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SMEs - supply chain and ethics

Written by: Dr. Rob Smorfitt

Article Overview: Understanding ethics and supply chain

SMEs - supply chain and ethics

My experience to date as a business person is that the African understanding of ethical business practice versus the Eurocentric view, are two very different animals.

Although many universities are now teaching the topic as a subject in South Africa, I seriously doubt that they will make any headway.

The problem is that even ethics in a Eurocentric environment is open to discussion. So when you have two different cultural perspectives, it could make for interesting debate, which unfortunately I seldom hear.

Many of my African associates see absolutely no wrong in nepotism in recruitment and giving orders to friends and family. They often see it as their duty to assist friends and family. The Eurocentric viewpoint on both these points is that they are wrong.

However, the USA model of organisations created specifically to lobby the politicians to get legislation passed to suit certain companies must surely also struggle to past muster.

I will give two other examples.

An engineer is too lazy to write a tender. The salesman offers to write the specification. The company write a very "tight" specification that perhaps only they can meet, but when they tender they tender at the normal price they would have if they had not written the specification. The buying company has received an acceptable product at a normal price. The buyer has not been disadvantaged at all. Was this ethical?

Company process is they must have 3 quotes and take lowest price. The buyer gets 2 quotes and then calls the preferred supplier on the basis of service, advising them of lowest price. Seller then quotes slightly lower than other 2 quotations.and gets order. Buying company has received same product at lowest price from supplier known to be reliable. Was this ethical?

The purpose here is to simply highlight the fact that it s seldom that everyone agrees on what is and is not ethical in business. It is a difficult topic, and the easy examples like bribes being paid is not the issue.

It is time perhaps for a review of this topic by researchers and for someone to clarify the rules of engagement, without losing the cultural perspectives that abound in this area.

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Article Tags: African, chain, cultural, ethics, purchasing, SME, Smorfitt, supply



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