Ethics and Social Responsibility in Supplier-Customer Relationships

Multi-national corporations (MNCs) have been criticized for not behaving ethically in some situations. This study examines the ethics of a large MNC in its relationship with its suppliers. A brief literature review of social responsibility, business ethics and relations is undertaken. The views and perceptions of the buying staff and the suppliers to a large South African MNC are obtained and discussed. The results indicate that this MNC is well perceived by both suppliers and their own buying department. The existence and implementation of formal codes of ethics was found to be a necessary but not sufficient condition for good ethical practice. Candid relationships with suppliers emerged as a second and important factor.