Supply Chain Management – GM and Nike

Policy Governing Gifts, Entertainment and Gratuities from Suppliers No employee should accept any favours In countries where it is norm to accept favours Discuss with supervisor If accepting gift of any real value – turn over the gift to the corporation

GM Is this policy enough to ensure ethical conduct? NO, A comprehensive approach needed. Culture, leadership, strategy congruence etc. BUT it is useful to minimize ‘gray’ areas. It is comprehensive, accommodates various contingencies : e.g. - the explicit (80%), cultural norms (10%), judgment (10%) Instead of just 100% judgment by all (including junior staff)

Management of Environment Safety and Health (MESH) Reduce and eliminate environmental impacts Seek partnership with ecologically responsible partners Educate its partners on the environmental policy

Nike Environmental sustainability vs. labour practices? Holistic Ethical Framework - One ‘right’ does not justify ‘wrong’ Dominant firm responsibility for whole supply chain ethics? YES Dominant firm responsibilities. With position comes greater responsibilities. Stakeholder expectations. Bargaining power. BUT where reasonably possible Issue of practicality – control. How far down the chain can Nike monitor.