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An Ethical Framework for Purchasing Decisions

An Ethical Framework for Purchasing Decisions As the importance of the purchasing function in corporationsincreases, there has been a concurrent increase in the importance ofethics in the purchasing environment. The purchasing linkage is criticalto effective operation of corporations as highquality raw materials andsupplies available on a timely basis are required for global competitivesuccess. Bottomline productivity and profitability, as well aslongterm viability, are directly dependent on effective functioning inthe purchasing arena. The traditional organisational structure of thepurchasing function has the potential to encourage unethical employeepractices. Viewing the relationship between an organisation and itssuppliers as adversarial creates conflict as well as inherent ethicaldilemmas in the purchasing function. This article discusses variouscategories of unethical purchasing situations and illustrates ways tolessen or avoid these dilemmas through the introduction of justintimeJIT inventory control procedures. The internal cooperation necessaryin the purchasingoperations interface under JIT facilitates developmentof a corporate culture supportive of ethical behaviour. Moreover, sincein JIT the supplier is considered part of the team theperson at the previous work station these conceptscan reinforce intraorganisational ethics as well. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png Management Decision Emerald Publishing

An Ethical Framework for Purchasing Decisions

Management Decision , Volume 29 (1) – Jan 1, 1991

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References (3)

Publisher
Emerald Publishing
Copyright
Copyright © Emerald Group Publishing Limited
ISSN
0025-1747
DOI
10.1108/00251749110144623
Publisher site
See Article on Publisher Site

Abstract

As the importance of the purchasing function in corporationsincreases, there has been a concurrent increase in the importance ofethics in the purchasing environment. The purchasing linkage is criticalto effective operation of corporations as highquality raw materials andsupplies available on a timely basis are required for global competitivesuccess. Bottomline productivity and profitability, as well aslongterm viability, are directly dependent on effective functioning inthe purchasing arena. The traditional organisational structure of thepurchasing function has the potential to encourage unethical employeepractices. Viewing the relationship between an organisation and itssuppliers as adversarial creates conflict as well as inherent ethicaldilemmas in the purchasing function. This article discusses variouscategories of unethical purchasing situations and illustrates ways tolessen or avoid these dilemmas through the introduction of justintimeJIT inventory control procedures. The internal cooperation necessaryin the purchasingoperations interface under JIT facilitates developmentof a corporate culture supportive of ethical behaviour. Moreover, sincein JIT the supplier is considered part of the team theperson at the previous work station these conceptscan reinforce intraorganisational ethics as well.

Journal

Management DecisionEmerald Publishing

Published: Jan 1, 1991

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