Ethical issues and challenges of purchasing in the wake of the crisis
DOI:
https://doi.org/10.14267/VEZTUD.2024.12.01Keywords:
purchasing, ethics, surveyAbstract
The focus of this research is to examine how ethics and ethical issues in business procurement in organisations have changed in recent years as a result of the global economic and supply problems. The authors replicated an earlier survey and compared the results. The open-ended questions of the questionnaire detail the responses. The results show that the supply problems of recent years and new challenges for procurement, such as digitalisation, have created new problems for the industry. The literature addresses the issues surrounding the conflict of interest between an owner and a purchaser, or between a purchaser and a supplier. However, the results reveal that ethical conflict impacts a broader spectrum of stakeholders, and they are also reinterpreting traditional ethical problems.
Downloads
References
Akbari, M., & McClelland, R. (2020). Corporate social responsibility and corporate citizenship in sustainable supply chain: a structured literature review. Benchmarking: An International Journal, 27(6), 1799-1841. https://doi.org/10.1108/BIJ-11-2019-0509
Al-Aama, A.Y. (2012). E-procurement vs. online procurement: A means to increase transparency in a Saudi Government organisation: The case of the Jeddah Municipality. International Journal of Procurement Management, 5(6), 765-783. https://doi.org/10.1504/IJPM.2012.049714
Anand, D. (2021). Implementation of online e–auction to overcome the problem of corruption with effective and efficient procurement with transparency. Turkish Journal of Computer and Mathematics Education, 12(1S), 1-6. https://turcomat.org/index.php/turkbilmat/article/view/866
Araujo, R., Fernandes, J.M., Reis, L.P., & Beaulieu, M. (2023). Purchasing challenges in times of COVID-19: resilience practices to mitigate disruptions in the health-care supply chain. Journal of Global Operations and Strategic Sourcing, 16(2), 368-396. https://doi.org/10.1108/JGOSS-04-2022-0026
Bals, L., Schulze, H., Kelly, S., & Stek, K. (2019). Purchasing and supply management (PSM) competencies: Current and future requirements. Journal of Purchasing and Supply Management, 25(5), 100572. https://doi.org/10.1108/JGOSS-04-2022-0026
Bauer, F., & Göbl, M. (2019). The influence of digitalisation on procurement efficiency. Journal of Applied Leadership and Management, 7, 50-65. https://www.econstor.eu/handle/10419/215721
Bayles, M. (1983). Ethical issues in purchasing management. Business Qarterly, 48(1), 42-47.
Bode, C., Burkhart, D., Schültken, R., & Vollmer, M. (2022). Future of Procurement: Insights from a Global Survey. In Global Logistics and Supply Chain Strategies for the 2020s: Vital Skills for the Next Generation (pp. 261-276). Springer International Publishing. https://doi.org/10.1007/978-3-030-95764-3_15
Browning, J., & Zabriskie, N.B. (1983). How ethical are industrial buyers? Industrial Marketing Management, 12(4). 219-224. https://doi.org/10.1016/S0019-8501(83)80001-7
Butt, A.S., Alghababsheh, M., Arshi, T.A., & Shah, S.H.H. (2022). Strategies to streamline supplier relationship management during crises: lessons learned from COVID-19 and future pathways. Benchmarking: An International Journal, 30(10), 3906-3924 https://doi.org/10.1108/BIJ-04-2022-0226
Carter, C.R., & Jennings, M. (2000). Purchasing’s Contribution to the Socially Responsible Management of the Supply Chain. Center for Advanced Purchasing Studies.
