UNIVERZITET „UNION NIKOLA TESLA“ BEOGRAD

FAKULTET ZA POSLOVNE STUDIJE I PRAVO

SMER:PRAVO

PREDMET: POSLOVNA I PRAVNA ETIKA

TEMA
ETIKA, CENE, KUPOVINA, PRODAJA

PROFESOR STUDENT

Užice, januar 2021.

SADRŽAJ
1. The Ethic of Fair Pricing – Etika poštenih cena

2. Ethic of Purchasing and Sales – Etika kupovine i prodaje

3. Interorganizational Power – Međuorganizaciona snaga

4. Interorganizational Relationships – Međuorganizacijski odnosi

5. Interpersonal Relational Issues – Interpersonalna pitanja odnosa

6. Pojam poslovne etike

7. Poslovna etika i pravo

8. Rezime

The Ethics of Fair Pricing

In the free market system, transactions between byers and sellers are based on relative supply
and demand. If there is a larger supply of the product than demand for it, the price of the
product will likelz decrease because the seller wants to sell its products within a
predetermined deadline. Alternatively, if the demand is higher than the supply, the price of
the product will likely increase, because consumers would be willing to pay a higher price,
because of the scarcity of the product. However, is the increase of price ethical when it is due
to a short-term disaster such as a hurricane? For example, before a hurricane in 2002, a store
in Baton Rouge, Louislana, was selling flashlights for $4.97 each. After it sold out, the next
1,000 flashlights wereinitially sold at $4.97, but then the supervisor in one store oredered the
clerks to start charging $11.98 for the flashlights with the justification, that this was the list
price of the flashlights. After consumers complaines, the price was brought back down to
$4.97. Research has shown that consumers will campaign about “opportunistic” price,
increases but will not campaign if the company has to raise for its products, because of
increased costs of their raw materials. However, firms argue that if they are not allowed to
increase their prices due to the supply and demand disequilibrium, then there would have to
be rationing of the products. Furthermore, what is to stop a person from buying the $4.97
flashlight and then walking out the door and selling it to a consumer for $11.98?

Ethics of Purchasibng and Sales

The etics of purchasing is based on the relationship between two parties in which transactions
take place. The ethical focus of the purchasing is based on the trade practices and rules of
both parties as well as the country in which the transactions take place. A common ethical
grey area is offering or accepting gifts as part of the relationship between the two parties. The
offering of a paid bussiness lunch also can raise concerns frome some parties, but other
parties perceive this as just a normal cost of doing business with a customer. The gray area
related to these gifts is whether there is a quid pro quo arrangement. If the salesperson offers
a gift, will this sales person and from receive preferential treatment in exchange for the gift?
This potential reciprocity agreemenr implies an unfair and unerhical treatment givent to one
supplier versus the competition. This is a grey area because it is not illegal ti try to establish
being a preferred supplier or vendor, It is part of the active srategt of each supplier to be
ranked above the competitors in its relationships with its customers. A preferred vendor
status can ensure the long-term relationship with the customers. As a result, some argue that
purchasing agent “expect” some tyre of gift in return for guaranteeing the long-term standing
of the vendoe, because they have the power to determine who should be considered to receive
preferred status. As a result, a strong code of the ethics is needed from both the purchasing
and vendor firms to explicitly state what is a acceptable and not acceptable pertaining to the
transfer of a financial gift from one party to another.
Wal-Mart has a zero tolerance for accepting gifts. In fact, a Wal-Mart employee may not
even accept a cup of coffee from a vendor. Wal-Mart policy states, accepting gifts and
entertainment can cause a conflict of interest, or the appearance of a conflict between
personal interests and proffesional responsibility. The Wal-Mart culture is to never or
entertainmen from any supplier, potential supplier, govrenment, or any person the associate
has resson to believe may be seeking to influence business decisions or transactions.
Associates also may not accept a gift or gratuilty from a customer for work performes by the
associate a store or club, expect as required by local or national policy. We may not accept
items donates to Wal-Mart by suppliers, for the purpose of raising funds for charities or non-
profit organizations. Also, we should not accept or approve of them making donations on
behalf of Wal-Mart. Our policy of declining all gifts and entertainment stems our value of
maintaining Every day Low Costs. Since such gifts and enterrainment increase the cost of
doing business, we help our suppliers to give us low costs on products, by not expecting the
gifts and entertainment they may have to spend on other customers. We recognize, as a global
company, we may encounter situations where local practices will com into play. The Global
Ethics Office will review these situations on a case-by-case basis.
Amit Saini argues that unethical activities between purchasers and suppliers eare based on
three concepts: interorganizational power, interorganizational relationships and interpersonal
relationships.

