I, Precious
Mthimunye, do hereby declare that this research report is the result of my
investigation and research and that this has not been submitted in part or full
for any degree or for any other degree to any other University.
Signed: Precious
Mthimunye
Abstract of An investigation into the ethical
challenges affecting compliance of the procurement policy implemented at South
African national taxi council
The said study is
investigating the major ethical challenges that are affecting the compliances
of procurement policy currently implemented at South African National Taxi
Council. The organization must adhere to five principles which are as follows:
fairness, equity, transparency, competitiveness and cost effectiveness. The Organization does understand that ethical procedures
are important for their supply chain management, and it can also offer various
long term benefits. But still, organization is not able to adopt ethical
procedures, due to various challenges, which have been investigated to address lack
of full compliance. The purpose
of this research is to investigate and explore those areas of unethical conduct
within the procurement department and possible ways in minimizing unethical
behaviour among stakeholder.
In
order to investigating these major factors the secondary source of data
collection has been used in which the qualitative research method has been
particularly employed. The well planned interview is used as the instrument of
the study to investigating the various ethical challenges of the procurement
policy currently implemented. The interview is conducted from the five
employees of the organizations who are performing their duties in the supply
chain departments. The interviews of the 5 participants has been published and
explained in this research report. It has been observed that ethical practices
are the good source to enhance the performance of the organization.
The findings revealed that lack of
compliance and improper implementation of policies can affected the performance
of the Organization as a whole. It must
also enhance the ethical practices to run their functions and business in
smooth ways.
Content
Page No.
Title page………………………………………………………………………………... i
Declaration……………………………………………………………………………….ii
Abstract………………………………………………………………………………… iii
Table of contents ………………………………………………………………………...IV
List of tables x
List of figures ix
List of acronyms
1. CHAPTER ONE: INTRODUCTION…………………………………………………..1
1.1.
Background to the study…………………………………………………….3
1.2.
Problem statement………………………………………………………… 3
1.3.
Aim of the study ……………………………………………………………4
1.4.
Objectives of the study………………………………………………………..
1.5.
Significance of the study……………………………………………………5
1.6.
Format of the study………………………………………………………… 6
2. CHAPTER TWO: LITERATURE REVIEW
2.1 Introduction
2.2 Objectives of the procurement policy
2.3 Legislative Mandate governing procurement policy
2.3.1
The Constitution of the Republic of South Africa (1996)
2.3.2
Public Finance Management Act No 1 of (1999)
2.3.3. Preferential
Procurement Policy Framework Act, No 5 of (2000) 2.3.4 Preferential
Procurement Regulations (2011)
2.4 Government’s General Procurement Framework
2.5
2.6
3. CHAPTER THREE: RESEARCH METHODOLOGY
3.1. Research Design
3.2. Research Philosophy
3.3. Research Strategies
3.4. Target Population
3.4.1. Sampling
3.5. The Research Instrument
3.5.1. Questionnaire Construction
3.6. Pilot Study
3.7. Administration of Questionnaires
3.7.1. Collection of Questionnaires
3.8. Data Analysis
3.9. For a quantitative study discuss Validity (face;
criterion; construct; concurrent) and Reliability
(parallel; inter-rater; test-retest) and for a
qualitative study discuss the Measures of Trustworthiness:
dependability; transferability; credibility;
confirmability.
3.10. Limitations of the Study
3.11. Elimination of Bias
3.12. Ethical Considerations
3.12.1. Ensuring that Permission was obtained
3.12.2. Ensuring that Participants have given Informed
Consent
3.12.3. Ensuring that Confidentiality and Anonymity
3.12.4. Ensuring that no Harm Comes to Participants
4. CHAPTER FOUR: RESULTS, DISCUSSION AND
INTERPRETATION OF FINDINGS
(Include all headings/ subheadings – this will differ
for every study)
5. CHAPTER FIVE: CONCLUSIONS AND RECOMMENDATIONS
5.1. Introduction
5.2. Findings from the Study
5.2.1. Findings from the Literature Review
5.2.2. Findings from the Primary Research
5.2.3. Conclusions
5.3. Recommendations
5.4. Areas for further research
6. Conclusion
1.1
Introduction
and Background of
An investigation into the ethical challenges affecting compliance of the procurement
policy implemented at South African national taxi council
The supply chain is the process, which starts from the
manufacturing/production of the product, then delivering the established
products to targeted customers. According to Ambe (2016:20) supply chain
management “involves planning, managing the activities in sourcing,
procurement, conversion, with also logistics. Ethics play a major role in procurement and are considered
more important as technology and consumer behavior change. Being ethical means
being in accordance with the rules and standards for right conduct and
practice, especially the standards of a profession. For instance: procurement
is involved in supplier selection, evaluation, negotiation, contracts sign off
and awarding business to suppliers. When interacting with suppliers,
procurement should treat them in fair and unbiased manner (Marc Wins, 2018).
Therefore the ethical
conduct of the supply chains has also begun to be scrutinized, both from an
internal business performance perspective and from the increasing concerns held
by the numerous stakeholders of the organization.
The South African National Taxi Council is
regulated under the rules of the Department of Transport (public sector) which
is their main funder. Since National Department of Transport has made strides
in assisting the Taxi council in implementing integrated SCM processes, it
seems that the organization is still facing challenges in the full
implementation of the five constitutional principles underpinning government
procurement policy. The organization must adhere to five principles which are
as follows: (1) fairness, (2) equity, (3) transparency, (4) competitiveness and
(5) cost effectiveness. Since the Organization has embarked on a process of
elevating supply chain management (SCM) philosophy as a management function.
