When it comes to ethics violations we immediately think of executive management, or a kind of Wall Street scandal, and we rarely realize that occurs more than frequently from the lower half of the labor force compared to the glass tower. Ethics violations in inventory management are committed by:
1.Knowingly give incorrect information to clients or prospective clients in respect of storage space prices or other services, and the status of their inventory.
2.Favoring a supplier rather than another for the purchase of goods or services because you have a friend who works for the preferred supplier or due to possible financial gain.
3.Cover-up of damaged products out on an expedition.
4.Manipulating inventory figures and layers when the client queries its inventory levels or when the management investigates states of inventory.
5.Work slow to get overtime.
6.Giving preferential treatment to certain employees for any gains in the future and friendship.
These are just some examples, and I'm pretty sure that if closely observed in your organization you can find many others. Why do they have these ethical violations? One reason is the lack of a code of ethics. Code of Ethics are a specific set of professional behaviors and values employees must know and must comply, including the confidentiality, accuracy, confidentiality, integrity. Large organizations have a code of ethics, but violations occur because the rules are not enforced or the management feels the violation is not worth their time.
Medium for small organizations lack a code of ethics program because they either do not know how to build one, it is not important to them or is too costly in terms of finances and manpower.
Enron and Goldman Sachs are good examples of why it is important to have a corporate code of ethics. In the world of the bottom line business it is to make money and there's nothing wrong with that, but when you consume your organization and takes an attitude to do at any cost, then this is when the problem is to see and people will do everything they can to be ethical or unethical to make money.
A code of ethics will keep people within certain limits of what is acceptable to the organization in terms of behavior and business practices. The reality in business is that the profits rule and as long as the shareholders are happy, and there is full employment in society no one seems to care and ethics take a back seat to everything else.
With so much talk nowadays about morality in business and financial affairs of the state of global ethics is even more important today than in the past. Journalist are keeping an ardent eye for the next business scandal and uncover every stone to expose one, after all you sell the news. Travel and work in Asia I found the Asian culture is less sensitive to business actions not that they do not care about not only consumes their every waking moment and they are not quick to judge, as the Western nations.
By working with honest principles and ethics is no less profitable to operate unethically. LeClair, Ferrell and Fraedrich, in their book Integrity Management (1998), describe five well-known successful companies that have invested organizational resources and are making profits and operating in an ethical manner following three can be recognized;
1. Hershey Foods
2. Home Depot
3. Waste Management
The old myth and saying "it's not personal it's just business" is empty, then how is now. Business is personal, especially when you take the time to build a business relationship with suppliers and customers to the point where they trust, and to act in an unethical manner will certainly destroy all confidence they had in your product or service and make it almost impossible to regain .
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