Effective partnerships, alliances, and relationships with stakeholders, customers, and suppliers require that leadership apply ethics to practices of supply chain management (SCM) processes to increase the effectiveness of the exchange of goods and services. Since manufacturing for US companies often occurs off shore, leaders need to continually evaluate ethical behaviors, cross-cultural practices, and compliance in a global environment.
Manufacturing moved out of the US to reduce costs. In under-developed countries, there are less rules about how to treat employees and the environment. CSR encompasses the need for humanitarian treatment of employees and protection of the environment. The consumer’s view of a company revolves around the news about how they treat human and other resources during production of their products.
Executives need to balance financial return with ethical practices as they conduct business offshore. Leaders often feel the tension between ideal practices and realities they face in returning a profit. Regulations and accreditation guidelines often require functioning on a higher plane. The principles found in the guidelines from ISO 9000 provides standards representing an international consensus on good quality management practices. It consists of standards and guidelines relating to quality management systems and related supporting standards. (International Organization for Standardization, 2017).
The United Nations Global Compact is a strategic policy initiative for businesses that are committed to aligning their operations and strategies with ten universally accepted principles in the areas of human rights, labour, environment and anti-corruption. (http://www.unglobalcompact.org). Under the compact, there are specific guidelines pertaining to social responsibility and sustainability. As you read and research this week, you will want to identify the other agreements that are important to social responsibility and sustainability; especially how other trade and commerce agreements apply. Given the fact that there are differences between host, parent, and international law, what do leaders need to do to ensure the standard operating procedures meet ethical standards? How can they approach these differences in the law? Share an example demonstrates ethical practice from the leadership of the company you chose for your assignments.