Interorganizational Power

Interorganizational power is based on who has the grester bargaining power, the purchaser or
the supplier. If the purchasing agent has the edge in the balance of power, he or she will
potentially use that power for his or herself-interests. The result is that the party with greater
power would be more likely to use that power for unethical results. In addition, if one party
becomes more dependent on the other party, the less-dependent party can potentially usethis
tyre of power for its own goals. For example, if a supplier builds a warehouse or
manufacturing plant on lans owned by the byer, the supplier has become significantly
dependent on the buyer for its success. This can be called idiosyncratic investments because
these investments are unique to the relationship between the purchaser and the seller. The
idiosyncratic investments enhance the power of the purchaser and therefore, create a sense of
entitlement in the purchaser and a sense of obligation in the supplier.

Interorganizational Relationships

Interorganizational relationship concern the long-term focus of the purchasing firms and the
level of satisfaction between thepurchaser and supplier. Similar to a preferred status supplier,
purchasers view the relationship with suppliers from a long term perspective. The result is
that the long-term perspective allows the purchsasers to develop comprehensive dependent
bonds with the supplier. This higher level of dependencyalso can encourage unethical
purchasing behavior. The dependence of the supplier allows the purchaser to exercise
opportunism by serving the self-interests of the individual or the firm. In addition, this
dependence quarantiees future continuity, which justifies the purchasers rationalization to
implement unethical practices.

Interorganizational Relationships

Interoranizational relationships concern the long-term focus of the purchasing firms and the
level of satisfaction between the purchaser and supplier. Similar to a preferred status supplier,
purchasers view the relationship with suppliers from a long-term perspective. The result is
that the long-term perspective allows the purchasers to develop comprehensive dependent
bonds, with the supplier. This higher level of dependency also can encourage unethical
purchasing behavior. The dependence of the supplier allows the purchaser to exercise
opportunism by serving the self-interests of the individual or the firm. In addition, this
dependence quarantees future continuity, which justifies the purchasers rationalization to
implement unethical practices.
A purchasers level of satisfaction affects the long-term orientation, the morale of the
purchaser, and the willingness to cooperate with the supplier. Satisfaction can be separates
into economic and noneconomic satisfaction. Economic satisfaction refers to the financial
rewards of the partnership, whereas noneconomic satisfaction refers to the comfort and
qualitz of the interaction between the purchaser and the supplier.

Interpersonal Relational Issues

Interpersonal relational issues refer to the personal dynamics between the purchasing
individual and the supplier salesperson. These personal dynamics can include social ties,
personal friendships and trust, interpersonal social ties can facilitate the development of a
long-term relationship by having common interests between the purchaser and supplier. In
addition, these ties can enhance the level of trust within the chaser and supplier. In addition,
these ties enhance the level of trust within the relationship and create process efficiencies
within the two parties. However, prolonged interpersonal ties can foster the conditions of
unethical behavior by making decisions that help a “friend” instead of helping the firm. The
level of trust in the relationship can be determines by five differenet processes: calculative
process, which is the ability to calculate the costs and benefits of cheating with the partner,
prediction process, which is the ability to forecast the sctions and behavior of the partner,
capability process, which is the ability to determine the partners ability to meet the agreed-
upon obligations, intentionality process, which is the ability to interpret the partnes words,
and actions to understand the partners intentions, and transference process, which is using an
external third party to evaluate the level of trustworthiness of the partner.