Question

Critically discuss the reasons why your company Toyota should consider ethical conduct in its purchasing structure.

Answer 1

There are several reasons; company like Toyota should consider ethical conduct in its purchasing structure. These reasons are as stated below:

• Every procurement activities should include such business practices that master all the related activities in fair and unbiased way. If we find any discrepancy in such procurement model, it could attract group thinking, favoritism, corruption within the organizational context, so final products and long term endeavor will also be impacted due to such unethical conduct.
• In purchasing structure, there are various unethical conducts, these are like conflict of interest, accepting favor, and gifts from specific suppliers, and employees can build wrong relationship with suppliers that will not benefit the organization, issues with integrity and confidentiality of information. For example: there should be agreement between suppliers and company as to maintain privacy in all business issues, due to unethical conduct, such privacy violations could take place.
• Organization should build the policies as to protect their firm from various purchasing operations, here; ethical code of conduct would be more important thing to consider.
• Organization should prepare audit report and build training program over time. With such audit report, we can see if any practices are violated. Training initiative will bring awareness in various suppliers.