Operations Management and Ethics in the Coffee Industry

As technology and innovation moves forward, evolving strategies for management can pose ethical challenges to business and to operations managers, specifically. It is only sound business strategy to create long-lasting competitive advantage, however many times business is short-sighted in making determinations of what is best for business. One of the things often lost in the rush toward profit is ethics. Ethics involve the balancing of the needs of the owners/shareholders against those of the other parties involved, directly and indirectly, with the business. These are often competing and contrary needs, especially when profitability is at stake.

Business Ethics and Operations Management

Often the conflicts between ethical action and profit are ignored or downplayed within the business community. Business must act within the acceptable rules and norms of society, as well as within the legal framework, however, sometimes the norms of a given society can be unjust or perceived as unethical (Poesche, 2002). For example, some question the ethical practices of many oil companies operating in the Middle East and Latin America during the late 1970's and 1980's (Perkins, 2004). While the companies operated within the legal framework of the society, they may have acted unethically in their treatment of the indigenous people and their land. Some have proposed that it is morally shallow to consider the sole purpose of business to make profit alone, but that a business must consider all social, moral, legal and shareholder responsibilities in making decisions (Poesche, 2002). However, sometimes corporations step forward to lead the way in developing strong, socially responsible models for other businesses to follow that show a corporation can be ethical, environmental and profitable.

Operations Management (OM) is mainly about getting the day-to-day operations of a business done. As simple as that sounds, it means coordinating suppliers, shipping, production, and delivery in ways that are profitable for the business, ethical, fair for employees and efficient for the consumer. Operations Management touches on every aspect of the business in ways that can propel a modestly performing company into an industry leader or mire a strong performer in costly errors, backlogs and worker dissatisfaction. This is a thin tightrope Operations Managers must walk in order to ensure their company's success.With careful management of resources, supply chain and a close eye on market trends, it is possible for an ethical manager to produce a great cup of coffee every time.

References

Haigh, M. & Jones, M.T. (2006) The Drivers of Corporate Social Responsibility: A Critical Review. The Business Review. September 2006, vol. 5, iss. 2, pg. 245.

Perkins, J. (2004). Confessions of an economic hit man. Penguin Books Ltd. London, England.

Poesche, J.(2002). Agile manufacturing strategy and business ethics. Journal of Business Ethics. July 2002, vol. 38, iss. 4 pg. 307.