The primary objective of the procurement policy is to promote good governance
as represented by five constitutional principles of public procurement
contained in Section 217(1) of the Constitution. The other main objective of
this policy is to ensure there is compliance within the department and
organization as a whole. With clear processes in place organizations still lack
in employing the elements of the ethical supply chain. There are various
factors affecting them. In this paper, the focus will be on investigating the
ethical challenges faced with regards to the compliance of this Procurement
policy that is currently implemented. This research will investigate the ethical
challenges that The South African National Taxi Council face with regards to
compliance of their Procurement policy currently implemented. The results will
show that unethical practices have a negative impact on the performance of the
supply chain management. This study is to demonstrate the empirical
relationship between ethical practices and performance and also to examine the
supply chain ethical practices. The results prove a positive impact of ethical
practices on performance of supply chain management. (Yusuf, Hawkins, Musa, & El-Berishy, 2014).
1.2
The research problem of An investigation into the ethical
challenges affecting compliance of the procurement policy implemented at South
African national taxi council
Organizations
must understand that ethical procedures are important for their supply chain
management, and it can also offer various long term benefits. But still,
organizations are not able to adopt ethical procedures, due to various factors,
which need to be investigated and understood to address these factors. Secondly
the problem
of lack of full compliance with the five principles of public procurement
enshrined in Section 217(1) still persists. The
purpose of this research is to investigate and explore those areas of unethical
conduct within the organisation by purchasers, suppliers, employees and
possible ways in minimizing unethical behaviour among purchasers, employees,
and other stakeholder.
1.3
Aims
of the study of
An investigation into the ethical challenges affecting compliance of the
procurement policy implemented at South African national taxi council
The aim of the study was to investigate
challenges that, The South African National Taxi Council face with regards to
compliance of the Procurement policy currently implemented. The study will be able to propose and provide
recommendations to address these challenging factors allowing for proper
procedures to be conducted.
1.4 Research
objectives of An investigation
into the ethical challenges affecting compliance of the procurement policy
implemented at South African national taxi council
The research
objectives of this study are stated below:
1.4 Significance of the study of An investigation into the ethical
challenges affecting compliance of the procurement policy implemented at South
African national taxi council
This research is associated with the academic field,
it is intended to make recommendations, it can be used as a referral point and
stimulate the discussion around the field of supply chain management. It will
also create awareness to active participants and future students in this field.
The research will demonstrate a comprehensive understanding of supply chain
management and how to relate it to the daily life of people.
The significance of the research is not only to
identify the factors affecting the compliance procedures associated with the
procurement policy, but it will also help to open more future research areas
for other researchers to further investigate. The research is also going to
prove imperative and significant for the organization, in terms of
understanding the importance of ethical supply chain management, looking at
factors, which are hindering them to adopt the correct practice. The research
will identify gaps for further areas of research with relevant aspects to
continue on this topic, and come up with more concrete evidence to support why
ethics or compliance in supply chain management is better for organizations.
Thus, the findings from this study are expected to
provide an update on the importance of compliance in the supply chain
processes. For example, the information may be helpful in improving the
procurement systems. In this instance, the findings may suggest that the
respondents in SANTACO are generally happy with the current implemented policy
system. Having
this information will assist the South African National Taxi Council to focus
on possible ways to improve their performance in the supply chain department
while maintaining positive perceptions on other sections. In this regard, the
approach taken would be problem solving-oriented with the intention to resolve
the issue identified rather than to overhaul the procurement system.
1.5 Conclusion of
An investigation into the ethical challenges affecting compliance of the
procurement policy implemented at South African national taxi council
Thus, the findings from this study are expected to
provide an update on the importance of compliance in the supply chain
processes. For example, the information may be helpful in improving the
procurement systems. In this instance, the findings may suggest that the
respondents in SANTACO are generally happy with the current implemented policy
system.
CHAPTER
2:
LITERATURE REVIEW
2. LITERATURE REVIEW
2.1
Introduction of An investigation into the ethical challenges
affecting compliance of the procurement policy implemented at South African
national taxi council
This section presents a literature review by exploring the objectives of
procurement policy, to procurement policy and ethical challenges that are
facing companies due to compliances of the policy.
2.2 Objectives of the procurement policy of An investigation into the ethical challenges affecting
compliance of the procurement policy implemented at South African national taxi
council
The objectives of this procurement policy
are to ensure that:
·
The correct goods or services are purchased in terms of quality and
specification.
·
Preferential Procurement goals are achieved.
·
Best value for money is achieved.
·
The process is in line with internal control systems to avoid the
risk of fraud.
·
The process is both ethical and efficient.
·
The code of conduct is followed.
·
Where possible, suppliers are BEE accredited
2.3
Legislative Mandate governing procurement policy
As advocated by
Hanks, Davis and Perera (2008) public procurement operates within a highly
legislated environment set by national government and extended to provinces and
local government bodies by specific policies, legislation and regulations. This
section is limited to acts, legislative and policy frameworks which give
guidelines on the compliance to procurement processes and the enhancement of
service delivery in South Africa.
2.3.1.
The Constitution of the Republic of South Africa (1996)
Under the
constitutional supremacy, the Constitution of the Republic of South Africa,
(1996) is the bedrock for compliance with regard procurement of goods and
services and a yardstick through which service delivery can be measured.
Section 195 (1) of the Constitution of the Republic of South Africa (1996)
spells out the democratic values and principles governing public
administration. The public service as an instrument of governance as
contemplated in section 217(1) of the Constitution of the Republic of South
Africa, 1996 provides for the basis of
procurement and
determines that “when an organ of state in the national, provincial or local
sphere of government, or any other institution identified in national
legislation, procure contracts for goods or services, it must do so in
accordance with a system which is fair, equitable, transparent, competitive and
cost-effective” (VanGruenen and Van Niekert, 2010).
Therefore any
procurement action in public sector will be measured against this
constitutional imperative, failure to satisfy the requirement will constitute
non-compliance to procurement processes, policies and procedures, thus
undermining the constitution itself.
