1 TVPPA Purchasing Workshop Business Ethics for the Purchasing Professional Kimball Bullington,...
-
Upload
barnaby-jenkins -
Category
Documents
-
view
221 -
download
0
Transcript of 1 TVPPA Purchasing Workshop Business Ethics for the Purchasing Professional Kimball Bullington,...
![Page 1: 1 TVPPA Purchasing Workshop Business Ethics for the Purchasing Professional Kimball Bullington, Ph.D. Professor of Supply Chain Management Middle Tennessee.](https://reader035.fdocuments.in/reader035/viewer/2022062301/56649f385503460f94c544f0/html5/thumbnails/1.jpg)
1
TVPPA Purchasing Workshop
Business Ethics for the
Purchasing Professional
Kimball Bullington, Ph.D.Professor of Supply Chain Management
Middle Tennessee State University
![Page 2: 1 TVPPA Purchasing Workshop Business Ethics for the Purchasing Professional Kimball Bullington, Ph.D. Professor of Supply Chain Management Middle Tennessee.](https://reader035.fdocuments.in/reader035/viewer/2022062301/56649f385503460f94c544f0/html5/thumbnails/2.jpg)
• What are ethics?
• Why ethics for purchasing?
• Ethical Traps / ISM Guidelines for Ethics
• Takeaways
![Page 3: 1 TVPPA Purchasing Workshop Business Ethics for the Purchasing Professional Kimball Bullington, Ph.D. Professor of Supply Chain Management Middle Tennessee.](https://reader035.fdocuments.in/reader035/viewer/2022062301/56649f385503460f94c544f0/html5/thumbnails/3.jpg)
• Ethics: the study of standards of conduct and moral judgment,… the system or code of morals of a particular philosopher, religion, group, profession, etc.
Webster’s New Universal Unabridged Dictionary, 2nd Edition
![Page 4: 1 TVPPA Purchasing Workshop Business Ethics for the Purchasing Professional Kimball Bullington, Ph.D. Professor of Supply Chain Management Middle Tennessee.](https://reader035.fdocuments.in/reader035/viewer/2022062301/56649f385503460f94c544f0/html5/thumbnails/4.jpg)
• Moral: relating to, dealing with, or capable of making the distinction between, right and wrong in conduct.
Webster’s New Universal Unabridged Dictionary, 2nd Edition
![Page 5: 1 TVPPA Purchasing Workshop Business Ethics for the Purchasing Professional Kimball Bullington, Ph.D. Professor of Supply Chain Management Middle Tennessee.](https://reader035.fdocuments.in/reader035/viewer/2022062301/56649f385503460f94c544f0/html5/thumbnails/5.jpg)
What influences your view of what is right or wrong?
• Judeo / Christian background (Bible)
• Protestant work ethic
• UCC – Reasonableness
• Laws / Court Cases / Precedents
• Tradition
• Educational background
• News / Media scrutiny
![Page 6: 1 TVPPA Purchasing Workshop Business Ethics for the Purchasing Professional Kimball Bullington, Ph.D. Professor of Supply Chain Management Middle Tennessee.](https://reader035.fdocuments.in/reader035/viewer/2022062301/56649f385503460f94c544f0/html5/thumbnails/6.jpg)
Why ethics in purchasing?
• Money
• Buyer / Seller Double Standard
• Professionalism
• Human nature
![Page 7: 1 TVPPA Purchasing Workshop Business Ethics for the Purchasing Professional Kimball Bullington, Ph.D. Professor of Supply Chain Management Middle Tennessee.](https://reader035.fdocuments.in/reader035/viewer/2022062301/56649f385503460f94c544f0/html5/thumbnails/7.jpg)
The answer is easy. Right?
• Just say no?
• Ethics policies?
• Golden rule?
• Understand human nature.
(At least a little bit.)
