Welcome to the Presentation

Ethical
Behavior
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Ranapriya Barua
Roll-18282017

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 SUMMARY OF THE CASE
Company SUPARFAMES
Business Spectacle frames supplies to retail opticians

Employees 120 nos.

Core Marketing, sales, finance, purchasing,
functions packing and warehousing
Turnover € 20 Million
Purchasing 3 members team, One Manager and two
Team buyers

Tasks Carry out an audit of the suppliers and

assigned by purchasing practices
MD.

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 Plan for ethical issue
Ethical issue raised Plan for SUPARFAMES
Unhealthy Working environment Business environment should be
healthy as per ILO business
requirement.

Working environment should be

hygienic.

Assist suppliers to improve working

environment.

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 Plan for ethical issue
Ethical issue raised Plan for SUPARFAMES
Use of child labor Against UN right for children.

Ibzana should ensure proper rules

for employment of staffs.

Superfames should also ensure not

to engaged child labor in operations.

Site visit by the Buying company

before considered as a supplier.

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 Plan for ethical issue
Ethical issue raised
Staff are punished for not
completion an order on time
Plan for SUPARFAMES
It is against human rights.
If staffs are unable to complete task
on time, are allowed extra hours and
pay as overtime.
Need additional training to do the
task efficiently.
Buying organization should not
select such supplier.
This type of activities may have a
negative impact on the Buying
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 Plan for ethical issue
Ethical issue raised Plan for SUPARFAMES

Low Wages It is incorporate in the ILO that

employees are entitled to a fair
wage.

Employer who pays less than

minimum wage seen as unethical
Practice.

Should not select such type of

supplier by Buying organization.
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 Plan for ethical issue
Ethical issue raised Plan for SUPARFAMES
Number of discrepancies Conceal a lot of
between the automated information.
stock figures in the Re-structure the process
warehouse and the actual by using ICT and
stock figures automation techniques to
remove discrepancies.

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 Plan for ethical issue
Ethical issue raised Plan for SUPARFAMES
Senior managers hospitality by Affecting decisions in favor of
Ribana Ribana.
Buyer must direct its employer
not to accept these offers.
It is not wise for helping good
image for company.

Staffs can accepts gift (small

intrinsic value) but should be
declared to senior authority.

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 Plan for ethical issue
Ethical issue raised Plan for SUPARFAMES
Gender discrimination It is against human rights.
People are paid equal pay for
equal work irrespective of who
his performing the task.
Ensure HR department assign
appropriate pay level to every
task performed irrespective of the
gender.

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Rules for ethical behavior
Ethical Behavior

 Ethical behavior involves demonstrating

respect to key moral principles that include
honesty, fairness, equality, dignity, diversity
and individual rights.

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 Rules for ethical behavior
Transparency
 Purchasing people should be as transparent
as possible.
 Supplier must know what practices are
acceptable and what are not acceptable when
one wants to deal with buyer.

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 Rules for ethical behavior
Declaration of interest role
 Should declare any material or personal
interest in all business transactions.
 Specify what gift can be accepted or not
accepted.
 Gift items may be small intrinsic values such
as desk calendar, diaries, key ring etc.
 Should not accept hospitality.
 Accepting gift and hospitality without full
transparency can damage buying organization.
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 Rules for ethical behavior
Corporate Social Responsibility (CSR)
 Supplier will not engage in the abuse of human
rights and unfair labor practice against it labor
force.
 Should work with suppliers to improved their
status in CSR.

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 Rules for ethical behavior
Health and Safety Issue
 Supplier Should have appropriate health and
safety polices and procedures.
 Demonstrated safety issues in the work place.
 Provide safety equipment such as helmet,
gloves, goggles and safety boots.
 Employees must be trained in health and
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safety policies procedures.
 Rules for ethical behavior
Principle Against Child Labor

 Criteria set for selection as a supplier.

 Employed more than 14/18 years old.

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 Rules for ethical behavior
Policy of Equality for all in the work place

 No discrimination on the basis of race, caste,

religion, nationality, age, gender, marital status
and disability.
 Equal opportunity is given to all.

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 Rules for ethical behavior
Grievance and appeal procedures
 Clear understood by all employees.
 There should be a grievance and appeal
procedure in every organization to reduce
anger and resentment.

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 Conclusion

 It should be ensured that supplier selected by

SUPARFAMES will not engage in any
unethical business practices.
 Ensure professional ethics in business
operations.

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THANK YOU

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