The Director of Purchasing for parts distribution

Evaluate two of the scenarios listed below and explain the best solution for each. Include comments related to any ethical issues that arise. Support your responses with appropriate cases, laws and other relevant examples by using at least one scholarly source

Scenario 1—International Trade
The Director of Purchasing for parts distribution company wants to purchase steel coach screws from Germany; however, he is not sure what the best option is. The director comes to you and asks your opinion. You know that Germany, Canada, and Korea are the best sources for obtaining this product. While your research shows coach screws from Germany are of the highest quality, the United States imposes a tariff of 12.5%, which makes this option noncompetitive.

Which US trade laws should you consider when selecting a country?
Is there any way by which you can seek a reduction on the tariff? If so, how? If not, why?
Select an alternative country (Canada or Korea) for purchasing the coach screws and explain your reasons for selecting the country.
Scenario 2 – Bribery
Slyce Pizza Company purchased four commercial refrigerators for the restaurants and eight pizza ovens from a supplier in Italy. Between the shipping costs, delays, and unanticipated duties, the purchasing manager was worried that his boss would be upset about the total costs. In an effort to reduce costs, the manager offered a US Customs officer $500 in cash to re-classify the imported goods to reduce the amount of duties owed.

Analyze the legal and ethical ramifications of the purchasing manager’s offer to the customs official?
Would it make a difference if the purchasing manager offered to donate $500 to St. Jude Children’s Research Hospital if the officer expedited the paperwork necessary to release the goods from custom’s custody?

Sample Solution

There are many child protection agencies such as NSPCC (Anon., n.d.) Child Exploitation Online & Protection Centre (CEOP) (Anon., n.d.). the equality act 2010 protects children, young people against harassment, victimisation and discrimination in relation to education, clubs and services for example disability, marriage and civil partnership and pregnancy and maternity (Anon., n.d.), the Human rights Act 1998 brings European convention of human rights into the English law (Anon., n.d.)
Economic factors in the organisation are inflation, wages, taxes, this affects the organisation because of the rise of inflation with services going up and the wages as well. The economy of the UK directly affects Government funding to the project.

The economic environment affects the income level of the people living in the UK. The economy now is in an okay state, but I think could be better. Dream Academy Performing Arts charge £32 which can be affordable for some but could be hard on other especially with some parent only have one main earner. The impact of this for Dream Academy Performing Arts is that they may lose customers because of some families may come into problems for example redundancy. I think they are meeting their expenditure and it is profitable but obviously if they are losing people then it could bring their expenditure and profits down, I do think they could afford to make the price higher because it could turn people away which would mean they lose business. As this company does not receive any funding from the government or any local resources it is mainly funded by parents. (Anon., n.d.)

Social factors in the organisation are religion, family or wealth, this affects the organisation because the company must use equal opportunities for all children and adults.

The social factors affecting Dream Academy Performing arts are that medication is always changing, (Anon., n.d.), low numbers of carers for people with disabilities, the society opinion on disability some people with disabilities are having their rights violated and comes under the 2010 equality act (Anon., n.d.), with the 2010 equality act it covers discrimination this includes extending protection against indirect discrimination

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