Question

critically discuss the reasons why your company (a vehicle- manufacturing company) should consider ethical conduct in its purchasing structure

Answer 1

Ethical conduct:-

Ethical conduct is a written set of guidelines issued by an organization to its workers and management to help them conduct their activities in accordance with their primary values and moral principles. It is actually the backbone of the organization. This set of rules and regulations is needed to be followed by all staff of the workplace.

Work ethics are a powerful arrangement of qualities that vary with individuals and the sort of workplace. These sets of values are to be followed by both employers and employees in the workplace.

Ethical conduct with respect to its purchasing structure in a vehicle- manufacturing company are:-

The company should provide a written warranty policy.
All parts are marked to recognize the manufacturer.
The company provides installation guidelines for all products where required.
The company has product liability insurance.
It offers a goods-returned policy.
The company should try to ensure that valid invoices are paid in accordance with the agreed terms and in the agreed way.
When applicable, the organization supplies painting directions with the item.
The company maintains the availability of replacement parts for appropriate times after production stops.

Why is it necessary:-

Business ethics is a tool organizations use to ensure managers, directors, or executive officers act responsibly in different business circumstances. Ethical decision making attempts to promote the company as a whole, instead of letting one individual benefit from business decisions. Individuals who consistently make decisions based on their personal benefit may create legal liabilities for a company that can lead to bankruptcy.