ETHICS

Ethics, also known as moral philosophy, is a branch of philosophy that involves systematizing, defending and recommending concepts of right and wrong conduct, often addressing disputes of moral diversity. The term comes from the Greek word ethos, which means "character". Ethics is a complement to Aesthetics in the philosophy field of Axiology. In philosophy, ethics studies the moral behavior in humans and how one should act. Ethics may be divided into four major areas of study:

Meta-ethics, about the theoretical meaning and reference of moral propositions and how their truth values (if any) may be determined;

Normative ethics, about the practical means of determining a moral course of action;

Applied ethics, about how moral outcomes can be achieved in specific situations;

Descriptive ethics, also known as comparative ethics, is the study of people's beliefs about morality; Ethics seeks to resolve questions dealing with

human

moralityconcepts

such

as good

and

evil, right

and

wrong, virtue and vice, justice and crime.

DEFINING ETHICS
According to Richard Paul and Linda Elder of

the Foundation for Critical Thinking, "most people confuse ethics with behaving in accordance with social conventions, religious beliefs and the law", and don't treat ethics as a stand-alone concept. Paul and Elder define ethics as "a set of concepts and principles that guide us in determining what behavior helps or harms sentient

creatures". The Cambridge Dictionary of Philosophy states that the word ethics is "commonly used interchangeably with 'morality' ... and sometimes it is used more narrowly to mean the moral principles of a particular tradition, group or individual." The general meaning of ethics: rational, optimal (regarded as the best solution of the given options) and appropriate decision brought on the basis of common sense. This does not exclude the possibility of destruction if it is necessary and if it does not take place as the result of intentional malice. If, for example, there is the threat of physical conflict and one has no other solution, it is acceptable to cause the necessary extent of injury, out of selfdefence. Thus ethics does not provide rules like morals but it can be used as a means to determine moral values (attitudes or behaviours giving priority to social values, e.g. ethics or morals).

META-ETHICS Meta-ethics is a field within philosophy that seeks to understand the nature of normative ethics. The focus of meta-ethics is on how we understand, know about, and what we mean when we talk about what is right and what is wrong. Meta-ethics has always accompanied philosophical ethics, but in this explicit sense it came to the fore with G.E. Moore's Principia Ethica from 1903. In it he first wrote about what he called thenaturalistic fallacy. Moore was seen to reject naturalism in ethics, in his Open Question Argument. This made thinkers look again at second order questions about ethics. Earlier, the Scottishphilosopher David Hume had put forward a similar view on the difference between facts and values.

NORMATIVE ETHICS Normative ethics is the study of ethical action. It is the branch of philosophical ethics that investigates the set of questions that arise when considering how one ought to act, morally speaking. Normative ethics is distinct from meta-ethics because it

examines standards for the rightness and wrongness of actions, while meta-ethics studies the meaning of moral language and the metaphysics of moral facts. Normative ethics is also distinct from descriptive ethics, as the latter is an empirical investigation of people's moral beliefs.

VIRTUE ETHICS

Virtue ethics describes the character of a moral agent as a driving force for ethical behavior, and is used to describe the ethics of Socrates, Aristotle, and other early Greek philosophers. Socrates (469 BC 399 BC) was one of the first Greek philosophers to encourage both scholars and the common citizen to turn their attention from the outside world to the condition of humankind. In this view, knowledge having a bearing on human life was placed highest, all other knowledge being secondary. Self-knowledge was considered

necessary for success and inherently an essential good. A self-aware person will act completely within his capabilities to his pinnacle, while an ignorant person will flounder and encounter difficulty. To Socrates, a person must become aware of every fact (and its context) relevant to his existence, if he wishes to attain self-knowledge. He posited that people will naturally do what is good, if they know what is right. Evil or bad actions are the result of ignorance. If a criminal was truly aware of the intellectual and spiritual consequences of his actions, he would neither commit nor even consider committing those actions

BUSINESS ETHICS

Business ethics (also corporate ethics) is a form of applied ethics or professional ethics that examines ethical principles and moral or ethical problems that arise in a business environment. It applies to all aspects of business conduct and is relevant to the conduct of individuals and entire organizations. Business ethics has both normative and descriptive dimensions. As a corporate practice and a career specialization, the field is primarily normative. Academics attempting to understand business behavior employ descriptive methods. The range and quantity of business ethical issues reflects the interaction of profit-maximizing behavior with non-economic concerns. Interest in business ethics accelerated dramatically during the 1980s and 1990s, both within major corporations and within academia. For example, today most major corporations promote their commitment to noneconomic values under headings such as ethics codes and social responsibility charters. Adam Smith said, "People of the same trade seldom meet together, even for merriment and diversion, but the conversation ends in a conspiracy against the public, or in some contrivance to raise prices."