![Page 8: 1 TVPPA Purchasing Workshop Business Ethics for the Purchasing Professional Kimball Bullington, Ph.D. Professor of Supply Chain Management Middle Tennessee.](https://reader035.fdocuments.in/reader035/viewer/2022062301/56649f385503460f94c544f0/html5/thumbnails/8.jpg)
Ethical Traps
![Page 9: 1 TVPPA Purchasing Workshop Business Ethics for the Purchasing Professional Kimball Bullington, Ph.D. Professor of Supply Chain Management Middle Tennessee.](https://reader035.fdocuments.in/reader035/viewer/2022062301/56649f385503460f94c544f0/html5/thumbnails/9.jpg)
Pressure to Conform
Authority FigurePeer Pressure
Don’t make waves
![Page 10: 1 TVPPA Purchasing Workshop Business Ethics for the Purchasing Professional Kimball Bullington, Ph.D. Professor of Supply Chain Management Middle Tennessee.](https://reader035.fdocuments.in/reader035/viewer/2022062301/56649f385503460f94c544f0/html5/thumbnails/10.jpg)
ISM Principles and Standards of Ethical Supply Management Conduct
3. Avoid any personal business or professional activity that would create a conflict between personal interests and the interests of the employer.
![Page 11: 1 TVPPA Purchasing Workshop Business Ethics for the Purchasing Professional Kimball Bullington, Ph.D. Professor of Supply Chain Management Middle Tennessee.](https://reader035.fdocuments.in/reader035/viewer/2022062301/56649f385503460f94c544f0/html5/thumbnails/11.jpg)
Motivated Blindness
Quid pro quo is not necessary.Favors can result in unfairly favoring
a supplier. Divided Loyalty
![Page 12: 1 TVPPA Purchasing Workshop Business Ethics for the Purchasing Professional Kimball Bullington, Ph.D. Professor of Supply Chain Management Middle Tennessee.](https://reader035.fdocuments.in/reader035/viewer/2022062301/56649f385503460f94c544f0/html5/thumbnails/12.jpg)
ISM Principles and Standards of Ethical Supply Management Conduct
4. Avoid soliciting or accepting money, loans, credits or preferential discounts, and the acceptance of gifts, entertainment, favors or services from present or potential suppliers that might influence, or appear to influence, supply management decisions.
![Page 13: 1 TVPPA Purchasing Workshop Business Ethics for the Purchasing Professional Kimball Bullington, Ph.D. Professor of Supply Chain Management Middle Tennessee.](https://reader035.fdocuments.in/reader035/viewer/2022062301/56649f385503460f94c544f0/html5/thumbnails/13.jpg)
ISM Principles and Standards of Ethical Supply Management Conduct
2. Demonstrate loyalty to the employer by diligently following the lawful instructions of the employer, using reasonable care and granted authority.
Understand agency
Obtain maximum value
Avoid compromising activities
Avoid using employer’s purchasing power for self
Maintain up to date knowledge
![Page 14: 1 TVPPA Purchasing Workshop Business Ethics for the Purchasing Professional Kimball Bullington, Ph.D. Professor of Supply Chain Management Middle Tennessee.](https://reader035.fdocuments.in/reader035/viewer/2022062301/56649f385503460f94c544f0/html5/thumbnails/14.jpg)
Indirectness
Indirect Responsibility:Unethical supplier behavior: environmental,
Employment waste disposalRenewable energy credits / carbon offsets
Faceless VictimsLost in a Group
![Page 15: 1 TVPPA Purchasing Workshop Business Ethics for the Purchasing Professional Kimball Bullington, Ph.D. Professor of Supply Chain Management Middle Tennessee.](https://reader035.fdocuments.in/reader035/viewer/2022062301/56649f385503460f94c544f0/html5/thumbnails/15.jpg)
ISM Principles and Standards of Ethical Supply Management Conduct
10.Conduct supply management activities in accordance with national and international laws, customs and practices, your organization’s policies, and these ethical principles and standards of conduct.
![Page 16: 1 TVPPA Purchasing Workshop Business Ethics for the Purchasing Professional Kimball Bullington, Ph.D. Professor of Supply Chain Management Middle Tennessee.](https://reader035.fdocuments.in/reader035/viewer/2022062301/56649f385503460f94c544f0/html5/thumbnails/16.jpg)
ISM Principles and Standards of Ethical Supply Management Conduct
7. Avoid improper reciprocal agreements.
• Reciprocal agreements can be illegal if they tend to restrict competition or trade or if they are coerced re: sections 1&2 Sherman Act.
