Only 1 in 10 companies report ethics KPIs

 Dive Brief:

• Less than 10% of companies globally are reporting key performance indicators (KPIs) on business ethics, according to EcoVadis, which provides business sustainability ratings.
• The world average score for business ethics is 42.4 out of 100, indicating "most organizations are taking a reactive, unstructured approach to fighting corruption risks," EcoVadis said.
• Transportation, storage and manufacturing were among the industries scoring below the global average, signifying their high risk for corruption, bribery and fraud.

  Dive Insight:

  Supply chain managers must calibrate their personal moral compass when it comes to dealing with ethical issues they encounter in the workplace and throughout the supply chain.
  The enormity of malfeasance in the global economy might wear down even the most upstanding corporate citizen, creating a cynical environment that feeds on itself. The recent arrest of Nissan chairman Carlos Ghosn for financial misconduct hardly created a ripple, all while Nissan holiday ads touting technology and family values flood nightly television. 
  This criminal activity is not just restricted to the international stage. In my state of Massachusetts, there is a massive corruption scandal involving the state police fraudulently claiming overtime pay when they weren’t on duty. Some officers have been arrested and are facing serious jail time.
  Supply chain managers are in a position to effect change, at least in their sphere of influence. Personal integrity and values are important and can be the cornerstone of any supply chain strategy. It is not enough for companies to establish KPIs to track ethical issues. They need to confront them and create a supplier, customer and workplace ecosystem that embraces honesty and integrity.
  While we may not be able to prevent the next perp walk, we can keep our own house in order. If enough of us do that, we just may effect the change that is so desperately needed. 

About the Author

• rweissman@industrydive.com

Rich Weissman is a practitioner turned college professor, Rich Weissman had more than 

twenty-five years of practical experience in all aspects of supply chain management. He is 

past president of the Institute for Supply Management –Greater Boston and the recipient of 

the Harry J. Graham Memorial Award, the highest honor bestowed by the Association. He 

writes and speaks extensively on issues impacting the global supply chain.