Wilful Acts
Many businesses fail because of wilful acts. Companies, organizations and even individuals engage in behaviours that result in claims of breach of contract and violation of securities laws. It is important for an organization to have a properly established Supply Chain Management plan. Supply chain management is essential because it enables an enterprise to effectively manage its activities related to production, procurement, storage and distribution. The overall performance of the enterprise can be improved through the application of a Supply Chain Management system.
There are many reasons why companies experience supply chain problems. The most common is gross negligence by employees. Gross negligence occurs when an employee behaves in a manner that causes harm to the well being of the enterprise. This can either be an individual or a company's mistake. In either case, it results in damage to the business. Guest law is another cause for poor supply chain management because of the potential abuse of power by management that may result in unlawful behaviour by management and/or employees.
Guest law refers to situations where employees, either individually or in a company as an entity, wilfully and negligently cause harm or damage to the property of other people, the employees themselves or third parties. Guest law also refers to situations where management is guilty of wilful misconduct or a combination of both. One example is if the manager of a manufacturing plant causes an injury to an individual when processing raw materials in the plant. Although the injured individual may have been performing work that would have prevented the accident, he or she may still be held liable for the resulting injuries.
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