Page 19 - I21 Summit Magazine

Do Ethical Supply Chains

Enhance Profitability
By Andre Bryan

The Plot: Unmasking the Corporate Villain disruptions, and profi tability through unethical business
practices in their supply chains.
he Hero who saves the world is the core of all
good childhood superhero stories teaching kids Today, small and medium-sized businesses are essential
Tvalues and how to overcome the shenanigans to generating much-needed good jobs which improves
of the evil villain. Our hero uses superpowers for good the economy. According to the SBA, small businesses
and in the end triumphs. But that’s not how the story employ nearly 60% of American non-farm workers. In
usually ends for small businesses that fi ght against the fact, over 98% of employing organizations are small
bullying, ruthlessness, and unfair practices of many businesses and more than 95% of those have fewer
large corporations. To meet wall street demands, aspi- than 50 employees. But to help them realize their po-
rational goals, or satisfy departmental or even individual tential, large corporations must get involved and treat
requirements to meet budget or obtain the oftentimes them fairly. Small businesses are being pushed to a
elusive bonus, some throughout the corporate supply breaking point by bullying corporate customers making
chain resort to unfair tactics to achieve profi tability. Big immoral supply chain or payment term demands. Ac-
corporations develop programs and initiatives with the cording to John Allen, National Chairman of the Fed-
disguise of being a supportive partner. Unfortunately, eration of Small Businesses (FSB), “Big companies are
the supportive partner can turn into an adversary. putting small companies in a position where they can’t
fi ght back. The sense I get from talking to our mem-
At the heart of our story, we ask the question “do ethi-
cal supply chains enhance profi tability?” In this age of bers is that small businesses are fast approaching the
globalization, this is a question that more large compa- breaking point.” “Brands that think they can continue
nies are beginning to ask themselves. One thing is cer- to squeeze their suppliers with impunity may get a nasty
tain, unethical supply chains defi nitely hurt profi tability shock when what they are doing comes to the attention
and positioning in the global marketplace. According of their consumers.” Consumers and B2B custom-
to supply chain industry associations such as APICS, ers don’t like to see these big fi rms with large supply
and organizations that watchdog global ethical business chains bearing down on small companies especially
practices such as Ethisphere and the U.S. Small Busi- those that are diverse, military veteran, or typically face
ness Administration, many large companies are risking other historical race, ethnic, or gender-based challenges.
reputational damage, customer loyalty, supply chain The FSB said supply-chain bullying was increasingly

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