“The best and most successful organisations recognise that they will only prosper in the long term if they satisfy the aspirations of their stakeholders; including customers, suppliers, employees, local communities, investors, governments, public interest and environment groups. To satisfy this intense scrutiny and the demands for greater accountability in society, businesses and other organisations are increasingly recognising the need to measure, track and report on their social and ethical performance.” 'Ethics' in purchasing and supply management can relate to a wide range of issues from doubts about suppliers' business procedures and practices to corruption. Decisions on ethics and corporate social responsibility are at the heart of corporate strategy. They particularly influence the purpose of the organisation. By ethics and corporate social responsibility is meant the standards and conduct that an organisation sets itself in its dealings within the organisation and outside with its environment. Ethics is particularly concerned with the basic standards for the conduct of business affairs for example, policy with regard to honesty, health and safety and corrupt practice. Corporate social responsibility has a wider remit to include the organisation’s responsibility beyond the minimum to its employees and those outside the organisation. Topics will vary with each organisation but may include environmental ‘green’ issues, treatment of employees and suppliers, charitable work and other matters related to the local or national community
not conforming to approved standards of social or professional behavior; "unethical business practices"
QUESTION 1 B
The Chartered Institute of Management defines codes of ethics as a set of principles or values, used by organizations to steer the conduct of both the organization itself and its employees, in all their business activities, both internal and in relation to the outside world. Ethical codes go further than most policy statements in that they are focused on matters of right and wrong rather than just on standards of behavior and applies individually as well as collectively to the organsation’s members, and affects its internal affairs as well as those with its external stakeholders.
Code of Ethics in Relation to Internal Issue
This is a code that applies to all employees involved in the purchasing process within Kyerico. In addition to full compliance with the Kyerico’s General Business Principles, all affected employees shall:
1. ACT HONESTLY AND ETHICALLY
* Carry out their duties in an honest and ethical way by ensuring that business policies and practices are aligned with ethical principles. * Maintain the confidentiality of privileged information acquired in the course of their work, except when disclosure has been authorized or is legally obliged. * Act in good faith, responsible, with due care, competence and diligence, without allowing one’s independent judgment to be subordinated. Provide information that is true and not designed to mislead. * Clearly communicate ethical expectations to those with whom they work. * Refrain from using or appearing to use confidential information acquired in the course of one’s work for unethical or illegal advantage either personally or through third parties. * Ensure the integrity of records; including documenting obtained discounts in a proper form.
2. AVOID CONFLICTS OF INTEREST
* Avoid actual or apparent conflicts of interest between personal and professional relationships. No actions should be taken and interests outside Kyerico should be avoided that may make it difficult to perform his or her company work objectively and effectively. No direct or indirect financial interest in a supplier or competing company is allowed. * The acceptance of gifts or personal favors of commercial value is not acceptable, which includes invitations to...