PURCHASING & ETHICS

PURCHASING & ETHICS

Ethics refers the behaviour of an individual which is good manners. It is about doing something good that makes people around feel comfortable and enjoy stay around. Generally, people try to act in a good manner because they want their fellows have fun during conservation.

In society, people are respected based on the manners that they have. Public recognize a person by how he chats, he smiles even the way he shakes. Every single action will be observed by the people. That is how a person has been evaluated. 

However, in business environments, ethical behaviour is the foundation of trust. Purchasing agents are governed by the company’s ethical policies. The company`s ethical policies guide the purchasing agent`s act. They must follow the policies or rules that the company provided. There are a few policies or laws such the Uniform Commercial Code, the Securities and Exchange Commission, and many state and local laws. The purchasing agents should read, understand and practice these policies in their action. Purchasing agents who violate ethical codes could easily go to the jail.

The purpose of ethical purchasing is to promote the good labour and environmental standards in supply chains. The concept reviews the main issues related to ethics in purchasing and presents some useful implementation information.

Ethics in purchasing and supply management can relate to wide range of issues from supplier business procedures and practices to corruption. The common areas relate to ethics and ethical behaviour in companies include fair-trade, ethical trading, ethical sourcing, social accountability, social auditing, corporate social responsibility, corporate citizenship, code of conduct and reputation assurance. 

There are some examples of ethical behaviours that every single of purchasing agent should obtain during negotiating with the suppliers in order to maintain the good relationship between suppliers and company itself. This relationship is the most important thing ever in maintaining the supply chain from lowest level.

The purchasing agents should avoid the intent and appearance of unethical or comprising practices in relationships, actions and communications. The unethical practices will cause bad reputation to the purchasing agents himself and company, of course. They need demonstrate loyalty to the employer by diligently following the lawful instructions by reasonable care and only authority granted.