Student Affairs Buying 101 Ethics in Buying at OSU Students First Topic 6 6-01.

Student AffairsBuying 101

Ethics in Buying at OSU

Students First

Topic 6

6-01


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Topic Objectives

PERCEPTION = TRUTH


Have an understanding of the Buying Ethics at OSU

6-02


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Overview


In Topic 2 (Where It All Begins), we discussed that we are all “stewards” and havebeen entrusted with fiscal responsibilities for the University and the public.

As a “steward,” it is important that we have a basic understanding of the variouslaws and Code of Ethics for which we must comply, as well as discuss somepotential situations and examples for which our ethics are important.

In this topic, we will • Discuss the Ohio Ethics Laws • Discuss the National Association of Educational Buyers Code of Ethics, and • Discuss the National Association of College Auxiliary Services Code of Ethics, and • Work through some considerations and examples

Perception = Truth6-03


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Ohio Ethics Law


Enacted in 1973 to promote confidence in government.

As a public employee, we should not accept any:• Gratuities• Premium, or• Other incentives

Each employee involved in the expenditure of public funds must be held to thehighest degree of public trust.


The ethics laws also prohibit any employee from purchasing from a family member or friend, which is referred to as a “Conflict of Interest”. Conflict of interest is considered as receiving a premium or other incentive (above), regardless if the employee receives any personal benefits or not.

It is critical that we give all competitive suppliers equal consideration/opportunities.


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National Association of Educational Buyers Code of Ethics


• Give first consideration to the objectives and policies of the University

• Strive to obtain the maximum value for each dollar of expenditure

• Decline personal gifts or gratuities

• Grant all competitive suppliers equal consideration insofar as state or federalstatute and institutional policy permit

• Conduct business with potential and current suppliers in an atmosphere of goodfaith, devoid of intentional misrepresentation

• Foster fair, ethical and legal trade practices

• More (see the Code of Ethics in Appendix H)



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National Association of College Auxiliary Services Code of Ethics


• The auxiliary services professional shall represent the institution with personalintegrity and shall conduct the business of the institution professionally.

• The personal and professional conduct of the professional shall be such that it enhances the integrity and prestige of the institution.

• The professional shall refrain from entering into private or personal activitiesthat may be interpreted as a conflict of interest and from accepting gifts orfavors that infer an obligation of the institution.

• More (see the Code of Ethics in Appendix H)



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Key Considerations and Examples


Key Considerations (in addition to the law):

• “Perception” = “Truth” (whether it is true or not)

• Would you want it to appear on the front page of the paper?

• Would you like to be treated like that?

• Is it fair to everyone?

• Does it “feel” right? (If not, then it probably isn’t right.)



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When you are buying something, what factors do you consider?



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• TRUST – both directions• Being treated fairly• Building long-term relationships• Getting the best goods/services• Reliability• Reputation• Service• Timeliness• Price• Open and honest information on needs and expectations• Accurate billing and timely payments


What are the most common expectations from both the university and vendors?


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Group Work


Situation:

What is the perception?

Is this right?

Is this something that could appear on a newspaper’s front page?

If you were the buyer for the manager, how would this make you feel?

Is it fair to everyone?

What would you do in this situation?


Each group will be given at least one situation and will brief-back the situationand answer the below questions for each situation.


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Situation: (Manager to Buyer)

“I need it in a hurry!” “Just split the purchase order into two orders so we don’thave to go through the bid process.”


Is this right?


If you were the buyer for the manager, how would this make you feel?

Is it fair to everyone?


Perception = Truth6-12A


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Situation: (Vendor to Manager)“Let’s go to lunch. I’ll buy, and we can discuss your needs.” or“I’ve got extra tickets to Muirfield, want to go?,” or“I can get us on the country club golf course, want to go?”


Is this right?

Does this instill TRUST?


If you were a competing vendor, is it fair?


Perception = Truth6-12B


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Situation: (Manager to Travel Coordinator)

“When I’m going to the conference, I see that I can get a Mercedes Benz rental car for the same amount that I can get a mid-size car. So, get me the Mercedes Benz.”


Is this right?




Perception = Truth6-12C


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“I’ve been working with XYZ company for a long time and really like them. So, eventhough the purchase is for more than $50,000, just write the RFP so that we can selectthem. I’m sure they are the only ones that can provide what we needed.”


Is this right?





Perception = Truth6-12D


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“We’ve been using ABC company for a number of years. Just go ahead and write thePO to them. We don’t need to go out for bid because the price is less than $25,000.”


Is this right?





Perception = Truth6-12E


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“Before we put this RFP out, I want you to contact XYZ company for them to come here and give us a demo. I want to see their product.”


Is this right?





Perception = Truth6-12F

Student Affairs Buying 101 Ethics in Buying at OSU Students First Topic 6 6-01.

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