2.3.2.
Public Finance Management Act No 1 of (1999)
The Public
Finance Management Act, No 1 of (1999) governs financial management practices
in South Africa and establishes a regulatory framework for Supply Chain
Management within national, provincial and state owned enterprises. According
to Purera and Turley (2014), this act makes provision for the use of
procurement as a policy tool, and following the aforementioned five pillars
contemplated in section 217 of the Constitution of the Republic of South
Africa, 1996. According to Zitha and Mathebula (2015) adherence to this Act by
procurement officials will see government procuring goods and services at
market related prices, thus optimising the quality of public service delivery.
2.3.3.
Preferential Procurement Policy Framework Act, No 5 of (2000)
Parliament
approved the Preferential Procurement Policy Framework Act No.5 of 2000 and its
revised regulations to adhere to the requirements of the Constitution of the
Republic of South Africa, 1996. This act gives effect to the government
priority of empowering designated categories of persons through preferential
treatment in procurement activities.
2.3.4
Preferential Procurement Regulations (2011)
Part 2 (3) (a-b)
of the Preferential Regulations, 2011 states that “an organ of state must,
prior making an invitation of tenders, properly plan for, and as far as
possible, accurately estimate the costs of the provision of services, works or
goods for which an invitation of tenders is to be made and; determine and
stipulate the appropriate preference point system to be utilised in the
evaluation and adjudication of tenders”. In putting these regulations into
effect, departments are required to have procurement plan which must be
approved by the accounting officer.
The procurement
plan if used appropriately can be the masterpiece for planning within the
procurement environment.
2.4
Government’s general procurement Framework
The following framework is issued by the Government
not only as a prescription of standards of behaviour, ethics and accountability
which it requires of its public service, but also as a statement of the
Government's commitment to a procurement system which enables the emergence of
sustainable small, medium and micro businesses which will add to the common
wealth of our country and the achievement of enhanced economic and social
well-being of all South Africans.
Introduction of An
investigation into the ethical challenges affecting compliance of the
procurement policy implemented at South African national taxi council
Proper and successful government procurement rests
upon certain core principles of behaviour -the Five Pillars of Procurement.
They are best described as pillars because if any one of them is broken the
procurement system falls down.
The Five Pillars are:
·
Value
for Money
·
Open
and Effective Competition
·
Ethics
and Fair Dealing
·
Accountability
and Reporting
·
Equity
These Guidelines address those Five Pillars and
prescribe a minimum set of standards that are to be observed. The Guidelines
are to be supplemented by individual Accounting Officer's Procurement
Procedures issued under the general authority contained in the Public Finance
Management Act, 1999.
2.4.1. Value for Money of An investigation into the ethical challenges
affecting compliance of the procurement policy implemented at South African
national taxi council
This is an essential test against which a department
must justify a procurement outcome. Price alone is often not a reliable
indicator and departments will not necessarily obtain the best value for money
by accepting the lowest price offer that meets mandatory requirements. Best
value for money means the best available outcome when all relevant costs and
benefits over the procurement cycle are considered.
The procurement function itself must also provide
value for money and must be carried out in a cost-effective way. Procurement
organisations, whether centrally located or devolved to individual departments,
should:
(a) Avoid
any unnecessary costs and delays for themselves or suppliers;
(b) Monitor
the supply arrangements and reconsider them if they cease to provide the expected benefits; and
(c) Ensure
continuous improvement in the efficiency of internal
processes and systems.
2.4.2. Open and Effective Competition
This requires:
(a) A
framework of procurement laws, policies, practices and procedures that is
transparent, i.e. they must be readily accessible to all parties;
(b) Openness in the procurement process;
(c) Encouragement
of effective competition through procurement methods suited to market
circumstances; and
(d) Observance of the provisions of the Preferential
Procurement Policy Framework Act.
Departments need to apply effort and research to get
the best possible outcome from the market by ensuring that:
(a) Potential
suppliers have reasonable access to procurement opportunities and that
available opportunities are notified at least in the Government Tender
Bulletin;
(b) Where
market circumstances limit competition departments recognise that fact and use
procurement methods that take account; of it;
(c) Adequate and timely information is provided to
suppliers to enable them to bid;
(d) Bias and favouritism are eliminated;
(e) The costs of bidding for opportunities do not
deter competent suppliers; and
(f) Costs
incurred in promoting competition are at least commensurate with the benefits
received.
2.4.3. Ethics and Fair Dealing of An
investigation into the ethical challenges affecting compliance of the
procurement policy implemented at South African national taxi council
In procurement, if all parties comply with ethical
standards they can:
(a) Deal with each other on a basis of mutual trust
and respect; and
(b) Conduct their business in a fair and reasonable
manner and with integrity.
All government staff associated with procurement,
particularly those dealing direct with suppliers or potential suppliers, are
required:
(a) To recognise and deal with conflicts of interest
or the potential therefor;
(b) To deal with suppliers even-handedly;
(c) To ensure
they do not compromise the standing of the state through acceptance of gifts or
hospitality;
(d) To be scrupulous in their use of public property;
and
(e) To provide all assistance in the elimination of
fraud and corruption.
2.4.4. Accountability and Reporting of An
investigation into the ethical challenges affecting compliance of the
procurement policy implemented at South African national taxi council
This involves ensuring that individuals and
organisations are answerable for their plans, actions and outcomes.
Openness and transparency in administration, by
external scrutiny through public reporting, is an essential element of
accountability.
Within the procurement framework:
(a) Heads of
departments are accountable to their ministers for the overall management of
procurement activities;
(b) Heads of
Procurement and senior procurement directors are accountable to heads of
departments for various high-level management and co-ordination activities;
(c) Individual
procurement officers are accountable to Heads of Procurement, and to their
clients, for the services they provide; and
(d) All
people exercising procurement functions must have regard to these guidelines
and are accountable to management.