Carter, C.R., & Jennings, M. (2004). The role of purchasing in corporate social responsibility: A structural equation analysis. Journal of Business Logistics, 25(1), 145-186. https://doi.org/10.1002/j.2158-1592.2004.tb00173.x
Carter, C.R. (2000). Ethical issues in international buyer– supplier relationships: a dyadic examination. Journal of Operations Management, 18(2), 191-208. https://doi.org/10.1016/S0272-6963(99)00016-9
Carter, C.R. (2005). Purchasing social responsibility and firm performance: The key mediating roles of organizational learning and supplier performance. International Journal of Physical Distribution & Logistics Management, 35(3), 177-194. https://doi.org/10.1108/09600030510594567
Christensen, S.L., & Kohls, J. (2003). Ethical decision making in times of organizational crisis: A framework for analysis. Business & Society, 42(3), 328-358. https://doi.org/10.1177/0007650303255855
Cooper, R.W., Frank, G.L., & Kemp, R.A. (1997). Ethical issues, helps and challenges perceptions of members of The Chartered Institute of Purchasing and Supply. European Journal of Purchasing & Supply Management, 3(4), 189-198. https://doi.org/10.1016/S0969-7012(97)00013-0
Crane, B. (2022). Eudaimonia in Crisis: How Ethical Purpose Finding Transforms Crisis. Humanistic Management Journal, 7(3), 391-416. https://doi.org/10.1007/s41463-022-00130-8
Daghar, A., Alinaghian, L., & Turner, N. (2023). The role of cognitive capital in supply chain resilience: an investigation during the COVID-19 pandemic. Supply Chain Management: An International Journal, 28(3), 576-597. https://doi.org/10.1108/SCM-09-2021-0457
Dza, M., Gapp, R., & Fisher, R. (2015). Taking the professionalism out of the profession: a study of procurement and Africa. International Journal of Procurement Management, 8(3), 251-271. https://doi.org/10.1504/IJPM.2015.069152
Eggert, J., & Hartmann, J. (2023). Sustainable supply chain management – a key to resilience in the global pandemic. Supply Chain Management: An International Journal, 28(3), 486-507. https://doi.org/10.1108/SCM-10-2021-0463
Emiliani, M.L. (2010). Historical lessons in purchasing and supplier relationship management. Journal of Management History, 16(1), 116-136. https://doi.org/10.1108/17511341011008340
Fasth, J., Elliot, V., & Styhre, A. (2022). Crisis management as practice in small‐and medium‐sized enterprises during the first period of COVID‐19. Journal of Contingencies and Crisis Management, 30(2), 161-170. https://doi.org/10.1111/1468-5973.12371
Flynn, A., & Li, Q. (2023). Determinants of supplier payment times before and during the pandemic: Empirical evidence from UK firms. Journal of Purchasing and Supply Management, 29(4), 100850. https://doi.org/10.1016/j.pursup.2023.100850
Forker, L.B., Janson, R.L. (1990). Ethical Practices in Purchasing. Journal of Purchasing and Materials Management, 26(1), 19-26. https://doi.org/10.1111/j.1745-493X.1990.tb00495.x
Fowler, K.L., Kling, N.D., & Larson, M.D. (2007). Organizational preparedness for coping with a major crisis or disaster. Business & Society, 46(1), 88-103. https://doi.org/10.1177/00076503062933
Giunipero, L.C., Bittner, S., Shanks, I., & Cho, M.H. (2019). Analyzing the sourcing literature: over two decades of research. Journal of Purchasing and Supply Management, 25(5), 100521. https://doi.org/10.1016/j.pursup.2018.11.001
Glavee-Geo, R., Engelseth, P., & Buvik, A. (2022). Power imbalance and the dark side of the captive agri-food supplier–buyer relationship. Journal of Business Ethics, 178(3), 609-628. https://doi.org/10.1007/s10551-021-04791-7
Glover, J. (2020). The dark side of sustainable dairy supply chains. International Journal of Operations & Production Management, 40(12), 1801-1827. https://doi.org/10.1108/IJOPM-05-2019-0394
Gu, J., Shi, X., Wang, P., & Xu, X. (2022). Examining the impact of upstream and downstream relationship stability and concentration on firms’ financial performance. Journal of Business Research, 141, 229-242. https://doi.org/10.1016/j.jbusres.2021.12.018
Hatipkarasulu, Y., & Gill, J.H. (2004). Identification of shareholder ethics and responsibilities in online reverse auctions for construction projects. Science and Engineering Ethics, 10, 283-288. https://doi.org/10.1007/s11948-004-0024-6
