10 Questions
Why are supply chains most likely to act ethically according to the text?
Due to competitive pressures
What is a key factor driving the implementation of ESCPs in large organisations?
Stakeholder pressures
Why must buyers, suppliers, and distributors be at the forefront of any changes related to ethics and ethical practices?
Because they are most relevant to ethical practices
What impact can low investments in ethical practices have on small and medium-sized enterprises (SMEs) according to the text?
Potential losses and low returns
Why are organisations associated with products having a high environmental profile vigilantly managed according to the text?
Due to increased scrutiny from stakeholders
Why is it recommended for companies to invest in environmentally viable practices?
To continue the trend of implementing ethical supply chains
What is identified as a major area of future research challenge in the text?
Developing managerial tools for implementing ethical supply chains
What role do ethical practices play in reducing social and environmental impacts according to the text?
They are a powerful means to reduce social and environmental impacts
What is the significance of the concept of supply chain ethical champions that the text mentions?
They play a role in promoting ethical practices within and across supply chains
What is the minimum benefit mentioned for organisations that implement ethical supply chain practices?
Avoiding negative impacts associated with unethical behaviors
Study Notes
Ethical Practices in Supply Chains
- Many ethical practices were observed in the supply chains of nearly all the studied organizations, likely to have positive effects on company performance.
Reasons for Ethical Practices
- Legal requirements are a major driver for ethical practices, resulting in a high incidence of health and safety practices.
- Competitive pressures and industry standards also influence ethical practices, with companies needing to monitor and adapt to consumer trends.
Importance of Ethics
- Ethics and ethical practices are crucial for buyers, suppliers, and distributors, who must be at the forefront of any changes.
- Organizations with high environmental profiles must be vigilantly managed due to increased scrutiny from stakeholders.
- Large organizations face high stakeholder pressures, making the implementation of ESCPs (Ethical Supply Chain Practices) essential.
Benefits of ESCPs
- ESCPs improve profitability, with greater implementation leading to greater rewards.
- Even organizations that don't achieve a specific benefit from ESCPs will avoid negative impacts from unethical behaviors.
Implementation of ESCPs
- The initial costs of implementing ESCPs should not deter SMEs (Small and Medium-sized Enterprises), as low investments will result in low returns and possible losses.
- Ethical embeddedness is crucial for SMEs, and companies should continue to invest in environmentally viable practices.
Future Research Challenges
- The use of environmental management systems is likely to significantly grow in the near future, requiring further research.
- Managerial tools and methodologies for deploying ESCPs within firms and across supply chains need to be investigated.
- The concept of supply chain ethical champions and their influence on the span of ethical practices needs to be explored.
Test your knowledge on the presence of ethical practices in supply chains and their impact on company performance. Learn about legal requirements, health and safety practices, and the influence of competitive pressures, industry standards, and consumer trends.
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