Unethical practices ruin the reputation of any business. In this regard, it is important that management of any organization address any unethical practices that a company may be practicing. Some of the unethical practices that have surfaced in many businesses include corruption and illegal procurement. These unethical practices are not only confined to some part of the world but are prevalent across the globe among many companies. In the Middle East, some companies have found themselves entangled by these unethical practices. Saudi Basic Industries Corporation has encountered these unethical practices in the recent past. SABIC manufactures fertilizers, chemicals, plastics, and metals. However, it has experienced unethical procurement practices.
The case has been that, during procurement, procedures have not been followed, and corruption and bribery have been the cornerstone of procuring in the Procurement and Sales Department. More so, standards have been compromised due to the battle of forms. At times the company has colluded with specific individuals denying other suppliers a fair selection. These practices are unethical since they compromise the quality of the supplies the company is procuring as competitive suppliers are not given a chance. Also, they have increased cases of corruption in the company. To solve this problem as a leader of SABIC would require strengthening the existing terms and conditions, procedures, and standards set for the purpose of procurement. This would seal all the loopholes that have resulted in ethical breaches. The organization’s leadership should ensure that the procedures involved in procurement process encourage care and due diligence. Furthermore, these procedures and standards must be carried out thoroughly so that careless prices and techniques are avoided. Finally, care and due diligence advocate for all procurement activities to be conducted in a thorough manner. Procedures should be emphasized so that validity of all procurement contracts is upheld. All set-out requirement should be enforceable between the supplier and the buyer. This would end these unethical practices in SABIC.
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