Ethics Answers

Ethics Answers - Case Discussion: Purchasing Ethics The...

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This edition is intended for use outside of the U.S. only, with content that may be different from the U.S. Edition. This may not be resold, copied, or distributed without the prior consent of the publisher. 1 Case Discussion: Purchasing Ethics The four ethics scenarios in this case highlight various moral and ethical dilemmas that buyers may encounter. Ethics play an important role within the purchasing profession. This is due partly to purchasing’s authority to control and award large dollar contracts. The temptation for ethical abuses by the buyer or seller, unfortunately, is always present. Ethics are the set of moral principles guiding our behavior. In a business setting, ethical behavior is the use of recognized social principles involving justice and fairness throughout our business relationships. Ethics have their basis in the field of philosophy, and identify common principles associated with appropriate versus inappropriate actions, moral duty, and obligation. Purchasing professionals have an ethical responsibility to many groups: ± To the firm for which they work ± To fellow purchasing professionals ± To employees ± To customers and shareholders ± To the community and others in society When confronting a situation or considering a behavior that may involve ethical issues, several general criteria should govern our judgment and actions: ± Would this behavior or action be acceptable to people and other purchasing professional whom I respect? (This assumes the purchasing professional respects ethical people) ± What are the consequences of this behavior for myself, other employees, customers, and society? ± Does this behavior conform to my company’s established ethical standards? ± Is the behavior illegal? ± Does the behavior conform to my profession’s established ethical standards? ± Will I be proud of my action or behavior? Because purchasing is a profession, purchasers should follow the professional standards of ethical purchasing behavior. A purchaser must commit his or her energies toward the organization’s benefit rather than personal enrichment at the expense of the organization. A professional purchaser must also act ethically toward suppliers or potential suppliers, treating each professionally and with respect. Finally, a purchaser must uphold the ethical standards set forth by the ISM code of ethics. A purchaser who practices unethical behavior exposes him or herself to various types of risk. Some unethical behavior is also illegal. (We can assume that illegal behavior is also unethical). Illegal behavior can lead to fines and/or imprisonment. Unethical behavior can also tarnish an
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This edition is intended for use outside of the U.S. only, with content that may be different from the U.S. Edition. This may not be resold, copied, or distributed without the prior consent of the publisher. 2
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This note was uploaded on 04/21/2011 for the course MGT 01 taught by Professor Gad during the Spring '11 term at Tanta University.

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Ethics Answers - Case Discussion: Purchasing Ethics The...

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