Question 1. Why should Starbucks, Kraft, and Nestle create "ethical supply chains”?
The concept of ethical supply chain has grown more and more popular in the recent years. Ethical in this case should not be confused with legally right, since ethical considerations go far beyond legislation or business relations. Ethical behaviour is usually linked to social responsibility of the companies, which is embedded into their strategy and operations. In businesses related to the global sourcing of inputs, ethical behaviour largely depends on the fair trade concepts, which promote supporting suppliers in the poor countries in order to improve their productivity and enhance competitiveness (Barrar, and Gervais). Since supply chain is in ...