Project Materials

ABSTRACT

This research study aims to investigate the ethical and social implications of purchasing practices in Nigerian industries. I thought it necessary because this research topic is unique to Nigerian industries to conduct an environmental practical research in a beer business utilising Golden Guinea Breweries Plc Umuahia as a case study to generalise the project objectives. This research work 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 objective, 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

1.0 Introduction

Purchasing has been conducted since ancient times. Following independence, Nigerian organisations began to really pursue purchasing. Prior to independence, the industry was primarily administrative rather than industrial; however, manufacturing firms began to flourish in Nigeria shortly after independence.

The purchasing department was established quickly in industries and assigned key duties such as: 1. Finding and approving suppliers. 2. Ensure delivery at the appropriate time 3. Notification of delays 4. Verifying bills. 5. Organising all discussions with suppliers.

6. Speculative purchases 7. Advising on prices and 8. Serving as a window to the world. These important roles cannot be fulfilled unless purchasing concepts and practices are fully implemented. Many industries failed because the ethical and social obligations of purchasing practices for buyers in industries were overlooked.

The theoretical examination of ethical and social duties automatically prescribes suitable or anticipated behaviour from customers.

However, the essential or critical question is whether customers are truly ethical and socially responsible. Are purchasers prioritising industry satisfaction in material procurement and productivity enhancement?

How much do purchasers’ shopping habits align with ethical and social values? Looking at Nigerian industries, we saw a common tendency among some purchasing officials to embezzle money in their purchasing activities against their company’s interests. This selfish mindset generates numerous challenges for the sector if they are not honest in carrying out their tasks.

Some Nigerian businesses have yet to embrace or practise these purchasing strategies. Many practices violate purchasing ethics.

Ethical and social responsibilities of purchasing practices in industries are vitally needed in Nigeria and should be adhered to or applied by purchasing officers, especially in this era of severe economic and social evils common in many Nigerian commercial transactions.

There are numerous vices done by purchasing officers who are not purchase orientated. For example, consider the following unethical practices in industries.

1. OVER-INVOICING: This unethical activity is comparable to commercial bribery. In this scenario, a buying officer requests that the supplier exaggerate the invoice value of the order for his company’s use.

2. BRIBES, GIFTS, OR KICK BACKS: In some organisations, buying officers request bribes, gifts, or kickbacks from suppliers and sales managers.

3. POOR QUALITY OF MATERIALS: In some organisations, purchasing officials embezzle money in their purchasing activities that are detrimental to the company’s interests by obtaining low-quality materials for company use.

All of the aforementioned practices constitute unethical behaviour. Unethical activity can be defined as anything done by buying officers that breaches the trust placed in them by their employers and customers. These unethical behaviours have a negative impact on the products produced by Nigerian industry.

Unethical behaviour contradicts buying officers’ goals of adhering to organisational or professional norms of conduct. As a result, the researcher focusses his research on how ethical and social responsibilities of purchasing practices for buyers in industries can improve productivity and the overall standard of the industry’s performance, as well as to dispel the myth that purchasers are failures and project the ethical and social behaviour expected of a professional buyer.

1.1 Background of the Study

Golden Guinea Breweries Plc has key duties that cannot be fulfilled unless purchasing concepts and practices are fully implemented. Many organisations recognise the importance of ethnic and social obligations in purchasing practices for buyers in industries.

This is because, in the industry, we have witnessed a common inclination among some purchasing officers to embezzle funds in their purchasing activities against the interests of the company.

Furthermore, additional job experience will lead to increased advancement and responsibilities. In fact, ethical and social responsibility are so crucial that without them, the sector will face managerial obsolescence.

Golden Guinea Breweries Plc, a production company, employs purchasers, store managers, and so on. It is a state government-owned enterprise established to meet the state’s industrial and social needs to a large extent.

It has been striving to achieve these goals, though there is still room for improvement. As a result, the purpose of this study is to determine how effective ethical and social responsibility can be in achieving this goal.

1.2 SIGNIFICANCE OF THE STUDY

Purchasing provides services that are necessary for the majority of economic activity. The quantity and efficiency with which these services are supplied varies by industry.

The necessity to keep up with the rate of progress in the current world while also enjoying the economic benefits of industries has driven the researcher to study how ethical and social purchasing obligations can increase industry productivity.

The research is also aimed at developing strong ethical and social obligations for the purchasing function in the Golden Guinea Brewery Industry.

This work also aims to educate customers on how to conduct proper purchasing procedures that are free of unethical behaviour in the industry. The researcher proceeded one step further, investigating and recommending corrective steps for implementation.

1.3 The scope of the study

Purchasing practices in industries are consistent across the country. They have challenges and objectives, with the exception of policies and management styles, which are left to the discretion of specific industries, because this research investigates how ethical and social obligations in purchasing practice boost industry productivity. However, there are numerous industries in Nigeria.

As a result, the researcher will find it extremely difficult and impossible to analyse all of them within the time frame provided. The researcher selected to use Golden Guinea Brewery Plc Industry to conduct an in-depth analysis of the organisation.

1.4 OBJECTIVE OF STUDY

The primary goal of this researcher study is to investigate how Golden Guinea Brewery Plc’s ethical and social purchasing practices might increase the establishment’s production.

It is also a prerequisite for the award of an ordinary National Diploma, which will serve as a valuable resource for both students and teachers at higher education institutions.