GLOBAL BUSINESS
Business is being conducted across national boundaries. We have seen many large multinational corporations (MVCs) that have long operated in other countries are being joined by many smaller domestic firms going abroad for the first time. Intense competition is forcing companies worldwide to enter the global market place whether they are ready or not. Especially in India, software companies in IT has grown tremendously and are entering globally. Such development presents a host of ethical problems that managers are unprepared to address. Many of these problems arise from the diversity of business standards around the world and especially from the lower standards prevailing in less developed countries (LDCs). Some of the companies experience difficulty and hence adopt: Paying low wages (exploitive wages). Imposing stringent or unsafe working conditions (standards are kept low compared to US, but high compared to local standards). Countries with pervasive corruption Violation of human rights. May even try to avoid fair share of taxes.

Major Questions about Companies who go Globally

The main charge against global corporations who move to different parts of the world is that they adopt different standards, doing in less developed as wrong. However, many criticised practices are said to be legal in the countries in question and are not considered to be unethical by local standards. (i) Should global companies are bound by the prevailing morality of the home country ? (ii) Should they follow the practices of the host country and adopt the adage (Be a Roman. while you are in Rome). (iii) Are there special ethical standards that apply when business is conducted across national boundaries ? (iv) No What are the appropriate standards for global business ? easy answers are available for these questions.

For question (ii). there are two extremes to answer: Absolutism (when in Rome or anywhere else, do as you would at home). Relativism (when in Rome, do as the Romans do). In absolutism, business ought to be conducted in the same way the world over with no double standards: to observe a single code of conduct in their dealings everywhere. In Relativism the only guide for business conduct abroad is what is legally and morally accepted in any given country where it operates. There seems to, be no fault in adopting this, and at the same time it is not wholly justified either.
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ETHICS IN GLOBAL BUSINESS

It is said that ones actions will be judged according to the norms of the environment in which it takes place, which may not be true always in the cases. In many circumstances, we believe that in whatever way we proceed, we pressure that as the right way and the other alternatives are not acceptable to us.

Individual liberty and human rights as per western values

Japans working

kyosei

(living for

and the

togather

common good)

and

Muslims

value

of

zakat (the duty to give aims to the poor)

The integrative social contract theory as per Donaldson and Thomas Dunfle suggests that one can differentiate between those values which are fundamental across culture and the theory (hyper norms) and those values which are determined with moral free space and not hypernorms.One has to look to the convergence of religious ,culture and physiological beliefs around certain core principles as a clue identification of hypernorms. Example of hyper norms are freedom of speech, the right to personal freedom, the to physical movement and informed consent. When you consider these far reaching rights, do you believe that all reasonable thinkers would agree to their predominance and worthiness of a protection . Donaldsons and Dunfees efforts are to propose a means by which to apply ethical standards across borders. The proposed codes of conduct include: # US Model business Principles. # Caux Round Table Principles.

One has to judge the similarities and differences between the-proposed models of business behaviour. If differences found, do these difference in themselves evidence the fact that there is no general agreement regarding business conduct. By creating a model code of conduct for a global firm, would it resemble any of these codes?

Firms complain that adhering to these codes of conduct is costly imposing higher costs on them than those imposed on firms in other countries. Adherence to the codes tends them to be at a competitive disadvantage in comparison to firms in a less regulated countries. In addition to compliance to a central code of business behaviour firms must be sensitive to cultural differences in those countries in which they do business. The flavours, the type of products pre erred by the community, the packaging concept, the mode of advertisements etc. all have a bearing related to culture suited to that country. Challenges to this cultural sensitivity are strong. If one culture's standards seriously violate a norm that is generally accepted by many other cultures, can you take the majority as right? How can one determine right from wrong in the global arena? Is the most significant question. Right and wrong depends on the standards by which

you are judging the act or decision. As the national boundaries within our world market become increasingly blurred, so too do the cultural differences.