2.4.5. Equity of An investigation into the ethical challenges
affecting compliance of the procurement policy implemented at South African
national taxi council
The word `equity' in the context of these Guidelines
means the application and observance of government policies which are designed
to advance persons or categories of persons disadvantaged by unfair
discrimination.
This fifth pillar is vital to public sector
procurement in South Africa. It ensures that government is committed to
economic growth by implementing measures to support industry generally, and
especially to advance the development of Small, Medium and Micro Enterprises
and Historically Disadvantaged Individuals.
In accordance with the Reconstruction and Development
Programme, SMMEs and HDIs need to play a bigger role in the economy. Greater
participation in the economy and more diversified representation of blacks and
gender in ownership is essential.
The government has implemented the Preferential
Procurement Policy Framework Act as the foundation on which all procurement
activities are to be based. Its aim is to:
(a) Advance the development of SMMEs and HDIs;
(b) Promote women and physically handicapped people;
(c) Create new jobs;
(d) Promote local enterprises in specific provinces,
in a particular region, in
a specific local authority, or in rural areas; and
(e) Support the local product.
No public procurement system should be operated if it
is not founded on this pillar
2.5 Compliance and Ethics meaning
2.5.1 Compliance
Compliance
means doing what you’re supposed to do. So what does it mean when we talk about
procurement compliance? Surprisingly, there is no one definition of compliance,
or even one group of compliance issues, common across all procurement
departments.
(Jaggaer 2016)
2.5.2 Ethics of An investigation into the ethical challenges
affecting compliance of the procurement policy implemented at South African
national taxi council
The term ethics often describes the investigation
and analysis of moral principles and dilemmas. Traditionally, philosophers and
religious scholars have studied ethics. More recently, scholars from
various disciplines have entered the field, creating new approaches to the
study of ethics such as behavioural ethics and applied ethics.
The term ethics can also refer to rules or
guidelines that establish what conduct is right and wrong for individuals and
for groups.
2.6 Challenges facing compliance of the procurement
policy
In many literature pieces, non-adherence to
procurement policies is not viewed as an individual act of non-compliance. In
many writings, organizations are mostly blamed for the errors experienced in
procurement. In an argument highlighted by Budd (2004) procurement policies are
only adhered to if the management of an organization is willing to ensure the
policies are adhered to. This means that noncompliance to procurement policies
starts from tolerance from the top management.
The author further argues that regardless of
the factors promoting noncompliance in procurement, an organization should be
in a position to guide its employees to compliance of company policies. The
same sentiments are shared by Bernard (2005) who debates that, a company with
strict policies is capable of withstanding any factor that seems to pressure
employees towards breaking of these policies. In regards to psychological and
economic factors these two factors are the easiest to influence in any organizational
setting (Croom & Johnston, 2003). These two factors can be easily
influenced by good management. For instance, economic factors `are caused by
constraints. If employees are rewarded sufficiently these constraints can be
easily dealt with. Kankanhalli et al. 2003, and Straub 1990, identify sanctions
as a type of inhibition to reduce breaches in policies. Pahnila et al. 2007 on
the other hand discuss rewards as a more suitable motivating factor which can
lead to an increase in compliance by employees. However, Cuganesan &Lee
(2006) disagree with the Pahnila’s concept of motivating factors, disputing
that human nature is greater than just a good reward system. The author further
discusses that human nature influenced by psychological factors cannot be influenced
by tangible incentives. For instance, if employees in an organization are
provided with a noncompliant mentality it may take more than just a good reward
system to reverse this trend. In this scenario, termination of working
contracts acts as the best option to curb the shortcoming. On the hand however,
if the recommendation is implemented then this means an organization would lose
a great number of trustable employees. D’ Archy & Hovac (2009) argue that
the probability of an organization to acquire trustable employees to run
sensitive departments like the procurement department is close to nil. Such
departments need human resources who are trustable and well aware of the of the
organization’s culture. Analysts have argued however, that it would be much
advisable and logical for an organization to train new human resources than try
to change the noncompliant mentality of existing employees.
The authors further argue that employees in a
department involving signing of contracts like procurement and marketing,
should be offered extra incentives for example in meeting savings or other
departmental targets. The extra incentives are aimed at improving the
performance of employees and minimizing the threat of fraud. It is an obvious
assumption that human nature is easily influenced by extra incentives. Budd
(2004) contends however that this may create a mentality that may be hard to
eradicate in the future. The employee mentality should be created in a way that
an employee feels obligated to perform in an organization at free will. With an
already instilled free will it becomes easier to create a reward system that
the whole organization will be pleased with. In relating this argument to the
procurement policies it is also an obvious assumption that employees in
procurement need more than just job specifications and assumptions. In an
argument by Hui et al (2011) in procurement this argument becomes more
applicable and urgent to implement since employees in this department are the
most likely to be influenced by the need to indulge in non-compliant behaviour,
be it directly with suppliers, or allowing other stakeholders to break the
rules as they seek they meet their objectives, whether it be departmental gain
or personal financial or psychological (ego) benefit. Pasa (2000) argues that
in procurement the issues of allegiance and adherence to policies in an
organization are of more urgency since the process involves a lot of company
resources and funds. In many organizations this is usually considered during recruiting,
training and rewarding employees in this department.
In light of this, the modern corporate environment in reviewing the role
played by procurement, have sought to pay more attention and have raised the
sensitivity of the process of procurement, despite the employment of SCM as a strategic tool,
Public procurement in South Africa still faces enormous Challenges stated
below:
• Lack of proper knowledge, skills and capacity
• Non-compliance with SCM policy and regulations
• Inadequate planning and the linking of demand to
the budget
• Accountability, fraud and corruption
• Inadequate monitoring and evaluation of SCM
• Unethical behaviour
• Too much decentralisation of the procurement
system
• Ineffectiveness of the black economic empowerment
(BEE) policy.
