Logistics and
Supply Chain
Management TOPIC 15: LAW AND ETHICS IN SCM
MS BING HAN
Copyright By PowCoder代写 加微信 powcoder
Learning Objectives
1. Describe the roles of law and ethical issues in SCM.
2. Explain how to cultivate an ethical as well as efficient supply chain network.
3. Sustainable Supply Chain Management, triple bottom lines
EBU6609 LOGISTICS AND SUPPLY CHAIN MANAGEMENT
The Supply Chain Manager
What are the
What skills and mind-
characteristics
set does a true supply
of the person
chain manager need?
in the middle?
EBU6609 LOGISTICS AND SUPPLY CHAIN MANAGEMENT 3
Personally Liable Under Certain Conditions
When making a false statement concerning authority with intent to deceive or when the misrepresentation has the natural and probable consequence of misleading
When agents perform a damaging act without authority
• Even though believing they have such authority
When performing an act which is itself illegal
• Even on authority from the employer
EBU6609 LOGISTICS AND SUPPLY CHAIN MANAGEMENT
Personably Liable…
When wilfully performing an act which results in damage to anyone
When performing damaging acts outside the scope of authority
• Even though the act is performed with the intention of rendering the employer a valuable service
EBU6609 LOGISTICS AND SUPPLY CHAIN MANAGEMENT
AValid Contract Is Based on Four Factors
Competent parties – either principals or qualified agents
Legal subject matter or purpose
An offer and an acceptance
Consideration (bargained-for exchange)
EBU6609 LOGISTICS AND SUPPLY CHAIN MANAGEMENT
Purchases Made Orally
Normally there must be some written notation if the price of the order for the sale of goods is US$500 or more.
If the seller supplies a memorandum which is not in accordance with the buyer’s understanding of the oral order, he or she must give a notice of objection to the supplier within 10 days of receipt of the memorandum to preserve his or her legal rights.
EBU6609 LOGISTICS AND SUPPLY CHAIN MANAGEMENT 7
Four Types of Warranties
Express warranty
Implied warranty of merchantability
Implied warranty of fitness for a particular purpose
Warranty of title
EBU6609 LOGISTICS AND SUPPLY CHAIN MANAGEMENT
Buyer Has 3 Options when Delivery Fails to Conform to the Contract
1. Reject the whole shipment
2. Accept the whole shipment
3. Accept part of the shipment and reject the balance
EBU6609 LOGISTICS AND SUPPLY CHAIN MANAGEMENT
E-Commerce and the Law
Uniform Commercial Code (UCC)
The Uniform Computer Information Transaction Act (UCITA)
• Commercial code that would provide uniform rules and standards
Uniform Electronic Transactions Act (UETA)
• Validates the use of electronic records and electronic signatures
The Electronic Commerce Enhancement Act
EBU6609 LOGISTICS AND SUPPLY CHAIN MANAGEMENT
Commercial dispute resolution
EBU6609 LOGISTICS AND SUPPLY CHAIN MANAGEMENT 11
Commercial Arbitration
Is your clause in proper form under the appropriate arbitration laws?
Does your clause fully express the will of the parties or is it ambiguous?
Does your clause ensure the appointment of impartial arbitrators?
EBU6609 LOGISTICS AND SUPPLY CHAIN MANAGEMENT
Commercial Arbitration
Does your clause provide for a method of naming arbitrators?
◦By reference to the rules of an association or otherwise
◦Safeguarding against deadlocks or defaults in the proceedings
EBU6609 LOGISTICS AND SUPPLY CHAIN MANAGEMENT
The Sarbanes-
July 2002, public company accounting reform
Investor protection
requires listing off-balance sheet items such as long-term purchase agreements. (401a)
Only required for companies listed on a US Stock Exchange.
year VMI programs
Cancellation and restocking charges
EBU6609 LOGISTICS AND SUPPLY CHAIN MANAGEMENT 14
Ethical Issues
Arising from the nature of markets
◦ 18th Century economist demonstrated how in a free market the self interest of producers and consumers will produce an outcome desirable to all concerned
But the market can also lead to inequality of income, wealth and market power:
◦ Monopoly suppliers can exploit consumers
◦ Monopsony buyers can exploit supply firms
◦ Worldwide inequality of income can result in unethical practices such as the child labour
EBU6609 LOGISTICS AND SUPPLY CHAIN MANAGEMENT 15
Ethical issues and society
Involvement in the community
Honesty, truthfulness and fairness in marketing
Use of animals in product testing
Agricultural practices, e.g. intensive faming
The degree of safety built into product design
Donation to good causes
The extent to which a business accepts its alleged responsibilities for mishaps, spillages and leaks (not BP’s oil field leakage!)
