Analysis of Ethical Issues in ASOS's Supply Chain: A Report

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ASSESSMENT
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Contents
1.0 INTRODUCTION........................................................................................................................3
PART 1............................................................................................................................................3
2.0 STAKEHOLDER ANALYSIS..........................................................................................................5
2.1 STAKEHOLDER MAPPING..................................................................................................... 5
2.2 SAILENCE MODEL.................................................................................................................7
Dangerous Stakeholder- News/Press.....................................................................................7
Dependent stakeholder- society............................................................................................8
Definitive stakeholder- Governments....................................................................................8
3.0 ETHICAL ANALYSIS................................................................................................................... 9
3.1 ETHICAL THEORY AND VALUES AT ASOS..............................................................................9
3.2 ENVIRONMENTAL IMPACT.................................................................................................10
3.3 CORPORATE SOCIAL RESPONSIBILITIES..............................................................................11
4.0 RECOMMENDATIONS TO ETHICAL PRACTICES.......................................................................12
PART2.......................................................................................................................................... 14
REFERENCES.................................................................................................................................19
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1.0 INTRODUCTION
The purpose of the report is to explore the ethical dilemma practices such as child labor and its
integration in the supply chains of ASOS retail brand. It concerns ASOS, M&S, Zara, Mango and
other textile and retail industry position as an ethical company in the market (ASOS, 2017). The
operational measure of ASOS is to manage all the aspects of the business transparently within a
fashion with integrity. However, in one case, the BBC has found that the children belonging to
7-8 years old are prone to sew boxer shorts.
PART 1
This is the reason why children are unable to attend the school. This is extremely ethical that
the children are working in the industry for more than 60 hours a week with no rewards or any
other bonuses. Therefore, the dilemma is important because if ASOS disregards the Child
workers the means by which they are unable to attend the schools (ASOS, 2017). This is not
only affecting the child state of mind but it would also tarnish the textile reputation as an
ethical respectable company which is highly manage in the ethical manner.
The report is written from the head manager of the supply chains in ASOS and is addressed to
the supply department of the industry directors with the purpose of implementing the policy
which control the unethical means of the business. This report exposes the ethical dilemma as
“should the child age below 15 years must be hire as full time labor in the retail industries?’’.
The consideration of this dilemma is pertinent as this assure that the ASOS is not practicing
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such behavior that compromises its stakeholders and affecting the compliance to the business
(Emmanuel and Eriksson, 2016).
There are certain ratio of the cases of child workers in the retail industry has been found among
them ASOS has been brought into consideration Under the Modern Slavery Act 2015 which
seeks the children being trafficked or employed. These requirements of employment are
recognized in the ASOS under which children are vulnerable and adults to exploitation (ASOS,
2016). The extremely serious and unacceptable measure has been found that have ensure that
the company has offered legal employment to legal refugees and pledged that this practices
will not happen again.
The primary ethical responsibility for ASOS is providing the goods to carry out the diligence. The
potential ethical standards can help in influencing the suppliers with t commercial actions. The
ability to meet our standards may project on the procurement principles and ensuring the
trading practices through which the fair activities are carried out (ASOS, 2017). This can help in
generating the trust by developing positive relationship and sustainable business.
The fastest growing company may face the challenging kind of the improvements on the
products and sustainability. The modern supply chains in the fashion industry can provide the
access to the functioning of the effective representation and people are safe at work by the
respected managers (Fernie and Perry, 2011).
Initially, the company such as ASOS does not think that they perform some unethical activities
in terms of the corporate responsibility. However, the act needs to be ethical and sensible for
the people to meet with the critical area. One of the problems that strike in ASOS is to support
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the CSR and meet the subjective criteria for the work (Lucas et al., 2016). The enterprise
utilizing the children below 15 years have nothing to apologize to this unethical act to make
money. It has affected the society as well as future of the children in every possible way.
The supply chain can be managed only by maintaining the human rights and modern slavery
elements of the annual corporate risks. This can help the business committees responsible for
delivery of the fashion with integrity strategic (Parker and Wang, 2016). The governance groups
can mark each group to work collaboratively. This breaks with the intuition that the child
workers can be supported by the local NGO and by other virtue of this as a responsibility.
