ETHICAL ISSUES IN OPERATIONS MANAGEMENT COMMERCE ESSAY    pt3        1600w

Ethical dilemmas refer to a certain situation or issue wherein a decision has to be made to adopt one of the two equally urgent yet incompatible alternatives (Mirwoba, 2009). One popular ethical issue discussed in the literature regarding operations management is opportunism. This issue has been a topic of many empirical studies conducted to focus on business and management field. Opportunism is considered in the literature as an unethical behavior which refers to the abuse of opportunity. In company operations, managers or other professionals involved are vulnerable to unethical choices due to plentiful number of opportunities which may be abused. Some of the factors that drive professionals to engage in unethical behaviors are the pressures brought by the demands for cost reduction and unrealizable strategic objectives. One area of operations which is faced with an increased vulnerability of engaging to unethical behavior is the procurement since the employee assigned in this process handles a significant amount of company resources (Carter, 2000). Furthermore, the procurement process has an increased exposure to the external environment of a certain organization which makes it possible for easy conduct of an unethical act. This is not beneficial to the organization since its reputation is in jeopardy since the employee assigned in the procurement process acts in behalf of the organization as a whole when dealing with third parties.

The empirical and conceptual research history of ethics in the procurement process of a business is affluent. The procurement activity within business operations is also the subject of another article by Ho (2012). The importance of ethics in managing business operations is stressed out in the article. Ethics is an essential requirement in order to build and maintain a good relationship between a business entity and other parties included in the conduct of its operations such as the suppliers. The procurement function in a business organization is critical for the achievement of business goals since. An organization’s effective operations depend on the effective performance of the purchasing function while achieving global competitiveness depends on effective