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Purchasing Ethics - Grade: A+

Purchasing Ethics Essay.
Academic year: 2020/2021
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Preparatoria Núm. 2

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“Purchasing Ethics”

INTRODUCTION

We know that ethics is the doctrine that we are faced with today regarding good or bad, that is, they are the actions or decisions that we make regarding the principles or education that we have received.

Ethics in companies is very important because through this concept we, when working in a company, managers can realize how we really are with respect to ethics. If we are good people or bad people. Below are 4 cases of different companies with respect to ethics in purchases, each case will be analyzed and a solution will also be proposed for the four cases that are presented.

Scenario 1

Nina, she called Bryan Janz, her husband to tell him that a package had arrived at her house from FedEx which was addressed to her, when she opened the package she realized that inside the package there was a clock, Nina loved it since it combined very well with the fireplace that he had inside his house. Bryan Janz asked Nina about who sent her the clock, so Nina replied that it had been Mr. James McEnroe, so Bryan told her that he was a supplier who had been trying to win business from his company and immediately asked Nina to pack the clock and return it because they could not accept that gift from him, so Nina was annoyed that she had loved the clock, because it matched the fireplace she had in her room. House. Given the position that Nina showed, Bryan Janz did not know what to do with this question.

1. What should Bryan do about the clock?

I believe that the clock should be returned to its owner, since perhaps he had bad intentions at the time that Mr. James McEnroe sent them that clock.

2. What does the Institute of Supply Management (ISM) code of ethics say about accepting supplier favors and gifts?

The code of ethics mentions that employees are prohibited from giving or receiving Gifts, other than merchandise of nominal value.

3. Why do you think the supplier sent the clock to Bryan’s home and addressed it to his wife?

To convince Bryan to do business with him.

4. Does the mere act of sending the clock to Bryan mean that Mr. McEnroe is an unethical salesperson?

Yes, I consider that he definitely did it with bad intentions, that means that the ethics that exist in him are deficient.

Scenario 2

The owner of the company Assurance Technologies, Lisa Jennings, was negotiating with a company which manufactures precision instruments called Sealgood, they were making a contract which had a lot of value, the value was approximately 2 million dollars a year, the team of Lisa's company, spent the time preparing this contract in detail, because Sealgood put many requirements to collaborate with them, so, after analyzing all the requirements, Lisa's company, Assurance Technologies, realized that they could meet all the requirements, such as quality, cost, delivery time, among others. Troy Smyrna, the buyer of Sealgood, asked Lisa Jennings to meet to discuss the details of the contract. When they were already arguing, Lisa realized that Troy was a bit upset, Troy mentioned that one of the suppliers of Lisa Jennings' company, Assurance Technologies, was Sealgood's competition. Lisa asked him if he could do something about it so that the contract was signed, so Troy told him that what they could do was to substitute the product they were using from Sealgood's competition with a product of theirs. Faced with this situation, Lisa replied that because of this they could get negative results as it would mean replacing several hundred thousand dollars of equipment. Troy asked him directly if he wanted to close the business or not, which Lisa asked him for some time to think about this situation.

boxes, the one that offered the lowest price was going to sign the contract with Coastal Products.

1. Is Ben Gibson acting legally? Is he acting ethically? Why or why not?

Ben Gibson is not acting ethically or legally, since he is being influenced by personal aspects and he is also being influenced by Jeff's opinion, he could be lying about the opinion he said about Southeastern Corrugated. And if what Jeff said about Southeastern were true, Coastal Products could enter into a negotiation with Southeastern Corrugated to reduce costs in the short or medium term, since Southeastern Corrugated is not to blame for the rise in the price of paper.

2. As the Marketing Manager for Southeastern Corrugated what would you do upon receiving the request for quotation from Coastal Products

I believe that Marketing Manager should reject Coastal Products' request, since if he accepts to reduce the price of corrugated boxes, he would generate losses for his company because the price of paper increased.

