‘’Ethical Supply Chain Management-Is It Viable?’’.

There has been a lot of interest generated in the study of ethics in business both locally and globally. This has also evolved in the field of Supply Chain Management (SCM) through the interaction between suppliers and customers in their logistics and material management functions (Tan K.C et al 2002). Ethics and SCM have developed into a strategic business concept through coordination and collaboration of channel partners (Larson P.D, Poist R.F and Halldorsson,A 2007).Consequently, the involvement of various stakeholders through collaboration and coordination in the supply chain has created major challenges in the fulfilment of stakeholder expectations. There are many varying expectations from all different stakeholders involved in supply chains. Stakeholders who include employees,consumers,providers of capital (stockholders), community, government and other organisations look up to firms to behave in a   way that satisfies the particular member or group in a supply chain. Consequently it becomes a very difficult balancing act for the companies. This essay will discuss the practicality of the philosophy of ethical supply chain management through the identification of the drivers and barriers. The several recorded incidences of business failures as a result of unethical practices will be cited as key examples of why it is a smart business strategy to have an ethical supply chain. In addition the discussion will further explore the confusion that is brought about by the different operating environments that give rise to different opinions on whether it is really viable to manage a supply chain in an ethical fashion. The discussion will further argue the plausibility of the ethical supply chain management philosophy in the context of a global supply chain. It is important to view the idea of ethically managing a supply chain as a key strategy that guarantees business continuity and profitability in the long term.
Skjøtt- Larsen et al., (2007) as cited in Andersen M...