Supply Chain Case Study Example | Topics and Well Written Essays - 750 words

Supply Chain - Case Study Example There are crucial stakeholders representing diverse interests within companies, but equally important, there are also numerous stakeholders outside as well who include suppliers and primary producers of raw materials. To sustainably remain in business, companies must address potential risks facing both internal and external stakeholders, and supply chain ethics form a critical aspect of this component (Mills, Schmitz & Frizelle 2004, p. 1021). Compliance practices, ethics and culture of the entire supply chain members must be examined and addressed to reduce risks. This paper will examine Nestlà ©Ã¢â‚¬â„¢s case study and determine its and its suppliers’ supply chain and business risks in the event of their unethical behaviour as well as strategic advantages to suppliers and customers when they embrace ethical practices. Consumers, business partners, investors, media organisations and regulators all expect businesses and their supply chains to demonstrate high standards of ethical behaviour (Coughlan 2005, p. 49). Ethical scandals generated by suppliers are probably the least foreseen and biggest risks businesses face in the modern world. In view of this, Nestlà © understands the potential damage that can be suffered when the risks materialise and, hence, has adopted protective measures in the form of social corporate responsibility (SCR). In this sense, the company extends its culture beyond internal control to ensure its policies and principles are concerned with the activities of suppliers and consumers and practices of labour and human rights. The environment also forms a key area of concern. The underlying significance of this approach is that it creates new and shared value for both shareholders and society through a strategic partnership with customers, suppliers and distributors in areas wh ere Nestlà © can have the greatest