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That does not relieve the procurement staff of its responsibility to do the right thing. Nor does it guarantee that the right thing to do will be apparent. Always report and avoid situations that bring about conflict of interest ( Interagency Procurement Working Group (IAPWG), 2012). Successful businesses start with a good plan. Even if the donation were intended for the business, its poor reputation causes more harm than good. The following are a few of the more critical items to consider. Every person involved in the procurement process should be aware of the principles of commercial confidentiality. This can help establish your companys reputation for moral supply management and buying, as well as gain you favour with customers. Of course this can be considered an ethical issue because it is an unfair advantage to the company that plays by the rules. Techniques for mapping and the auditing of suppliers to gauge risks in ethical sourcing . Audits also help to deter unethical procurement behaviour in the future. submit it as your own as it will be considered plagiarism. But it isn't fair to give one vendor an advantage of any kind over the others. Reduce ethics risk by taking these five key steps: Honestly assess your needs and resources. Depending on countries, cultures, customs, and even industries, definitions of what is ethical or unethical in procurement may vary. Carefully consider all the bids submitted Sticking to the principles contained in the UN charter. In exchange, you agree to give them prior notice when other supplies are going to be out for bids. But, by giving one vendor advance notification, you're giving them the unfair advantage of having more time to prepare their bid and to get their bid to you before other vendors. Ethical Issues in Procurement 2. There is an assumption sometimes that the villains in a procurement scandal must include the supplier. phd level. The procurement's level of risk will inform how potential suppliers are engaged outside the . It would be unfair to all of the companies trying to win a contract from the government if the same contractor was chosen time and time again. Moral Limits on the Demands of Beneficence? In private organizations, appearances are often influenced by the standards set by the management of the organization. The government decided to give the land back to he city and let them do whatever they wanted to do with the land and property. Additionally, ethical procurement can add value to a company in the form of good public relations. The Government has to ensure that a company winning a contract is in compliance with our Governments Equal Opportunity policies. It may seem strange that procurement, often viewed as an unexciting part of an enterprise, can be embroiled in events and situations that make world headlines.
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