Corporate Management Task

1. Supply Chain Management

Many companies devise a policy on ethical sourcing covering such things as workplace standards and business practices, health and safety conditions, human rights, legal systems, child labour, disciplinary practices, wages and benefits.

a. What do you think motivates a company to draw up this type of policy?

An important factor that motivates companies to consider and draw up the ethical sourcing policy is the fact that risks are mitigated in this manner (Pretious & Love, 2006). Supplier risk is mitigated because when they comply with ethical standards, the risks associated with the supplied goods such as use of unethical processes are eliminated (Preuss, 2009). Secondly, the company will reduce operating costs with ethical sourcing policy as the right raw materials or parts are set to meet the standards and specifications (Roberts, 2003). Thirdly, the company will be seeking to protect its brand image because the public and authorities will be aware of its ethical practices. Finally, the company will be seeking to increase sales when the public and the authorities develop a positive perception towards its products.

What other issues would you include in such a supplier selection policy?

In the policy, I would consider including the expectations on ethical, safety, labor, health, social, and environmental standards that all suppliers should always maintain. In this case, I would include a code of conduct that every person or organization should read and implement. Secondly, I would include the terms and conditions that a supplier should meet before being accepted as a business partner. For instance, I would develop list of practices that the suppliers must always present such as certificates of clearance from the relevant authorities.

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