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105-608: The NAIC will be a focus for automotive research, combining expertise from industry, university academics and supply chain companies. It is intended to support advances in technology to reduce dependency on fossil fuels and vehicle emissions. The £ 150 million project is funded by a range of partners: £50 million of the project funding is being provided by the University of Warwick's development partners, Jaguar Land Rover, with additional funding from WMG and Tata Motors European Technical Centre. The remaining £15 million

210-543: A corporate psychopath is in charge. This will not only affect the company and its outcome but the employees who work under a corporate psychopath. The way a corporate psychopath can rise in a company is by their manipulation, scheming, and bullying. They do this in a way that can hide their true character and intentions within a company. Fundamentally, finance is a social science discipline. The discipline borders behavioral economics , sociology , economics , accounting and management . It concerns technical issues such as

315-411: A "soft" approach that regards employees as a source of creative energy and participants in workplace decision making, a "hard" version explicitly focused on control and Theory Z that emphasizes philosophy, culture and consensus. None ensure ethical behavior. Some studies claim that sustainable success requires a humanely treated and satisfied workforce. Marketing ethics came of age only as late as

420-423: A "supply chain". At the end of the supply chain, materials and finished products only flow there because of the customer behaviour at the end of the chain; academics Alan Harrison and Janet Godsell argue that "supply chain processes should be coordinated in order to focus on end customer buying behaviour", and look for "customer responsiveness" as an indicator confirming that materials are able to flow "through

525-588: A bank, for example, may play a supporting role in certain supply chains, but acts as either the customer or the nearest supplier to the customer in the supply chain for security printing . Brown et al. refer to supply chains as either "loosely coupled" or "tightly coupled": Cutting-edge companies are swapping their tightly coupled processes for loosely coupled ones, making themselves not only more flexible but also more profitable . These ideas refer to two polar models of collaboration: tightly coupled, or "hard-wired", also known as "linked", collaboration represents

630-526: A business to be ethical and that violating that expectation must be counterproductive for the business. Ethical issues include the rights and duties between a company and its employees, suppliers, customers and neighbors , its fiduciary responsibility to its shareholders . Issues concerning relations between different companies include hostile take-overs and industrial espionage . Related issues include corporate governance ; corporate social entrepreneurship ; political contributions ; legal issues such as

735-527: A changing environment in verses 474, 426, and 140, learning the intricacies of different tasks in verses 462 and 677. Business ethics reflects the philosophy of business , of which one aim is to determine the fundamental purposes of a company. Business purpose expresses the company's reason for existing. Modern discussion on the purpose of business has been freshened by views from thinkers such as Richard R. Ellesworth, Peter Drucker , and Nikos Mourkogiannis : Earlier views such as Milton Friedman's held that

840-440: A close relationship between a buyer and supplier within the chain, whereas a loosely-coupled link relates to low interdependency between buyer and seller and therefore greater flexibility. The Chartered Institute of Procurement & Supply 's professional guidance suggests that the aim of a tightly coupled relationship is to reduce inventory and avoid stock-outs . There are a variety of supply-chain models, which address both

945-402: A company longer is passed over for a promotion, but it is not unethical. It is only unethical if the employer did not give the employee proper consideration or used improper criteria for the promotion. Each employer should know the distinction between what is unethical and what is illegal. If an action is illegal it is breaking the law but if an action seems morally incorrect that is unethical. In

1050-409: A company's decision-making on the number of suppliers it will engage with for each product or service as an important aspect of the design of a supply chain. Determining the number of suppliers logically precedes an RFP process for determining which suppliers will form part of the supply chain. Morgan refers to an "n + 1 rule" example in the business practice of IT component supplier Intel , whereby

1155-565: A company. Starting in the 1990s, several companies chose to outsource the logistics aspect of supply-chain management by partnering with a third-party logistics provider (3PL). Companies also outsource production to contract manufacturers. Technology companies have risen to meet the demand to help manage these complex systems. Cloud-based SCM technologies are at the forefront of next-generation supply chains due to their impact on optimization of time, resources, and inventory visibility. Cloud technologies facilitate work being processed offline from

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1260-405: A fundamentally new system. This leads to a panarchical interpretation of a supply chain, embedding it into a system of systems , allowing to analyze the interactions of the supply chain with systems that operate at other levels (e.g. society, political economy, planet Earth). For example, these three components of resilience can be identified in relation to the 2021 Suez Canal obstruction , when

1365-438: A global map of the organization's supply network. In the 1980s, the term supply-chain management (SCM) was developed to express the need to integrate the key business processes, from end user through original suppliers. Original suppliers are those that provide products, services, and information that add value for customers and other stakeholders. The basic idea behind SCM is that companies and corporations involve themselves in