The following challenges are explained in details
in the following section:
2.6.1 Lack of proper knowledge, skills and capacity
To fully achieve SCM objectives, the National Treasury provides support
by facilitating the development of appropriate training materials to government
departments, municipalities and municipal entities (National Treasury, 2005).
However, the shortage of skills has been a re-concurrent theme in public
discussion. According to Sheoraj (2007), skills and capacity shortages have
been identified as the single greatest impediment to the success of public
procurement in South Africa. Adequate capacity in the form of appropriate
structures with fully skilled and professional SCM personnel is a key success
factor for proper SCM implementation. In some government entities, the quality
of SCM personnel’s skills and ability are well below standard. Migiro and Ambe
(2008) assert that many SCM actors in the South African public sphere have
attended a number of training workshops on SCM, but they still lack the
appropriate knowledge for proper implementation. McCarthy (2006) contends that
there is a lack of capacity and knowledge by SCM actors to handle procurement
processes that have led to bad governance. The South African government embarks
on programmes that educate practitioners, but implementation of its programmes
always falls short.
2.6.2
Non-compliance with policies and regulations
SCM is guided by a number of related policies and
regulations (National Treasury, 2005).
Compliance with these policies and regulations is a
problem. As indicated by Matthee
(2006), some of the practices relating to
non-compliance with the rules and procedures relate to the tendency not to
utilise a competitive process for both quotations and bids, and incorrect
utilisation of the preference points system. Van Zyl (2006) also asserts that
there is a lack of appropriate bid committees; use of unqualified suppliers,
passing over of bids for incorrect reasons; utilisation of the incorrect
procurement process in respect of the thresholds; extensions of validity
periods; and incorrect utilisation of the limited bidding process. Furthermore,
Ambe and Badenhorst-Weiss (2011b) noted that there are inadequate controls and
procedures for the handling of bids; appointment of bid committee members not
aligned to policy requirements; and insufficient motivation for deviations from
SCM procedures.
2.6.3 Inadequate planning and
linking demand to the budget
Demand management is integral to the SCM process. It defines the
decision-making process that allow departments to procure at the right time, at
the right place and at the right cost. However, many government entities are
still faced with the challenges of improper planning and linking demand to
budget (Ambe & Badenhorst-Weiss, 2011a). Cost-effective procurement depends
on a specialist’s skills to ensure that buying requirements are reliably
determined, appropriate contract strategies are developed, contracts are well
managed and opportunities are seized to secure the best deals at the right time
and at the right price. The importance of drawing up accurate and realistic
strategic plans cannot be overestimated.
At times there is an absence of coherent plans. Some government entities
cannot properly quantify the needs of those requiring their services or
properly estimate costs, nor can they accurately track, control or report on
expenditure (Luyt, 2008). Luyt (2008) indicates that there is a need to monitor
the delivery of services properly to ensure that scarce resources are
efficiently and effectively procured. Poor planning and budgeting have also
affected the implementation of SCM. It is therefore vital that SCM
practitioners adequately link demand planning to budget.
2.6.4 Accountability, fraud and corruption
Accountability constitutes a central pillar to public procurement (Soudry,
2007). Without transparent and accountable systems, the vast resources
channelled through public procurement systems run the danger of being entangled
with increased corruption and misuse of funds (Jeppesen, 2010). According to
Mahlaba (2004), fraud and corruption cost South African tax payers hundreds of
millions of rand each year. Over the last few years, the impact of fraud has
led to the promulgation of special legislation and improvement in existing
legislation that led to the creation, among others, of the Directorate of
Special Operations, commonly known as the Scorpions, the Asset Forfeiture Unit,
the Public Protector, the Special Investigation Unit, Commercial Crime Units,
Internal Audit Units, Special Investigation Units within departments, and the
appointment of forensic consultants (Mahlaba, 2004).
According to Boateng (2008), since 1994, South Africa has enjoyed
unprecedented social and infrastructural programmes. Yet, the majority of
people who had hoped freedom would bring with it relative socio-economic
liberation and improvement are feeling increasingly bitter towards government
over issues that include a lack of perceived quality of governance, service
delivery failure, fraud and corruption in some spheres of the economy and disillusionment
with empowerment policies (De Lange, 2011). The Public Service Commission
Committee (2011) indicated that a total of 7 766 corruption cases had been
reported through the National Anti-Corruption Hotline since its inception in
September 2004 up till June 2010. De Lange (2011) notes that taxpayers were
fleeced of R30 billion (3.675 billion USD). Corruption, incompetence and
negligence by public servants were to be blamed (De Lange, 2011). About 20 per
cent of government’s procurement budget alone ‘went down the drain each year.
This was because officials had their fingers in the till, overpaid for products
and services or failed to monitor how money was spent’ (De Lange, 2011). Among
government entities probed for procurement irregularities was the Tshwane Metro
where about 65 municipal officials were investigated for striking business deals
worth about R185 million with their own Council (Pauw, 2011). The National and
Provincial governments and their entities notched up R21 billion in irregular
expenditure in 2010, a 62% rise (R13 billion) over the previous year (De Lange,
2011). The auditor general highlighted weaknesses in SCM, controls over
information technology, human resource management, and capital assets and
performance reporting during a briefing to Parliament’s Standing Committee on
Public Account (Smart Procurement, 2011).
Hence, there is an urgent need to
rethink innovative ways of curbing corruption and some other administrative
malpractices within South African spheres of government. To fight the scourge of
maladministration, mismanagement of finances, fraud and corruption, government
needs to strengthen and review existing internal control systems to detect
deficiencies.
