Ethics in supply chain management
Roberts (2003) argues that, through establishment of immediate monopoly from supply chain economies of scale and specialization, consumer tastes and preferences are not emphasized on. Important competition is killed and fully uprooted as the smaller firms have only two options, either joining the chain supply or becoming irrelevant in the local and regional markets. Large scale machinated production arising from lean management and the great demand for the goods internationally reduces the overall flexibility to develop new models based on regional requirements.
This increased generalization has been accused of allowing smaller suppliers affiliated to single companies to target and capture local markets as they are able to respond intermediately and factor the consumer requirements at all times. Also, with the increase in the supply chain management, it becomes apparent that the companies are international, therefore they focus on maintaining the name more than improving the overall quality of the consumer products.
Recently, china products like tooth paste, containerized milk and pet food created a stir in the international market due to the low quality as their supply chain management emphasizes on large scale production and focuses less on the quality requirements by the consumers. Massive losses were therefore incurred as the shelf and the warehouse products were rejected by the consumers (Hult, 2006). Besides, human rights and environmental groups protested greatly due to the low quality products that filtrated to the market without proper standards attainment.
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Besides, specialization ensures the massive companies pay hefty taxes to the governments of the regions they are located in. However, this acts as a bait since majority of them are involved in environmental pollution and child labor exploitation like in China, India and Brazil (Roberts, 2003). Though supply chain management have increased the overall supplies and availability of products and services all over the world, certain unbecoming issues have arisen in the mega business application.
To begin with, there is great reduction in privacy for the dependent line integrated companies in terms of their overall management that govern their operations. Their internal books of accounts and main operation modes are thoroughly scrutinized with dictates of the specific technology to be employed in order for the chain supplies to incorporate them under their umbrella. Local knowledge is also disregarded making the small firms that are unable to afford the costly technology close down and increasing unemployment levels in their regions of occurrence.
As a result, they work under undue pressure that reduces the overall profits accruing to theses companies from the strict unnecessary requirements (Ballou, 1999). Recently, concerns have bee raised from the major companies under the international chain supplies integration where low working conditions and remuneration characterize their operation. This has led to the establishment of International Labor Organization (ILO) and the UN Declaration of Human rights that the companies should follow in setting the standards to be observed all over the world (Lavassani, 2008).
Limits on health for instance working hours, exposure to hazardous chemicals and sound levels have been greatly neglected and their revelation greatly denied by the management. Chain supplies outsourced companies being large scale tax contributors in their countries of existence, they have been allowed to draft rules and regulations that govern their operations to increase improve the management thereby acting as the fulcrum for human rights abuses (Roberts, 2003).
Due to the emphasized specialization in the chain supply management, economies of scale have resulted to massive degradation of the environment where production takes place. Massive emissions and effluents continuously pollute the environment in their regions of operation (Simchi-Levi et al, 2007). With petroleum being used as the key energy source for the industrial production of the goods and transporting them to the final consumers, large quantities of green house gases responsible for depleting the environment are released.
Plastic and metallic containers after consumption of different products have contributed greatly in the environmental degeneration at their regions of dumping. Therefore, human health and ecological degradation accelerated as a result of the increased products and transport of the finished products and services should be a responsibility of the chain supply and management (Beamon, 998).