2.0 STAKEHOLDER ANALYSIS
The stakeholders of the ASOS play a vulnerable role in shaping the CSR activities. This can direct
on the sustainable challenges that the organization or business faces. The way through which
the stakeholders engage the staff may differ in terms of managing the relationship through
which the community can meet with the frequent range of the services (Lucas et al., 2016). It
can manage the stakeholder’s engagement to more informal and ad hoc way.
The supply chain workers of the ASOS have been portraying the coalition with the other NGOs
to manage their supply chain ignorance measure.
2.1 STAKEHOLDER MAPPING
The stakeholders have also cited the organization to handle appropriately these unethical
practices.
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Figure 1: Stakeholder Mapping
Source: Lucas et al., 2016
The customers thought for the excellent commerce and companies expectations can met with
the legal rules and regulations. The diverse expectations of the customer are the responsibility
of the ASOS stakeholders to meet the stipulated demand in time. This can provide competitive
advantage that can be gained within the UK and managing the increase in the revenue along
with the capacity at high rates (Kara, 2017).
The efforts to improve the supply chain can be met with the models that are under put and
volunteer with the unhealthy relations with other companies. The Working with NGO partners
and UNICEF to the research can direct on the child labor within the Syrian refugee communities
(Lucas et al., 2016). KADAV NGO partner helps in enforcing the remediation policy that covers
the child schooling and living wages to the family.
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2.2 SAILENCE MODEL
The salience model helps in better understanding of the stakeholder with the priority to
competing the other organization stakeholder’s claims. This can actively manage with ASOS
case which may direct on the great communication participation by neglecting the other
employees (Parker and Wang, 2016).
Figure 2: Salience Model
Source: Emmanuel and Eriksson, 2016
Dangerous Stakeholder- News/Press
ASOS has later on started a policy with compliance to international labor organizations
conventions 138 and 182. ASOS expects the suppliers to monitor their own supply chains and
must contact regarding the concern (Emmanuel and Eriksson, 2016). The ethical perspective of
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the manager direct on the Human rights responsibility. If the child workers are found in the
ASOS supply chain that the working partners will appropriately develop a solution for long term
interest of the children and based on which the educational and social and economic needs of
the children can be concerned. It will help in setting out the framework through which the
creating the legal employment to legal refugee. This can contain the footage of the Syrian
refugee children making clothes and are affecting the long term interest (Emmanuel and
Eriksson, 2016).
Dependent stakeholder- society
The turkey is one of the main locations which are affected due to the dependent stakeholders
and legitimate claims. This relies on the media to publicize the problem which do not realize the
extent of the rights or illegal analysis.
Definitive stakeholder- Governments
This can be closely monitored by starting the Life skills programme and providing the support to
the Syrian children to overcome with the experiences of the conflict and integrating the
children up to-date having the 16 participants in the programme. The risk assessment to the
recruitment process can be managed which can build the recruitment processes and child labor
in the forms of the fair labor association and IPUD joint project in the employment practices in
the sector (Emmanuel and Eriksson, 2016). Further, this can direct on the identifying the
partners with the child labor remediation in the china by the NGO to meet the subjective
practices.
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3.0 ETHICAL ANALYSIS
The correct action which can be approached to the engage the students while looking at the
issues are demonstrated with good intentions. The traditional ethical theories that are founded
on modernism can be dated by with the primary data which present the moral principles for
the situation (Emmanuel and Eriksson, 2016). The Traditional ethical theories classified are
consequentialists and non-consequentialists. The utilitarianism, Egoism and hedonism theories
can be applied to the actions.
3.1 ETHICAL THEORY AND VALUES AT ASOS
Utilitarianism claims to become the action of the moral rights if the results are produced with
the happiness. The good people are affected by the actions and employees needs to suffer
within the large proportion. The consequentialist theory has provided basic judgment which has
enlarged the intrinsic range of the properties for the agents and character. The outcomes of the
actions that are undertaken can focus on the theory of deontology (ASOS, 2017). The moral
principles underline the actions to meet the change in the society against the CSR activities
which has been carried out in past years. This can also be directed to relate with achievements
in cultural and intellectual spheres through which the ethical relativism and postmodern ethics
and analytical behavior can be managed (Parker and Wang, 2016). Thus, the ethical theory of
relativism is bound to present the actions of the wrong or right doings in the society. There are
certain recommendations that can be affix in order to improve the ethical practices that are
evident from the ASOS considerations.
