Ethics in Supply Chain Management
1.0 Executive Summary
Due to the changing in business model of Multi-national Corporations (MNCs) and lack in supply chain management, MNCs have been criticized as behaving unethically in some situations. It makes a very bad impact on the business and it can destroy the brand image of the corporation. In order to determine the cause and solve this problem, I will examine the ethic of largest computing corporation (Apple) in its relationship with its main manufacture (Foxconn). Then, I will try to consider and apply due diligence in supply chain management carefully to solve their unethical situations. Other hand, I will analysis the impact of supply chain issues to Apple’s stakeholder. Thereby proving the importance of applied the Due Diligence in solving ethical issue in supply chain management.
2.0 Introduction
Due Diligence in business is term used to evaluate and investigate business opportunities. It describes the general duty to exercise care in all transaction of target company such as inspect and evaluate all relevant aspects in the present, past and the predictable future of business. (Lawrence, 1994). Due diligence is an analysis base on records and activities of target company. It involves survey activities, assessment, appraisal, analysis of a project/business or an activity carried out on the basis criteria which set out before. Due diligence is basic common success factors which company should take before doing an agreement or a transaction with other companies. (Phillips, 2012). Due diligence process is conducted and implemented by two companies or outsource; it provide the most detailed and complete information about the project, business idea or business transactions which companies consider. Due diligence base on areas as: Financial, Compatibility, Legal/ Environment, Property / Assets, Marketing and Sales, Operations, Management and Information Systems. (Luis, 2010)
Supply Chain Management (SCM) is supervision and management the movement
Due to the changing in business model of Multi-national Corporations (MNCs) and lack in supply chain management, MNCs have been criticized as behaving unethically in some situations. It makes a very bad impact on the business and it can destroy the brand image of the corporation. In order to determine the cause and solve this problem, I will examine the ethic of largest computing corporation (Apple) in its relationship with its main manufacture (Foxconn). Then, I will try to consider and apply due diligence in supply chain management carefully to solve their unethical situations. Other hand, I will analysis the impact of supply chain issues to Apple’s stakeholder. Thereby proving the importance of applied the Due Diligence in solving ethical issue in supply chain management.
2.0 Introduction
Due Diligence in business is term used to evaluate and investigate business opportunities. It describes the general duty to exercise care in all transaction of target company such as inspect and evaluate all relevant aspects in the present, past and the predictable future of business. (Lawrence, 1994). Due diligence is an analysis base on records and activities of target company. It involves survey activities, assessment, appraisal, analysis of a project/business or an activity carried out on the basis criteria which set out before. Due diligence is basic common success factors which company should take before doing an agreement or a transaction with other companies. (Phillips, 2012). Due diligence process is conducted and implemented by two companies or outsource; it provide the most detailed and complete information about the project, business idea or business transactions which companies consider. Due diligence base on areas as: Financial, Compatibility, Legal/ Environment, Property / Assets, Marketing and Sales, Operations, Management and Information Systems. (Luis, 2010)
Supply Chain Management (SCM) is supervision and management the movement