The Impact Of Purchasing Ethics In An Organization

Project and Seminar Material for Purchasing and Supply PS

The Impact Of Purchasing Ethics In An Organization

Table Of Contents

Preliminary Page(s)

  • Title
  • Approval
  • Dedication
  • Acknowledgement
  • Table of Content

Chapter One


  • 1.1 Background of the Study
  • 1.2 Statement of Problems
  • 1.3 Objective of the Study
  • 1.4 Significance of the Study
  • 1.5 Scope of the Study
  • 1.6 Limitation of the Study
  • 1.7 Definition of Terms

Chapter Two

2.0 Literature Review

  • 2.1 Importance of Purchasing
  • 2.2 Aims and Objectives of Purchasing
  • 2.3 The Importance of Good Ethical Standards in Purchasing
  • 2.4 Determinant of Ethical Behavior
  • 2.5 Ethical Issues in Purchasing
  • 2.6 Bribery
  • 2.7 Fraud by Buyers
  • 2.8 Ensuring Ethical Standards in Purchasing Department
  • 2.9 The Ethical Code of the Chartered Institute of Purchasing and Supply Management Nigeria

Chapter Three

3.0 Research Methodology

  • 3.1 Sources of Data
  • 3.2 Primary Data
  • 3.3 Secondary Data
  • 3.4 Research Procedure

Chapter Four

4.0 Presentation Analysis and Data

  • 4.1 Presentation Analysis and Analysis and Interpretation of Data

Chapter Five

5.0 Summary Conclusion and Recommendation

  • 5.1 Summary
  • 5.2 Conclusion
  • 5.3 Recommendation
  • References

Chapter One


1.1 Background Of The Study

The evolution of mass production, which relies upon a continuous flow of right materials, has brought an impact and the need to improve purchasing principle and management.

Further more, when purchasing items account for a high proportion of the organizational expenditure when prices are always fluctuating widely when numerous diverse items are constantly needed, and when the quality of the materials or service appreciable influences the cost of manufacturing the final product or rendering the service then organization of purchasing becomes particularly very important and thus demand close attention.

The buyer is seen as the custodian of his organization purse such responsibility will be readily appreciated when one thinks of his position as an officer that does the job.

Efficient purchasing is therefore achieve when the buyer, purchases the required quality and quantity of law materials supplies parts, tooling and equipment at the right time and at the lowest price, the purchasing function is to see that materials and services are provided at the lowest which is compatible with suitable quantity and safety.
Organizational purchasing according to Oyeoku (1993), has this become a complex function, it required practitioners to have acquired adequate training in purchasing and supply management techniques.

Practitioner need to belong to appropriate purchasing and supply institutes. These bodies regulated the ethical code of paretic when its members are required to observe in Nigeria for instance the Nigeria Institute of Purchasing and Supply Management (NIPSM).

According to Nweke B. Okafor Purchasing management in a narrow sense describes the process of buying but in broader sense, the is concerned with material quantity and quality, selecting the supplier determining the terms and conditions of purchase contracts issuing purchase order and a lot of other activities.

In fact, a professional who must have the managerial skills and competence to execute the process with maximum efficiency and economy should perform the process of purchasing.

1.2 Statement Of Problems

This research project will investigate and unveil the various problems of buying activities and the cause of unethical behavior and suggest ways of eliminating them and most import antsy work out ways in every organization the important of ethical behavior. This research shall examine critically the following factors, which will make a buyer to make unethical decisions.

  1. The behavior of a person’s supervisor in the organization
  2. Ethical climate in the industry
  3. The behaviors of a persons equals in the organization
  4. Lack of organizational policy
  5. Personal financial needs

1.3 Objective Of The Study

The purchasing like the heart in human body act as sources of suppliers to the organization it is concerned with the process of defining the organizations needs, selecting suppliers, agreed on terms placing under and receiving goods and services.

It is by its nature a service function, oriented to providing a complete supply function “service” for users within the organization.

This research study will critically looked at the following cases

  1. The important of purchasing to the organization
  2. The causes of factors that lead to unethical behaviors
  3. The need for ethical standard in an organization
  4. Determinant of ethical behavior

1.4 Significance Of The Study

With regard to the study, the role of purchasing ethical in improving organizational profit the study enables the organization to know the important and benefit of good ethical behavior and to investigate and evaluate the causes of unethical behavior.

1.5 Scope Of The Study

The scope of this research was restricted only within the ethics of purchasing. It contract only within the ethics the areas of emphasis includes

  1. Important of purchasing
  2. Aims of objective of purchasing
  3. Importance of ethical standard
  4. Determinant of ethical behavior

1.6 Limitation Of The Study

The research was confronted with various obstacles in the course of carrying out this investigation and date collection. Another major constraints encountered was financed as a result of inflation most of the materials used has their price on the high side.

1.7 Definition Of Terms

a. Purchasing:

This is that management function responsible for obtaining by purchase or leases the tools, parts, materials and equipment that are required by organization.

b. Ethics:

This is a science of conduct ethic exhibited consciously or in a purposeful manner aimed at achieving an end.

c. Research:

This is a systematic investigation for the purpose of gaining new knowledge

Chapter Five

5.0 Summary Conclusion And Recommendation

5.1 Summary

This is the most intellectual demanding part of this research project hence it is in this chapter the researcher makes evaluations of the exact terms of the objective state earlier in this research project as well as the examine of these objectives have been met.

It compares the solution offered by the study vis-visa the content of the literature review.

The researcher came up with the following finding.

  1. That the role of purchasing ethics in an organization cannot be ignored the main reason being that their functions help to enhance the profitability of organization.
  2. That the code of conduct of the organization must be strictly adhered to
  3. That the major causes of unethical behavior in an organization sometimes as the conduct of superior in an organization.
  4. That the Federal government of Nigeria had set up a team known as economic and financial crime commission (EFCC) to fig lit and check mate corrupt practices in the system

5.2 Conclusion

The basic problems centered on improving good ethical system in an organization.

In the review of this effort were made during the findings to look into the problems about decision on maintain good ethical standard within the organization following a critical analysis of the researcher finding it was discovered that the organization or government sectors can only attain effective and efficient service level of the employee or public officials only if participated fully in decision regarding ethical obligations of members of the organization or public officials to their company or offices.

It becomes important therefore that a good professional code of conduct should be provided to check and balance the various ethical standards.

5.3 Recommendation

Based on the above summary of research finding, the researcher here by makes the following recommendation.

  1. The organization should set up a policy that will relate on proper accountability of employees in public officials
  2. A right caliber of staff with the necessary skills and knowledge to perform the work should be hired or elected.
  3. There should be a well out lines code of conduct that will regulate the activities of buyers in an organization.
    According to the Nigerian institute of purchasing and supply management (NIPSM) the following must be done.

    • All members must be performing professionally and analytically so that they can make meaningful contributions to the economic well being of Nigeria and indeed their state of domicile practices.
    • All members must always use the most lawful and ethical process of practice while avoiding any decision that may be deemed corrupt or unprofessional by others.

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