1470-400: A great deal of cooperation, trustworthiness, and self-restraint among the people who enjoy it." Menon claims that the autonomous individual, responsible for his/her own existence is a cultural construct moulded by Western culture rather than the truth about the human condition . Penner views property as an "illusion"—a "normative phantasm" without substance. In the neoliberal literature,

1575-405: A mobile app which solves the common issue of inventory residing in areas with no online coverage or connectivity. Supply chain managers are under constant scrutiny to secure the best pricing for their resources, which becomes a difficult task when faced with the inherent lack of transparency. Cost benchmarking helps to identify competitive pricing within the industry but benchmarking across

1680-422: A product design is completed, it drives the structure of the supply chain, limiting the flexibility of engineers to generate and evaluate different (and potentially more cost-effective) supply-chain alternatives. Design for Supply Chain is described as a process that aims to drastically reduce the product life cycle costs ... improve product quality, improve efficiency and improve profitability for all partners in

1785-514: A profit is the only concern of business, Duska argued. Peter Drucker once said, "There is neither a separate ethics of business nor is one needed", implying that standards of personal ethics cover all business situations. However, Drucker in another instance said that the ultimate responsibility of company directors is not to harm— primum non nocere . Philosopher and author Ayn Rand has put forth her idea of rational egoism , which also applies to business ethics. She stresses that position of

1890-476: A publicly accessible showroom and café. Coventry City Council approved the plans on 26 June 2014. Construction is expected to start in 2014 with the building set to be completed by 2016. The building is named The Prof. Lord Bhattacharyya Building after Lord Bhattacharyya . It is on the main road of the Warwick campus, which was renamed Lord Bhattacharyya Way in 2018. Supply chain A supply chain

1995-440: A range of supply chain performance factors has been recommended as best practice. The SCOR model contains more than 150 key indicators which measure the performance of supply chain operations: see also Supply chain operations reference#Performance measurements . Debra Hofman has noted that "measuring supply chain performance is not a new practice. Most companies today measure at least some aspect of their supply chain and understand

2100-487: A sequence of supply chain processes in order to meet end customer buying behaviour". Many of the exchanges encountered in the supply chain take place between varied companies that seek to maximize their revenue within their sphere of interest but may have little or no knowledge or interest in the remaining players in the supply chain. More recently, the loosely coupled, self-organizing network of businesses who cooperate in providing product and service offerings has been called

2205-488: A ship blocked the canal for several days. Persistence means to "bounce back"; in our example it is about removing the ship as quickly as possible to allow "normal" operations. Adaptation means to accept that the system has reached a "new normal" state and to act accordingly; here, this can be implemented by redirecting ships around the African cape or use alternative modes of transport. Finally, transformation means to question

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2310-480: A slave is distinctly and expressly affirmed in the Constitution." Neoliberals hold that private property rights are a non-negotiable natural right. Davies counters with "property is no different from other legal categories in that it is simply a consequence of the significance attached by law to the relationships between legal persons." Singer claims, "Property is a form of power, and the distribution of power

2415-515: A supply chain by exchanging information about market demand , distribution capacity and production capabilities. Keith Oliver , a consultant at Booz Allen Hamilton , is credited with the term's invention after using it in an interview for the Financial Times in 1982. The term was used earlier by Alizamir et al. in 1981, and Burns and Sivazlian in 1978. If all relevant information is accessible to any relevant company, every company in

2520-585: A supply chain seeks to match demand with supply and do so with minimal inventory . Various aspects of optimizing the supply chain include liaising with suppliers to eliminate bottlenecks; sourcing strategically to strike a balance between lowest material cost and transportation , implementing just-in-time techniques to optimize manufacturing flow; maintaining the right mix and location of factories and warehouses to serve customer markets; and using location allocation, vehicle routing analysis, dynamic programming , and traditional logistics optimization to maximize

2625-507: A supply chain, such as wholesale and retail determine their break-even point by considering transaction costs , relative to market price. Additionally, there are financial costs associated with all the stages of a supply chain model. The Global Supply Chain Forum has introduced an alternative supply chain model. This framework is built on eight key business processes that are both cross-functional and cross-firm in nature. Each process

2730-421: A whole through taxation and/or the company's involvement in social action when it occurs. On the other hand, if a company's purpose is to maximize shareholder returns, then sacrificing profits for other concerns is a violation of its fiduciary responsibility . Corporate entities are legal persons but this does not mean they are legally entitled to all of the rights and liabilities as natural persons. Ethics are

2835-499: A written code of ethics that governs standards of professional conduct expected of all in the field. It is important to note that "law" and "ethics" are not synonymous, nor are the "legal" and "ethical" courses of action in a given situation necessarily the same. Statutes and regulations passed by legislative bodies and administrative boards set forth the "law". Slavery once was legal in the US, but one certainly would not say enslaving another

