Ethics in Purchasing

Abstract

Ethics in purchasing is an underdeveloped specialism of marketing and business ethics, within which most publications are mostly concerned with the bad ethics instead of good. This research is conducted to view the ethical issues of purchasing that arose in Apple Company. This research will also focus on the variables causing ethical dilemma and it will also cover the recommendations to overcome the concerns of certain situations.

Introduction

Purchasing deals with the buying, storage and monitoring of services and goods. Like all the aspects of business, ethics in purchasing is considered as one of the most important issue and it influences the bottom line of a company to a higher extent. Those organizations that are aware of the needs and requirements of their stake holders specifically their suppliers, can perform in an ethically responsible manner. Those companies can perform better and are capable of having a sustained position in the competitive market place. They are capable of maintaining their long-term economical progress.

Ethical issue in purchasing has become a common issue. Every day numerous reports are conducted on this topic by media. The reports are mainly focus the unethical business and bribery practices. It includes purchasing of services and materials globally. It is a common and a very significant practice conducted by all the companies that the companies much emphasized on hiring such employees who meet the standard of purchasing that is comprised on all the rules, methods and processes in order to ensure the procurement process.

The process of purchasing includes the interaction of potential vendors and purchasing staff that leads to contacts and personal relationships. The strong bond of relationship among a company and its suppliers is established with the passage of time and it is based on personal relationship. The purchasing professionals are responsible to but the finest quality products at least possible cost keeping in view the market demand and competitors strategies. It is very important to keep the purchasing standards in order to guarantee the basic highlighted requirements of the company on the dealings with the potential suppliers.

Discussion

Overview of the Research

Apple is considered as a well-known international company and it lies in the category of most imitated and the most admired companies all around the world in part through an implacable mastery of global practices. It's earning and profit record is more than Google, Exxon Mobile or Goldman Sachs. Apple faced an ethical issue in 2007, before the appearance of iPhone in the market. In an office, during a meeting Mr. Jobs took out his iPhone from his pocket and found many scratches on its screen. He angrily showed those scratches to all the members of the meeting. He claimed the quality of the screen and said that every individual put keys in his pocket with his iPhone so he wanted such a phone screen that could not have any scratches. He ordered his company to make glass screen for the iPhone. He ordered his company to fix that problem within six ...