Question

One of the biggest ethical risks in supply chain management is that the __________ supply chain member tends to be the one that suffers the blame and/or lost goodwill when something goes wrong.

Answer 1

One of the biggest ethical risks in supply chain management is that the most visible supply chain member tends to be the one that suffers the blame and/or lost goodwill when something goes wrong.most visible.

What is ethical risk?

• In reaction to their unethical behaviors, actors end up externalizing their locus of control, as if they had no other choice.
• In this manner, actors reduce their own power to identify a profitable alternative course of action. They reduce their freedom to choose.
• On the other hand, inclusive awareness of ethical and unethical aspects triggers a natural search for more ethical actions (Cf. Psychological attitudes towards ethical dissonance).
• A rational analysis of the interest of such a more ethical alternative allows avoiding exaggeration of its costs (without proper analysis, a typical justification of an unethical action is that an alternative course of action would be too costly).
• Further, awareness of potential ethical costs increases the relative attractiveness of an alternative more ethical action. The re-framing of the situation allows the identification of new opportunities otherwise hidden to the actors.

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