2.6.5
Inadequate measures for
monitoring and evaluation of SCM
Effective policy-making requires information on whether governments are
doing things right and whether they achieve the results intended (Acevedo,
Rivera, Lima & Hwang, 2010).
Strong monitoring and evaluation systems provide the means to compile
and integrate this valuable information into the policy cycle, thus providing
the basis for sound governance and accountable public policies (Acevedo et al.,
2010). Inadequate monitoring and evaluation is linked to the absence or the
poor presence of a control environment, and the government entities are placed
in a difficult position to give effect to or implement SCM as required by the
policy. Hence, deviations or non-compliance goes undetected or is identified
after the fact. According to a Business Day report (2011), procurement actors
in government have spent millions of rand in ways that contravened laws and
regulations. The national and provincial governments and their entities have
notched irregular, unauthorised, fruitless and wasteful expenditures that contravene
laws and regulations. There is lack of proper monitoring and evaluation as
required (Stemele, 2009).
2.6.6
Unethical behaviour of An
investigation into the ethical challenges affecting compliance of the
procurement policy implemented at South African national taxi council
Ethics is the study of moral judgements and right
and wrong conduct. Ethics and conflict of interest greatly affect SCM
implementation. Enormous power is wielded by some chief
financial officers but there is also a lack of proper
consultation with other senior officials.
While the National Treasury’s guide to accounting
officers prescribes a standard approach towards SCM procedure, in many instances
there is lack of compliance and application of the guidelines. This has resulted in differentiation in approaches
and a lack of standardisation.
According to McCarthy (2006), the completeness of tender documents in
many municipalities is difficult to verify.
2.6.7
Too much decentralisation
of the procurement system.
In South Africa, government
procurement of own or local requirements (materials, equipment and services) is
to a large extent decentralised to departments, provinces and municipalities.
If one takes the number of cases of tender fraud and lack of services on all
levels of government into account one should ask oneself whether these parties
have the knowledge and/or the intention to get the best value for tax-payers’
money. Arguments for a larger extent of centralisation of procurement to
knowledgeable, accountable procurement officials/agents or procurement
consortiums could be put forward.
‘Centralization leverages scales to reduce costs. Decentralisation
relies on local knowledge to build relationships’ (Fawcett, Ellram & Ogden,
2007: 310).
Centralisation offers advantages such as leverage due to volumes,
reduction of duplication of purchasing effort, better control and development
of specialised expertise of purchasing personnel (Handfield, Monczka, Guinipero
& Patterson, 2011: 160–61). On the other hand, decentralisation often leads
to better responsiveness to purchasing needs, a better understanding of unique
local needs, and is closer to suppliers and taking ownership of decisions that
impact on one’s own budget (Handfield et al. 2011: 162). However, if the
advantages of centralisation are to be realised, efficient contract management
and supplier relationship management is a pre-condition. The schoolbook saga in
various provinces of South Africa in 2012, where textbooks had not been
delivered to schools by the third term of the school year is an example of what
can happen without proper contract management.
2.6.8
Ineffectiveness of
broad-based black economic empowerment
The South African government adopted the provision
of BEE to empower all historically disadvantaged people rather than only a
small group of black investors. To this end, it adopted the Broad-Based Black
Economic Empowerment Act (BBBEEA), which calls for expanded opportunities for
workers and smaller enterprises as well as more representative ownership and
management. Current BEE provisions have, however, in many instances failed to
ensure a broad-based approach, instead imposing significant costs on the economy
without supporting employment creation or growth. The present BEE model remains
excessively focused on transactions that involve existing assets and which
benefit a relatively small number of individuals. The following shortcomings
have emerged in the implementation of BEE: First, ownership and senior
management issues receive disproportionate emphasis. The unintended
consequences of this trend include ‘fronting’, speculation and tender abuse.
Secondly, the regulations do not adequately incentivise employment creation,
support for small enterprises and local procurement. The preferential
procurement regulations aggravate this situation by privileging ownership over
local production. Finally, the BBBEE regulations penalise public entities as
suppliers. The democratic state owns public entities on behalf of its people
yet the regulations do not count them as ‘black empowered’ (Zuma, 2009). Subsequent to the discussion presented above, it is
evident that there are constraints in procurement practices in the South
African public sector. These predicaments can to a large extent be attributed
to lack of proper knowledge, skills and capacity. Therefore, the South African
government will need to address these dilemmas in order to fully achieve the
policy objective of public procurement.
Conclusion of An investigation into
the ethical challenges affecting compliance of the procurement policy
implemented at South African national taxi council
This chapter has presented a literature
review on the objectives of the Procurement Policy. The Five pillar of were discussed in this chapter. Legislative Mandate governing procurement
policy and Public
procurement challenges in South Africa were also discussed. According to Ambe (2016:20) supply chain management
“involves planning, managing the activities in sourcing, procurement,
conversion, with also logistics. Ethics play a major role
in procurement and are considered more important as technology and consumer
behavior change. Being ethical means being in accordance with the rules and
standards for right conduct and practice, especially the standards of a
profession. It is critical
for everyone who is involved in supply chain management to ensure that they
behave in an ethically acceptable manner to yield the desired results that will
benefit communities.
CHAPTER THREE: RESEARCH METHODOLOGY
3.1. Research Design of An investigation into the ethical challenges
affecting compliance of the procurement policy implemented at South African
national taxi council
The South African National
Taxi Council’s aimed to provide the best value for money by accepting the
lowest price offer that meets mandatory requirements. Best value for money
means the best available outcome when all relevant costs and benefits over the
procurement cycle are considered. This study aim was to investigate challenges that, The South African
National Taxi Council face with regards to compliance of the Procurement policy
currently implemented. The study will be able to propose and
provide recommendations to address these challenging factors allowing for
proper procedures to be conducted. The study also seeks to investigate if the
implementation of the effective Supply Chain Management principles will improve
the South African National Taxi Council performance.
