Business Ethics and Procurement Process: Risks, Standards, and Leadership Management

LMP 2 SU New
Business Strategy Law
Student’s Name
11/13/2018

Table of Contents
Introduction.................................................................................................................................................3
Business Ethics.........................................................................................................................................3
Why is it Important?................................................................................................................................3
TASK-1.........................................................................................................................................................3
The potential risks that would affect the new Procurement Agency.......................................................3
Business Ethics Issue -1........................................................................................................................3
Business Ethics Issue -2........................................................................................................................3
Transparency...........................................................................................................................................4
Procurement Process: Ethical Risks.....................................................................................................4
Risk application to the parties.............................................................................................................5
TASK-2.........................................................................................................................................................5
A suitable ethical standard relating to accountability, transparency and employee conduct to be
achieved by PA and monitored in practice..................................................................................................5
Management responsibility.....................................................................................................................5
Ethics Code..............................................................................................................................................5
Controls in Procurement.........................................................................................................................6
TASK-3.........................................................................................................................................................7
Leadership management of change initiative to remedy the unethical behavior.......................................7
Using Agents............................................................................................................................................7
Using incentives/reward systems............................................................................................................8
References...................................................................................................................................................8
Introduction

Business Ethics
Business ethics is known as the system of an organization based upon the moral and ethical
beliefs guiding the values, and decisions regarding the business and the employees. Few of these
requirements are enforced by law, such as minimum wages and punishment against sexual
harassment, others are environmental regulations (Crane and Matten, 2016).
Why is it Important?
It is the duty of the management team to set out rules and regulations for how the organization
runs on a daily basis. The management philosophy and regulations must have a base of ethical
practices. It is imperative that leaders use directive management principle to direct the employees
through their examples. A foundation based on ethics and principle helps build long lasting
stakeholder relationships, attract and retain the best in industry talent and sustaining the upbeat
reputation. The principle issues to be dealt with include the accountability, operational and
financial transparency and employee ethical conduct (Trevino and Nelson, 2016).
TASK-1
The potential risks that would affect the new Procurement Agency
1. Accountability,
2. Transparency of operation and
3. Employee ethical conduct
Business Ethics Issue -1
In 2007, Susan Fowler an Uber employee told the public via her blog that she was being sexually
harassed by her manager in the workplace and also experienced gender bias during her tenure.
Her blog titled “Reflecting On One Very, Very Strange Year At Uber”, mentioned her #metoo
story (Murray, 2018).
Business Ethics Issue -2
It was reported in the media groups that the lowest paying clothing stores online is violating the
human rights in the supply chain showcasing an unethical practice in the workplace in U.K.
based companies. The companies lacked transparency in supply chain, according to law, they
must report the risk pertaining to slavery and also to provide the steps concerning the issue and