Tài liệu tiếng Anh thương mại Chapter 19 Ethics and social responsibilities

Tài liệu tiếng Anh thương mại Chapter 19 Ethics and social responsibilities

Chapter 19

Ethics and Social

Responsibilities

Key Concepts

• Ethics Defined

• Ethics in the Supply Management Context

• Professional Purchasing and Supply Management Ethics

• Principles and Standards of Purchasing and supply

Ethics in Supply Management

• Ethics are the guidelines or rules of conduct by which we

aim to live

• Does running an ethical operation yield positive results for

a company?

• A literature review of papers investigating whether

increased social responsibility results in favorable financial performance found:

Survey of 4,035 Employees Across a Variety of

Industries

• 97% said good ethics are good business

• 67% said that ethical conduct isn’t rewarded in American

• 33% reported that their superiors had pressured them to

violate company rules

Professional Supply Management Ethics

• The pressures that the marketplace exerts on supply

management departments and on individual buyers make it essential that top management and supply management

recognize and understand both the professional and ethical standards required in the performance of their duties

Principles of Supply Management Practice

1 Loyalty To Your Organization

2 Justice To Those With Whom You Deal

3 Faith In Your Profession

standards of supply management practice

1 Ethical Perceptions

• Avoid the intent and appearance of unethical or

compromising practice in relationships, actions, and

communications.

2 Responsibilities to the Employer

• Demonstrate loyalty to the employer by diligently following

the lawful instructions of the employer, using reasonable

care and only the authority granted.

3 Conflict of Interest

• Refrain from any private business or professional activity

that would create a conflict between personal interests and the interests of the employer.

4 Gratuities

• Refrain from soliciting or accepting money, loans, credits,

or prejudicial discounts, and the acceptance of gifts,

entertainment, favors, or services from present or potential suppliers that might influence, or appear to influence,

supply management decisions

Guidelines in Dealing with Gratuities

• Business Meals

– For specific business purpose – Frequent meals same supplier should be avoided

– Attempt pay for meals as frequently as the supplier

• Global Supply Management

5 Confidential Information

• Handle confidential or proprietary information belonging to

employers or suppliers with due care and proper

consideration of ethical and legal ramifications and

governmental regulations

Examples of Confidential Information

trustees

6 Treatment of Suppliers

• Promote positive supplier relationships through courtesy

and impartiality in all phases of the supply management

cycle.

7 Reciprocity

• Refrain from reciprocal agreements that restrain

competition

8 Governing Laws

• Know and obey the letter and spirit of laws governing the

supply management function, and remain alert to the legal ramifications of supply management decisions

Key Laws and Regulations in the USA

Code

Acquisition Regulations

Trademark Laws

EEOC Laws

9 Small, Disadvantaged, and Minority Owned

Businesses

• Encourage all segments of society to participate by

providing access for small, disadvantaged, and owned businesses.

minority-10 Personal Purchases for Employees

• Discourage supply management’s involvement in

employer-sponsored programs of personal purchases that are not business related

Recommended Guidelines for Personal

Purchases for Employees

• Avoid using an employer’s purchasing power for special

purchases

• Make certain of fair arrangements for personal purchase

programs

• Use caution to ensure that employer-sponsored programs

do not force special concessions on the supplier

• Suppliers should be made aware that such purchases are

not for the employer, but for the firm’s employees

11 Responsibilities to the Profession

• Enhance the proficiency and stature of the supply

management profession by acquiring and maintaining

current technical knowledge and the highest standards of ethical behavior.

12 Global Supply Management

• Conduct international supply management in accordance

with:

countries,

Important Areas Requiring Amplification

• Avoid Sharp Practices

• Competitive Bidding

• Negotiation

• Samples

• Treating Salespeople with Respect

• Substandard Materials and Services

• Gifts and Gratuities

Avoid Sharp Practices

• Evasion and indirect misrepresentation

• Just short of actual fraud

• Sharp practices focus on short-term gains and ignore the

long-term implications for a business relationship

Examples of Sharp Practices

quantities to encourage a price quote on that

basis

the buyer will be able to take advantage of a

quotation error

the supply manager would not patronize in any

case

Examples of Sharp Practices

leaving copies of bids, or other confidential

correspondence, where a supplier can see them.

“hungry” suppliers

manager’s firm are buried in the small type of

contract articles

supplier who is short of cash and who may seek only to cover his/her out-of-pocket costs

Competitive Bidding

• Invite only firms to whom they are willing to award a

contract to submit bids.

• Normally, award the contract to the lowest responsive,

responsible bidder

• Keep competitive price information confidential.

• Notify unsuccessful bidders promptly so that they may

reallocate reserved production capacity.

Competitive Bidding

• Treat all bidders alike

• Do not accept bids after the announced bid closing date

• A professional should maintain high ethical standards,

such as:

will be involved in source selection.

to information and are afforded the same

treatment.

that are fair to both parties

Samples

• Many potential suppliers offer, even push, the acceptance

of samples—”Just try it and see if it doesn’t do a superior job for you”

• When a sample is accepted, supply professionals ensure

that appropriate tests are conducted in a timely manner

Treating Salespeople with Respect

• Appointments with salespeople should be meticulously

kept

• A mutually effective policy is for supply management

personnel to see every salesperson on his or her first call

Substandard Materials and Services

• Two proprieties:

conduct negotiations for adjustments with the appropriate sales personnel in the supplier’s

organization.

Gifts and Gratuities

• “There’s No Such Thing as a Free Lunch”

any form of gratuity constitutes a conflict with ethical standards

• Traditional Sales Techniques

gratuities to be traditional sales tools

• Cultural Ramifications

Dealing with Gray Areas

• Employer

• Suppliers

• Colleagues

The Four Way Test

• Is it the TRUTH?

• Is it FAIR to all concerned?

• Will it build GOODWILL?

• Will it be BENEFICIAL to all concerned?

Concluding Remarks

• If you were to write your own obituary, what would it say?

ethics?

• Now think about this:

life by the way you choose to live

END