The research
may take a qualitative or quantitative approach. Qualitative research is empirical research where
data are not in a form of numbers (Punch, 1998) .Qualitative research is
multi-method in focus, involving an interpretive, naturalistic approach to its
subject matter. (Denzin and Lincoln 1994).
Quantitative research gathers data in a
numerical form which can be put into categories, or in rank order, or measured
in units of measurement. This type of data can be used to construct
graphs and tables of raw data. (Denzin and Lincoln 1994)
The research methods used in this study is
qualitative. An interview schedule with
a list of questions was utilised. The interview questions
were directed towards addressing the research questions and to ensure the research
objectives are met. The use of meeting recording device is necessary.
3.2. Research Philosophy
A research
philosophy is a belief about the way in which data about a
phenomenon should be gathered, analyzed and used (McKerchar, 2010). The inquiry paradigm used in
research is generally influenced by a researcher’s ontological and
epistemological beliefs. These beliefs represent how the researcher views and
seeks to understanding. The two extremely contradicting paradigms are
positivism and constructivism. The positivism approach views the world as
objective realism and therefore suggests that knowledge is created by deductive
reasoning whereby a precise and systematic process is adopted (McKerchar,
2010).
Research
philosophy for the current study was based on phenomenological approach since a
qualitative method has been followed,
which focuses on the commonality of a
lived experience within a particular group. The fundamental goal of the
approach is to arrive at a description of the nature of the particular
phenomenon (Creswell, 2013).
3.3. Research Strategies of An investigation into the ethical challenges
affecting compliance of the procurement policy implemented at South African
national taxi council
The research strategies which has been
involved in research has been based in the topic of ethical challenges
affecting compliance of the procurement policy implemented at south African
national taxi council. The research strategies have been based on research
design, method. The research design involves the study will be able to propose
and provide recommendations to address these challenging factors allowing for proper
procedures to be conducted. The research methods used in this study is
qualitative. An interview schedule with
a list of questions was utilised. Qualitative interviews as been taken from the
participants, because it allows the researcher to determine rich information.
3.4. Target Population of An investigation into the ethical
challenges affecting compliance of the procurement policy implemented at South
African national taxi council
The target populations are known to be a group of
individuals that the intervention intends to conduct research in and draw
conclusions from (Louise Barnsbee, Son Nghiem, 2018). This study aimed to investigate
challenges faced by the South African National Taxi Council face with regards
to compliance of the Procurement policy currently implemented at South African National Taxi Council,
the organisation currently has Fifteen employees in their Procurement
department of which Two are at the management level and One is a general worker
without knowledge of the procurement processes
3.4.1. Sampling of
An investigation into the ethical challenges affecting compliance of the
procurement policy implemented at South African national taxi council
When a research is conducted about a group of people, it’s rarely
possible to collect data from every person in that group. Instead, you select a
sample. The sample is the group of individuals who will actually participate in
the research (Shona, McCombes, 2019). Therefore this section will
provide a description of sample selection. The researcher may differentiate from the two sampling methods known
as Probability sampling which involves random selection, allowing you to make statistical
inferences about the whole group. While Non-probability sampling involves non-random selection based on convenience or other
criteria, allowing you to easily collect initial data. Since the South African National Taxi Council
has fifteen employees in their Procurement department of which two are in the
management level and one is a general worker without knowledge of the
procurement processes.
A sample of the study of five employees from South
African National Taxi Council who are mostly active participants as full-time
professions in that field of supply chains. The participants were as follows: 2 Procurement Officers (junior and senior),
Purchasing Agent and Purchasing Supervisor and Senior Buyer.
3.5. The Research Instrument of An investigation into the ethical challenges
affecting compliance of the procurement policy implemented at South African
national taxi council
Research Instruments are measurement tools (for example,
questionnaires or scales) designed to obtain data on the research topic. For this research telephonic interviews was conducted
to collect the data from the respondents, prior to the interview
sessions, the confidentiality and anonymity of the respondents was reiterated
to encourage their openness during the interviews. In addition, it was expected that
the participants would be more transparent in the telephone interview sessions
compared to the face to face interviews (Synodinos, 2003).
A
set of nine structured interview questions was developed relating to the
objectives of the study. The conversations were recorded with the participants‟
permission to enable the researcher to transcribe them and analyse the data in
the later stages of this study.
McNicol, Sarah (2003) outlines the
Advantages and disadvantages of Telephonic interview
The main
advantages of interviews are):
- they are useful to
obtain detailed information about personal feelings, perceptions and
opinions
- they allow more
detailed questions to be asked
- they usually achieve a
high response rate
- respondents' own words
are recorded
- ambiguities can be
clarified and incomplete answers followed up
- precise wording can be
tailored to respondent and precise meaning of questions clarified (eg for
students with English as a Second Language)
- interviewees are not
influenced by others in the group
- some interviewees may
be less self-conscious in a one-to-one situation..
The main disadvantages of interviews are:
- They can be very time-consuming:
setting up, interviewing, transcribing, analysing, feedback, reporting
- They can be costly
- Different interviewers
may understand and transcribe interviews in different ways.
3.5.1. Questionnaire
Construction of An investigation into the ethical
challenges affecting compliance of the procurement policy implemented at South
African national taxi council
As this method has been used
in qualitative research. They are the most valuable method of collecting data and
it provides the broad variety of knowledge from the great number of populations
which has been taken as to be respondent. While the formation of questionnaire some
of close ended questions has been involved in close-ended in which answer of
the question is restricted. Some of the open-ended questions has also been
included in the questionnaire. As well as some of the multiple-choice answer
has been included in which four options has been included.
