What are some procurement practices that are unethical?
In a larger organisation, practices that include bribery, coercion, extortion, nepotism, and other unethical procurement methods may be conducted with significant sophistication, including any number of smokescreens and diversions to keep them invisible from scrutiny, and hence profitable for the perpetrators.
How can I protect myself from ethical disputes with my vendors?
Your vendor agreement should clearly spell out what practices would be grounds for an immediate termination of the contract; this lets you protect yourself against being linked to a vendor's ethical shortcomings. Journal of the Medical Library Association: Does It Really Matter Who’s Paying For Dinner?
What is the ethical stance on customer loyalty?
From an ethical stance a customer is a customer and there’s something to be said for that loyalty. It should not be abused, and we’re glad that there is an investigation into this.”
Is tolerance for unethical business practices diminishing?
It highlights how tolerance for unethical business practices has diminished in recent years, even when a national economy (in this case, the United States) stands to gain from international supply contracts.
What are the ethical issues relating to suppliers?
When talking about ethics in the supply chain, experts generally focus on:Freedom of employment and association.The eradication of child labour.Safe and hygienic working conditions.Appropriate pay and working hours.Humane and non-discriminatory treatment.Anti-bribery and corruption.Environmental awareness.
What is ethical and unethical in procurement?
Ethical procurement refers to a wide range of issues that can impact the ethical and sustainability goals of a business. Examples include the monitoring of unethical or illegal supplier business procedures and practices that can impact your organization's procurement efficiency and reputation.
How can suppliers be treated ethically?
Treating suppliers ethicallypaying fair prices.having reasonable expectations.paying bills on time.
What are some of the ethical and unethical issues in procurement?
Some examples of what you shouldn't do when it comes to ethics in procurement management include:Accepting gifts from a supplier. Even if it's around the holidays, you shouldn't accept gifts from a supplier. ... Having a conflict of interest. ... Sharing confidential information. ... Treating suppliers differently.
What is ethical purchasing and supply?
Ethically sourced means that products and services from each point of a business's supply chain are obtained in an ethical way, which includes upholding rights, decent working conditions, health and safety, good business ethics and more.
Why is ethics important in purchasing?
Implementing Ethical Procurement Practices The best code of ethics is one that reduces your risk of loss and supports business goals while maximizing your compliance with societal and legal demands. You can develop an ethical procurement process by following some basic best practices.
How do you treat customers ethically?
Treating customers ethically Examples include: Exceeding expectations through putting customers at the heart of everything. This can include offering excellent customer service, quality products or services and making the customer feel valued and appreciated.
What are supplier ethics?
BUSINESS CONDUCT. Fairness to suppliers is promoted by the following means: By giving all salespersons a fair, prompt and courteous hearing on any subject that is justified by the nature of their products or services. By keeping competition open and fair.
What is an unethical supply chain?
Unethical conduct in the supply chain Forced labour is the taking of labour without consent through threats or coercion, while human trafficking is the purchase of individuals by deception, threat, or coercion into slavery, forced labour, or other forms of exploitation.
What are the factors which lead to unethical behavior?
Results show that exposure to in-group members who misbehave or to others who benefit from unethical actions, greed, egocentrism, self-justification, exposure to incremental dishonesty, loss aversion, challenging performance goals, or time pressure increase unethical behavior.
How can we prevent unethical business practices?
However, business owners and their management teams can work with employees to prevent unethical behaviors.Create a Code of Conduct. ... Lead By Example. ... Reinforce Consequences for Unethical Behavior. ... Show Employees Appreciation. ... Welcome an Ethics Speaker. ... Create Checks and Balances. ... Hire for Values.
What are the ethical issues in management?
If you are to run an ethical business, you first need to know what types of issues you can expect to face and may need to overcome.Discrimination. ... Harassment. ... Unethical Accounting. ... Health and Safety. ... Abuse of Leadership Authority. ... Nepotism and Favoritism. ... Privacy. ... Corporate Espionage.
How to make a difference with difficult customers?
