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Evaluation of Procurement Ethics

Operational measure 1: The risks of corruption in public procurement in Latin America are usually conceived even before the contracting processes are rolled out. This is because public procurement and contracting information are treated as highly classified and remain the preserve of senior government officials. The high level secrets breed avenues for official corruption in the procurement processes, which cost countries in the region billions of dollars.

• Operational measure 2: Policy processes in Latin American governments directed towards fighting procurement corruption • Operational measure 3: Discretionary agencies and staff management and training relative to procurement processes in Latin America Sampling Query clusters were constructed to determine the likely future events and the frequency of their occurrences with response from near term, future, to never.

The samples consisted of 300 participants representing different pools of samples of Latin American male and female respondents aged between 18 and 70 years old. Interviews were generally centered on the views of the management and employees of public organizations, suppliers, customers, government officials, lawyers and knowledgeable experts in the field of organizational public procurement processes. Hypothesis Testing The comprehensive review of literature identified six constructs and 20 corresponding variables for hypothesis testing.

The five constructs were as follows: (1) pre-transaction service quality codified into three enumerated series of sq1, sq4 and sq6 variables; (2) service order quality codified into six enumerated series of pr2 sq2, sq3, sq5, sq7, pq1 pq2 respectively; (3) post transaction relationship codified into four enumerated series of rs5, rs6, rs7 and rs8; (4) quality relationship codified into three enumerated series of rs5, rs6, rs7 and rs8; and (5) global satisfaction construct codified into three enumerated series of gs2, gs3 and gs6.

The categorization of the 21 variables was based on the pre transaction, transactional and post transaction constructs as proposed in 1776 by La Londe & Zinszer (Grant, 2004). Further, exploratory factor analysis was applied to derive the post transaction and relationship variables. The revelation of the relationship of pre transaction, transactional and post transactional variables gave way to administration of interviews upon which respondents emphasized the relative significance of the relationship and transactional variables (Grant, 2004).

Parasuraman, Zethaml and Berry’s (PZB Model) 1994 was applied in the evaluation of the dichotomous relationship between relationship services abbreviated as rs and satisfaction of transactions abbreviated as ts, with global satisfaction, abbreviated as gs representing the summation of discretionary transactions (Grant, 2004). These relationships have been summarized and conceptualized in Table 1A as follows. Table 1A above is a representation of the constructs used to study and draw conclusions of the Operationalization variables of the study.

The constructs were used to analyze public procurement processes in Latin America right from the pre transaction level, followed in sequence by quality of order service, supplier relationships at the post transaction level, quality of the relationship, as per the PZB model framework. The five constructs were further split into 21study variables as demonstrated by the Table 1A with the objectives of achieving more specific insights to the different characteristics of the construct.

The variables codes columns are representative abbreviations of the varied study variables as follows: sq denoting quality standards; rq denoting quality of relationships; pr denoting pre-transaction relationships; rs denoting relationship standards at the transaction levels; and gs denoting the rating of global satisfaction of an entire public procurement process. The constructs and variables were determined through the sampling process. Data Analysis

The qualitative and quantitative data analysis contributed immensely to the accuracy of the arguments and proposals presented by the research project. The research process represents a comprehensive revelation of the delicate and complicated nature of the contracting and public procurement processes in Latin America. The data analysis serves as a pointer for indicators through which the negative impacts of corruption in the public procurement processes in governmental and public institutions can be measured around the world.

The variable constructs identified by the qualitative and quantitative data analysis are a true representation of the contracting norms and procurement practices in the developing world. Conclusion This critical analysis of the implications of legal and ethical considerations in public procurement processes in Latin America clearly demonstrates that the elimination of corruption from the procurement and contracting processes in governments is mandatory for meaningful development to be achieved (Transparency International Website, 2008).

The fact that procurement accounts for the significant portion of spending by governments, condoning corruption is tantamount to betraying public trust and interest. Therefore, governments in Latin America must always endeavor to embrace transparency so as to eliminate secrecy in bidding processes. Moreover, governments must support the formulation of appropriate laws that support rather than suppress public sector reforms (Transparency International Website, 2008).

Indeed, government institutions must fully recognize and appreciate the value and potential of all stakeholders ranging from local communities, employees, customers to shareholders of public institutions and endeavor to protect their interests to the fullest. The willingness of the governments in the Latin America region to eliminate corruption from public procurement processes will facilitate the full realization of the potential of social and economic and development pursuits. References Approval of Principles for Enhancing Integrity in Public Procurement in the form of OECD Recommendations.

(2008). Transparency International. Accessed April 17, 2009 from http://www. transparency. org/global_priorities/public_contracting. Carroll, B A. 1979. The Pyramid of Corporate Responsibility: Toward the Moral Management of Organizational Stakeholders. Business Horizons. Donaldson Thomas and Lee E. Preston. 1995. The Stakeholder Theory of Corporation: Concepts, Evidence and Implications. The Academy of Management Review 20(1): 65-91. (see sheet 12) Fighting Corruption and Promoting Integrity in Public Procurement. 2004. OECD Global Forum on Governance, Paris.

Gibson, Kevin. 2000. The Moral Basis of Stakeholder Theory. Journal of Business Ethics 26: 245-257. Grant, David B. 2004. UK and US Management Styles in Logistics: Different Strokes for Different Folks? International Journal of Logistics: Research and Applications 7(3): 182-197. Petersen, Kenneth J. , Robert B. Handfield, Benn Lawson, and Paul D. Cousins. 2008. Buyer Dependency and Relational Capital Formation: The Mediating Effects of Socialization Processes and Supplier Integration. Journal of Supply Chain Management 44 (4): 53-65.

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