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    Procurement Ethics

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    Reynan Guerrero
    Procurement ethics are important for organizations to establish guidelines and conduct fair business practices. Key principles include integrity, valuing the employer, and loyalty to the profession. Managers must provide training to procurement staff on ethical standards regarding issues like conflicts of interest, influence, responsibility to the employer and suppliers, and maintaining confidential information. Questions can help determine if an action is acceptable to the organization and its stakeholders. Organizations that implement strong ethical codes, education, and environments will see greater efficiency, reputation, and loyalty from customers and suppliers.

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    Procurement Ethics

    Uploaded by

    Reynan Guerrero
    39 views18 pages
    Procurement ethics are important for organizations to establish guidelines and conduct fair business practices. Key principles include integrity, valuing the employer, and loyalty to the profession. Managers must provide training to procurement staff on ethical standards regarding issues like conflicts of interest, influence, responsibility to the employer and suppliers, and maintaining confidential information. Questions can help determine if an action is acceptable to the organization and its stakeholders. Organizations that implement strong ethical codes, education, and environments will see greater efficiency, reputation, and loyalty from customers and suppliers.

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    reynan report

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    Procurement ethics are important for organizations to establish guidelines and conduct fair business practices. Key principles include integrity, valuing the employer, and loyalty to the profession. Managers must provide training to procurement staff on ethical standards regarding issues like conflicts of interest, influence, responsibility to the employer and suppliers, and maintaining confidential information. Questions can help determine if an action is acceptable to the organization and its stakeholders. Organizations that implement strong ethical codes, education, and environments will see greater efficiency, reputation, and loyalty from customers and suppliers.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    39 views18 pages

    Procurement Ethics

    Uploaded by

    Reynan Guerrero
    Procurement ethics are important for organizations to establish guidelines and conduct fair business practices. Key principles include integrity, valuing the employer, and loyalty to the profession. Managers must provide training to procurement staff on ethical standards regarding issues like conflicts of interest, influence, responsibility to the employer and suppliers, and maintaining confidential information. Questions can help determine if an action is acceptable to the organization and its stakeholders. Organizations that implement strong ethical codes, education, and environments will see greater efficiency, reputation, and loyalty from customers and suppliers.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    of 18
    At a glance
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    The key takeaways are that procurement ethics is important for maintaining good relationships with suppliers and protecting the reputation of the organization. Unethical behavior can damage brand image and trust.

    The objectives of the document are to understand the basics of organizational ethics, define important ethical principles for supply managers, understand how global management affects ethics, and describe a supply manager's responsibilities regarding ethics.

    Some principles of ethical supply chain management are integrity, value for the employer, and loyalty to the profession.

    PROCUREMENT ETHICS

    (Major Ethical Consideration in Supply Management)

    Supply Chain Management by:


    David Burt, Sheila Petcavage & Richard Pinkerton
    (Chapter 19 : Ethics in Supply Management Context)
    pages 437 - 453

