It was a while since I last read a REALLY new thing in supply chain but today I read a piece in Supply and Demand Chain Executive which was quite interesting and like the new blood in my veins!!

The article was covering a recent research by the consultancy firm Integrity Interactive about ethics management through the supply chain.

The Integrity Interactive`s September 2007 survey of 75 Global 2000 companies found that 86 percent of companies do not include suppliers in their company code of conduct, and nearly 60 percent were not sure if their company regularly assessed ethics risks in the supply chain.

Many enterprises around the world are unaware of how effective supply chain ethics and compliance programs can help them avoid costly recalls and brand damage that results from a supply chain ethics scandal. Unfortunately so far, the demand for organized SEM programs is being driven by government regulators and consumers. The changes include stronger import/export standards, product safety rules and labeling requirements.

I myself think that another driving force for setting such programs in place can be consortiums and standardization bodies which can promote their relevant standards more with the QA devisions of the companies. Consortiums such as APQC can consider such processes in their best practice models and thus give an idea that such processes matter.

But a good starting point and a gateway to the next-level socially responsible supply chain can start from a simple audit of the major suppliers regarding the ethics, safety and requirements. This, even though might seem simple, creates shared knowledge between the value chain players and eliminate a range of negative effects.