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Difference between each human on the earth earth

Found in variances in their personal values structure

People accept these differences more valuable than threatening

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GLOBAL CHANGE IN INDIAN PERSPECTIVE

With the global change of business, national labour markets are becoming increasingly interdependently. Maintaining or improving the employment and its quality in a particular change related to development and growth with in the country

A global business must procure, motivation ,retain and effectively utilise service of people both at the corporate office in the home country and at branches and plants in the host countries .

Global changes pose the following challenges

1. All the companies have to put emphasis on the up gradation of managerial and professional skills. 2. Flatter organisational structures are opted for the most of the companies; so that employees can be empowered and independent decision making and flexibility can be introduced. 3. Middle level managers are fast becoming participative and result oriented. 4. Career planning and career growth for employees is receiving considerable emphasis.

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5. Employee compensation is to be linked with performance through benchmarking, business process reengineering etc. 6. Networking is being adopted with a view to create a responsive, goal oriented and competitive organisation.

MODEL BUSINESS PRINCIPLES OF USA

The US Department of Commerce (DOC) to codify the expectations of the US Market issued its Model Business Principles in 1995 as guidelines for business conduct in the US and abroad. The principle comprise a voluntary code of conduct. DOC hopes that they will encourage appropriate behaviour.

The US administration encourages all businesses to adopt and Implement Voluntary codes of conduct for doing business around the world in upholding and promoting adherence to universal standards of human rights worked out the minimum following areas: Provision of a safe and healthy work place. Fair employment practices (Avoidance of child and forced labour avoidance of discrimination based on race, gender, national origin or religious beliefs, respect for the right of association and the right to organise and bargain collectively) Responsible environmental protection and environmental practices Compliance with US and local laws promoting good business practices (including laws prohibiting illicit payments and ensuring fair competition).
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 Maintenance, through leadership at all levels (A corporate culture that respects free expression consistent with legitimate business concerns, and does not condome political coercion in the work place: that encourages good corporate citizenship and makes a positive contribution to the communities in which the company operates : and where ethical conduct is recognised valued and exemplified by all employees).

GUIDELINES FOR GLOBAL COMPANIES

If neither home country nor host country standards provide complete guidance, what principles or sales should global corporations adopt? Three kinds of guidelines have been offered are as under:

HUMAN RIGHTS
Donalds suggestion for the fundamental rights as a moral minimum: The right to: Freedom of physical movement Ownership of property Freedom from torture A Fair trial Nondiscriminatory treatment
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Physical security Freedom of speech and association Minimal education Political participation Subsistence

Sample application to this are: Failing to provide safety equipment to protect employees from serious hazards (the right to physical security). Bribing government officials to violate their duty or seeking to overthrow democratically elected governments (the right to political participation). Employing child labour as found mostly in India (the right to minimal education). On the whole, Guidelines based on human rights provide a bedrock moral minimum. However, the application of rights based guidelines are uncertain in more controversial situations where we are most in need of guidance, and they are inapplicable to many other pressing matters.

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WELFARE
The guidelines offered by Richard DeGeorge are: Global Companies should: Do no intentional direct harm More good than harm for the host country Contribute by their activity to host countrys development. Respect the human rights of their employees. To the extent that local culture does not violate ethical norms, respect the local culture and work with and not against it. Pay their fair share of taxes. Cooperate with the local government in developing and enforcing just background institutions.

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MYTHS

There is lot of misconception or myths about business ethics and business should be done with ethics in mind. Myths are popular unexplained beliefs but not truths. There are 5 myths: 1. Business and ethics do not go together: Business runs on scientific management principles whereas ethics in religious.

2. Ethics in business in relative: Ethics is in the thinking and eyes of the man and how he sees business .One customer see business ethically excellent other customer see it as poor in ethics. The experiences are contradictory and cannot be measured as so many kilos.

3. Good business makes good ethics: Ethical means may be or may not be always in the interest of business or better profits. Whatever the profit or business of a company, CEO of the company has to act ethically. The company should be prepared to pay costs for instituting and maintaining ethical values in the company.

