CHAPTER ONE

INTRODUCTION

1.1 Background of the Study

The field of logistics and supply chain management plays a pivotal role in today’s global economy, serving as the backbone of commerce and trade. With the increasing complexity and interconnectivity of supply chains, the importance of ethical practices in this domain cannot be overstated. This introduction sets the stage for a systematic review that aims to delve into the nuances of ethical considerations and challenges faced by organizations operating within logistics and supply chain management.

Ethics in supply chain management encompasses a wide array of issues, ranging from labor rights and environmental sustainability to fair trade practices and corporate social responsibility. In an era where stakeholders demand transparency, accountability, and social responsibility from corporations, the need for ethical conduct throughout the supply chain is paramount.

This systematic review seeks to explore the current landscape of ethical practices and challenges within logistics and supply chain management. By synthesizing existing literature and analyzing key trends and findings, this study aims to provide valuable insights that can inform strategic decision-making and policy development in the industry.

Through a comprehensive examination of ethical frameworks, best practices, and real-world case studies, this report aims to shed light on the importance of ethical supply chain management and the implications of ethical lapses on business operations and reputation. By identifying key challenges and offering actionable recommendations, this study endeavors to contribute to the ongoing dialogue on ethics in logistics and supply chain management, ultimately fostering a culture of responsibility and sustainability in the industry.

Logistics and supply chain management play a vital role in facilitating global trade, economic growth, and development (World Bank, 2018). However, these operations are often associated with ethical challenges, including corruption, environmental degradation, and human rights violations (Carter & Jennings, 2002). The global logistics and supply chain management industry is expected to continue growing, with emerging markets in Africa and Asia driving demand (McKinsey, 2019).

Africa’s logistics and supply chain management sector faces unique challenges, including inadequate infrastructure, corruption, and security concerns (African Development Bank, 2019). Despite these challenges, Africa’s logistics market is expected to grow, driven by increasing trade volumes, urbanization, and economic development (Deloitte, 2020). Humanitarian organizations, such as Doctors Without Borders, play a critical role in delivering aid and relief to vulnerable populations in Africa, often in complex and challenging logistics environments.

Cameroon, a lower-middle-income country in Central Africa, faces significant logistics and supply chain management challenges, including poor road infrastructure, corruption, and security concerns (World Bank, 2020). The country’s logistics sector is critical to its economic development, with the port of Douala serving as a key hub for trade in the region (Cameroon Ministry of Transport, 2020). Doctors Without Borders has a significant presence in Cameroon, providing humanitarian aid and relief to vulnerable populations, including refugees and internally displaced persons.

The nature of ethical theory has long been discussed by numerous authors. The word ‘ethics’ is derived from the ancient Greek term ‘ethikos’, which means ‘the authority of custom and tradition’ (Svensson and Wood, 2003). The Latin translation of this equates to the English word ‘moral’ (Helms and Hutchins, 1992). Despite the relationship between the origins of the terms ethics and morals, there has been little agreement upon the distinction between the two (e.g., Grace and Cohen, 1998; Weiss, 1942). A number of authors have used the terms interchangeably (e.g., Debeljak and Krkac, 2008; Lange and Fenwick, 2008).

Despite the subject of ethics originating from ancient history, business ethics in a social science context is a relatively modern construct, only emerging in the early twentieth century (Trevino and Weaver, 2003). Parker (1998) upholds that the ambiguity between good and bad business practices requires ethics to provide guidance to distinguish between the two. Therefore, business ethics is likely to be influenced by prescriptive moral philosophy and the science of business.

Carroll (1991) interprets this distinction from a stakeholder viewpoint, expressing that a business’ responsibilities must reflect the ethical expectations of consumers, employees, shareholders and the general local communities. The business’ social responsibility must evolve from what society tells the firm the society wants and expects from it (Gold et al., 2010; Ferrel et al., 2012). It is preferable for an organisation to be aligned or ahead of stakeholder expectations, rather than reacting to the current values required from the marketplace. Svensson and Wood (2003, 2004) class this as a proactive gap of business ethics performance, which, in the long run, can reap overall business performance benefits.

Ethics in logistics and supply chain management involves the principles that guide the conduct of individuals and organizations in their operations. Ethical practices encompass a range of issues, including fair labor practices, environmental responsibility, transparency in transactions, and the integrity of supply chain relationships (Carter & Jennings, 2002). As such, the review will delve into the various dimensions of ethical practices, the role of sustainability, and the challenges that stakeholders encounter in maintaining ethical standards.

Ethical practices in supply chain management refer to the standards and behaviors that organizations adopt to ensure that their supply chains operate fairly, transparently, and sustainably. This encompasses various aspects of operations, from procurement and manufacturing to distribution and customer service. According to Lamming and Hampson (1996), ethical supply chains are characterized by the equitable treatment of all stakeholders, including suppliers, employees, customers, and the environment.

One key component of ethical practices is corporate social responsibility (CSR), which represents a business’s commitment to conducting operations in a way that enhances society and the environment (Carroll, 1999). In the context of SCM, CSR might involve ensuring fair wages for workers in the supply chain, minimizing environmental impacts, and engaging in fair trading practices. As globalization continues to shape supply chains, the need for ethical considerations has become even more pressing.

Sustainability is an integral aspect of ethical supply chain management. It encompasses environmental stewardship, social equity, and economic viability, often summarized by the concept of the “triple bottom line” (Elkington, 1997). Logistics operations can have significant environmental impacts, from greenhouse gas emissions associated with transportation to waste generated through packaging. Consequently, companies are increasingly prioritizing sustainable practices as part of their ethical commitments.

