supply chain that needs to be checked by the company before allowing them to do business with the faulty party.

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