1.1 Introduction
The evolution of mass production, which relies upon a continuous flow of right materials, has brought an impact and the need to improve purchasing principle and management.
Further more, when purchasing items account for a high proportion of the organizational expenditure when prices are always fluctuating widely when numerous diverse items are constantly needed, and when the quality of the materials or service appreciable influences the cost of manufacturing the final product or rendering the service then organization of purchasing becomes particularly very important and thus demand close attention.
The buyer is seen as the custodian of his organization purse such responsibility will be readily appreciated when one thinks of his position as an officer that does the job.
Efficient purchasing is therefore achieve when the buyer, purchases the required quality and quantity of law materials supplies parts, tooling and equipment at the right time and at the lowest price, the purchasing function is to see that materials and services are provided at the lowest which is compatible with suitable quantity and safety.
Organizational purchasing according to Oyeoku (1993), has this become a complex function, it required practitioners to have acquired adequate training in purchasing and supply management techniques.
Practitioner need to belong to appropriate purchasing and supply institutes. These bodies regulated the ethical code of paretic when its members are required to observe in Nigeria for instance the Nigeria Institute of Purchasing and Supply Management (NIPSM).
According to Nweke B. Okafor Purchasing management in a narrow sense describes the process of buying but in broader sense, the is concerned with material quantity and quality, selecting the supplier determining the terms and conditions of purchase contracts issuing purchase order and a lot of other activities.
In fact, a professional who must have the managerial skills and competence to execute the process with maximum efficiency and economy should perform the process of purchasing.
1.2 Statement of Problems
This research project will investigate and unveil the various problems of buying activities and the cause of unethical behavior and suggest ways of eliminating them and most import antsy work out ways in every organization the important of ethical behavior. This research shall examine critically the following factors, which will make a buyer to make unethical decisions.
- The behavior of a person's supervisor in the organization
- Ethical climate in the industry
- The behaviors of a persons equals in the organization
- Lack of organizational policy
- Personal financial needs
1.3 Objective of the Study
The purchasing like the heart in human body act as sources of suppliers to the organization it is concerned with the process of defining the organizations needs, selecting suppliers, agreed on terms placing under and receiving goods and services.
It is by its nature a service function, oriented to providing a complete supply function “service” for users within the organization.
This research study will critically looked at the following cases:
- The important of purchasing to the organization
- The causes of factors that lead to unethical behaviors
- The need for ethical standard in an organization
- Determinant of ethical behavior
1.4 Significance of the Study
With regard to the study, the role of purchasing ethical in improving organizational profit the study enables the organization to know the important and benefit of good ethical behavior and to investigate and evaluate the causes of unethical behavior.
1.5 Scope of the Study
The scope of this research was restricted only within the ethics of purchasing. It contract only within the ethics the areas of emphasis includes:
- Important of purchasing
- Aims of objective of purchasing
- Importance of ethical standard
- Determinant of ethical behavior
1.6 Limitation of the Study
The research was confronted with various obstacles in the course of carrying out this investigation and date collection. Another major constraints encountered was financed as a result of inflation most of the materials used has their price on the high side.
1.7 Definition of Terms
a. Purchasing:
This is that management function responsible for obtaining by purchase or leases the tools, parts, materials and equipment that are required by organization.
b. Ethics:
This is a science of conduct ethic exhibited consciously or in a purposeful manner aimed at achieving an end.
c. Research: This is a systematic investigation for the purpose of gaining new knowledge