Despite the growing emphasis on ethics in supply chain management, organizations face numerous challenges in implementing and maintaining ethical practices. One significant challenge is the complexity of global supply chains, which often involve multiple tiers of suppliers located in different countries with varying legal and ethical standards (Pagell & Wu, 2009). This complexity can make it difficult for companies to monitor and ensure ethical compliance throughout their supply chains.

Another challenge is the potential for conflicts of interest. For instance, suppliers may prioritize profit over ethical considerations, leading to exploitative labor practices or environmental degradation (Pope et al., 2009). Companies must navigate these conflicts carefully, balancing the need for cost-effective operations with their ethical obligations.

Furthermore, the lack of transparency in supply chains can exacerbate ethical challenges. When organizations do not have clear visibility into their supply chain activities, they may inadvertently partner with unethical suppliers or engage in practices that harm their reputation (Wang et al., 2018). Therefore, fostering transparency and open communication is essential for addressing these challenges.

To better understand the ethical dilemmas faced in logistics and supply chain management, it is helpful to explore various theoretical frameworks that guide ethical decision-making. One prominent framework is the Utilitarian approach, which suggests that ethical decisions should be based on the outcomes that maximize overall happiness or well-being (Bentham, 1789). In the context of supply chains, this could involve evaluating the impacts of decisions on all stakeholders and striving for the greatest good.

Another important framework is the Deontological approach, which emphasizes the importance of duty and adherence to moral rules (Kant, 1785). This perspective highlights the need for companies to uphold ethical principles, even when it may not be the most economically advantageous choice. For instance, a company may choose to pay fair wages to its workers, even if it results in higher costs.

In addition to these frameworks, virtue ethics focuses on the character and integrity of individuals involved in decision-making processes (Aristotle, 350 B.C.E). This approach encourages supply chain professionals to cultivate virtues such as honesty, fairness, and respect, By establishing clear ethical guidelines and fostering a culture of integrity, businesses can not only enhance their operations but also contribute positively to society and the environment. The subsequent chapters of this book will delve deeper into the methodology, findings, and implications of ethical practices in logistics and supply chain management, providing a comprehensive understanding of this critical area.

ultimately shaping the ethical culture of the organization.

The importance of SCM has been magnified by globalization, technological advancements, and the increasing complexity of consumer demands. According to Mentzer et al. (2001), SCM is defined as “the systemic, strategic coordination of the traditional business functions and the tactics across these functions within a particular company and across businesses within the supply chain.” This definition underscores the need for collaboration and integration among various stakeholders, including suppliers, manufacturers, distributors, and retailers.

One of the primary goals of SCM is to enhance overall efficiency and effectiveness in delivering products to consumers. By optimizing processes, reducing lead times, and minimizing costs, organizations can improve their competitive advantage in the marketplace. Moreover, effective SCM can lead to increased customer satisfaction, as consumers benefit from timely delivery and high-quality products.

Furthermore, ethical logistics practices are essential for maintaining positive relationships with stakeholders. Companies that prioritize ethics are more likely to gain the trust and loyalty of customers, suppliers, and employees. Research by Lundstedt et al. (2018) suggests that organizations with strong ethical frameworks tend to experience higher levels of employee engagement and retention, as individuals feel more aligned with the company’s values.

Business ethics is largely reliant upon the leader to “articulate shared values and develop a vision for the future” [Desmond, (1998), p.6]. If a company is to succeed in achieving fair and moral practices, the onus is upon the leader to provide a clear and consistent culture by foreseeing and curtailing any ethical dilemmas that may occur (Townsend and Gebhardt, 1997; Giacalone and Knouse, 1996). It is therefore necessary to arrive at a balance between corporate objectives and ethical practices (Sen, 1997). The paper is divided into four main sections. The first section on literature review discusses the three themes of supply chain and ethics, supply chain ethical practices and the resulting performance from ethical practices. The section on methodology outlines the research questions while the section on results and analysis presents the statistical analysis of the data gathered via a survey by questionnaire. Finally, the conclusion summarises the work done and the contribution as well as implications of the study.

1.2 Statement of the Problem

.Despite the increasing emphasis on ethical supply chain management, humanitarian organizations still face numerous challenges, including corruption, supplier reliability, transparency issues, and environmental concerns. Doctors Without Border’s global reach and commitment to ethical logistics provide a valuable case study for examining these challenges and identifying best practices.

Operating in politically unstable regions, Doctors Without Border’s supply chain is vulnerable to bribery, fraud, and supply chain disruptions. Moreover, ensuring ethical procurement and sustainability in emergency logistics remains a complex task. This study seeks to examine how Doctors Without Borders navigates these challenges while upholding its ethical commitments.

1.3 Research Questions

1.3.1Main Research Question

What are the ethical practices and challenges within the logistics and supply chain management operations of Doctors Without Borders?

1.3.2 Specific Research Questions

1. What is the supply chain of Doctors Without Borders?
2. What are the ethical issues involved in the supply chain of Doctors Without Borders?
3. What ways can be used to implement ethical practices in the supply chain of Doctors Without Borders?

1.4 Research Objectives

1.4.1 Main Research Objective

 To carry out a systematic review of the ethical practices and challenges within the logistics and supply chain of Doctors Without Borders.

1.4.2 Specific Research Objectives

1. To identify the supply chain of Doctors Without Borders.
2. To identify the ethical issues, involve in the supply chain of Doctors Without Borders.
3. To determine ways of implementing ethical practices in the supply chain of Doctors Without Borders.