In answering this question, I am going to discuss the different issues arising within a global supply chain and how firms can minimise these issues as well as addressing how the government can contribute to helping and minimising these issues as well as the firm.
A global supply chain can be defined as the many different stages involved in the transportation of a product or service from the supplier to the consumer, on a global scale with multiple suppliers who can be from different countries etc. The main social and ethical issues which are a problem in today’s society within global supply chains are poor working conditions, low wages, health and safety and human trafficking. Poor working conditions and health and safety go hand in hand as the supplier/worker’s health is a concern and at risk if they are forced to work in a condition that is not fit. In an article by the Guardian, it is reported that factory workers in Cambodia are subject to poor working conditions as well as low wages and that they are suffering from job insecurity and long shifts with dreadful working conditions and that the risk of going on strike may have consequences as two people were killed doing so. This is a clear example of how developing countries suffer from a global supply chain and get the backlash of the bad treatment whereas the people they work for will the sole beneficiary from their hard efforts.
As I have already stated low wages are mainly a problem in developing countries such as Cambodia and Syria as the UK continually increase their national minimum wage for living as it has recently increased from £8.72 to £8.91 in April 2021. Human trafficking is another issue that happens much more than people think, and it can be defined as a person being forcefully trapped against their will and being exploited for one’s financial gain.
In an article by the Guardian, they revealed that large chocolatier companies such as Mars and Nestle will be facing a lawsuit from eight former child labour workers in Africa that claim there are thousands of more children being used on cocoa farms. This proves that human trafficking is a big issue in today’s society within the global supply chain. Environmental issues that arise in global supply chains are increased carbon emissions from long transportation and the risk of a supplier’s waste leading to the dumping of toxic chemicals and causing pollution.
A BBC Radio programme also raised the problem of more than 40% of insects declining at a rate of 2.5% per year as well as stating a large percentage of the world’s species have gone extinct. This proves that there is a strong concern for the environment around us as animals and insects are going extinct due to some businesses’ treatment of the environment. Furthermore, businesses can help minimise and avoid all of these issues by being more responsible.
Businesses should ensure that their employees are being paid a fair wage (such as the UK minimum wage I previously stated) and that the working conditions are genuinely fit for work. Businesses should have a type of contract with their employees to define how many hours the employee will work and offering overtime if they please, and to also ensure there are no acts of child labour occurring within the global supply chain. To help with the environment, businesses can source their products from as close to home as they can to lower the level of carbon emissions being emitted into the air and to ensure all suppliers in the chain are correctly following any protocol in place. The government have the power to put regulation in place for those involved in a global supply chain to follow. For example, the United Nations have a sort of ‘practise code’ of sustainable goals that businesses should be following when involved in a global supply chain, and the UK have laws protecting the environment such as the Climate Act. In conclusion, there are a multitude of different issues which arise in a global supply chain which makes it very important that all businesses involved in one ensure they are adhering to the rules and following the correct protocol and the government should be making sure of this and acting in an efficient manner when necessary.
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