![Page 17: 1 TVPPA Purchasing Workshop Business Ethics for the Purchasing Professional Kimball Bullington, Ph.D. Professor of Supply Chain Management Middle Tennessee.](https://reader035.fdocuments.in/reader035/viewer/2022062301/56649f385503460f94c544f0/html5/thumbnails/17.jpg)
ISM Principles and Standards of Ethical Supply Management Conduct
9. Encourage support for socially diverse practices.
“All business concerns, large or small, majority- or minority-owned, should be
afforded an equal opportunity to compete.”
![Page 18: 1 TVPPA Purchasing Workshop Business Ethics for the Purchasing Professional Kimball Bullington, Ph.D. Professor of Supply Chain Management Middle Tennessee.](https://reader035.fdocuments.in/reader035/viewer/2022062301/56649f385503460f94c544f0/html5/thumbnails/18.jpg)
Small Steps
![Page 19: 1 TVPPA Purchasing Workshop Business Ethics for the Purchasing Professional Kimball Bullington, Ph.D. Professor of Supply Chain Management Middle Tennessee.](https://reader035.fdocuments.in/reader035/viewer/2022062301/56649f385503460f94c544f0/html5/thumbnails/19.jpg)
ISM Principles and Standards of Ethical Supply Management Conduct
8. Know and obey the letter and spirit of laws applicable to supply management.
Common LawCommercial Law
Uniform Commercial CodeSarbanes-Oxley ActRestraint of Trade
DOT and DHSHealth & Safety
Environmental LawsIntellectual Property and Trade Secrets
![Page 20: 1 TVPPA Purchasing Workshop Business Ethics for the Purchasing Professional Kimball Bullington, Ph.D. Professor of Supply Chain Management Middle Tennessee.](https://reader035.fdocuments.in/reader035/viewer/2022062301/56649f385503460f94c544f0/html5/thumbnails/20.jpg)
ISM Principles and Standards of Ethical Supply Management Conduct
2. Demonstrate loyalty to the employer by diligently following the lawful instructions of the employer, using reasonable care and granted authority.
Understand agency
Obtain maximum value
Avoid compromising activities
Avoid using employer’s purchasing power for self
Maintain up to date knowledge
![Page 21: 1 TVPPA Purchasing Workshop Business Ethics for the Purchasing Professional Kimball Bullington, Ph.D. Professor of Supply Chain Management Middle Tennessee.](https://reader035.fdocuments.in/reader035/viewer/2022062301/56649f385503460f94c544f0/html5/thumbnails/21.jpg)
ISM Principles and Standards of Ethical Supply Management Conduct
6. Promote positive supplier relationships through courtesy and impartiality.
Golden rule
![Page 22: 1 TVPPA Purchasing Workshop Business Ethics for the Purchasing Professional Kimball Bullington, Ph.D. Professor of Supply Chain Management Middle Tennessee.](https://reader035.fdocuments.in/reader035/viewer/2022062301/56649f385503460f94c544f0/html5/thumbnails/22.jpg)
ISM Principles and Standards of Ethical Supply Management Conduct
11.Develop and maintain professional competence.
Education
Certification
Training
Experience
![Page 23: 1 TVPPA Purchasing Workshop Business Ethics for the Purchasing Professional Kimball Bullington, Ph.D. Professor of Supply Chain Management Middle Tennessee.](https://reader035.fdocuments.in/reader035/viewer/2022062301/56649f385503460f94c544f0/html5/thumbnails/23.jpg)
Minimizing• Comparisons• Renaming• Everybody does it• We didn’t hurt anyone• No one will know• Desensitization
![Page 24: 1 TVPPA Purchasing Workshop Business Ethics for the Purchasing Professional Kimball Bullington, Ph.D. Professor of Supply Chain Management Middle Tennessee.](https://reader035.fdocuments.in/reader035/viewer/2022062301/56649f385503460f94c544f0/html5/thumbnails/24.jpg)
ISM Principles and Standards of Ethical Supply Management Conduct
1. Avoid the intent and appearance of unethical or compromising practice in relationships, actions, and communications.
“The consequences of a perceived impropriety can be the same as
consequences of an actual impropriety.”