Even with difficult customers, keep your attitude relentlessly positive. The smile on your face and the tone of your voice can make a huge difference. Accept that even if their experience is perfect, they probably won’t comment on it, because they expect perfection. And remember, their attitudes will change over time.
When a customer has a problem, do you have a problem?
When a customer has a problem, you have a problem. Don’t let yourself be satisfied until they are; give 110 percent to settle their problem, so you can retain their business. Most customers will do business with you again if you fix their problem; it’s even better if you fix it on the spot.
How to make your customers feel special?
Learn to love them, because they’re the ones who keep your company alive. Build rapport. Be fully present when you’re with them. Learn their special dates, so you can send cards or say Happy Birthday. Take notes on their families and hobbies. They’ll be very grateful for your concern—and that gratitude will translate to profit.
How many positive service incidences are there?
Some research estimates that it takes twelve positive service incidences just to make up for one negative incident. 2.
What happens if an organisation is able to hide unethical procurement activities?
Even if an organisation is able to hide unethical procurement activities, it lays itself open to other problems. The first being one of management. For example: If senior management does not know about the lack of ethics or takes no action, then it is inherently inept.
What is the immediate reaction to the idea of unsatisfactory procurement ethics?
The immediate reaction to the idea of unsatisfactory procurement ethics is that it will be damaging for public relations if those ethics become known. In this information-rich and communication-enabled age, bad press can spread rapidly—as confirmed by the Smith & Wesson case study.
What are the ground rules for ethical procurement?
The ground rules for good ethics in procurement are simple enough. Practice integrity, avoid conflicts of interest and personal enrichment, treat suppliers equally and fairly, and comply with legal and other obligations. Quite simply, the overriding principle is “do the right things.”. However, simple is not the same as easy.
What is procurement ethics policy?
A written procurement ethics policy remains the starting point for raising and maintaining standards in an organisation. Employees at all levels involved in procurement need to know what is expected of them, and a written policy helps resolve any arguments.
What is the Supplier's Point of View?
The Supplier’s Point of View. There is an assumption sometimes that the villains in a procurement scandal must include the supplier. After all, if people involved in procurement are corrupt, there must be a corruptor, and suppliers can make good scapegoats.
What are some illegal practices?
Immoral or illegal practices can include: Bribery: Unethical buyers may make payments in cash or in-kind to individuals or their friends, family, or partners to buy their support for a supplier or a contract negotiation. Bribes can occur before, during, or after (kickbacks) award of a contract.
What is the second problem in procurement?
The second is the efficiency of the procurement process and the effect on overall organisational performance. If personal gain, rather than value to the organisation, is the driver behind procurement, profitability suffers. A third problem is rogue procurement.
What is ethical issue in vendor relationships?
One of the most prominent ethical issues in vendor relationships occurs when you or someone on your staff has a familiar or personal relationship with the vendor. All personal relationships with vendors should be disclosed, and nobody on your staff should engage in vendor relations if they have such a personal relationship on the other side ...
What is fair and ethical contract?
A fair and ethical contract expands the chances of a stable and productive relationship that benefits both parties. However, ethical concerns can manifest themselves in both positive and negative ways in negotiations. For example, when a contract is up for renewal and a rival vendor promises to provide the same product or service at a lower cost, you may think it ethical to offer your current long-term supplier the opportunity to match if the offerings are equivalent and you've been satisfied with the relationship. However, if the product or service offered by the new vendor is clearly better, you may instead have an ethical obligation to your business to take the better deal regardless of your established relationship.
Why is it important to have proper procedures in place for a small business?
A small business needs proper procedures in place to ensure vendor relationships are determined and managed based on business needs, rather than other factors.
Can you control how your vendors conduct their business?
Vendor Conditions. You may not control how your vendors conduct their business, but their actions may nevertheless come back to reflect poorly on your company if they do not act in an ethically responsible way.
Is accepting cash bribes from vendors in exchange for preferential treatment ethical?
Improper Gifts. Hopefully it goes without saying that accepting cash bribes from vendors in exchange for preferential treatment is unacceptable ethical behavior . However, a business also needs to have rules in place about the acceptance of gifts.