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3.2 ENVIRONMENTAL IMPACT
The company has cheap and cute fashion deliverables right to the door step. This can excites
the low price tags which is often believe as the true cost of the fast through which the policies
and production process are detrimental to the working environment of the organization (Kara,
2017). The ASOS member of the ethical trade initiative has promoted some respect for the
workers on the right internationally.
The ASOS has utilized ETI’s code of conduct through which the company can monitor and audit
their business. This is not comprehensive enough to publish a list of the direct suppliers on the
websites with the range of the specified sources. One of the arguments against CSR is that the
companies is very powerful retail brand in the area and are subduing on the new
responsibilities through which the societal area can be controlled (ASOS, 2017). Another set of
the guiding principles which concerns with the range of the code applies to the organization
through which the supply chain can be maintained.
Employers need to encounter with the range of the services. It is necessary for the employers
to be voluntarily recruited and employed along with a valid right to work. This can free from
any kind of the coercion or threat. They must be provided the remuneration with agreed
contracts along with managing the time and making it effective with the services that can be
understood. The case of the supply chain ignorance in the ASOS has solely met with the
shareholders that decide a business will make investment in the different part (ASOS, 2017).
The chief executive and ASOS executive committee are responsible for ensuring the human
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rights responsibilities due to which the executive board can direct on the strategic goals on the
quarterly basis.
3.3 CORPORATE SOCIAL RESPONSIBILITIES
The ethical trade programme relies under the corporate social responsibility of the ASOS. This
directs on the working feature to sustainable sources and third party brand team as well as our
retail teams to deliver ASOS’s Fashion with integrity strategy (Fernie and Perry, 2011). In the
society, the range of awareness of corporate social responsibilities has help in setting the vision
for the empowering the workers and protecting the rights and working conditions with long
term solutions as the key human rights challenges in the textile supply chain through
meaningful means. ASOS has sought some standards in order to improve the production
efficiency, labor and other environmental standards (Dizayee, 2016).
Social responsibilities are common view that CSR directs on creating the economic values for
shareholders. The argument for the corporate social responsibility is that the company has so
much power but is affected with the Modern Slavery Act 2015 (Dizayee, 2016). The large
companies such as M&S, Zara have a particular responsibility through which they can laid down
in the legislations which would eventually meet with the companies that shows the corporate
social responsibilities.
An inside to the CSR concept is that it is necessary as well as forming the abduction to the
business towards the society. According to Annual Report (2014), the social and environmental
responsibility plays a big role in managing the supplies of the industry. It is highly recognized by
safeguarding the animals and welfare throughout rearing, slaughtering and transportation.
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ASOS provides a platform to bring vintage and pre-worn items to the customers thereby
extending the lives of those items (Fernie and Perry, 2011). But the activities that are
performed have critique against CSR. It has been believed that child workers has created an
argument against CSR is that management should not have discrete. It has affected the
Shareholder’s money on the organization. The one way that CSR benefits the company is
creating their ethical goodwill (Fernie and Perry, 2011).
4.0 RECOMMENDATIONS TO ETHICAL PRACTICES
It is important to recognize the problem of stemming and preventing the happening again in
future. The socially responsible way to claim the ASOS activities have failed but it can be
supportive in gaining better ethical practices and sustainability (Emmanuel and Eriksson, 2016).
The recommendations to practices are:
 Building sustainable and ethical supply chains
One of the primary area concerns with the ethical issue of warehouses and supply has
particularly improved by regularly monitoring and building the healthy environment along with
the safety and security. ASOS has invested more money in the company to raise their sales
prices which will in return provide increase profit margin (Emmanuel and Eriksson, 2016).
 Developing more robust code of ethics
This can provide the effect on the compliance and monitoring the code with the guidelines for
the different stakeholders in the company (Parker and Wang, 2016).
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