ICMCIAsia Pacific Hub Meeting 2013April 26, 2013BangkokLearning from Consulting Case StudiesGood Practices of Ethical Companies
ScenarioAn apparel manufacturing company in an emerging market was a regular supplier to threeglobal brand houses based in developed markets.Business was growing year on year and often the supplier had to scramble to meet theseasonal order book. Transactions were on open account basis.One day the Chief Buyer of one of the global brand house made an unannounced visit to thesupplier.The Chief Buyer just spent a day at the supplier’s facility and before the supplier couldextend a royal hospitality, he flew back to the company head quarter.The very next day the supplier’s orders were cancelled and they were told that they did notcomply with the terms of agreement.Good Practices of Ethical Companies
Diagnosis - Supplier’s factory situationNo fire alarm system or equipmentPoor ventilation and sanitationDiscrimination between male and female workforceDeployment of child labourGeneral health and life at risk188.8.131.52.5.Good Practices of Ethical Companies
Best Practice LearningsSponsor’s Buy-in MattersKey stakeholder engagementOwners see ethics as priorityTone from the top•••Good Practices of Ethical Companies
Best Practice LearningsOrganizational Design & StructureClear authority, responsibility and accountability.Do what is RIGHT and not just what is required.State clear objectives and requirementPolicy (clear, comprehensive, consistent, aligned, available, escalation process)Leader listen to stakeholdersTransparent processesTwo-way communication(open door policy)•••••••Good Practices of Ethical Companies
Best Practice LearningsCommunication ProcessOver communicateDo not assume understanding - ensure itUse multiple channelsEngage employees with bold visualsUse local language where possible•••••Good Practices of Ethical Companies
Best Practice LearningsTrainingUse role-play during shop-floor meetingsImmediate leader provides the training••Good Practices of Ethical Companies
Best Practice LearningsConsequence ManagementLook at the root cause of mistakes and adjust processes,if required.Establish a ‘ZERO” tolerance policy in all levelsMake examples of people who do the right things and those who do not.•••Good Practices of Ethical Companies
Thank YouAny questions?Please fill and return the feedback form.Good Practices of Ethical Companies
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