![Page 25: 1 TVPPA Purchasing Workshop Business Ethics for the Purchasing Professional Kimball Bullington, Ph.D. Professor of Supply Chain Management Middle Tennessee.](https://reader035.fdocuments.in/reader035/viewer/2022062301/56649f385503460f94c544f0/html5/thumbnails/25.jpg)
ISM Principles and Standards of Ethical Supply Management Conduct
5. Handle confidential or proprietary information with due care and proper consideration of ethical and legal ramifications and governmental regulations.
![Page 26: 1 TVPPA Purchasing Workshop Business Ethics for the Purchasing Professional Kimball Bullington, Ph.D. Professor of Supply Chain Management Middle Tennessee.](https://reader035.fdocuments.in/reader035/viewer/2022062301/56649f385503460f94c544f0/html5/thumbnails/26.jpg)
ISM Principles and Standards of Ethical Supply Management Conduct
12.Enhance the stature of the supply management profession.
![Page 27: 1 TVPPA Purchasing Workshop Business Ethics for the Purchasing Professional Kimball Bullington, Ph.D. Professor of Supply Chain Management Middle Tennessee.](https://reader035.fdocuments.in/reader035/viewer/2022062301/56649f385503460f94c544f0/html5/thumbnails/27.jpg)
Laws & Regulations for Supply Management
• Agency law• Contract &
commercial laws• Antitrust laws• Trade regulations• Industry-specific laws• Gov’t procurement
regs.
• Environmental laws• Employment laws• Worker health & safety• Transportation &
logistics law• Financial laws & regs.• Patent, copyright, trade
secret, trademark
![Page 28: 1 TVPPA Purchasing Workshop Business Ethics for the Purchasing Professional Kimball Bullington, Ph.D. Professor of Supply Chain Management Middle Tennessee.](https://reader035.fdocuments.in/reader035/viewer/2022062301/56649f385503460f94c544f0/html5/thumbnails/28.jpg)
U.S. Laws & Regulations for Supply Management
• Uniform Comm. Code• Uniform Computer Info.
Transactions Act• Uniform Elec.
Transactions Act (@ E-sign)
• Sherman, Clayton, & Robinson-Patman Acts
• Foreign Corrupt Practices Act
• Federal Trade Commission
• Federal Acquisition Regulations
• Defense Acquisition Regulations
• EPA
• EEOC
• OSHA
• Sabanes-Oxley Act
![Page 29: 1 TVPPA Purchasing Workshop Business Ethics for the Purchasing Professional Kimball Bullington, Ph.D. Professor of Supply Chain Management Middle Tennessee.](https://reader035.fdocuments.in/reader035/viewer/2022062301/56649f385503460f94c544f0/html5/thumbnails/29.jpg)
Other Traps• Poverty and Neglect• Low Self-Esteem• Authoritarianism• Need for Closure
![Page 30: 1 TVPPA Purchasing Workshop Business Ethics for the Purchasing Professional Kimball Bullington, Ph.D. Professor of Supply Chain Management Middle Tennessee.](https://reader035.fdocuments.in/reader035/viewer/2022062301/56649f385503460f94c544f0/html5/thumbnails/30.jpg)
Other Traps• Addiction • Competition• Empathy• Contempt for Victim• Doing is Believing
![Page 31: 1 TVPPA Purchasing Workshop Business Ethics for the Purchasing Professional Kimball Bullington, Ph.D. Professor of Supply Chain Management Middle Tennessee.](https://reader035.fdocuments.in/reader035/viewer/2022062301/56649f385503460f94c544f0/html5/thumbnails/31.jpg)
Takeaways
1. Know your profession, relevant laws, and your business.
2. Know & observe ethical guidelines. Often people behave unethically unconsciously.
3. Just because nothing bad happens doesn’t mean it isn’t unethical.
![Page 32: 1 TVPPA Purchasing Workshop Business Ethics for the Purchasing Professional Kimball Bullington, Ph.D. Professor of Supply Chain Management Middle Tennessee.](https://reader035.fdocuments.in/reader035/viewer/2022062301/56649f385503460f94c544f0/html5/thumbnails/32.jpg)
Takeaways
4. Be aware that relationships can blind us.
5. Grow professionally.
6. Be aware of perceptions of ethical behavior.
7. Beware of ethical traps that result from psychological / social dynamics.
8. Ethics matters.