ICMCIAsia Pacific Hub Meeting 2013

April 26, 2013Bangkok

Learning from Consulting Case Studies

Good Practices of Ethical Companies

Scenario

An 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 situation

No fire alarm system or equipment

Poor ventilation and sanitation

Discrimination between male and female workforce

Deployment of child labour

General health and life at risk

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Good Practices of Ethical Companies

Best Practice Learnings

Sponsor’s Buy-in Matters

Key stakeholder engagement

Owners see ethics as priority

Tone from the top

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Good Practices of Ethical Companies

Best Practice Learnings

Organizational Design & Structure

Clear authority, responsibility and accountability.

Do what is RIGHT and not just what is required.

State clear objectives and requirement

Policy (clear, comprehensive, consistent, aligned, available, escalation process)

Leader listen to stakeholders

Transparent processes

Two-way communication(open door policy)

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Good Practices of Ethical Companies

Best Practice Learnings

Communication Process

Over communicate

Do not assume understanding - ensure it

Use multiple channels

Engage employees with bold visuals

Use local language where possible

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Good Practices of Ethical Companies

Best Practice Learnings

Training

Use role-play during shop-floor meetings

Immediate leader provides the training

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Good Practices of Ethical Companies

Best Practice Learnings

Consequence Management

Look at the root cause of mistakes and adjust processes,if required.

Establish a ‘ZERO” tolerance policy in all levels

Make examples of people who do the right things and those who do not.

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Good Practices of Ethical Companies

Thank You

Any questions?

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Good Practices of Ethical Companies