Ethics the Company Can Source Case Study

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The second step is to initiate a supplier code of conduct. The greatest potential for ethical violations falls with suppliers such as agricultural firms or offshored service providers, and these violations can result in negative publicity for the company.

Ultimately, it is not expected that these ethical standards will form a competitive advantage for the company. Having high ethical standards is more of a hygiene factor in that it is something a company needs to have to avoid negative impacts, but few companies get any particular competitive mileage from their ethical policies. There is little impetus to join the fair trade or organic businesses for most of the products we sell. While many consumers are willing to pay more for said products, it remains a niche category especially in Europe and the UK. This usually means that the volumes are too low to justify the effort.

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Overall, the best approach for this company is to ensure that the company develops and adheres to a strong code of conduct across the entirety of its operations. This will ensure that the company remains scandal-free, which is a positive outcome especially in an agriculture-related business.

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