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You are the Chief Procurement Officer for Terebro Energy Co . You are responsible for managing the acquisition of raw materials and other goods or
You are the Chief Procurement Officer for Terebro Energy Co You are responsible for managing the acquisition of raw materials and other goods or services the company needs. Terebros emerging strategy to refocus on wind and solar energyand the companys new commitment to a carbonneutral supply chainhave completely upended your routine. Your team is currently scrambling to find new suppliers for almost every aspect of Terebros operations. And, since Terebro is an energy company with global reach, the project is massive.
A particularly timeconsuming task is the supplier quality audits, where Terebro thoroughly reviews the operations and product quality of suppliers to identify problems. Terebros usual process involves reviews from an internal audit team, which helps narrow down the choice of suppliers before a contract is signed and conducts regular reviews of existing suppliers every two years. Terebro also conducts an independent thirdparty audit as a final step before entering into any agreement with a new supplier. These audits ensure Terebro avoids buying inferior goods or working with poorly managed companies. In the worst examples along a global supply chain, a supplier might be responsible for environmental devastation, unsafe worker conditions, or the use of underpaid or forced labor.
Mateo and Lily, two procurement managers you supervise, are meeting with you to discuss their concerns about Terebros restructuring of the supply chain. In keeping with the hurried pace, the meeting is over lunch: the only open time that aligns with all your schedules.
First of all, I know were behind schedule, Mateo says. Weve hit some snags, though Lily and I are hoping our suggestion could speed our process up and get us back on track.
Normally Lily says, were only looking to fill one or two new procurement needs at any given time. The rest of the work is managing existing contracts. But now that were on the hunt for new materialsrecycled steel to lower our carbon footprint, polysilicon for our solar panels, all thatthe bottleneck were encountering is in the audit process. Were just not built to look for this many new suppliers at once.
Right Mateo agrees. Our internal auditors are swamped. Site inspections, quality assessment, interviews, reports, and on and on What Lily and I recommend is that we focus more on locking down purchasing agreements and schedule the internal and thirdparty audits at a more reasonable pace. And, in the worst case, we can always end our deals later if we find problems.
Its a risk, Lily admits, because we might end up working with a few bad partners for a while, maybe even a year or two, until we can go down the list and review them all. But the advantage is well get up and running much fastergiving all of us a muchneeded break.
Examining an ethical dilemma requires first identifying the ethical issue, which is a tension between competing values. These tensions may be between the individual and the larger group autonomy vs equality or a tension between logic and emotion rationality vs sensibility On the other hand, some problems that appear to be ethical dilemmas have no value tension at all. These are instead technical problemsa question about the best way to accomplish something or about arriving at an objectively correct solution.
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