2940-545: A year (often seasonally). The supply chain for clothing often requires constant analysis of new fashion trends to manage the quantity needed for various markets. Supply chain security has become particularly important in recent years. As a result, supply chains are often subject to global and local regulations. In the United States, several major regulations emerged in 2010 that have had a lasting impact on how global supply chains operate. These new regulations include

3045-440: Is a complex logistics system that consists of facilities that convert raw materials into finished products and distribute them to end consumers or end customers . Meanwhile, supply chain management deals with the flow of goods in distribution channels within the supply chain in the most efficient manner. In sophisticated supply chain systems , used products may re-enter the supply chain at any point where residual value

3150-425: Is a form of applied ethics or professional ethics , that examines ethical principles and moral or ethical problems that can arise in a business environment. It applies to all aspects of business conduct and is relevant to the conduct of individuals and entire organizations. These ethics originate from individuals, organizational statements or the legal system. These norms, values, ethical, and unethical practices are

3255-517: Is a high-level, industry-neutral enterprise process model that allows organizations to see their business processes from a cross-industry viewpoint. The PCF was developed by APQC and its member organizations as an open standard to facilitate improvement through process management and benchmarking, regardless of industry, size, or geography. The PCF organizes operating and management processes into 12 enterprise-level categories, including process groups, and over 1,000 processes and associated activities. In

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3360-530: Is a political problem of the highest order". Rose finds, " 'Property' is only an effect, a construction, of relationships between people, meaning that its objective character is contestable. Persons and things, are 'constituted' or 'fabricated' by legal and other normative techniques." Singer observes, "A private property regime is not, after all, a Hobbesian state of nature; it requires a working legal system that can define, allocate, and enforce property rights." Davis claims that common law theory generally favors

3465-492: Is from the government's Higher Education Funding Council for England . The four-storey building, designed by Cullinan Studio , will have a total floorspace of 33,964 square metres. It is estimated that around 1,060 people will be employed at the site. Facilities in the building are expected to include research and development facilities, an engineering hall, a virtual reality lab, design workshops, teaching facilities, offices, meeting rooms, library, outdoor car viewing garden,

3570-526: Is in terms of creating demand. In other words, it is the ability of a product's design to generate demand by satisfying customer expectations. But product design affects not only demand generation but also manufacturing processes, cost, quality, and lead time. The product design affects the associated supply chain and its requirements directly, including manufacturing, transportation, quality, quantity, production schedule, material selection, production technologies, production policies, regulations, and laws. Broadly,

3675-463: Is increasingly being utilized in supply chain management, especially in the strategic purchasing and supply management sector. Effective application of big data can improve the performance of supply chain activities through improved decision-making capabilities. Moore et al. note a trend towards strategic supply-base reduction as a mechanism for leading businesses to reduce costs and improve supplier-related performance, and similarly Ogden identifies

3780-448: Is managed by a cross-functional team including representatives from logistics, production, purchasing, finance, marketing, and research and development. While each process interfaces with key customers and suppliers, the processes of customer relationship management and supplier relationship management form the critical linkages in the supply chain. The American Productivity and Quality Center (APQC) Process Classification Framework (PCF) SM

3885-402: Is more significant than ever. In addition, as supply, and therefore competition, among companies for the limited market demand increases and as pricing and other marketing elements become less distinguishing factors, product design likewise plays a different role by providing attractive features to generate demand. In this context, demand generation is used to define how attractive a product design

3990-428: Is overlooked for another reason—issues in finance are often addressed as matters of law rather than ethics. Aristotle said, "the end and purpose of the polis is the good life". Adam Smith characterized the good life in terms of material goods and intellectual and moral excellences of character. Smith in his The Wealth of Nations commented, "All for ourselves, and nothing for other people, seems, in every age of

4095-484: Is recyclable. Supply chains link value chains . Suppliers in a supply chain are often ranked by "tier", with first-tier suppliers supplying directly to the client, second-tier suppliers supplying to the first tier, and so on. The phrase "supply chain" may have been first published in a 1905 article in The Independent which briefly mentions the difficulty of "keeping a supply chain with India unbroken" during

4200-400: Is that it enhances individual liberty by extending the line of non-interference by the state or others around the person. Seen from this perspective, property right is absolute and property has a special and distinctive character that precedes its legal protection. Blackstone conceptualized property as the "sole and despotic dominion which one man claims and exercises over the external things of

4305-641: Is value loaded and associated with the personal qualities of propriety and respectability, also implies questions relating to ownership. A 'proper' person owns and is true to herself or himself, and is thus genuine, perfect and pure. Modern discourse on property emerged by the turn of the 17th century within theological discussions of that time. For instance, John Locke justified property rights saying that God had made "the earth, and all inferior creatures, [in] common to all men". In 1802 utilitarian Jeremy Bentham stated, "property and law are born together and die together". One argument for property ownership

