ethics for individual learning
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Ethics for IndividualLearning
PaulSunny
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G11093
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TABLE OF CONTENTS
a. Objective ..3
b. Ethics in Supply ChainManagement ......3
I. Ethics inSCM ...3
II. Building an Ethical Supplychain ......4
III. The Ethical Supply chain Is itviable ?...................................................................4
IV. Reducing Environmental Risk throughSPM .4
V. Buying your way out of climate change: What does Carbonoffsetting really achieve?5
c. Ethics in Retailing
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I. Retail Ethics and Green Retailing6
II. Ethics in OrganicRetailing 6
III. Ethics in Retailing: perceptions of management and salespersonnel..7
IV. Retail Ethics: An Exploratory Examination of ConsumerPer ceptions8
V. Retail Ethics and Green Retailing 2011: More than pla sticbags?.........................8
d. References ..9
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Objective
The objective of this paper to understand how ethics can be applied to the following
industries
Supply Chain Management
Retailing
Ethics in Supply Chain Management
The following section will review five literatures published in various publicationspertaining to how ethics can be applied to the Supply Chain Management.
Ethics in SCM
By Abedullah Zama
Companies can use the supply chain to deliver products and services by minimizing
the cost but also to nurture long term relationships with its stakeholders.
Reasons behind the societal concerns about SCM
Environmental effects
The mismanagement of the SCM can have detrimental effects on the
environment such as pollution and natural resource depletion.
Health and safety
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facilitating two-way communication between a company and it suppliers, on
mission-critical topics relating to matters of ethics and compliance
The Ethical Supply Chain Is it Viable?
By Dr. Alan Knight, OBE
The paper tries to define what is ethical in order to determine whether it is viablewithin the supply chain. The author argues that there is no universal ethicalstandard and, while the language of human rights allows for some absolutes, whenthis is taken into the complex and hugely subjective areas of production, labour andthe environment, it is very difficult, and perhaps even unethical, to rely on a singlecode of ethical standard.
An ethical supply chain must not only consider the present-day issue, but thinkabout how, in the future, it can deliver the same financial rewards while using far
less resources. The most ethical approach is for retailers to use their influence andknowledge to drive their supply chains down a route of continuous improvement.
Reducing Environmental Risk through SPM
By Philip McVeigh page no: 21 Supply Chain September/October 2008 (www.scemagazine.com)
This paper highlights how Supplier Performance Management (SPM) approaches can
identify and control environmental and social impacts.
All companies have some social and environmental impact on the world so formal
measurement and management of the environmental results of these actions is
paramount in achieving a socially responsible supply chain. A companyscompetitiveness is becoming increasingly dependent on successful collaboration
with its suppliers.
By providing a holistic understanding of a companys supply chain, SPM can
identify the impacts the company has throughout the entire procurement process to
the point of sale Key Performance Indicators (KPIs) assist the measurement of
suppliers across Health, Safety, Social and Environmental (HSSE) guidelines
Examples of KPIs for companies wishing to commence an SPM initiative (depending
on the industry) could be Energy costs Per unit of Production, Total Waste Disposal
costs, or Raw Material costs Per Tone of Product.
The ultimate goal of SPM is to achieve strong lines of visibility and communication
with suppliers, help to develop collaborative relationships and drive performance
forward.
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Buying Your Way Out of Climate Change: What Does Carbon Offsetting
Really Achieve?
By Jill Barker page no: 24 25 Supply Chain September/October 2008 (www.scemagazine.com)
The author argues that a credible carbon management strategy should focus onavoidance, reduction and replacement options, which must be exhausted beforeoffsetting is used to neutralize any unavoidable emissions.
ARRO defines a hierarchy of carbon management options
Avoidance of emissions
Reduction through energy efficiency
Replacement of high-carbon energy sources
Use of high-quality offsets.
Usage of CHG protocol
Most companies use The GHG Protocol to measure their emissions and scope out anappropriate carbon reduction strategy
Scope 1:
Direct corporate greenhouse gas emissions, from sources owned or controlled bythe company.
Scope 2:
Indirect corporate emissions: These emissions result from the off-site generation ofelectricity, steam, or heat which is then purchased by the company.
Scope 3:
Expanded indirect emissions: These emissions result from activities related tocompany operations, but from sources not owned or controlled by the company.
Ethics in Retailing
The following section will review five literatures published in various publicationspertaining to how ethics can be applied to the Retailing.
