Project Materials

NEED FOR THE APPLICATION OF ETHICS OF PURCHASING IN THE PRACTICE OF PURCHASING

ABSTRACT

This study project aims to investigate the demand for ethical purchasing practices in Nigerian companies. It also demonstrates the significance and social duties of ethical behaviour to customers and suppliers in the industries. Chapter three explains the researcher’s primary results, followed by a summary, recommendations, and conclusion. This research cannot be said to be exhaustive due to the changing nature of our industries, and it is not intended to replace other perspectives or subsequent research on this study’s objectives, but it has gone a long way towards highlighting the paths to the much-touted efficient purchasing practice that has eluded our system.

Chapter one

INTRODUCTION

1.1 Background of the Study

For any organization’s activities to run smoothly, all employees must adhere to the same ethical code of behaviour. Almost every day, we are presented with ethical decisions. In other words, we’re in a scenario where we have to decide how to act. Every profession has a code of ethics.

This is a collection of principles that govern how people should conduct. Lawyers must do everything possible to defend their clients in court.

If they accept a bribe to perform something that will harm their client’s cases, they have violated ethical standards. Similarly, doctors and nurses commit to do all possible to save the lives of others.

They are unethical if they do harm to another individual or refuse to assist someone who requires medical assistance. Journalists must report the truth to the best of their abilities. If they write articles that they know are not truthful or true, they are acting unethically.

Ethics in everyday life encompasses a broad range of issues. Integrity, professionalism, and discipline all play a significant role. Ethics refers to the rules of conduct and moral judgement that adhere to the standards of conduct of a specific profession. General business ethics are the principles, values, and standards that influence company operations and behaviour.

Some of these principles and ideals have been substantially violated, resulting in corruption and bribery becoming no longer immoral behaviours.

The purchasing department is one of the most sensitive areas in any business or enterprise. Professionalism requires not only talent but also a code of conduct that demonstrates ethical behaviour.

We shall have numerous codes of ethics focused on honesty, loyalty, justice, service, and fairness. Even in the public sector, public servants must follow a basic code of conduct to guide their actions.

i. Definition of Ethics: The dictionary defines ethics as a system of principles or values. Values and principles are beliefs we have about what is right and bad.

When we conduct ethically, we demonstrate our ideals and principles. Lysons (1981:198) describes ethics as the science of behaviour. In this sense, conduct refers to intentional and purposeful action that is orientated towards a specific goal.

According to the Oxford Advanced Learners Dictionary of Current English, ethics are the moral principles that control or influence a person’s actions. Ethics can be defined as a discipline that deals with moral issues.

It is also an action that indicates if someone has performed poorly or well.

ii. Moral Responsibility: Morality is concerned with the principles of right and bad action. In Nigeria, professions such as law, banking, and insurance must uphold moral responsibility to their clients in order to increase their integrity and competence.

However, the majority of them have abandoned their professional moral consciousness and engaged in ethical practice as an excuse to remain idle or continue.

iii. Ethical Standard: Ethical standard refers to adhering to an established norm of good behaviour in a profession, trade, or any other setting.

An individual cannot set ethical standards; they are often set by a group, society, or organisation. However, several things influence the ethical standard. Some beneficial aspects are:

a. Environmental regulations

b. Legislative notice

c. Education of the purchasing business manager.

Increase in professionalism and education. Some negative factors are:

a. Competitive pressure to succeed

b. Law or decree governing manager professional and education

b. Shareholder pressure to maximise profits.

Therefore, for a purchasing business to be productive and competitive, it must adhere to high ethical standards.