Media increasingly accuse firms of exploiting suppliers, and these allegations often result in lurid headlines that threaten the reputations and therefore business successes of these firms. Neither has the phenomenon of supplier exploitation been investigated from a rigorous, ethical standpoint, nor have answers been provided regarding why some firms pursue exploitative approaches. By systemically contrasting economic liberalism and just prices as two divergent perspectives on supplier exploitation, we introduce a distinction of common business practice and unethical supplier exploitation. Since supplier (...) exploitation is based on power, we elucidate several levels of power as antecedents and investigate the role of ethical climate as a moderator. This study extends Victor and Cullen’s ethical climate matrix according to a supply chain dimension and is summarized in an integrated, conceptual model of five propositions for future theory testing. Results provide a frame of reference for executives and scholars, who can now delineate unethical exploitation and understand important antecedents of the phenomenon better. (shrink)

Abstract:The randomized response technique (RRT) is used to study the deceptive behavior of purchasing agents. We test the proposition that purchasing agents’ perceptions of organizational expectations influence their behavior. Results indicate that perceived pressure to perform and ethical ambiguity on the part of the firm are correlated with purchasing agents’ unethical behavior, in the form of acknowledged deception of suppliers.

Abstract:The randomized response technique (RRT) is used to study the deceptive behavior of purchasing agents. We test the proposition that purchasing agents’ perceptions of organizational expectations influence their behavior. Results indicate that perceived pressure to perform and ethical ambiguity on the part of the firm are correlated with purchasing agents’ unethical behavior, in the form of acknowledged deception of suppliers.

The pressure of oversight and scrutiny in the business-to-business purchasing process has the potential to cause psychological distress in purchasing professionals, giving rise to apprehensions about being ethically inappropriate. Utilizing depth interviews with public sector purchasing professionals in a phenomenological approach, the authors develop the notion of ethical purchasing dissonance to explain the psychological distress. An inductively derived conceptual framework is presented for ethical purchasing dissonance that explores its potential antecedents and consequences; illustrative propositions are presented, and managerial implications are (...) discussed. (shrink)

Several researchers have identified codes of ethics as tools that stimulate positive ethical behavior by shaping the organisational decision-making process, but few have considered the information needed for code implementation. Beyond being a legal and moral responsibility, ethical behavior needs to become an organisational priority, which requires an alignment process that integrates employee behavior with the organisation’s ethical standards. This paper discusses processes for the responsible implementation of CoEs based on an extensive review of the literature. The internationally recognized European (...) Foundation for Quality Management Excellence Model is proposed as a suitable framework for assessing an organisation’s ethical performance, including CoE embeddedness. The findings presented herein have both practical and research implications. They will encourage construction practitioners to shift their attention from ethical policies to possible enablers of CoE implementation and serve as a foundation for further research on ethical performance evaluation using the EFQM model. This is the first paper to discuss the model’s use in the context of ethics in construction practice. (shrink)

In today’s marketing conditions, it becomes really vital for companies to establish an appropriate relationship with suppliers and salesperson based on ethical values in order to survive. Besides, ensuring an effective relationship between the parties would contribute to increase buyer satisfaction along with economic and social satisfaction. In this study, the direct effects of suppliers’ and salespersons’ unethical behaviors on buyer satisfaction, and the moderator effect of communication between buyer–supplier relationships are examined. The results of the study have revealed that (...) unethical behaviors of suppliers and salesperson affect buyer satisfaction negatively and the communication variable has moderately affected. The results are providing important advantages for buyers who want to improve the relationships between the suppliers and their salesperson for pharmaceutical enterprises. (shrink)

Many organisations, both public and private, have established framework agreements with selected suppliers to benefit from purchasing synergies. Compliance to such contracts throughout the organisation is crucial to achieve the expected benefits. Yet, in most organisations, the purchasing of goods and services is carried out not just by the purchasing department, but by many individuals dispersed throughout the organisation. Such a situation of scattered responsibilities can easily set the scene for different types of non-compliant behaviours in terms of an organisation's (...) purchasing policies. Very little research has been conducted on non-compliant purchasing behaviour, also known as "maverick buying". In this article, we use a systematic literature review to identify different forms of maverick buying, ranging from unintentional maverick buying to straightforward sabotage. We validate these different forms of maverick buying and enrich our understanding of underlying reasons through a series of in-depth interviews with purchasing professionals. We bring forms and reasons together in a conceptual framework and propose avenues for future research. (shrink)

Many organisations, both public and private, have established framework agreements with selected suppliers to benefit from purchasing synergies. Compliance to such contracts throughout the organisation is crucial to achieve the expected benefits. Yet, in most organisations, the purchasing of goods and services is carried out not just by the purchasing department, but by many individuals dispersed throughout the organisation. Such a situation of scattered responsibilities can easily set the scene for different types of non-compliant behaviours in terms of an organisation’s (...) purchasing policies. Very little research has been conducted on non-compliant purchasing behaviour, also known as “maverick buying”. In this article, we use a systematic literature review to identify different forms of maverick buying, ranging from unintentional maverick buying to straightforward sabotage. We validate these different forms of maverick buying and enrich our understanding of underlying reasons through a series of in-depth interviews with purchasing professionals. We bring forms and reasons together in a conceptual framework and propose avenues for future research. (shrink)

The government purchasing market constitutes the largest business sector in the world. While marketers would benefit from a deep understanding of both sectors, how the two sectors differ in terms of ethics and strategy largely remains unknown. The purpose of this research, therefore, is to explore differences between the for-profit and not-for-profit sectors on two critical aspects of business-to-business procurement: ethics and strategy. Using survey data from a sample of 328 procurement professionals in the for-profit and not-for-profit sectors, key differences (...) are explored. Findings suggest that buyers in the for-profit sector are more likely to behave opportunistically. Conversely, the buyers’ leaders in the not-for-profit sector behave more opportunistically and are more willing to turn a blind eye to their subordinate buyers’ opportunistic behaviors. In addition, key differences in procurement strategy are unveiled suggesting that not-for-profit procurement practices have some room for improvement. Based on the findings, theoretical and managerial implications are drawn, and a future research agenda is proposed. (shrink)

Purpose – The purpose of this study is to investigate the reasons behind unethical behaviour in the Australian Information and Communications Technology workplace. Design/methodology/approach – The study employed a qualitative research methodology. A total of 43 ICT professionals were interviewed during the month of February 2014 in six Australian capital cities. All interviews were conducted face-to-face and followed a semi-structured interviewing format utilising open-end questions and further probing questions. The purposive sample represented ICT professionals from large and small organisations, government (...) and private sector, different geographic locations, ages, genders, types of jobs and employment experience. Data analysis was completed with the help of QSR NVivo 10, a software package for managing qualitative data. Findings – Of the 25 reasons identified for unethical behaviour in ICT workplaces, 30 per cent of participants agreed on five major ones: pressure, bad management, greed, lack of respect towards ICT and communication issues. Practical implications – By focussing on the reasons behind unethical behaviour in the Australian ICT workplace, this article helps those identifying strategies for dealing with unprofessional behaviour to take into account the root causes of unprofessional behaviour. Originality/value – There is hardly any literature on reasons for unethical behaviour in the ICT workplaces. This article seeks to address this imbalance in the literature. Also, integrity systems in ICT are a new focus in collective, organisational ethics. Identification of and resolving unethical ICT workplace practice is an innovative contribution to the literature. (shrink)