The selling of addictive products e.g. tobacco Involvement in the arms trade
EBU6609 LOGISTICS AND SUPPLY CHAIN MANAGEMENT 16
Ethical issues arising from internal and industry practices – examples
Treatment of customers – e.g. honouring the spirit as well as the letter of the law in respect to warranties and after sales service
The number and proportion of women and ethnic minority people in senior positions
The organisation’s loyalty to employees when it is in difficult economic conditions
Employment of disabled people
Working conditions and treatment of workers Bribes to secure contracts
Child labour in the developing world Business practices of supply firms
EBU6609 LOGISTICS AND SUPPLY CHAIN MANAGEMENT 17
Unethical practices in marketing Pricing lack of clarity in pricing
Dumping – selling at a loss to increase market share and destroy competition in order to subsequently raise prices
Price fixing cartels
Encouraging people to claim prizes when they phoning
“Bait and switch” selling – attracting customers and then subjecting them to high pressure selling techniques to switch to an more expensive alternative
premium rate numbers
EBU6609 LOGISTICS AND SUPPLY CHAIN MANAGEMENT 18
Unethical practices in marketing
High pressure selling – especially in relation to groups such as the elderly
Counterfeit goods and brand piracy
Copying the style of packaging in an attempt to
mislead consumers
Deceptive advertising
Irresponsible issue of credit cards and the irresponsible raising of credit limits
Unethical practices in market research and competitor intelligence
EBU6609 LOGISTICS AND SUPPLY CHAIN MANAGEMENT 19
Ethics in Supply Chains
It would be hypocritical to claim to be a ethical firm if it turned a blind to unethical practices by suppliers in the supply chain. In particular:
The use of child labour and forced labour Production in sweatshops
Violation of the basic rights of workers
Ignoring of health, safety and environmental standards
EBU6609 LOGISTICS AND SUPPLY CHAIN MANAGEMENT 20
Case Study: Apple and Foxconn Apple’s Supplier List – where is Foxconn?
https://www.apple.com/uk/supplier- responsibility/pdf/Apple-Supplier-List.pdf
Foxconn: also known as Hon Hai Precision Industry Co., is the world’s largest contract maker of electronic products.
◦The biggest private employer in China.
EBU6609 LOGISTICS AND SUPPLY CHAIN MANAGEMENT 21
Case Study: how Apple does it?
https://www.apple.com/uk/supplier- responsibility/
EBU6609 LOGISTICS AND SUPPLY CHAIN MANAGEMENT 22
How to be ethical in SCM?
An ethical producer has to be concerned with what is practiced by all firms (upstream and downstream) in the supply chain.
◦Perceptions and Conflict of Interest
◦Gifts and Gratuities
◦Promotion of Positive Relationships with Suppliers
◦ Reciprocity
EBU6609 LOGISTICS AND SUPPLY CHAIN MANAGEMENT 23
Definitions:
Sustainable supply chain management
requires that sustainability criteria be met while maintaining competitiveness through meeting customer needs. (Seuring and Müller, 2008)
Sustainability in Supply Chain Management
EBU6609 LOGISTICS AND SUPPLY CHAIN MANAGEMENT 24
Why Should Supply Chains Try to Be Sustainable?
◦Supply chains are boundary spanning
◦Coordination across normal boundaries means that many aspects of sustainability may be affected
◦From initial processing of RM to consumption by final customer
EBU6609 LOGISTICS AND SUPPLY CHAIN MANAGEMENT 25
Why Should Supply Chains Try to Be Sustainable?
◦Outsourcing
◦Watchdog groups ◦Government requirements
EBU6609 LOGISTICS AND SUPPLY CHAIN MANAGEMENT 26
Why Should Supply Chains Try to Be Sustainable?
Reduce cost and wastes
Manage risks
Create distinguishing (sellable) reputation
Reinforce shareholder value
EBU6609 LOGISTICS AND SUPPLY CHAIN MANAGEMENT 27
Issues affecting sustainability
Product design Source reduction
Product returns Recycling
Length of product life Material substitution
Waste disposal Refurbishing Repair Remanufacturing
Extension of product life cycle
End of life disposal Packaging
EBU6609 LOGISTICS AND SUPPLY CHAIN MANAGEMENT 28
Sustainability in Supply Chain Management
Use of the triple bottom line
◦ Manage risks to organizational reputation ◦ Create competitive advantage
◦ Environmental
◦ Regulatory issues
◦ Risk of harm from usage, disposal, packaging, shipping
◦ Economic
◦ Sustainability can be cost efficient
◦ Sustainability can enhance shareholder value
EBU6609 LOGISTICS AND SUPPLY CHAIN MANAGEMENT 29
Sustainability
The Triple Bottom Line
Performance
Environmental
Performance
Performance
Adapted from: Carter, CR, and DS Rogers. 2008. A framework of sustainable supply chain management: Moving toward new theory. International Journal of Physical Distribution & Logistics Management 38 (5):360-387.
EBU6609 LOGISTICS AND SUPPLY CHAIN MANAGEMENT 30
Triple Bottom Line – Supporting Factors
Transparency and Risk Management
Anticipate harm from activities Stakeholder Engagement Supplier Operations
Sustainability as part of an integrated strategy
Organizational Culture
Deeply Ingrained Organizational Citizenship Values and Ethics
EBU6609 LOGISTICS AND SUPPLY CHAIN MANAGEMENT 31
Sustainable Supply Chains at Walmart
The 7 R’s of Sustainable Packaging
Remove Reduce Reuse
Recycle Revenue Read
EBU6609 LOGISTICS AND SUPPLY CHAIN MANAGEMENT 32
Sustainable Supply Chains at Walmart
“When Wal-Mart tells a supplier that it wants a change in packaging, that supplier will change all its packaging…Wal-Mart has the potential to have a tremendous impact on America’s environmental footprint.”
– , spokesman for The Sierra Club
EBU6609 LOGISTICS AND SUPPLY CHAIN MANAGEMENT 33
Sustainable Supply Chains at Walmart
Walmart developed a Sustainability Hub. Project Gigaton
EBU6609 LOGISTICS AND SUPPLY CHAIN MANAGEMENT 34
Leenders, Ch12
Christopher, Ch15 https://www.apple.com/uk/supplier-responsibility/ https://www.walmartsustainabilityhub.com/
EBU6609 LOGISTICS AND SUPPLY CHAIN MANAGEMENT 35
程序代写 CS代考 加微信: powcoder QQ: 1823890830 Email: powcoder@163.com