4. MIS is amoral: Management information system (MIS) is neither immoral nor moral. While MIS is good management productive tool and positive dimensions, there are dark usage areas.MIS may be misuse.Information and computing can be put to bad use .There are violations of privacy and questionable use of data or putting the MIS in wrongperspective.

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Bibliography

1. Business Ethics. R.V.Badi,N.V.Badi 2. Social Responsibility of Business. B.B.Tayal,C.B.Gupta 3. www.Wikipedia.com 4. Human Resource Management. V.S.P.Rao 5. Human Resource Management. Shashi.K.Gupta

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A case study of the Oxford Landing Tesco (OLT) value chain In this section we present the results of the VCA and LCA, beginning with a description of the key stakeholders. The details of the research methodology, as applied to this case study, are the represented, followed by the headline findings.

5.1 Key stakeholders

The OLT value chain consists of five key stakeholders: Grape growers in the Riverland, South Australia. This region produces half of South Australias grapes and a quarter of Australias wine, the bulk of which is exported. There are over 1300 registered wine growers in the area, and the restrictions on irrigation caused by the recent drought have highlighted the areas susceptibility to the impact of climate change; Yalumba, Australias oldest family-owned winery and one of the countrys largest exporters of wine. It operates two wineries, both in the Barossa Valley, at Angaston and Moppa, where the Oxford Landing brand is made. Yalumbas achievements in environmental sustainability have been widely recognised. It was the first wine company to receive the Climate Protection Award from the US Environmental Protection Agency, and the first company of any sort to be officially recognised by the Australian Government's Greenhouse Office as a leader in greenhouse gas management; Amcor, one of the worlds largest packaging solution providers and a major supplier of glass and corrugated packaging and bottle closures to the Australian and New Zealand wine industry. Its Gawler plant, between Adelaide and the Barossa Valley, produces over 400 million wine bottles a year. It too is dedicated to managing its environmental impact.
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In 1999, Amcor became one of the first members of Australias National Packaging Covenant in Australia. It uses 40% recycled glass in its bottle production, and has been working closely with Yalumba on the design and production of lighter weight bottles; Tarac Technologies, an innovative company that has invested heavily in technologies for value-adding to the residuals from the wine making processes. Tarac Technologies reprocesses most of the residuals from the Australian wine industry, including over 120,000 tonnes of grape marc every year (74% of Australias total production), as well as filter cake and liquid waste. Its innovative closed loop technology means it is also helping to reduce the Australian wine industrys environmental impact. Tarac prevent the release of ethanol into the atmosphere from composting grape marc, as well as the need to send residues to landfill by turning these bi-products into inputs for the food and wine industry,such as grape alcohol used in the production of fortified wine. Taracs four plants are strategically located in the key winemaking regions of Australia, namely, two at Nuriootpa in the Barossa Valley, and one each in the Riverland and at Griffith in New South Wales; Tesco UK, the worlds fourth largest supermarket and responsible for 25% of all UK wine sales, making it the single largest overseas buyer of Australian wine and the largest customer for Oxford Landing. Tesco is also committed to reducing its own environmental impact, as well as that of its suppliers and the products it sells. It has pledged to reduce the carbon footprint of its existing stores and distribution centres, globally, by 50% by 2020. As a signatory to the UKs Courthauld Commitment, Tesco has undertaken by theend of 2010 to reduce packaging of its own label products - and uniquely the branded products it offers too - by 25% (by
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weight). It is also taking a lead in trialing the use of carbon labels to help inform consumers about the environmental sustainability of their food and beverage purchase decisions; UK supermarket shoppers, of which 31 million are wine drinkers, consuming 120m cases per year, of which 25% are Australian, creating a market worth around $900m to the Australian wine industry in 2008. Average annual growth (6%) has been strong over the last decade but in recent years has come under increasing pressure from increased competition, from new entrants (notably Chile), who have been targeting the discount market, and established wine producing countries (notably France), who have been targeting the quality end of the market. The Oxford Landing value chain was selected as a demonstration case study for several reasons: The stakeholders involved are significant players in the context of the Australian wine industry and the product family (Oxford Landing) is broadly representative of the many branded Australian wines that have been in the vanguard of Australias success in overseas wine markets generally and the UK market in particular. Thus, many of the findings of this case study are likely to be of broader relevance to the Australian wine industry as a whole and particularly those reliant on supermarket channels. VCA requires a substantial level of organisational commitment. Thus, participating businesses must be open to value chain thinking and willing to engage fully in the diagnostic process. Yalumba, Amcor and Tarac Technologies are all partners to in the 14th Adelaide Thinker in Residence program, the focus of which is sustainable value chain management5. Thus, their commitment to the

