CRISTLE ANGEL P.

SERVENTO ABM 12 D

Case Study: Purchasing Ethics

1. Since Alexander was the overseer of the Purchasing Department and had final decision
authority should purchasing have gone through the normal bidding routine?
No, even though Alexander was the supervisor of the Purchasing department and had the
authority of decisions, the bidding process still would not have gone as normal. The fact that the
procedure was not passed through the proper bidding routine or process because he directly
purchased it through a direct supplier knowing that the TechEduc Corporation did not qualified to
the bidding requirement or policy is a violation. When you are involved in procurement or
purchasing activities, as a Vice President it is Alexander’s responsibility and trust to make the
best purchasing decisions for the organization.
2. Is it acceptable for a Vice President to bypass the normal routine to do business with a
family member?
It is not acceptable, favouring a family member rather than following the business’ or
bidding policy means there is a conflict of interest. Conflict of interest is one of the common
offences in procurement. Since John, his son handled the sale and received a commission, there is
a favourable treatment in the procurement process. A person’s personal gain to be exact rather
than dealing with decisions or actions for the benefit of the company. Not following an important
policy is unethical, thus the actions show that there is a present violation of the bidding procedure
or there is a collusive act between the procuring entity and the supplier. Whether you are a
supplier or an employee, or even a family member you must do your part to comply with the
business procurement code of ethics and one of those is to abide by the internal rules set in
bidding on how to conduct a bidding procedure.
3. Was Alexander’s decision not to request bids an ethical choice? Explain.
It is an unethical choice for Alexander not to request bids. Having a position or a job
being a Vice President, he should conduct the business or the procurement process with fairness,
integrity, transparency, and good corporate governance. He should handle dealings with the
highest professional and ethical standard. Being biased in his decisions is unethical, thus, he
should always consider what is best for the organization. A normal bidding procedure is being
undertaken without any favouritism or a specific supplier or contractor to submit its bids to the
procuring entity.