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Environmental Issues

Ethical Issues in SCM

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Ethical Issues in SCM

            Supply chain management (SCM) is a critical part of any business. It involves all activities that begin from the identification of the raw material to the distribution of the final product. Like any other branch of business, SCM raises several ethical concerns some include whether the organization SCM managers work for value ethical means of operations, whether the organization engages in responsible labor practices and what impact the supply chain has on the environment (Aschendbran, Proctor, & Trebilcock, 2018). Ethical queries are essential in ensuring that organizations follow the right direction while guaranteeing minimal misuse of funds and resources.

Ethical requirements in the supply chain of clothing and apparel range from conditions of the producers, suppliers, retailers, to those of consumers.  Production companies such as Nike and Adidas must ensure that there are conducive working environments for their employees (Ananthakrishnan, 2014). Suppliers must refrain from overpricing or providing the manufacturers with low-quality low materials such as leather. A retailer must not opt for deceiving practices such as product tampering and repackaging. They must ensure that all weights are equal to the indicated value (Aschendbran, Proctor, & Trebilcock, 2018). Finally, they must ensure they put manufacturers to check by withholding their willingness to buy and willingness to pay powers until all ethical requirements are fulfilled.

SCM managers in the clothing and apparel industry continue to face these and other ethical challenges. Shoe production companies and especially sportswear such as Nike and Adidas have been accused of purchasing dealing with suppliers who have a record of environmental destruction. They have also been questioned over the poor working conditions within the factories. Managers need to ensure that they follow ethical standards of production and distribution.

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