Procurement
is the process of dealing with the strategic selection of services,
negotiation, and sourcing activities. In this process, the agreement on terms
and conditions is also considered to acquire services and goods. The work is
associated with the external source, competitive bidding process, and tendering
process. Procurement includes all kind of buying decisions that are under the
conditions of scarcity. The sustainable procurement is a proper framework
designed in the organizations that deal with the utilities, work, services and
the goods (Monczka, Handfield, Giunipero, & Patterson, 2011). The process
promotes all the positive outcomes in the organization that is linked with the
society, environment, and economy. The potential benefits of sustainable
procurement include effective use of natural resources, long term efficiency,
and reduction in the harmful impact on the energy sectors. Code ethics are
designed to resolve integrated issues and ethical problems. The ethical
compliances are important in the policy development areas (Theron & Dowden, 2014).
The
aim of the present work is to conduct reflection studies on the ethical and
sustainable issues of British gas and National grid energy. At the end of the
reflection report, the proposed possible solutions are provided to overcome the
issues in both companies.
1. Ethical and sustainability issues of Legal
procurement
British gas and
national grid energy are working under the transparent and demonstrating
commitment that is under the highest ethical standards. The culture of the company
is to work under the cooperate responsibility and business principles are
expanding under the consideration of customer satisfaction. The ethical and
strong culture of the company is developing a higher level of confidence in
customers. Ethical and sustainable standards are expected to work under ethical
conduct and business principles. The implementation of business decisions is
according to the impact analysis of ethical and social outcomes (Theron & Dowden, 2014). The employees are
concerned about their work, ethical and illegal practices are considered as
important in the company. According to the survey, British gas and national
grid are establishing a complex monitoring system that measures the effectiveness
of business principles. The survey reflected the culture of commitment in the workers.
The appropriate standards are designed for the business and improved monitoring
and communication processes are carried out. The company is developing ethical
sales practices against the sales complaints, inadequate explanation of payment
and contracts (Monczka, Handfield, Giunipero, & Patterson, 2011).
Conflict
of interest of Legal procurement
According to the
analysis, the reflection against complaints across the business is decreased by
28%. The sales complaints are related to the inadequate explanation of payment
terms, contracts, and other information provided to the customers. British gas
is designing the code of practices on sales and online marketing of the
services. The code of practices used in the company are related to billing
domestic customers, policies, and practices. The financial services authority
(FSA) of British gas is an authorized insurance company that provides services
to the customers under the designed standards (Andersen & Warner, 2016).
Undue
advantages of Legal procurement
The aim of the company
is to generate marketing materials that are understandable for the customers.
The emphasis of strategies is on the direct way to control their cost of
energy.
Fraud
of Legal procurement
The customers of
the British grid have diverse needs and they require diversity in the customer
services. The company is focusing on all the queries of customers under
reasonable limits. The internal processes are improving by using the approach
of advertising and marketing the products. The serious fraud office (SFO) is
working under the Bribery ACT of the UK government. The act is providing new
offense for the corporate failure to prevent the bribery. The US Foreign
Corrupt Practices Act is exposing the companies of UK to prosecution (Monczka, Handfield, Giunipero, & Patterson,
2011).
2. Accepting gift of Legal procurement
The British gas
is accepting the gifts. These gifts are from LBG contributors, voluntary,
vulnerable customers, benchmarking groups, and other customers. The charitable
gifts reached up to $0.4 million (Yorio, 2014).
3. Information management of Legal procurement
The responsible
procurement program is implemented to indicate the responsibility clauses. The
information management program is responsible for the procurement program. The
company transfer information and explanation in case of accountability. For the
customers and employees, the key elements are communicated as a part of
employee induction (Andersen & Warner, 2016).
4. Confidentiality of Legal procurement
Transparent and
open communication is conducted between the local communities, customers,
employees, society, and shareholders. Meaningful and timely communication lead
to improved ethical, social, and environmental performance (Kim, 2016).
5. Loyalty and respect of Legal procurement
The research
demonstrates that CR activities and the higher values of the company are
creating a reputation of the brand. The stakeholders of the company are
expecting higher trust levels and loyalty in the market place. The aim of the company
is to develop services and energy under the digital platform that could lead to
a higher relationship between loyalty and awareness (Longdin, 2013).
Reflection on British gas UK and National
grid energy the UK
The company is
introducing a new system that enables users with the services provided to them.
The services provided to them monitor the system of energy and how it could be
used in the homes. The previous strategies used by British gas and national grid
energy UK are facing partial commitment with the expanding function. The energy
savers report and the business customers are considered in the report. British
gas is mainly focusing on the expansion process and up taking the energy
savers. The aim of the business is to provide customers with the proper
installation of 47 m by 2020 (Kim, 2016).
Possible solution
The aim of the company
is to achieve net promotion at a higher score of +3 in the next 2020. The
company is improving direct energy services with the promotion score. The
services provided to them are according to the current methodologies used in
the company and improved net promoter scores are also considered in this
process. The improved methodology can be used for direct energy in the upcoming
years (Helewitz, 2013).
Conclusion on Legal procurement
The aim of the present
report was to have a reflection on the policies used by National grid energy
and British gas UK. The reflection includes procurement, sustainability
conditions, and ethical considerations. The report considers the expansion and up
taking of energy saver report to find the relationship between the customers
and the services provided to them.
References of Legal procurement
Andersen, M., & Warner, M. (2016). Drafting
and Negotiating Commercial Contract. Bloomsbury Additional texts.
Helewitz, J. A. (2013). Basic Contract
Law for Paralegals (8 ed.). Wolters Kluwer.
Kim, N. S. (2016). The Fundamentals of
Contract Law and Clauses: A Practical Approach. Edward Elgar Pub.
Longdin, I. (2013). Legal Aspects of
Purchasing and Supply Chain Management (3 ed.). Springers.
Monczka, R. M., Handfield, R. B.,
Giunipero, L. C., & Patterson, J. L. (2011). Purchasing and Supply Chain
Management. Cengage Learning.
Theron, C., & Dowden, M. (2014). Strategic
Sustainable Procurement: Law and Best Practice for the Public and Private
Sectors. Springer.
Yorio, E. (2014). Contract Performance
specific performance injunction (3 ed.). Steve the.