    Judge Oscar P. Barrientos Reynan M. Guerrero MBA


    Professor (Materials & Procurement Mngt.) DBA Student (Reporter)
    Ethics Class Rules
    1. Only one person speaks at a time.
    2. Pay attention to the person who is speaking.
    3. Speak to other student, not just to the teacher.
    4. Give other a chance to speak.
    5. Build on others idea.
    6. Silent your mobile phone.
    7. No put downs.
    Objectives :
    1. Understand the basics on which organizational ethics are judged.
    2. Define the most important ethical principles for supply managers.
    3. Understood how global management tempers ethical considerations.
    4. Describe confidential supplier information and the responsibility of
    the supply manager towards that information.
    5. Define a supply manager's responsibility to supplier.
    6. Describe the “sharp practices” supply managers can fall into using.
    7. Define a supply manager's responsibility in the area of ethics.
    What is
    Procurement Ethics?
    PROCUREMENT ETHICS
    Being ethical means being in accordancewith the rules or
    standards for right conduct or practice, especially the
    standards of a profession.
    For instance: procurement is involved in supplier
    selection, evaluation, negotiation, contracts sign off and
    awarding business to suppliers. When interacting with
    suppliers, procurement should treat them in fair and
    unbiased manner.
    Why ethics are important for procurement professionals?
    1. Procurement represents their organization and is responsible for awarding
    business to suppliers. Any unethical behavior will have a negative impact on the
    brand image of the organization.
    2. Procurement professionals experience enormous pressure from internal and
    external forces to act in unethical ways as they usually have control over large
    sums of money.
    3. Ethical behavior in conducting business helps in establishing a long term
    relationship and goodwill with suppliers.
    4. An ethical person is respected in the business community. Once a buyer earns
    a reputation within an industry, it is difficult to change it. A professional
    reputation is something a buyer carries throughout his entire career.
    Principles & Standard of Ethical Supply Mngt.
    Conduct
    Integrity in your decisions and actions
    Value for your employer
    Loyalty to your profession
    Standard of Supply Management Practice:
    1. Perceived Impropriety
    2. Conflict of Interest
    3. Issues of Influence
    - Business Meals
    - Personal Relationships
    - International Practices
    - Political Consideration
    - Advertising
    - Market Power
    - Specification and Standards
    Standard of Supply Management
    Practice:
    4. Responsibility to your Employer
    5. Supplier and Customer Relationships
    6. Sustainability and Social Responsibility
    7. Confidential and Proprietary Information
    8. Reciprocity
    9. Applicable Laws, Regulations and Trade Agreements
    10. Professional Competence
    National & International Supply Management Conduct
    Be especially sensitive to customs and cultural differences with respect to
    social and business behavior and issues of influence.
    Recognize that supplier may not be familiar with laws, customs, and practices
    of various countries or with the company's policies. Consequently, it is
    important to ensure that appropriate information is communicated
    effectively to each supplier.
    Recognize which national laws may apply and which do not apply in other
    countries.
    Utilize organization management, legal counsel, and other available
    resources for guidance whenever there is uncertainty about which actions to take.
    Maintain an awareness of national and international standards
    (ISO 9000, ISO 14000, Ethical Trade Initiative, etc.).
    Management Responsibilities
    1. Written Standards
    2. Ethics Training Education
    3. Departmental Environment
    4. Miscellaneous Factors
    Imporatant Areas Requiring Amplification
    1. Avoid Sharp Practices
    2. Competitive Bidding
    3. Negotiation
    4. Samples
    5. Treating Salespeople with Respect
    6. Substandard Materials & Services
    7. Gifts & Gratuties
    Dealing with Gray Areas
    1. Employer. Guidance should focus on the characteristics of loyalty,
    analytical objectivity and a drive to achive results that are in the very
    best interest of the employing organization.
    2. Supplier. The essence of the guiding spirit in dealing with the supplier
    community is honesty fair play.
    3. Collegues. All individuals engaged in supply management work are
    regarded by outside observers as members of an emerging profession. As
    such, they have an obligation to protect and enhance the reputation of
    that body of professionals.
    Guidance by seeking answers to the following questions:
    1. Is this action acceptable to everyone in my organization?
    2. Is the action compatible with the firm's responsibilities to
    its customers, suppliers, and stockholders?
    3. What would happen if all buyers and salespeople
    behaved this way?
    4. If I were in the other person's shoes, how would I feel
    about this action if it were directed toward me?
    5. Would it be comfortable to have this act or action
    reported to the general public?
    Summary:
    Organization must have a strong code of ethics for their business processes
    and procurement process. Employees must be given training regularly on
    ethical behavior.
    The advantages will be greater efficiency and value from procurement
    activities, a better brand image for the organization concerned, and
    increased loyalty from end-customers and appreciation from the public in
    general.
    References:
    1. Supply Management: David Burt. etc. : McGraw Hill/Irwin: 8th edition (1/05/2009)

    Further reading:
    https://www.procurement-academy.com/ethics-procurement/
    (Ethics in Procurement: What are you doing to keep procurement ethical?)
    https://www.ungm.org/Areas/Public/pph/ch04s04.html (Ethics in Procurement)
    YouTubeph videos:
    https://www.youtube.com/watch?v=iCMceYIi4hE
    (procurement role & ethics)
    https://www.youtube.com/watch?v=24Gi70W5HjA
    (procurement code of ethics)

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