Retail Ethics and Green Retailing
By Rahul Gupta & Dr. L. K. Singh (International Journal of Retailing and marketing)
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The paper undertakes the study concepts of Green Retailing and its emergingcompetitive advantages
Green Retailing
What you sell: A green product is one that benefits both people and the planet
and is ideally regenerative for life on EarthHow you sell: Companies can operate and sell in a green way
Advantages of Having Green Buildings for Green Retailing
Higher worker productivity
Improved employee health
Longer employee retention periods
Positive corporate image
Competitive advantages of Green Retailing
Environmentally friendly project
Sustainable
Recyclable
Hazardous/Toxic
Renewable
Ethics in organic retailing
By AUSTRALIAN ORGANIC JOURNAL SPRING 2005
The paper talks about the opportunities for altering the traditional marketing habitsof retailers. The various options suggested are
Buy local as a preference. Reduce food miles and greenhouse gas emissions.
Buy first from small producers and processors in preference so their effortsare rewarded. Pay them more than larger businesses in recognition that theydo not have the economies of scale or capitalization. Value small is good".
Buy first from producers or processors that pay according to accepted awardstructures or above award.
Offer long-term contracts five years with a clause to renegotiate after threeto four years so if things dont work out, the producer and or processor hastime to retool and find a new buyer if needed.
Offer protection in contracts so that if producers or processors are hit withforces outside their control, such as drought or disease, they are supported,not penalized.
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Consider offering staff ownership options in the business model perhapsthrough shares.
Price foods for sale fairly, and avoid the use of low prices and loss leaders toentice customers.
Ethics in retailing perceptions of management and sales personnel
By Dr. Nripendra Narayan Sarma
This study focuses on the ethical practices of retailers and the ethical beliefs ofretail sales force. The ethical issues faced by retail sales force are broadly classifiedinto three Customer related, peer related, work related.
Customer related ethical issues
Charge full price for a sale item without the customers knowledge Dont tell the complete truth to a customer about the characteristics of a
product
Customer damages product in the store and wants a mark down
Make excuses when merchandise is not ready for a customer to pick up
Sell a more expensive product when a less expensive product would bebetter for the customer
Dont offer information to the customer about an upcoming sales (which willinclude merchandise the customer is planning to buy)
Make excuses to customers about unavailable merchandise whenmerchandise is not yet in stock or is sold out
Give preferential treatment to certain customers
Peer related
Pressure from fellow employees not to report employee theft
Offer to give a friend and employee discount
Work related
Salesperson receives an unfair workload
Sell merchandise that is not of good quality
Sell the product as if it were an exclusive when in fact it is available in otherstores
Perform your job with inadequate job information or training
Use of sales contest for salespeople in order to generate sales fromcustomers
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Retail Ethics: An Exploratory Examination of Consumer Perceptions
By James L. Thomas, Jr., University of Mississippi , Faye S. McIntyre, Rockhurst College and Faye W.
Gilbert, University of Mississippi
The sample frame for this study consists of the 31,000 residents of a Southerncounty. Respondents were clustered using the nearest neighbor method with asquared Euclidean distance measure. Consumers in Cluster One appear to believeretailers act unethically less frequently than do those in Cluster Two therefore,Cluster One members is called as trusting consumers and Cluster Two members arecalled as skeptical consumers. The important findings of the study are summarizedbelow.
Trusting consumers are older than skeptical consumers
Women are more likely to be trusting consumers, while skeptical consumerstend to be male.
Single people are more often skeptical, while those who are married aretrusting
Consumers with lower income levels(less than 10,000) are more skeptical
Consumers with income levels (between 50,000 and 74,000) are moretrusting
Customers with no high school degree are skeptical
Customers who are high school graduates are trusting
Customers who are graduates are trusting
Retail Ethics and Green Retailing 2011: More than plastic bags?
