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Trust Issues in Supply Chain Management
Abstract
When corporate boundaries become blurred, as they are in contemporary supply chain management, distinctive ethical issues arise. In a traditional market situation, agreement with another company to charge a fixed amount is considered to be collusion or price fixing and to be both illegal and unethical. In a supply chain context, agreements that a supplier charge a fixed amount are essential for vendor managed inventory. Such agreements are not illegal and not regarded as unethical. What is the ethical basis for this difference?
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