1. ICMCI
Asia Pacific Hub Meeting 2013
April 26, 2013
Bangkok
Learning from Consulting Case Studies
Good Practices of Ethical Companies

2. Scenario
An apparel manufacturing company in an emerging market was a regular supplier to three
global brand houses based in developed markets.
Business was growing year on year and often the supplier had to scramble to meet the
seasonal order book. Transactions were on open account basis.
One day the Chief Buyer of one of the global brand house made an unannounced visit to the
supplier.
The Chief Buyer just spent a day at the supplier’s facility and before the supplier could
extend a royal hospitality, he flew back to the company head quarter.
The very next day the supplier’s orders were cancelled and they were told that they did not
comply with the terms of agreement.
Good Practices of Ethical Companies

3. Diagnosis - Supplier’s factory situation
No fire alarm system or equipment
Poor ventilation and sanitation
Discrimination between male and female workforce
Deployment of child labour
General health and life at risk
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Good Practices of Ethical Companies

4. Best Practice Learnings
Sponsor’s Buy-in Matters
Key stakeholder engagement
Owners see ethics as priority
Tone from the top
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Good Practices of Ethical Companies

5. Best Practice Learnings
Organizational Design & Structure
Clear authority, responsibility and accountability.
Do what is RIGHT and not just what is required.
State clear objectives and requirement
Policy (clear, comprehensive, consistent, aligned, available, escalation process)
Leader listen to stakeholders
Transparent processes
Two-way communication(open door policy)
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Good Practices of Ethical Companies

6. Best Practice Learnings
Communication Process
Over communicate
Do not assume understanding - ensure it
Use multiple channels
Engage employees with bold visuals
Use local language where possible
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Good Practices of Ethical Companies

7. Best Practice Learnings
Training
Use role-play during shop-floor meetings
Immediate leader provides the training
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Good Practices of Ethical Companies

8. Best Practice Learnings
Consequence Management
Look at the root cause of mistakes and adjust processes,if required.
Establish a ‘ZERO” tolerance policy in all levels
Make examples of people who do the right things and those who do not.
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Good Practices of Ethical Companies

9. Thank You
Any questions?
Please fill and return the feedback form.
Good Practices of Ethical Companies