SCM 355 Important Concepts Chapter 15

SCM 355 Important Concepts Chapter 15 - SCM 355 Important...

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SCM 355 Important Concepts Chapter 15 (Purchasing Law and Ethics) Legal Authority and Personal Liability of the Purchasing Manager Laws of Agency Agent: is a person or entity authorized to act on behalf of some other person or entity (purchasing manager/buyer). Principle: is the corresponding person or entity for whom agents carry out their authority (buying firm). Legal Authority Personal Liability (Exhibit 15.1 Laws of Agency) Purchasing Ethics : ethics are the set of moral principles or values guiding our behavior. In a business setting, ethical behavior is the use of recognized social principles involving justice and fairness throughout the business relationship. Three Rules of Ethical Behavior-Page 476 Risks of Unethical Behavior Act is illegal Personal risk to professional reputation Risk to a firm’s reputation Types of Unethical Purchasing Behavior Reciprocity Personal buying Accepting supplier favors Sharp practices Financial conflicts of interest ISM Professional Code of Ethics
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This note was uploaded on 06/24/2008 for the course SCM 355 taught by Professor Pearson during the Spring '08 term at ASU.

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SCM 355 Important Concepts Chapter 15 - SCM 355 Important...

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