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project was immediate, enabling us to progress much quicker than had we been required to recruit a value chain from scratch All the stakeholders in the OLT value chain have demonstrated commitment to improving the environmental sustainability of their respective organisations, so were able to see the relevance of a demonstration case study designed to shed light on the value of sustainable management practices in the wine industry and the synergies with commercial goals and consumer preferences

5.2 Research method and data sources

The information for this case study was collected over a period of six months, from June to November, 2008. The VCA involved a considerable amount of primary research, using the methodology presented earlier (Figure 3). Specifically, the research undertaken for the VCA comprised: 38 semi-structured interviews conducted with 57 people in 12 organisations, supplemented by an on-line survey of senior managers within the key stakeholders (Tesco, Yalumba, Amcor, Tarac and a sample of contracted grape growers) 6 consumer focus groups (2 with of young adults male and female, 2 with young mother and 2 with of female empty nesters older adults with children no longer living at home) all of whom were primary Tesco shoppers who regularly purchase Oxford Landing A survey of 1,100 people who purchase wine from supermarkets The LCA is based on the extensive environmental analysis conducted by Yalumba over the past three years, as part of their commitment to sustainable winemaking (Camilleri, 2008a).

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5.3 Headline Findings

The results of the combined VCA and LCA are presented in four sections. First, we present a summary of the consumer research, designed to establish what attributes add value to wine, in 5 For further information about the Adelaide Thinkers in Residence program and the 14th residency, Food & Wine Value Chains: Prosperity Thr ough Collaboration, see www.thinkers.sa.gov.au. the eyes of consumers. This is followed by a summary of the material flow, overlaid with emissions data derived from the LCA. The material flow map is then supplemented with the analysis of information flows and finally, the diagnosis of the value chain is completed with the analysis of stakeholder relationships.

5.3.1 Consumer value

The detailed findings from the consumer research, including focus group verbatims and tabulated survey data are available from a separate report (Fearne, 2008), downloadable from the Adelaide Thinkers In Residence website

(www.thinkers.sa.gov.au). What follows is a summary of the key findings.

