Download Statement of Professional Ethics

Statement of Professional Ethics
ISCOM/424
Statement of Professional Ethics
The evolving supply chain system creates the necessity to look into ethical implications and
the duty of every entity to product users. Ethics are moral principles and deal with what is
acceptable in a particular locality. The question arises when a larger entity subcontracts the
services of smaller entities. Who is expected to adhere to these ethical principles? Adherence
will of course lie with the larger contracting entity being the employer of the smaller
organizations. Below are some ethical considerations that an entity shall focus on:

Labor standards including issues on child labor, discrimination, salaries,
organizations, length of duties, and precautions

Marketing as related with the avoidance of misrepresentation

Corporate relations founded on trust and confidence

Corruption and bribery to governmental employees
If entities fail to observe the ethical behavior required of them, it will not only be
detrimental to their existence but it will also have a negative effect on the entire supply chain.
When clients lost their trust in an entity, the entity will lose its value.
To have an assurance that ethical requirements are being observed, it is necessary to have a
periodic ethical audit. The objective of this audit is to verify adherence of entities to ethical
principles and the extent on which it is not being addressed by an entity. In case of nonadherence, an action plan would have to be recommended.
Audits are necessary so as to ascertain whether a client or supplier would maintain a long
term relationship with the particular entity. The suppliers will have to adopt with the operating
standards of the entity they are dealing with. These are supplier selection qualifications:

Compliance with ethical requirements

Profile maintenance of major suppliers

Assignment of personnel that will monitor ethical compliance of major suppliers
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Assessment of supplier’s ethical compliance on a periodic basis

Evaluation of the assessment of ethical compliance

Classify suppliers accordingly
Conclusion
Ethical concern is the heart of the every supply chain model. Customer satisfaction and
their role as potential suppliers in their own field rely on how ethical requirements are met.
Adherence to business ethics can be evaluated and assessed through ethical audits and
updated trainings.
References
Chase, R., Jacobs, F., & Aquilano, N. (2006). Operations management for competitive advantage
(11th ed.)New York: McGraw Hill/Irwin.
Ellram, L. M., Fawcett, S. E., & Ogden, J. A. (2007). Supply Chain Management: From Vision
to Implementation. Upper Saddle River, N.J.: Prentice Hall.
Blanchard, D. (2007). Supply Chain Management, Best Practices. Hoboken, N.J.: John Wiley
and Sons.