Question

The significance of ethics is in their power for shaping attitudes and constraining behaviors. Provide a detailed explanation with examples how this statement relates to your profession of procurement and supply.

Answer 1

Ethics are a set of moral principles guiding our behavior in various situations. Ethical principles include beliefs regarding what is acceptable and moral behaviour and what is not.
Ethics guide us in our professional activities, when there are conflicting situations.
To ensure common principles across the organization, the entities generally conceptualise the principles and formulate policies in line with principles. Also, the employees are trained with these policies and demonstrated about the ethical principles. The employees must adopt these principles to ensure the success of organization.
In relation to procurement and supply, ethics are significant because of the following factors:
- To ensure procurement is made at market prices and reasonable rates
- To maintain healthy supplier relations
- To ensure correct decision-making during conflicting situations of determining which supplier to place order with
- To appropritately disclose any related party transactions, etc.