5.3.1.1 Focus Groups

A strong degree of consensus was found across focus group consumers with regard to the positive images associated with Australian wine reliable, good quality, good value, fresh, crisp, fruity - with the over-riding view that Australian wine will never let you down. On the negative side, the investment made by the Australian wine industry in delivering good quality wine at competitive prices appears to have resulted in a degree of commodisation, as the majority of the discussants confessed that Australian wine rarely featured when then were looking for something special
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Oxford Landing was described as a typical Australian wine - a safe bet but viewed by some as more expensive than others of a similar quality. The bottle and labelling were widely regarded as uninspiring. For many, the purchase of Oxford Landing, like most everyday wines, was triggeredby a promotion, which in the case of a known brand was difficult to resist and required little effort (and thus attention to the bottle or the label). Effectively, the positioning of Australian wine has reduced the perceived value of some, if not most, of the attributes peripheral to the wine itself. Promotions were regarded as the main purchase filter for most of the discussants, when considering which wines to purchase as part of a supermarket shopping mission, followed by colour and wine type and/or grape variety. More often than not, known brands would be purchased with minimal consideration when on promotion. More time would be taken when shopping for something special, when the promotional offers would be less influential, but as already highlighted, on these occasions, shoppers would often bypass the Australian wines on route to more expensive wines associated with other countries (notably France and Italy). Few of the discussants saw any link between the concept of sustainability (which for most was primarily associated with re-cycling and corporate social responsibility, as opposed to the responsibility of individual consumers) and wine its production or consumption! None of them were remotely aware of the sustainability credentials of the Oxford Landing brand and when the information on the back label was drawn to their attention there was a mixture of mild interest and considerable scepticism as one discussant put it if they were that bothered they wouldnt be selling it over here really would they! Similarly, few people were impressed by the eco-friendly packaging formats they were shown (pouches and cartons), concluding they were unappealing, and only suitable for outdoor drinking. A few said they would be more likely to trust a brand they knew if it was offered in a different format.
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5.3.1.2 Survey
The primary focus of the survey was the quantification of the value that shoppers attach to different product attributes when considering which wine(s) to purchase as part of their supermarket shopping mission. The results (see Tables 2-4) highlight the degree of consensus around the most and the least important attributes for regular wine purchases: price, type of wine (e.g. sweet/dry), colour, grape variety and promotional activity accounted for almost three quarters of the choices made for the most important wine attribute for a regular wine purchase; bottle, closure, sustainability of production/packaging, wine miles, front label, weight of the bottle and suitability for vegans/vegetarians scored particularly low in terms of importance and together accounted for just 8% of choices made for the most important wine attribute for a regular wine purchase Table 2 - Importance of wine attributes (mean scores*)6 Full Sample Oxford Landing Buyers Oxford Landing Buyers - Tesco Price per bottle 5.6 5.6 5.6 Type of wine (e.g. dry/sweet) 5.5 5.6 5.6 Colour 5.5 5.5 5.5 Grape variety 4.8 5.3 5.4
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Which wines are on promotion 4.7 5.1 5.1 Information on the back label 4.4 4.6 4.5 Recommendations from friends/relatives 4.3 4.4 4.3 Country of origin 4.3 4.7 4.8 Brand name 4.1 4.7 4.8 Specific region within a country 4.0 4.4 4.4 Year of vintage 3.6 4.1 4.2 Recommendation in newspapers/magazines 3.5 3.8 3.8 Alcohol content 3.5 3.7 3.8 Appearance of the bottle 3.4 3.7 3.6 Type of closure 3.4 3.4 3.3 Environmentally sustainable production process 3.3 3.5 3.4 Environmentally sustainable packaging 3.3 3.4 3.4 Design of the front label 3.2 3.6 3.6 Distance the wine has traveled 2.8 3.1 3.0 Weight of the bottle 2.8 3.0 3.0 Suitability for vegetarians/vegans 2.4 2.6 2.5 Number of respondents 1100 377 181

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* 1= Not at all important, 3= Not very important, 5 = Quite important, 7 = Extremely important They also highlight the degree of heterogeneity of preferences when shoppers are segmented and consideration is given to different shopping missions: Price and promotional activity were chosen as the most important attribute associated with wine purchased for a special occasion by just 11% and 5% of respondents respectively, compared with 25% and 12% respectively for a regular wine purchase. Brand name was chosen as the most important wine attribute for special occasions by 12% of respondents, compared with just 3% for a regular purchase Females attach greater importance to colour, type of wine and promotions, and less importance to price per bottle and country of origin than males Younger shoppers are more likely to be influenced by recommendations from friends, the appearance of the bottle and front label design than older shoppers Single parents attach the greatest importance to environmentally sustainable production/packaging, newspapers/magazines Level of education has no bearing on the importance attached to environmental sustainability, but graduates are significantly more interested in country of origin and year of vintage than shoppers with no education beyond secondary school. Frequent wine buyers attach significantly more importance to brand names and promotional offers for special occasion purchases than occasional wine buyers,
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alcohol

content

and

recommendations

in

who are more interested in price per bottle and type of wine Wine shoppers in M.&S or Waitrose are significantly more interested in grape variety and provenance (country or region) than shoppers in Asda, Morrisons and Aldi, whilst Co-op shoppers attach the greatest importance to promotional offers 6 Highlighted attributes are those for which the difference in mean scores (table 1) and % of respondents (tables 2 and 3) for the different respondent groups are statistically significant, at the 5% level. 21 Table 2 - Most important attribute (Regular Purchase) Full Sample Oxford Landing Buyers Oxford Landing Buyers - Tesco % Respondents % Respondents % Respondents Price per bottle 25 22 27 Type of wine (e.g. dry/sweet) 12 9 8 Colour 15 11 12 Grape variety 11 15 14 Which wines are on promotion 12 15 13 Information on the back label 1 1 1

