1. Swatanu Mohan Satpathy
Roll – 108
PGDM2010-12

2.  Business ethics
 Ethical issues
 Ethical practices – Procurement, Manufacturing, Marketing
 Ethical code
 Ethical issues in SCM
 Supplier Ethics Management
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3. “The study and examination of moral and
social responsibility in relation to business practices and
decision making in a business”
Dictionary.com
Not limited to company alone
But involves
 Suppliers
 Manufacturers
 Marketing and distribution
 Customer care
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4.  Truthfulness in marketing – Advertisements
 Use of animals in product testing – Cosmetics Research
 Agricultural practices – Intensive Farming
 Honesty in information providing – Enron
 Degree of safety – Nokia BL 5C battery
 Donations – CSR
 Labour issues – Child labour
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5.  Procurement Conduct
manifestation of organization culture
 Selection of Suppliers
no personal bias
 Supplier’s Practice
understanding supplier’s supply chain
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6. How to establish ethical procurement practices?
 Purchasing code of conduct
 Integrate ethical purchasing to existing management
 Rewards and performance reviews
 Top management support in establishing ethical code
 Business environment and culture of source country
 Training to employees and staff
 Proper communication to all levels
 Ethical audits – surprise visits to factories, warehouses
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7.  Societal
- Public
- Employees
 Environmental
- Animals
- Mother earth
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8. How to establish ethical manufacturing practices?
 Labour
 Health and Safety - EHS* standards
 Abuse and Discrimination - transparency
 Freedom of Association
 Environmental Impact
 Monitoring
 Clear communication, no cheating
 Quality
 Confidentiality
*EHS – Environment, Health, Safety (EPA etc.)
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9. Issues
 Price-war against competition
 Misleading advertisements
 Piracy
 Ambush marketing
 Compromise safety
 Compromise quality
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10. How to establish ethical marketing practices?
 Sales manager – assigning roles without bias
 Sales associates – accountability
 Proper labels and warnings on products
 Clarity in information
 Quality Assurance testing
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11. Principles governing morality and acceptable behaviour
- Personal behaviour
- Corporate behaviour
Ethical code in terms of
 Relations with stakeholders
 Environment and Society
 International Business
 Mergers and Acquisitions
 Governance
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12.  Ethical codes and compliance
 Limitations of Ethical audits
 Commercial vs. ethical agendas
 Governance – large no. of suppliers
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13.  Management of suppliers
 Align supplier’s business conduct with purchaser’s
standards
 Reduce “ corporate integrity failure ”
Scandal arising because of supplier’s fault is tough to
handle as you are not at fault but have to face the music.
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14. Supplier Integrity
Corporate
Compliance Ethics
Responsibility
Laws Internal External
Regulations values values
www.corporatecompliance.org
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15. Ethics & compliance officers advice to Procurement
 Make ethics & compliance a factor in supplier selection.
 Target and segment suppliers by importance and ethics risk.
 Create and maintain compliance profiles of targeted suppliers.
 Assign E&C personnel to major supply-relationships.
 Conduct regular assessments of supplier ethics.
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