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The best way to provide an outline of issues that need to be taken into account is
by first actually understanding the concept of sustainable management.
Sustainable development can be regarded as the way we use resources to meet
our current needs without compromising the ability of future generations to meet
their needs. So we can thus view sustainable management as being the level to
which sustainable development is taken in to account and implemented at various
stages during the selection, evaluation and management of a company’s supply
base.
So then what are the issues that need to be outlined and how can this relate to Air
Chefs maintaining an environmental and social responsibility programme which
leads to efficient and sustainable supply chain processes ?
• Evaluation of suppliers environmental performance
For any company, it is vital that the impact of all business processes on the
environment are understood . A major factor that should not be overlooked is the
way a company’s supply base carries out its business activities. A company is but a
link in a much larger chain and therefore the consequences of poor environmental
management procedures have repercussions way beyond that of only the
company in question. For Air Chefs to maintain a sound environmental programme
they can make various requests to their suppliers to prove that they are compliant
in performing business in an environmentally friendly and sustainable manner.
➢ ISO certifications have been implemented and standardized across the globe
for this very purpose. Air Chefs can request ISO 14000 certification from
their suppliers and if they aren’t certified yet , Air Chefs can incorporate a
plan within their supplier development framework to assist suppliers in
attaining such certification.
➢ The business processes of many suppliers produce waste as by-products.
Sometimes this waste is hazardous and must be disposed off correctly and
safely. Air Chefs can request formal waste reduction plans from their
suppliers to assess whether it is up to standard.
➢ Along with the disposal of hazardous waste comes the issue of non-
hazardous waste management. Air Chefs can encourage its suppliers to
recycle waste and possibly reuse that recycled waste internally or provide
access for smaller businesses to profit from the recycled material. Air Chefs
can also stipulate to its suppliers that a certain percentage of materials that
are purchased must be of a recycled nature.
➢ The business processes of suppliers should be evaluated holistically including
the analysis of product life cycles. Areas to improve environmental
sustainability can be identified and capitalized upon. Programs can be put in
to place to minimize or completely stop the use of ozone-depleting
substances.
➢ It should be part of Air Chefs supplier policy that any and all prior
involvement in any environmental mishap be disclosed.
Air Chefs, being a major company with established knowledge and best practice
processes, can share this with their suppliers through development programmes to
ensure that their suppliers comply with their social responsibilities. Air Chefs can
train their suppliers in the use of appropriate performance measurement tools so
that they can monitor their progress and strive to do better both socially and
environmentally. There are also ISO certifications that Air Chefs can request from
their suppliers which serve as proof of a company’s commitment to high levels of
social responsibility initiatives.
Question 3
In the search for possible sustainable local suppliers, one of the suppliers bought
coffee and lunch for Air Chefs purchasing and quality assurance specialists.
Explain whether it was ethical or unethical behaviour proposed by the local
supplier and motivate your answer :
I believe it was unethical behavior.
Ethical behavior is usually good for business and involves respect for principles
such as honesty, fairness, equality, dignity, diversity and individual rights. The
decision of the suppliers to buy something as simple as coffee and lunch gives of
the impression to Air Chefs purchasing team that this supplier does not respect
those ethical values. The premise of buying that for them is to gain an unfair upper
hand over other suppliers to hopefully win more business. They would not be
winning the business on the merit of their company but rather through what can
be seen as a bribe.
Sources
➢ Monczka, RM, Handfield, RB, Giunipero, LC & Patterson, JL. 2016. Purchasing
and supply chain management. 6th ed. United States: South-Western Cengage
Learning.