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4410-702: The extended enterprise , and the use of the term "chain" and the linear structure it appears to represent have been criticized as "harder to relate to the way supply networks really operate. A chain is actually a complex and dynamic supply and demand network. As part of their efforts to demonstrate ethical practices , many large companies and global brands are integrating codes of conduct and guidelines into their corporate cultures and management systems . Through these, corporations are making demands on their suppliers (facilities, farms, subcontracted services such as cleaning, canteen, security etc.) and verifying, through social audits , that they are complying with

4515-458: The 2013 Savar building collapse with more than 1,100 victims have led to widespread discussions about corporate social responsibility across global supply chains. Wieland and Handfield (2013) suggest that companies need to audit products and suppliers and that supplier auditing needs to go beyond direct relationships with first-tier suppliers (those who supply the main customer directly). They also demonstrate that visibility needs to be improved if

4620-550: The British expedition to Tibet . A typical supply chain can be divided into two stages namely, production and distribution stages. In the production stage, components and semi-finished parts are produced in manufacturing centres. The components are then put together in an assembly plant. The distribution stage consists of central and regional distribution centres that transport products to end-consumers. Mentzer et al. suggest that at least three entities are required for there to be

4725-659: The European Commission issued a Communication concerning "a better functioning food supply chain in Europe", addressing the three sectors of the European economy which comprise the food supply chain: agriculture, food processing industries, and the distribution sectors. An earlier interim report on food prices (published in December 2008) had already raised concerns about the food supply chain. Arising out of

4830-570: The Importer Security Filing (ISF) and additional provisions of the Certified Cargo Screening Program. EU's draft supply chain law are due diligence requirements to protect human rights and the environment in the supply chain. With the increasing globalization and easier access to different kinds of alternative products in today's markets, the contribution of product design to generating demand

4935-412: The entrepreneur , who has to be responsible for his own happiness and the business is a means to said happiness, where the entrepreneur is not required to serve the interest of anyone else and no-one is entitled to his/her work. Another view of business is that it must exhibit corporate social responsibility (CSR): an umbrella term indicating that an ethical business must act as a responsible citizen of

5040-549: The required standard . A lack of transparency in the supply chain can bar consumers from knowledge of where their purchases originated and facilitate socially irresponsible practices. In 2018, the Loyola University Chicago 's Supply and Value Chain Center found in a survey that 53% of supply chain professionals considered ethics to be "extremely" important to their organization. Marshall L. Fisher (1997) asks

5145-457: The young or the old ), gender / sexual harassment , race , religion , disability , weight and attractiveness. A common approach to remedying discrimination is affirmative action . Once hired, employees have the right to the occasional cost of living increases, as well as raises based on merit. Promotions, however, are not a right, and there are often fewer openings than qualified applicants. It may seem unfair if an employee who has been with

5250-521: The 18th and 19th century intellectuals as land, labor or idea, and property right over slaves had the same theological and essentialized justification It was even held that the property in slaves was a sacred right. Wiecek says, "Yet slavery was more clearly and explicitly established under the Constitution than it had been under the Articles". In an 1857 judgment, US Supreme Court Chief Justice Roger B. Taney said, "The right of property in

5355-1627: The 1990s. Marketing ethics was approached from ethical perspectives of virtue or virtue ethics , deontology , consequentialism , pragmatism and relativism. Ethics in marketing deals with the principles, values and/or ideas by which marketers (and marketing institutions) ought to act. Marketing ethics is also contested terrain, beyond the previously described issue of potential conflicts between profitability and other concerns. Ethical marketing issues include marketing redundant or dangerous products/services, transparency about environmental risks, transparency about product ingredients such as genetically modified organisms possible health risks, financial risks , security risks, etc., respect for consumer privacy and autonomy, advertising truthfulness and fairness in pricing & distribution. According to Borgerson, and Schroeder (2008), marketing can influence individuals' perceptions of and interactions with other people, implying an ethical responsibility to avoid distorting those perceptions and interactions. Marketing ethics involves pricing practices, including illegal actions such as price fixing and legal actions including price discrimination and price skimming . Certain promotional activities have drawn fire, including greenwashing , bait and switch , shilling , viral marketing , spam (electronic) , pyramid schemes and multi-level marketing . Advertising has raised objections about attack ads , subliminal messages , sex in advertising and marketing in schools . Scholars in business and management have paid much attention to

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5460-538: The assumptions of globalization, outsourcing, and linear supply chains and to envision alternatives; in this example this could lead to local and circular supply chains. Supply chain resilience has been identified as an important business issue. The United Kingdom's Confederation of British Industry reported in 2014 that a significant number of businesses had reshored parts of their supply chain to European locations, with many identifying supply chain resilience as "a key factor in their decision to do so". Incidents like

