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1. INTRODUCTION
When it is taken into account that purchasers are the major spenders of company funds (see Table I), and that purchasers are often tempted by suppliers and that double standards which creates an atmosphere of dishonesty, prevail in the company (marketers of the company may tempt purchasers of clients, but it is not acceptable for the company's purchasers to succumb to temptations), it is probably unavoidable that purchasers are sometimes guilty of unethical behaviour. (Table I omitted)
The purchasing fraternity is one of low prestige both within the company and in general. This low prestige within companies is due to the following (Hill, 1975: 18-22):
-- top management does not have a comprehensive understanding of the income-generating possibilities of the purchasing function;
-- management regards purchasing in general merely as a means of effecting price reductions;
-- the purchasing department is often not involved in or informed about the company's aims, policy, new plans and programmes;
-- the position of authority of the purchasing department is vague and is often subordinate to the functions of finance, marketing and production;
-- company management does not appoint competent and trained persons who are appropriately remunerated in the purchasing department, and
-- purchasers are regarded as "paper pushers" or "ordering clerks", and the purchasing task is regarded as suitable for "the sick, lame and lazy".
This low status of the purchasing function in companies may be a possible cause of unethical behaviour.
The low status of the purchasing profession, particularly among the public, may among other things be ascribed to rumours of unethical behaviour and bribery by purchasers. This, together with the effect of sensational reporting by the media, damages the image of the profession in general. Unethical behaviour in the purchasing profession is sometimes regarded as "more unethical", possibly because quite often larger amounts of money are involved, as well as usually the personal enrichment of the individual. Unethical business practices do, however, occur in other areas on a daily basis, but as these are often given less prominence in the media, they are more quickly forgiven and forgotten by the business world and by society. There are, for example, business people who regard unsafe working conditions, poor products which may cause injury and death,...