Hamann, R., Sewlal, A., Pariag-Maraye, N., Muthuri, J., Amaeshi, K., Nwagwu, I., & Soderbergh, J. (2022). Strengthening or Restricting? Explaining the COVID- 19 Pandemic’s Configurational Effects on Companies’ Sustainability Strategies and Practices. Business & Society, 63(4), 00076503221134100. https://doi.org/10.1177/00076503221134100
Ho, W., Zheng, T., Yildiz, H., & Talluri, S. (2015). Supply chain risk management: a literature review. International Journal of Production Research, 53(16), 5031-5069. https://doi.org/10.1080/00207543.2015.1030467
Husser, J., Gautier, L., André, J.M., & Lespinet-Najib, V. (2014). Linking purchasing to ethical decision-making: An empirical investigation. Journal of Business Ethics, 123, 327-338. https://doi.org/10.1007/s10551-013-1838-4
Husser, J., Goujon Belghit, A., Song, L., & Rouanet, A. (2023). The impact of cultural differences and moral intensity on ethical decision-making: Evidence from France and China. Management International/International Management/Gestiòn Internacional, 27(5), 10-24. https://doi.org/10.59876/a-738e-57af
Jamalnia, A., Gong, Y., & Govindan, K. (2023). Sub-supplier’s sustainability management in multi-tier supply chains: A systematic literature review on the contingency variables, and a conceptual framework. International Journal of Production Economics, 255, 108671. https://doi.org/10.1016/j.ijpe.2022.108671
Jia, F., Orzes, G., Sartor, M., & Nassimbeni, G. (2017). Global sourcing strategy and structure: towards a conceptual framework. International Journal of Operations & Prohttps://doi.org/10.1108/IJOPM-09-2015-0549
Jin, Y., Austin, L., Eaddy, L., Spector, S., Reber, B., & Espina, C. (2018). How financial crisis history informs ethical corporate communication: Insights from corporate communication leaders. Public Relations Review, 44(4), 574-584. https://doi.org/10.1016/j.pubrev.2018.06.003
Johnsen, T.E., Miemczyk, J., & Howard, M. (2017). A systematic literature review of sustainable purchasing and supply research: Theoretical perspectives and opportunities for IMP-based research. Industrial Marketing Management, 61, 130-143. https://doi.org/10.1016/j.indmarman.2016.03.003
Karjalainen, K., Kemppainen, K., & Van Raaij, E.M. (2009). Non-compliant work behaviour in purchasing: An exploration of reasons behind maverick buying. Journal of Business Ethics, 85, 245-261. https://doi.org/10.1007/s10551-008-9768-2
Kim, M., & Chai, S. (2017). The impact of supplier innovativeness, information sharing and strategic sourcing on improving supply chain agility: Global supply chain perspective. International Journal of Production Economics, 187, 42-52. https://doi.org/10.1016/j.ijpe.2017.02.007
Kim, S., Colicchia, C., & Menachof, D. (2018). Ethical sourcing: An analysis of the literature and implications for future research. Journal of Business Ethics, 152, 1033-1052. https://doi.org/10.1007/s10551-016-3266-8
Kim, S., Chae, S., Wagner, S.M., & Miller, J.W. (2022). Buyer abusive behavior and supplier welfare: An empirical study of truck owner–operators. Journal of Supply Chain Management, 58(4), 90-111. https://doi.org/10.1111/jscm.12285
Knight, L., Meehan, J., Tapinos, E., Menzies, L., & Pfeiffer, A. (2020). Researching the future of purchasing and supply management: The purpose and potential of scenarios. Journal of Purchasing and Supply Management, 26(3), 100624. https://doi.org/10.1016/j.pursup.2020.100624
Koberg, E., & Longoni, A. (2019). A systematic review of sustainable supply chain management in global supply chains. Journal of Cleaner Production, 207, 1084-1098. https://doi.org/10.1016/j.jclepro.2018.10.033
Kraljic, P. (1983). Purchasing must become supply management. Harvard Business Review, September‐October, 109‐117. https://hbr.org/1983/09/purchasing-must-become-supply-management
Lahiani, N., Apedome, K.S., & Zhu, J. (2018). The contribution of global sourcing to the economic performance of organizations: Analysis of the points of view of the supply chain participants. Journal of Industrial Engineering and Management, 11(3), 513-527. https://doi.org/10.3926/jiem.2574