5565-505: The attention of academics, media and business firms by the end of the Cold War . However, criticism of business practices was attacked for infringing the freedom of entrepreneurs and critics were accused of supporting communists . This scuttled the discourse of business ethics both in media and academia. The Defense Industry Initiative on Business Ethics and Conduct (DII) was created to support corporate ethical conduct. This era began

5670-488: The belief and support of self-regulation and free trade, which lifted tariffs and barriers and allowed businesses to merge and divest in an increasing global atmosphere. One of the earliest written treatments of business ethics is found in the Tirukkuṛaḷ , a Tamil book dated variously from 300 BCE to the 7th century CE and attributed to Thiruvalluvar . Many verses discuss business ethics, in particular, verse 113, adapting to

5775-405: The case of the government, community, and society what was merely an ethical issue can become a legal debate and eventually law." Some emerging ethical issues are: This area of business ethics usually deals with the duties of a company to ensure that products and production processes do not needlessly cause harm. Since few goods and services can be produced and consumed with zero risks, determining

5880-449: The communities in which it operates even at the cost of profits or other goals. In the US and most other nations, corporate entities are legally treated as persons in some respects. For example, they can hold title to property, sue and be sued and are subject to taxation, although their free speech rights are limited. This can be interpreted to imply that they have independent ethical responsibilities. Duska argued that stakeholders expect

5985-579: The communities in which they operate accelerated the development of formal ethics regimes. Maintaining an ethical status is the responsibility of the manager of the business. According to a 1990 article in the Journal of Business Ethics , "Managing ethical behavior is one of the most pervasive and complex problems facing business organizations today." Business ethics reflect the norms of each historical period. As time passes, norms evolve, causing accepted behaviors to become objectionable. Business ethics and

6090-598: The developing country public health setting, John Snow, Inc. has developed the JSI Framework for Integrated Supply Chain Management in Public Health, which draws from commercial sector best practices to solve problems in public health supply chains. Similarly, supply chain mapping involves documenting information regarding all participants in an organization's supply chain and assembling the information as

6195-538: The efficiency of distribution. The term "logistics" applies to activities within one company or organization involving product distribution, whereas "supply chain" additionally encompasses manufacturing and procurement, and therefore has a much broader focus as it involves multiple enterprises (including suppliers, manufacturers, and retailers) working together to meet a customer need for a product or service. However, John Mills et al . note that "early research" on supply chains focused on internal supply relationships within

6300-483: The enacting of policies that can improve occupational safety and health management in organizations. In fact, international organizations with presence in other nations have a responsibility to ensure that workers are well protected by policies in an organization to avoid safety related incidents. Many agribusinesses and food processors source raw materials from smallholder farmers. This is particularly true in certain sectors, such as coffee , cocoa and sugar . Over

6405-518: The ethical course can be difficult. In some case, consumers demand products that harm them, such as tobacco products. Production may have environmental impacts, including pollution , habitat destruction and urban sprawl . The downstream effects of technologies nuclear power , genetically modified food and mobile phones may not be well understood. While the precautionary principle may prohibit introducing new technology whose consequences are not fully understood, that principle would have prohibited

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6510-550: The ethical debate over introducing a crime of corporate manslaughter ; and the marketing of corporations' ethics policies. According to research published by the Institute of Business Ethics and Ipsos MORI in late 2012, the three major areas of public concern regarding business ethics in Britain are executive pay, corporate tax avoidance and bribery and corruption. Ethical standards of an entire organization can be damaged if

6615-461: The ethical issues in the different forms of relationships between organizations such as buyer-supplier relationships, networks, alliances , or joint ventures . Drawing in particular on Transaction Cost Theory and Agency Theory , they note the risk of opportunistic and unethical practices between partners through, for instance, shirking, poaching , and other deceitful behaviors. In turn, research on inter-organizational relationships has observed

6720-407: The face of change". For a long time, the interpretation of resilience in the sense of engineering resilience (or robustness) prevailed in supply chain management, leading to the notion of persistence . A popular implementation of this idea is given by measuring the time-to-survive and the time-to-recover of the supply chain, allowing identification of weak points in the system. More recently,

6825-547: The flow of information and finances is part of the chain as well as the product or service. Fazel Zarandi et al. add "buyer-seller relations" (at each stage), in addition to the flow of information, as the third main component of a supply chain. Mentzer et al. remind readers also that the focus of a supply chain is on the product or service in its end state: they refer to "the supply chain for candy " and "the supply chain for clothing". Individual supply chain actors may be positioned at different points in different supply chains:

6930-792: The global market with minimal regulation over capital flows. The recommendations however, met with criticisms from various schools of ethical philosophy. Some pragmatic ethicists , found these claims to be unfalsifiable and a priori, although neither of these makes the recommendations false or unethical per se. Raising economic growth to the highest value necessarily means that welfare is subordinate, although advocates dispute this saying that economic growth provides more welfare than known alternatives. Since history shows that neither regulated nor unregulated firms always behave ethically, neither regime offers an ethical panacea . Neoliberal recommendations to developing countries to unconditionally open up their economies to transnational finance corporations

7035-468: The ideology hold that unrestricted financial flows, if redeemed from the shackles of "financial repressions", best help impoverished nations to grow. The theory holds that open financial systems accelerate economic growth by encouraging foreign capital inflows, thereby enabling higher levels of savings, investment, employment, productivity and "welfare", along with containing corruption. Neoliberals recommended that governments open their financial systems to

7140-413: The interaction of profit-maximizing behavior with non-economic concerns. Interest in business ethics accelerated dramatically during the 1980s and 1990s, both within major corporations and within academia. For example, most major corporations today promote their commitment to non- economic values under headings such as ethics codes and social responsibility charters. Adam Smith said in 1776, "People of

7245-470: The interpretations of resilience in the sense of ecological resilience and social–ecological resilience have led to the notions of adaptation and transformation , respectively. A supply chain is thus interpreted as a social-ecological system which – similar to an ecosystem (e.g. forest) – is able to constantly adapt to external environmental conditions and – through the presence of social actors and their ability to foresight – also to transform itself into

7350-467: The maximum number of suppliers required to maintain production levels for each component is determined, and no more than one additional supplier is engaged with for each component. With the increased complexity and b2b activity associated with economic growth , actors often seek to view supply chain collaboration as a part of the value adding activities in a value chain . Business ethics Business ethics (also known as corporate ethics )

7455-477: The mix of debt and equity , dividend policy , the evaluation of alternative investment projects, options , futures , swaps , and other derivatives , portfolio diversification and many others. Finance is often mistaken by the people to be a discipline free from ethical burdens. The 2008 financial crisis caused critics to challenge the ethics of the executives in charge of U.S. and European financial institutions and financial regulatory bodies. Finance ethics

7560-416: The most people in the long term. Duska argued that Friedman failed to differentiate two very different aspects of business: (1) the motive of individuals, who are generally motivated by profit to participate in business, and (2) the socially sanctioned purpose of business, or the reason why people allow businesses to exist, which is to provide goods and services to people. So Friedman was wrong that making

7665-483: The motives for and performance efficacy of vertical integration differ by global region. Incorporating SCM successfully leads to a new kind of competition on the global market, where competition is no longer of the company-versus-company form but rather takes on a supply-chain-versus-supply-chain form. The primary objective of SCM is to fulfill customer demands through the most efficient use of resources, including distribution capacity, inventory , and labor. In theory,

7770-409: The need for a more comprehensive measurement program." However, the abundance of options for potential performance metrics to use is seen as a challenge for supply chain managers. One approach is to relate multiple measures in a hierarchical structure so that interdependencies and the contribution of multiple indicators to the "key" or most significant metrics can be more easily seen. Hofman suggests that

7875-604: The newest technology introduced since the industrial revolution . Product testing protocols have been attacked for violating the rights of both humans and animals . There are sources that provide information on companies that are environmentally responsible or do not test on animals. The etymological root of property is the Latin proprius , which refers to 'nature', 'quality', 'one's own', 'special characteristic', 'proper', 'intrinsic', 'inherent', 'regular', 'normal', 'genuine', 'thorough, complete, perfect' etc. The word property

7980-455: The object is to win, and winning is measured in terms solely of material wealth. Within the discipline, this rationality concept is never questioned, and has indeed become the theory-of-the-firm's sine qua non". Financial ethics is in this view a mathematical function of shareholder wealth. Such simplifying assumptions were once necessary for the construction of mathematically robust models. However, signalling theory and agency theory extended

8085-717: The paradigm to greater realism. Fairness in trading practices, trading conditions, financial contracting, sales practices, consultancy services, tax payments, internal audit, external audit and executive compensation also, fall under the umbrella of finance and accounting. Particular corporate ethical/legal abuses include: creative accounting , earnings management , misleading financial analysis, insider trading , securities fraud , bribery /kickbacks and facilitation payments . Outside of corporations, bucket shops and forex scams are criminal manipulations of financial markets. Cases include accounting scandals , Enron , WorldCom and Satyam . Human resource management occupies

8190-443: The past 20 years, there has been a shift towards more traceable supply chains. Rather than purchasing crops that have passed through several layers of collectors, firms are now sourcing directly from farmers or trusted aggregators. The drivers for this change include concerns about food safety , child labor and environmental sustainability as well as a desire to increase productivity and improve crop quality. In October 2009,

