Question

Globalization represents the opportunity to deliver improved value to end customers by developing world-class supply relationships in terms of cost, quality, delivery and performance. more and more buyers have to learn to develop a supply base in more than one country in order to remain competitive in the complex and dynamic global business environment.

1. Critically discuss the reasons why your company (a vehicle manufactiring company) should consider ethical conduct in its purchasing structure.

Answer 1

Reasons for vehicle manufacturing company should consider ethical conducts in its purchasing structure are as follows-

1. Attract customers to firm’s products, which means boosting sales and profits

2. To avoid conflict of interest and any impropriety

3. It helps to create better brand image

4. Increases loyalty from end-customers

5. It guides decision making and policies of an organization

6. If ethical conduct is not considered by vehicle manufacturing then it can result into loss of life of customers or customers being handicapped for life. For example Toyota done in 2010, it is the best example when any company not follow code of ethics in vehicle manufacturing company then what may happen.

7. Helps to gain competitive advantage

8. Increase stakeholder’s trust

Ethical conduct is established by a professional order as a way to protect the customers and company’s reputation. Principles of ethical conduct are integrity, objectivity, professional competence, confidentiality and professional behavior.

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