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Recommendations from friends/relatives 3 4 4 Country of origin 4 5 6 Brand name 3 6 3 Specific region within a country 2 2 2 Year of vintage 1 2 1 Recommendation in newspapers/magazines 1 1 1 Alcohol content 2 2 2 Appearance of the bottle 1 1 1 Type of closure 2 1 2 Environmentally sustainable production process 1 2 1 Environmentally sustainable packaging 1 1 1 Design of the front label 1 1 2 Distance the wine has traveled 1 1 0 Weight of the bottle 0 0 1 Suitability for vegetarians/vegans 1 1 2 Number of respondents 1029 377 176 Table 3 - Most important attribute (Special Occasion) Full Sample Oxford Landing Buyers
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Oxford Landing Buyers - Tesco % Respondents % Respondents % Respondents Price per bottle 11 8 8 Type of wine (e.g. dry/sweet) 13 9 8 Colour 7 7 9 Grape variety 13 15 18 Which wines are on promotion 5 4 4 Information on the back label 2 3 2 Recommendations from friends/relatives 7 5 4 Country of origin 5 6 6 Brand name 12 16 17 Specific region within a country 3 3 4 Year of vintage 7 9 7 Recommendation in newspapers/magazines 3 5 4 Alcohol content 2 2 3 Appearance of the bottle 3 3 1 Type of closure 2 2 1 Environmentally sustainable production process 1 1 1
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Environmentally sustainable packaging 1 1 1 Design of the front label 1 1 1 Distance the wine has traveled 1 1 1 Weight of the bottle 1 1 0 Suitability for vegetarians/vegans 1 2 1 Number of respondents 989 377 170

The results of the consumer research indicate very strongly that sustainability is a concept that remains poorly understood amongst shoppers. Furthermore, sustainable wine production/ packaging is something that supermarket buyers may be requesting of their suppliers in support of socially responsible strategic initiatives, but very few UK shoppers currently value it as an attribute of the wine they purchase from supermarkets. This may change if UK government and supermarket initiatives designed to encourage more sustainable consumption behaviour begin to impact decision-making at the point of purchase. However, with wine a discretionary item in the majority of supermarket trolleys, and considering the high level of importance attached to promotional offers for branded wines, it is difficult to see this happening soon. In the meantime, Australian winemakers should consider strategies for more effective targeting of distinct shopper segments with differential preferences for specific attributes, in an effort to break the paradox of brand loyalty inextricably linked to promotions and drag themselves out of the commodity trap they have inadvertently engineered

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over a decade of promotion-driven sales growth and a distinct lack of investment in building genuine brand loyalty.

5.3.2 Material Flow

The objective of material flow is to deliver efficiently the required type, volume and quality of product to maximise consumer value. The efficiency of the OLT value chain was determined against the following aspects: Timeliness in allowing continuous, efficient flow through processing, while avoiding unnecessary inventory and product movements, and ultimately avoiding stockouts in stores; Minimising waste caused by unnecessary processing or by production of unusable raw material or by-products; Maximising scope for adding value. Accordingly, each activity in the OLT value chain was classified as one of the following: Value adding - those activities that, in the eyes of the final consumer, make a product or service more valuable. For example, in the context of Oxford Landing, colour, type of wine and information on the back label were rated by consumers, on average, as quite important, so these could be classified as value-adding activities that warrant further investment. Meeting, if not exceeding consumer expectations is the goal here. Necessary, but non value-adding - those activities that, in the eyes of the final consumer, do not make a product or service more valuable but are

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necessary unless the existing supply process is radically changed. For example, in the context of Oxford. Landing, the weight of the bottle and the design of the front label were rated by consumers, on average, as not very important, so could be classified as non -value adding attributes which do not warrant the allocation of more resources than absolutely necessary. Cost minimisation is the goal here. Wasteful - those

activities that, in the eyes of the final consumer, do not make a product or service more valuable, and are unnecessary. These activities should be targeted for elimination in the short term. For example, in the majority of value chains inventory would not be regarded by consumers as value-adding, yet inventory is invariably held, often at considerable cost, at all levels of the chain, due to a lack of communication, low levels of inter-organisational trust and poor information flows waste elimination is priority number one in value chains subjected to price competition.

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