Lee, C.H., Son, B.G., & Roden, S. (2023). Supply chain disruption response and recovery: The role of power and governance. Journal of Purchasing and Supply Management, 29(5), 100866. https://doi.org/10.1016/j.pursup.2023.100866
Liu, A.Z., Liu, A.X., Moon, S., & Siegel, D. (2024). Does corporate social responsibility always result in more ethical decision-making? Evidence from product recall remediation. Journal of Business Ethics, 191(3), 443- 463. https://doi.org/10.1007/s10551-023-05467-0
Martinez, F., Figge, F., Castellano, S., Chakraborty, A., & Silva‐Gao, L. (2023). How did corporate responses to the COVID‐19 pandemic correspond with CSR? Business Ethics, the Environment & Responsibility, 32, 161- 165. https://doi.org/10.1111/beer.12536
Meyer, D., & Henke, M. (2023). Developing design principles for the implementation of AI in PSM: An investigation with expert interviews. Journal of Purchasing and Supply Management, 29(3), 100846. https://doi.org/10.1016/j.pursup.2023.100846
Najafi, N., Dubois, A., & Hulthén, K. (2013). Opportunism or strategic opportunity seeking? Three approaches to emerging country sourcing. Journal of Purchasing and Supply Management, 19(1), 49-57. https://doi.org/10.1016/j.pursup.2012.12.002
Niu, B., Xie, F., & Chen, L. (2024). Analysis of global brands’ green procurement strategy: Co-opetitive local sourcing vs. overseas sourcing under delivery disruption. Omega, 123, 102991. https://doi.org/10.1016/j.omega.2023.102991
Oehmen, J., De Nardo, M., Schönsleben, P., & Boutellier, R. (2010). Supplier code of conduct–state-of-the-art and customisation in the electronics industry. Production Planning & Control, 21(7), 664-679. https://doi.org/10.1080/09537280903547785
Owusu, E.K., Chan, A.P., & Hosseini, M.R. (2020). Impacts of anti-corruption barriers on the efficacy of anti-corruption measures in infrastructure projects: Implications for sustainable development. Journal of Cleaner Production, 246, 119078. https://doi.org/10.1016/j.jclepro.2019.119078
Pani, M.R., Agrahari, A., De, S.K., & Sahoo, G. (2011). Literature review and research issues in e-procurement. Management and Labour Studies, 36(3), 225-246. https://doi.org/10.1177/0258042X1103600302
Pearson, C.M., & Clair, J.A. (1998). Reframing crisis management. Academy of Management Review, 23(1), 59-76. https://doi.org/10.5465/amr.1998.192960
Peng, S., Jia, F., & Doherty, B. (2022). The role of NGOs in sustainable supply chain management: a social movement perspective. Supply Chain Management: An International Journal, 27(3), 383-408. https://doi.org/10.1108/SCM-05-2020-0191
Pereira, C.R., da Silva, A.L., Tate, W.L., & Christopher, M. (2020). Purchasing and supply management (PSM) contribution to supply-side resilience. International Journal of Production Economics, 228, 107740. https://doi.org/10.1016/j.ijpe.2020.107740
Potocan, V., & Nedelko, Z. (2021). The behavior of organization in economic crisis: Integration, interpretation, and research development. Journal of Business Ethics,174, 805-823. https://doi.org/10.1007/s10551-021-04928-8
Pournader, M., Kach, A., & Talluri, S. (2020). A review of the existing and emerging topics in the supply chain risk management literature. Decision Sciences, 51(4), 867- 919. https://doi.org/10.1111/deci.12470
Paul, S.K., & Chowdhury, P. (2021). A production recovery plan in manufacturing supply chains for a high-demand item during COVID-19. International Journal of Physical Distribution & Logistics Management, 51(2), 104- 125. https://doi.org/10.1108/IJPDLM-04-2020-0127
Radhakrishnan, S., Harris, B., & Kamarthi, S. (2018). Supply chain resiliency: a review. In Supply Chain Risk Management: Advanced Tools, Models, and Developments (pp. 215-235). Springer. https://doi.org/10.1007/978-981-10-4106-8_13
Razzaque, M.A., Hwee, T.P. (2002). Ethics and Purchasing Dilemma: A Singaporean View. Journal of Business Ethics, 35, 307–326. https://doi.org/10.1023/A:1013853021571
Reszegi, L. (2010). Hatékony piacok, hatékony vállalatok. In Reszegi, L., & Wimmer, Á. (Eds.), Hatékony piac, hatékony vállalat (pp. 11-78). Alinea.
