Purchasing Ethics

In: Business and Management

Submitted By laquitadav
Words 973
Pages 4
Case Study 3: Purchasing Ethics
MKTG 6523 Sourcing & Procurement
LaQuita L. Davis
Arkansas State University
Dr. John Mello
November 3, 2013

Purchasing Ethics
Scenario 1
1.) What should Bryan do about the clock?
Bryan should explain to his wife Nina what could happen if his boss found out about the clock. He should explain the ethics policy set in place at his job and that he could lose his job if word got back of them accepting the clock. Finally he should explain to her that he is looking out for the company’s reputation as well and wants to behave in an ethical manner. Stressing the fact that “ethical buyers do not accept outside gifts or favors that violate their firm’s ethics policy”( Handfield, Giunipero, Monczka, & Patterson, 2011). Another approach would be to direct her to the standard guidelines in the code of ethics developed by the Institute of Supply Management (ISM).
2.) What does the Institute of Supply Management (ISM) code of ethics say about accepting supplier favors and gifts? The ISM code of ethics strictly frowns upon accepting gifts or favors from potential suppliers. “People engaged in purchasing should not accept from any supplier or prospective supplier any money, gift, or favor that might influence, or be suspected of influencing, their buying decisions” (Handfield, Giunipero, Monczka, & Patterson, 2011).Any gifts received should be returned immediately and as discreetly as possible to avoid embarrassment on the supplier’s part. If embarrassment does occur a buyer should still not feel obligated to accept the gift or favor because of its effect on the suppler.

3.) Why do you think the supplier sent the clock to Bryan’s home and addressed to his wife? It seems that the supplier was trying to be sneaky. Mr. McEnroe probably assumed that if he sent it in Bryan’s wife, Nina’s name and to his home instead of the…...

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