Unethical Purchase Practices

 Essay upon Unethical Procurement Practices

Institutionen för skogens produkter

Company exposure to likelihood of unethical actions – In Eastern European timber purchasing organizations

Daniel Norberg & Emil Gustafsson

Master Thesis Nr 17 2008

ISSN 1654-1367

Institutionen för skogens produkter

Company exposure to likelihood of unethical behaviour – In Eastern Euro timber getting organizations

Daniel Norberg & Emil Gustafsson

Master Thesis 30 ECTS credits, D-level in Business Administration Daniel Norberg & Emil Gustavsson, Learn of Research in Forestry, 02/07 Manager at SLU: Mårten Hugosson & Denise McCluskey Manager at Swedwood: Olle Axelsson & Linus Paulsson

Acknowledgements

This analyze was performed from March 2007 until June 3 years ago. We want to say thanks to everyone who have made this task possible, and hope you found it interesting working with us. Particularly, we would like to thank Swedwood's purchasing agencies in Russian federation, Latvia, Poland, Slovakia, Ukraine and Romania for their as well as input, which has been invaluable. All of us appreciate the hospitality and private engagement. We could very happy to our supervisors at Swedwood, Olle Axelsson and Linus Paulsson, for confidence in us to attempt this operate. Thank you also to Pads Norberg and Clas Boström for your support. Finally we want express the gratitude to the supervisors for SLU, Denise McCluskey and Mårten Hugosson for all support, especially Denise's assistance with the English terminology.

Abstract

Subject: Organizational contact with risk of dishonest behaviour -- in Eastern European timber purchasing businesses The issues Swedwood asked all of us to explore in their Eastern Western timber getting organizations were: Have crystal clear directives been given to each getting unit regarding the purpose and scope of its activities? If so , what do these directives include? If so , how are these kinds of directives implemented? How are purchasing transactions designed and accomplished? What jobs are involved in the purchasing process, and precisely what are the tasks and government bodies of each role? Can the purchasing process, or parts of the process, be superior? Can the organization organize the purchasing units more effectively to ensure best practices? The overall approach we-took was to assess Swedwood's potential exposure to lower levels of legal or moral practices by benchmarking its actual practices, using the concept of best purchasing procedures described inside the literature. To collected data using qualitative methods, since this is an appropriate way of elevating the hypersensitive issues that needed to be addressed. This kind of involved selecting local purchasing organisations of their local marketplace conditions, efficiency structure and purchasing processes.

Problems:

Purpose:

Technique:

Conclusion: The study has shown that organisations' purchasing managers are exposed to considerable risks of low levels of moral practices. While many local organisations have plans to prevent file corruption error, there is rarely a working manual to provide people who have guidelines to accomplish this. Support to get ethical procedures could probably be improved.

Key terms:

Corruption, Purchasing, Forestry, Corporation, Timber

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Summary

Swedwood is a additional of IKEA and was established in 1991. Swedwood International AB's main job is to safeguarded production capacity in areas where IKEA has procurement issues, thus protecting products runs at necessary price levels. Swedwood facilities includes sawmills, wood-component factories and furniture industries. Swedwood features invested in countries which have a minimal ranking in the Transparency International's corruption index. So Swedwood are concerned that they may potentially come in contact with low levels of legal and ethical procedures. Since the likelihood of unethical behavior increases in businesses where there are significant sums pounds involved, hardwood purchasing can be described as particularly high-risk area. With the intent to act ethically preventing...

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