Scenario 4

The company Visionex, Inc. asked Sharon Gillespie, a new buyer of Visionex, Inc. to review in detail 4 quotes from four different suppliers, among what she had to review was to compare prices, target quality levels and time estimated delivery. Dave Cox, Shanon's manager, asked him if he needed help with the task assigned to him, so Shanon mentioned that it was not necessary, that he was only analyzing the four interested suppliers. Dave asked Shanon what the candidate vendors were, and she replied that there was already a candidate that meets all the requirements that Visionex required called Apex. Then Dave Cox returned to Sharon's office and mentioned that he had already reviewed the candidate vendors and that it was best for him to choose Micron as he met all the requirements. Shortly after he had a meeting with a colleague, Mark Smith, he is also a buyer, and he mentioned to Sharon that the owners of the Micron company are related to Dave Cox and that he, too, could probably very soon be the owner of that

company, to which Sharon was amazed and said that she would keep her stance on choosing Apex.

1. What does the Institute of Supply Management code of ethics say about financial conflicts of interest?

The people who identify this type of conflict according to the Code of Ethics are in charge of carrying out the purchasing audits, they are in charge of reviewing internal control, evaluating the staff, the activities they carry out, their professional performance that has to do with the conflicts of interest, such as self-negotiation, family and friend interests, as well as confidential information.

2. Ethical decisions that affect a buyer’s ethical perspective usually involve the organizational environment, cultural environment, personal environment, and industry environment. Analyze this scenario using these four variables.

I think Sharon may feel a bit pressured, because since Dave Cox is her manager, it can put her in a very uncomfortable situation, Sharon is doing her job well, but with Dave's presence she feels pressured to take a bad one. decision, which would be to choose the Micron company. If she does what Dave asks, she can get in trouble too, the two of them would be involved in a conflict of interest, which is clearly unethical, since the owners of Micron are related to Dave.

3. What should Sharon do in this situation?

Immediately inform someone superior to her and Dave Cox, since what Dave Cox is doing is wrong and must be sanctioned, this so that it does not harm Sharon, because she is only doing her job. Maybe the Visionex company should conduct an audit so there is no backlash against Sharon.

CONCLUSION

Ethics is very important to us as future professionals, since through it we say who we are, if we act legally, or if we do not act ethically with the situations that arise.

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Purchasing Ethics - Grade: A+

Course: Sourcing and Procurement (SCMT 335)

University: Texas A&M University

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“Purchasing Ethics”
INTRODUCTION
We know that ethics is the doctrine that we are faced with today regarding good or
bad, that is, they are the actions or decisions that we make regarding the principles
or education that we have received.
Ethics in companies is very important because through this concept we, when
working in a company, managers can realize how we really are with respect to
ethics. If we are good people or bad people. Below are 4 cases of different
companies with respect to ethics in purchases, each case will be analyzed and a
solution will also be proposed for the four cases that are presented.
Scenario 1
Nina, she called Bryan Janz, her husband to tell him that a package had arrived at
her house from FedEx which was addressed to her, when she opened the package
she realized that inside the package there was a clock, Nina loved it since it
combined very well with the fireplace that he had inside his house. Bryan Janz
asked Nina about who sent her the clock, so Nina replied that it had been Mr.
James McEnroe, so Bryan told her that he was a supplier who had been trying to
win business from his company and immediately asked Nina to pack the clock and
return it because they could not accept that gift from him, so Nina was annoyed
that she had loved the clock, because it matched the fireplace she had in her room.
House. Given the position that Nina showed, Bryan Janz did not know what to do
with this question.
1. What should Bryan do about the clock?
I believe that the clock should be returned to its owner, since perhaps he had bad
intentions at the time that Mr. James McEnroe sent them that clock.
2. What does the Institute of Supply Management (ISM) code of ethics
say about accepting supplier favors and gifts?

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