Importance of Ethics in Purchasing and its Impact on Buyer-Seller Relationship

Ethics in purchasing
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Ethics in purchasing
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Ethics in purchasing
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Introduction
With the current technology and customer behavior change, ethics play major role in
purchasing. Being ethical is following the standards and rules of practice set for a given
profession. Purchasing professionals should carry out their business practices in a more ethical
way. Failing to up hold ethical standards in purchasing can results into illegal and immoral
practices such as illegal sourcing, favoritism, and bribery. The aim of this work is to evaluate the
importance of code of ethics in purchasing and how it affects buyer-seller relationship (Withers
& Ebrahimpour, 2018).
Importance of Ethical standards in purchasing basing code of ethics
Honest is one of the code of practice that an organization should uphold when doing
procurement and purchasing since they deal with both external supplies and internal customers.
Honest in purchasing prevent impropriety leading to superior performance leading to long run
profits compared to impropriety organization which can make profits for a short time. According
to the research, maintaining of high integrity enables an organization to attract and maintain
investors, suppliers, customers, and employees. Since human beings are not morally perfect, an
organization need to put more effort and time to ensure high integrity and honest are maintained
by all employees (Reilly, Saini & Skiba, 2018).
Transparency in purchasing increases trust, builds relationships, and increases
productivity. Transparency purchasing increases trust in that the value and the price of the
products purchased. Research shows that Improved in transparency reduce the cost of
procurement up to 8% and this boosts the efficiency of the organization since procurement and
purchasing accounts for a large portion of the economic activity in any organization. Suppliers