8295-548: The principles that guide a business. Business ethics refers to contemporary organizational standards, principles, sets of values and norms that govern the actions and behavior of an individual in the business organization. Business ethics have two dimensions, normative business ethics or descriptive business ethics. As a corporate practice and a career specialization, the field is primarily normative. Academics attempting to understand business behavior employ descriptive methods. The range and quantity of business ethical issues reflects

8400-540: The property is part of the private side of a public/private dichotomy and acts a counterweight to state power. Davies counters that "any space may be subject to plural meanings or appropriations which do not necessarily come into conflict". Private property has never been a universal doctrine, although since the end of the Cold War is it has become nearly so. Some societies, e.g., Native American bands, held land, if not all property, in common. When groups came into conflict,

8505-428: The purpose of a business organization is to make profit for shareholders. Nevertheless, the purpose of maximizing shareholder's wealth often "fails to energize employees". In practice, many non-shareholders also benefit from a firm's economic activity, among them employees through contractual compensation and its broader impact, consumers by the tangible or non-tangible value derived from their purchase choices; society as

8610-458: The purview of individual companies. Trade unions , for example, may push employers to establish due process for workers, but may also cause job loss by demanding unsustainable compensation and work rules. Unionized workplaces may confront union busting and strike breaking and face the ethical implications of work rules that advantage some workers over others. Among the many people management strategies that companies employ are

8715-469: The question in a key article, "Which is the right supply chain for your product?" Fisher, and also Naylor, Naim and Berry (1999), identify two matching characteristics of supply chain strategy: a combination of "functional" and "efficient", or a combination of "responsive" and "innovative" (Harrison and Godsell). Mentzer et al. distinguish between "direct supply chains", "extended supply chains", and "ultimate supply chains"; in their usage: In each case,

8820-661: The question is, do corporate executives, provided they stay within the law, have responsibilities in their business activities other than to make as much money for their stockholders as possible? And my answer to that is, no, they do not." This view is known as the Friedman doctrine . A multi-country 2011 survey found support for this view among the "informed public" ranging from 30 to 80%. Ronald Duska and Jacques Cory have described Friedman's argument as consequentialist or utilitarian rather than pragmatic : Friedman's argument implies that unrestrained corporate freedom would benefit

8925-454: The resulting behavior evolved as well. Business was involved in slavery , colonialism , and the Cold War . The term 'business ethics' came into common use in the United States in the early 1970s. By the mid-1980s at least 500 courses in business ethics reached 40,000 students, using some twenty textbooks and at least ten casebooks supported by professional societies, centers and journals of business ethics. The Society for Business Ethics

9030-522: The role of formal and informal mechanisms to both prevent unethical practices and mitigate their consequences. It especially discusses the importance of formal contracts and relational norms between partners to manage ethical issues. Being the most important element of a business, stakeholders' main concern is to determine whether or not the business is behaving ethically or unethically. The business's actions and decisions should be primarily ethical before it happens to become an ethical or even legal issue. "In

9135-427: The rules or standards that govern our decisions on a daily basis. Many consider "ethics" with conscience or a simplistic sense of "right" and "wrong". Others would say that ethics is an internal code that governs an individual's conduct, ingrained into each person by family, faith, tradition, community, laws, and personal mores. Corporations and professional organizations, particularly licensing boards, generally will have

9240-471: The same trade seldom meet together, even for merriment and diversion, but the conversation ends in a conspiracy against the public, or in some contrivance to raise prices." Governments use laws and regulations to point business behavior in what they perceive to be beneficial directions. Ethics implicitly regulates areas and details of behavior that lie beyond governmental control. The emergence of large corporations with limited relationships and sensitivity to

9345-612: The sphere of activity of recruitment selection, orientation, performance appraisal , training and development , industrial relations and health and safety issues. Business Ethicists differ in their orientation towards labor ethics. Some assess human resource policies according to whether they support an egalitarian workplace and the dignity of labor . Issues including employment itself , privacy , compensation in accord with comparable worth , collective bargaining (and/or its opposite) can be seen either as inalienable rights or as negotiable. Discrimination by age (preferring

9450-406: The success of the supply chain depends on the product design and the capabilities of the supply chain, but the reverse is also true: the success of the product depends on the supply chain that produces it. According to an industrial engineering study which looked at a process for Design for Supply Chain (DFSC), since the product design imposes multiple requirements on the supply chain, then once

9555-554: The supplier's supplier to the customer's customer". It includes delivery and order fulfillment performance, production flexibility, warranty and returns processing costs, inventory and asset turns, and other factors in evaluating the overall effective performance of a supply chain. A supply chain can often be split into different segments: the earlier stages of a supply chain, such as raw material processing and manufacturing , determine their break-even point by considering production costs relative to market price. The later stages of

