Essays on Ethical Issues in the Supply Chain for Tea Case Study

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The paper "Ethical Issues in the Supply Chain for Tea" is a great example of a Management Case Study.   In order to achieve a competitive advantage in the global market, it is critical for companies to ensure genuinely sustainable supply chain management. the supply of tea in the international market requires the companies and the suppliers to consider certain ethical issues that will enable their products to be acceptable by the consumers. Some of the ethical issues revolve around environmental sustainability, community relationship, sustainable agricultural practices, international regulatory standards, and social issues.

However, the supply of agricultural produce in the global supply chain is meant to improve the social wellness of the people involved and to reduce poverty in developing countries like India. Considering the global market and demand, tea is one of the major agricultural produce that plays a significant role in the global economy, especially in developing countries (Clay, 2005). In India, the tea industry has created substantial employment to the local people, with an estimation of 35%. The product is the major export to the global market such as the UK and the USA.

However, the industry has been facing a major challenge of sustainability of the supply chain such as the increasing competition from other countries and the increasing cost of production that reduces the export earnings and share in the market. Moreover, social issues and sustainable production also affect the demand for tea in some regions such as the UK and other regions in the global market. The discussion in this paper is based on the case study of tea plantation in the state of Assam in India and the ethical issues that need to be considered in the supply chain. Supply Chain Management Supply chain management of tea can be defined as the collective integrated planning and controlling of the activates and processes in the tea supply chain to provide value addition and services while cutting the cost of the stakeholders in the supply chain.

The management of the supply chain consists of activities that transfer processed tea and production information and revenues between countries. The production information for part of the ethical issues that need to be considered in the global market and those that need to be taken into consideration while producing made tea.

If Ethical Supremica is to sauce made tea from the State of Assam in India, the producing companies must consider all the ethical issues in the production process and supply chain management (Neilson & Pritchard, 2011). Supply chain management in the global market is targeted to maximizing on the company revenues and the general performance of the company as opposed to achieving an individual cost reduction in terms of production. However, in the supply of tea, transferring the cost of production to the workers does not make the tea to gain a competitive advantage in the global market.

This is because some of the exporting countries are known to be exploiting the workers with an expectation of gaining profit while using little funds to conduct the operations (Clay, 2005). The observation has placed place strategic alliances between partners in the tea supply chain so that fair competition can be created in the market. One such organization is the Rainforest Alliance certification, which requires farmers to ensure all the social and environmental issues are considered in the production process.

References

Calì, M., Farole, T., Kunaka, C., Waglé, S., & World Bank. (2014). Integrating border regions: Connectivity and competitiveness in South Asia. Washington, D.C: The World Bank.

Clay, J. (2005). Exploring the links between international business and poverty reduction: A case study of Unilever in Indonesia. Oxford: Oxfam

Hill, C. W. L., & Jones, G. R. (2007). Strategic management: An integrated approach. Boston, Mass: Houghton Mifflin.

Neilson, J., & Pritchard, B. (2011). Value Chain Struggles: Institutions and Governance in the Plantation Districts of South India. Hoboken: John Wiley & Sons.

Yawar, S. A. (2015). Corporate Social Responsibility in Supply Chains: Relevance of Supplier Development. Kassel, Hess: Kassel University Press.

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