Supply Managment

Jose Alberto Acosta Chaves

Supply Management

Assignment 5

Chapter 19.

November 21, 2011

1. On what basis are the ethical standards of an organization judged?

The ethical standards of an organization are judged by its actions and the actions of its employees, not by pious statements of intent put out in the company's name.

3. What is the most important ethical principle for supply managers?

Integrity in your decisions and actions.

Value for your employer

Loyalty to your profession.

4. How does global supply management temper ethical consideration?

All organizations are subject to internal and external forces and pressures, internal forces and pressures result from and organization's culture. External forces and pressures may include economic conditions, laws, regulations, public opinion, special interest groups, and political entities. The negative influence of internal and external forces and pressures on supply management can be minimized when the organization adopts practices that are based on ethical principles and standards.

5. Describe two examples of confidential supplier information. What responsibility does the supply manager have for such information?

1. Pricing

2. Formulas and/or process information

3. Organizational plans, goals, and strategies.

The responsibility to maintain the confidentiality of that information.

6. How much professional supply manager treat suppliers?

Supply managers professionals must be especially careful when dealing with suppliers who are customers. Cross -dealing between suppliers and customers are not antitrust violations per se. Nevertheless, giving preference to a supplier who is also a customer should occur only when all other factors are equal. Dealing with a supplier who is also a customer may not constitute a problem, if in fact, that supplier is the best resource. A company is engaging in reciprocity, however, when it deals with suppliers solely because of the customer relationship. A professional supply manager must able to recognize reciprocity and its ethical and legal implications.

7. Describe four "sharp practices".

Sharp practice is defined as evasion and indirect misrepresentation that is just short of actual fraud. These unscrupulous practices focus on short-term gains and ignore the long-term implications for a business relationship.

Some examples are:

* A supplier manager who places in competition the prices of seconds, odd lots, or distressed merchandise