Rogers, Z.S., Golara, S., & Carter, C.R. (2023). Moving Beyond the four walls: The evolving impact of supplier sustainability on firm value. Journal of Purchasing and Supply Management, 29(4), 100858. https://doi.org/10.1016/j.pursup.2023.100858
Rothkopf, A., & Pibernik, R. (2016). Maverick buying: Eliminate, participate, leverage?. International Journal of Production Economics, 179, 77-89. https://doi.org/10.1016/j.ijpe.2016.05.020
Ruel, S., El Baz, J., Ivanov, D., & Azadegan, A. (2023). Can organizational legitimacy stimulate digitalization and affect operational performance? The impact of COVID- 19 on uncertainty in supply management. Journal of Purchasing and Supply Management, 29(5), 100880. https://doi.org/10.1016/j.pursup.2023.100880
Schleper, M.C., Blome, C., & Wuttke, D.A. (2017). The dark side of buyer power: Supplier exploitation and the role of ethical climates. Journal of Business Ethics, 140, 97-114. https://doi.org/10.1007/s10551-015-2681-6
Schoenherr, T., Mena, C., Vakil, B., & Choi, T.Y. (2023). Creating resilient supply chains through a culture of measuring. Journal of Purchasing and Supply Management, 29(4), 100824. https://doi.org/10.1016/j.pursup.2023.100824
Shava, E., & Mazenda, A. (2021). Ethics in South African public administration: a critical review. International Journal of Management Practice, 14(3), 306-324. https://doi.org/10.1504/IJMP.2021.115107
Son, B.G., Kim, H., Hur, D., & Subramanian, N. (2021). The dark side of supply chain digitalisation: supplier-perceived digital capability asymmetry, buyer opportunism and governance. International Journal of Operations & Production Management, 41(7), 1220-1247. https://doi.org/10.1108/IJOPM-10-2020-0711
Srai, J.S., & Lorentz, H. (2019), Developing design principles for the digitalisation of purchasing and supply management. Journal of Purchasing and Supply Management, 25(1), 78-98. https://doi.org/10.1016/j.pursup.2018.07.001
Tran, P.N.T., Gorton, M., & Lemke, F. (2021). When supplier development initiatives fail: Identifying the causes of opportunism and unexpected outcomes. Journal of Business Research, 127, 277-289. https://doi.org/10.1016/j.jbusres.2021.01.009
Ursic, D., & Cestar, A.S. (2022). Crisis management and CSR in Slovenian companies: The impact of the COVID- 19 pandemic. Sustainability, 14(5), 2690. https://doi.org/10.3390/su14052690
Verbeke, A., & Greidanus, N. (2012). The end of the opportunism versus trust debate: Bounded reliability as a new envelope concept in research on MNE governance. In Handbook of Research on International Strategic Management ( pp. 3 1-63). E dward E lgar Publishing. https://doi.org/10.4337/9781781009147.00008
Viale, L., & Zouari, D. (2020). Impact of digitalization on procurement: the case of robotic process automation. Supply Chain Forum: An International Journal, 21(3), 185-195. https://doi.org/10.1080/16258312.2020.1776089
Villena, V.H., Choi, T.Y., & Revilla, E. (2021). Mitigating mechanisms for the dark side of collaborative buyer– supplier relationships: A mixed‐method study. Journal of Supply Chain Management, 57(4), 86-116. https://doi.org/10.1111/jscm.12239
Vörösmarty, G. (2023). Ethics in purchasing and supply management – a literature review. International Journal of Integrated Supply Management, 16(4), 365-384. https://doi.org/10.1504/IJISM.2023.133863
Vörösmarty, G., & Matyusz, Z. (2015). Ethical issues in the companies’ buying practice. Közgazdász Fórum/Forum on Economics and Business, 18(2), 35-56. https://epa.oszk.hu/00300/00315/00113/pdf/
Welbourne, E.M.J. (2022). Immoral entrenchment: How crisis reverses the ethical effects of moral intensity. Journal of Business Ethics, 180(1), 71-89. https://doi.org/10.1007/s10551-021-04859-4
Wetzstein, A., Feisel, E., Hartmann, E., & Benton Jr, W.C. (2019). Uncovering the supplier selection knowledge structure: a systematic citation network analysis from 1991 to 2017. Journal of Purchasing and Supply Management, 25(4), 100519. https://doi.org/10.1016/j.pursup.2018.10.002
Zighan, S. (2022). Managing the great bullwhip effects caused by COVID-19. Journal of Global Operations and Strategic Sourcing, 15(1), 28-47. https://doi.org/10.1108/JGOSS-02-2021-0017
Zouari, D., Ruel, S., & Viale, L. (2021). Does digitalising the supply chain contribute to its resilience? International Journal of Physical Distribution & Logistics Management, 51(2), 149-180. https://doi.org/10.1108/IJPDLM-01-2020-0038
Downloads
Published
How to Cite
Issue
Section
License
Copyright (c) 2024 Corvinus University of Budapest, publisher of Vezetéstudomány / Budapest Management Review
This work is licensed under a Creative Commons Attribution 4.0 International License.
Authors assign copyright to Vezetéstudomány / Budapest Management Review. Authors are responsible for permission to reproduce copyright material from other sources.
