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Importance of Ethics in Purchasing Activities | Online Assignment Help

2. Strategic Action. National Logistics, Inc., provides trucking services to large customers. It has an excellent reputation for reliable scheduling and careful handling. With decreasing regulation, NLI’s management decided that they needed more of a marketing orientation. They wanted to build and maintain long-lasting, profitable relationships with their customers. NLI invested time and effort to study customers’ shipping needs and were especially effective at helping customers plan for their needs. After two years, NLI’s managers were very disappointed with the results. Customers were pleased with the new marketing approach and frequently complimented NLI, but sales were down. Low-cost competitors were particularly bothersome. What went wrong? Why didn’t customers want to commit to long-term relationships?

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3. Self-Management. U.S. business firms and the purchasing managers continue to stress the importance of ethics in purchasing activities. Although such “perks” as the business lunch are common business practice, there is increasing concern about the ethics of such things as free tickets to sporting events and shows. In contrast to the United States, the purchasing function in Mexico is at a relatively early stage in its development as a profession. No professional organization of purchasing agents exists, and the agents are often viewed as necessary evils within their own organizations. Given this discrepancy in their professional development, U.S. and Mexican purchasing agents are likely to disagree on the ethics of particular practices. From the following list of five ethical dilemmas, on which do you think purchasing agents from Mexico and the United States are likely to differ? How would they differ and why?

1. Accepting free trips from salespeople is okay.

2. Accepting free entertainment from salespeople is okay.

3. Making exaggerated statements to a supplier in order to gain a concession is accept-able.

4. Giving preferential treatment to suppliers who happen to be good customers is sound business practice.

5. Obtaining information about competitors by asking suppliers for that information is acceptable.

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