Supply Chain Management in Purchasing

Essay by sweetyanyanUniversity, Master'sC+, July 2008

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Generally, more and more companies pay attention to ethical issues in their business dealing. Ethics as a general field of study maybe defined as the principles of conduct governing an individual or group; concern for what is right or wrong, good or bad (Lysons,K. and Farrington,B. 2006). Known as the world's largest beverage industry, coca-cola is a powerful brand. Coca-cola Enterprise Ltd is responsible for the manufacturing and distribution of 'Coca-Cola' products in Great Britain, supplying around 240 million cases every year. As a successful large company, coca-cola does quite well in dealing with their ethics issues.

This report focuses on how coca-cola Enterprise Ltd manages its purchasing ethics and organized into three sections: the first section examines some ethical issues relating to suppliers in coca-cola Enterprise Ltd; the second section introduces the five steps to manage employees adopting purchasing ethical issues and avoid fraudulent activities in an organization with the last section analyses what are the crucial problems caused by overseas' purchasing in raising issues of cultural relativism and cultural imperialism.

2.The ethical issues relating to suppliersAs the code of business conduct in Coca-Cola Company pointed out, the company values its partnerships with customers, suppliers and consumers. Treat these partners in the same manner we expect to be treated. The ethical issues relating to suppliers in Coca-Cola are reflected in the three factors, namely honesty and openness, provision of practical help, and strict limitation in receiving business gift and hospitality from suppliers.

2.1 Honesty and opennessA famous statement reveals some unethical firms' behaviors that in negotiations, their responsibility is to obtain the best possible price, quality and delivery and that bluffing of the suppliers just in order to achieve the desired end. In fact, these behaviors have been engaged in deception. Robertson and Rymon (2001) have...