Ethics in Supply Chain Management

2764 words 12 pages
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
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Almost problem of Apple relate to Foxconn and its subsidiaries in Asia. Foxconn is the largest manufacturer partner of Apple. For a long time, the media and social organizations have criticized the violation of human rights with workers and poor working conditions in this corporation in China. ( NewYorkTimes, 2012). Some basic ethical principles are violated such as: hazardous working environment; employee suicide because working in high-stress environment; underage workers; involuntary labor; long working hours – 60 hours and 7 days per weeks; below-standard wages. Especially these manufactures use of toxic chemicals and the air filtration systems are non-standard and inadequate. (Hinks, 2012)

3.2 Apple’s products do not comply and achieve EPEAT conditions.
Apple’s product was ostracized and strongly condemned after Apple officially withdraws all products from the EPEAT standard assessment system. All Apple’s products are assessed unsafe with environment. Following Electronic Product Environmental Assessment Tool (EPEAT), all products must be designed to be easily disassembled and repaired components. This will help the recycling process (usually done in poor or developing countries) will not make the hazardous materials such as batteries mixed with the environment. But Apple and their manufacturers did not design new products like the Macbook, Ipad, Iphone with detachable components. (Mashable, 2012).

4.0 Stakeholder


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