9660-471: The supply cannot be directly controlled and that smart and electronic technologies play a key role to improve visibility. Finally, they highlight that collaboration with local partners, across the industry and with universities is crucial to successfully manage social responsibility in supply chains. This incident also highlights the need to improve workers safety standards in organizations. Hoi and Lin (2012) note that corporate social responsibility can influence

9765-414: The supply chain has the ability to help optimize the entire supply chain rather than to sub-optimize based on local optimization. This will lead to better-planned overall production and distribution, which can cut costs and give a more attractive final product, leading to better sales and better overall results for the companies involved. This is one form of vertical integration . Yet, it has been shown that

9870-418: The supply chain. Supply chain consultant Anthony Tarantino has identified a number of best practices affecting the resilience and operation of supply chains, including the formation of multi-disciplinary centres of excellence, hybrid supply chain organizations which optimize the balance between centralization and de-centralization, and more extensive use of both structured and unstructured data . Big data

9975-446: The three key indicators of a well-functioning supply chain are: A Cranfield University boardroom survey in 2010 found evidence that many organizations recognized the importance of the supply chain contribution to their business success, with a focus on cost, customer lead-time and customer quality being the primary performance indicators. Supply chain resilience is "the capacity of a supply chain to persist, adapt, or transform in

10080-497: The two reports, the Commission established a "European Food Prices Monitoring Tool", an initiative developed by Eurostat and intended to "increase transparency in the food supply chain". In March 2022 the Commission noted "the need for EU agriculture and food supply chains to become more resilient and sustainable". The supply chain in the fashion industries has some unique properties, as clothing fashion changes several times

10185-569: The upstream and downstream elements of supply-chain management (SCM). The SCOR ( Supply-Chain Operations Reference ) model, developed by a consortium of industry and the non-profit Supply Chain Council (now part of APICS ) became the cross-industry de facto standard defining the scope of supply-chain management. SCOR measures total supply-chain performance. It is a process reference model for supply-chain management, extending "from

10290-506: The view that "property is not essentially a 'right to a thing', but rather a separable bundle of rights subsisting between persons which may vary according to the context and the object which is at stake". In common parlance property rights involve a bundle of rights including occupancy, use and enjoyment, and the right to sell, devise, give, or lease all or part of these rights. Custodians of property have obligations as well as rights. Michelman writes, "A property regime thus depends on

10395-443: The workplace what is unethical does not mean illegal and should follow the guidelines put in place by OSHA ( Occupational Safety and Health Administration ), EEOC ( Equal Employment Opportunity Commission ), and other law binding entities. Potential employees have ethical obligations to employers, involving intellectual property protection and whistle-blowing . Employers must consider workplace safety , which may involve modifying

10500-420: The workplace, or providing appropriate training or hazard disclosure. This differentiates on the location and type of work that is taking place and can need to comply with the standards to protect employees and non-employees under workplace safety. Larger economic issues such as immigration , trade policy , globalization and trade unionism affect workplaces and have an ethical dimension, but are often beyond

10605-492: The world, in total exclusion of the right of any other individual in the universe". During the seventeenth and eighteenth centuries, slavery spread to European colonies including America, where colonial legislatures defined the legal status of slaves as a form of property. Combined with theological justification, the property was taken to be essentially natural ordained by God. Property, which later gained meaning as ownership and appeared natural to Locke, Jefferson and to many of

10710-417: The world, to have been the vile maxim of the masters of mankind." However, a section of economists influenced by the ideology of neoliberalism , interpreted the objective of economics to be maximization of economic growth through accelerated consumption and production of goods and services . Neoliberal ideology promoted finance from its position as a component of economics to its core. Proponents of

10815-420: Was an "ethical" act. Economist Milton Friedman wrote that corporate executives' "responsibility ... generally will be to make as much money as possible while conforming to their basic rules of the society, both those embodied in law and those embodied in ethical custom". Friedman also said, "the only entities who can have responsibilities are individuals ... A business cannot have responsibilities. So

10920-413: Was fiercely contested by some ethicists. The claim that deregulation and the opening up of economies would reduce corruption was also contested. Dobson observes, "a rational agent is simply one who pursues personal material advantage ad infinitum. In essence, to be rational in finance is to be individualistic, materialistic, and competitive. Business is a game played by individuals, as with all games

11025-537: Was founded in 1980. European business schools adopted business ethics after 1987 commencing with the European Business Ethics Network. In 1982 the first single-authored books in the field appeared. Firms began highlighting their ethical stature in the late 1980s and early 1990s, possibly in an attempt to distance themselves from the business scandals of the day, such as the savings and loan crisis . The concept of business ethics caught

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