By Centre for Retail Research
The study was conducted by Centre for Retail Research, UK. The conclusions of thestudy are as follows
Greener Shops: Most retailers are keen to show they are environmentally-conscious
Green policies: Most large retailers are now committed to environmentalismthrough - 'green policies', curbing waste, less packaging, product revamps,reduced energy use, fewer distribution trips, reducing product-miles
Retailers Probably Do Far More to Green Their Operations than the Customer-Facing Bits of the Store
Retailers would do more if the Green Suppliers Were There Humane Food and Fair-trade
Consumer Information
Packaging: Movement on packaging has been slower
Subsidies are a Danger
Green-wash is a Danger
Customers will expect environmental transparency
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References
Ethics in Supply Chain Management (SCM) by Abedullah Zamahttp://www.idt.mdh.se/kurser/cd5590/Archives/06_11/lectures/Ethics%20in%20Supply%20Chain%20Management.pdf
Building an Ethical Supply Chain by Michael R. Levinhttp://www.integrity-interactive.com/docs/Boardroom_Briefing-SEM.pdf
The Ethical Supply Chain Is it Viable? by D r. Alan Knight , OBEhttp://www.touchbriefings.com/pdf/199/ifpm032_p_knight.pdf
Reducing Environmental Risk through SPM by Philip McVeigh page no: 21 SupplyChain September/October 2008 (www.scemagazine.com)
Buying Your Way Out of Climate Change: What Does Carbon Offsetting ReallyAchieve? By Jill Barker page no: 24 25 Supply Chain September/October 2008(www.scemagazine.com)
Retail Ethics and Green Retailing by Rahul Gupta & Dr. L. K. Singh (International
Journal of Retailing and marketing)
http://ijrm.org/issuedetail.aspx?iid=36
Ethics in organic retailing by AUSTRALIAN ORGANIC JOURNAL SPRING 2005http://www.bfa.com.au/Portals/0/BFAFiles/ethics%20in%20organic%20retailing%20pg20-
21.pdf
Ethics in retailing perceptions of management and sales personnel by Dr.
Nripendra Narayan Sarma
http://dspace.iimk.ac.in/bitstream/2259/388/1/61-68.pdf
Retail Ethics: An Exploratory Examination of Consumer Perceptions
by James L. Thomas, Jr., University of Mississippi , Faye S. McIntyre, Rockhurst
College and Faye W. Gilbert, University of Mississippi
http://www.sbaer.uca.edu/research/sma/1995/pdf/32.pdf
Retail Ethics and Green Retailing 2011: More than plastic bags? by Centre for Retail
Research
http://www.retailresearch.org/retailethics.php
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http://www.idt.mdh.se/kurser/cd5590/Archives/06_11/lectures/Ethics%20in%20Supply%20Chain%20Management.pdfhttp://www.idt.mdh.se/kurser/cd5590/Archives/06_11/lectures/Ethics%20in%20Supply%20Chain%20Management.pdfhttp://www.integrity-interactive.com/docs/Boardroom_Briefing-SEM.pdfhttp://www.touchbriefings.com/pdf/199/ifpm032_p_knight.pdfhttp://www.scemagazine.com/http://www.scemagazine.com/http://ijrm.org/issuedetail.aspx?iid=36http://www.bfa.com.au/Portals/0/BFAFiles/ethics%20in%20organic%20retailing%20pg20-21.pdfhttp://www.bfa.com.au/Portals/0/BFAFiles/ethics%20in%20organic%20retailing%20pg20-21.pdfhttp://dspace.iimk.ac.in/bitstream/2259/388/1/61-68.pdfhttp://www.sbaer.uca.edu/research/sma/1995/pdf/32.pdfhttp://www.retailresearch.org/retailethics.phphttp://www.idt.mdh.se/kurser/cd5590/Archives/06_11/lectures/Ethics%20in%20Supply%20Chain%20Management.pdfhttp://www.idt.mdh.se/kurser/cd5590/Archives/06_11/lectures/Ethics%20in%20Supply%20Chain%20Management.pdfhttp://www.integrity-interactive.com/docs/Boardroom_Briefing-SEM.pdfhttp://www.touchbriefings.com/pdf/199/ifpm032_p_knight.pdfhttp://www.scemagazine.com/http://www.scemagazine.com/http://ijrm.org/issuedetail.aspx?iid=36http://www.bfa.com.au/Portals/0/BFAFiles/ethics%20in%20organic%20retailing%20pg20-21.pdfhttp://www.bfa.com.au/Portals/0/BFAFiles/ethics%20in%20organic%20retailing%20pg20-21.pdfhttp://dspace.iimk.ac.in/bitstream/2259/388/1/61-68.pdfhttp://www.sbaer.uca.edu/research/sma/1995/pdf/32.pdfhttp://www.retailresearch.org/retailethics.php