3.6. Pilot Study of An investigation into the ethical challenges
affecting compliance of the procurement policy implemented at South African
national taxi council
A pilot study was
conducted at The South African National Taxi Council in order to gain insight
into what was important for this study. The pilot study involved interviewing
two knowledgeable people from within and outside the organisation (DuPlooy,
Davis, & Bezuidenhout, 2014).
The initial interview guide was tested at
their provincial office in Mpumalanga. The two Executives of the supply chain management unit was
interviewed together with the Operations Manager. Important questions on the
policy processes were added to the interview guide. Both participants confimed that an effective supply chain management unit
is a cornerstone of sustainable service delivery within organisations.
3.7. Administration of
Interview of An investigation into the
ethical challenges affecting compliance of the procurement policy implemented
at South African national taxi council
For the purpose of this research, interviews were
administered telephonically. This is because of the global pandemic known as
Covid 19. The interview progressed with some network difficulties but at the
end it was conducted accordingly of which it aassisted with answering the objectives and
questions of the study.
3.7.1. Collection of Questionnaires of An investigation into the ethical challenges
affecting compliance of the procurement policy implemented at South African
national taxi council
The questionnaire has been played
significant and major role within research. The collection of questionnaires has
been completed form the participants which has been consist on the employees of
National Taxation council. In this various question has been asked to complete
from the employees of department. The content of the questionnaire is simple
and attractive for all the readers. This involves the questions which is
related to their fields.
3.8. Data Analysis of An investigation into the ethical challenges
affecting compliance of the procurement policy implemented at South African
national taxi council
Data gathered from interviews was analysed
using thematic analysis, which is a method that identifies analyses and reports
patterns within data. This thematic analysis was performed in six phases
following the step-by-step guide by Braun and Clarke (2006). The decision to choose this study is not merely motivated
by its simplicity and wide use in research (Boyatzis, 1998; Braun & Clarke,
2006; Roulston, 2001), but also the benefits the analysis can offer. For
instance, Braun and Clarke (2006) had highlighted some advantages of thematic
analysis, such as:
(1) Flexibility
of the method, which allows for a broad range of analytic options.
(2) Accessibility
of the results to the educated general public.
(3)
Possibility to emphasise similarities and
differences across the data set.
Ability to
producing qualitative analyses suited to informing policy development
Furthermore, analysing qualitative research is aimed
at the creation of useable extrapolations
from the customarily overwhelming quantity of data
gathered (Sekaran and Bougie, 2013:337).
3.9 For a
quantitative study discuss Validity (face; criterion; construct; concurrent)
and Reliability (parallel; inter-rater; test-retest) and for a qualitative
study discuss the Measures of Trustworthiness: dependability; transferability;
credibility; confirmability
3.10. Limitations of the Study of An investigation into the ethical challenges
affecting compliance of the procurement policy implemented at South African
national taxi council
The following limitations of this study
should be noted:
3.10.1
Time delays of An investigation into the ethical challenges affecting
compliance of the procurement policy implemented at South African national taxi
council
The study was conducted at a time when
there was a global pandemic COVID 19. It was impossible to access the
participants, libraries and source information, the was on a country lockdown
period. The lockdown resulting in affected lot of things including academic
calendar.
3.10.2
Location of An investigation into the ethical challenges affecting compliance
of the procurement policy implemented at South African national taxi council
The study was supposed to be conducted at
the South African National Taxi Council offices, but that was not possible
because of the lockdown period. This has strongly impacted the interpretation
of the data and the findings. The participants were difficult to locate but
later were located to proceed with telephonic interview instead of face to face.
3.11. Elimination of Bias of An investigation into the ethical challenges
affecting compliance of the procurement policy implemented at South African
national taxi council
To eliminate
bias, the researcher shall not ask any questions relating to religion,
ethnicity, age and gender. The interview questions will be easy to understand no confusing
or ambiguous questions, therefore, eliminating any incidence of bias.
3.12. Ethical Considerations of An investigation into the ethical challenges
affecting compliance of the procurement policy implemented at South African
national taxi council
Ethical consideration can be specified as on one of
the most important parts of the research. Dissertation may even be doomed to
failure if this part is missing (Bryman and Bells, 2007)
3.12.1. Ensuring that Permission was obtained
Management of the
South African National Taxi Council will be consulted and informed
about the research to take place. As
well as the intention of the researcher will be stated to conduct interviews
with its employees, therefore a
formal permission will be issued to the researcher by the Organisation in
question.
3.12.2. Ensuring that Participants have given Informed
Consent
Researchers must ensure that those
taking part in research will not be caused distress. They must be protected
from physical and mental harm. This means you must not embarrass, frighten,
offend or harm participants (McLeod, S. A. 2015).
For the purpose of this study, reasons will clearly be
stated for embarking on the study and those reasons will be provided at the
onset. Participants will be assured that there will be no implications for them
partaking in this study and all information gathered is for research purposes.
3.12.3. Ensuring that Confidentiality and Anonymity
Confidentiality is
refers to a condition in which the researcher knows the identity of a
research subject, but takes steps to protect that identity from being
discovered by others (Evergreen State College, 2020)
While anonymity is a
condition in which the identity of individual subjects is not known to
researchers. (Evergreen State College, 2020)
For
the purpose of this study the records shall be secured through the use of
password protected files, encryption when sending information over the internet.
Furthermore to ensure that
anonymity and confidentiality is kept, no names were required in order to
safeguard the identity of the individuals involved.
3.12.4. Ensuring that no Harm Comes to Participants
The research must be undertaken in a way that
eliminates harm or danger to the people involved (Silverman, 2013:162) . In
this research, the safety of the partakers is ensured as if there are any
potential dangers arising from the research; this will be communicated to the
partakers. Also, no one under eighteen years will be permitted to participate
in this research.
4. CHAPTER FOUR: RESULTS, DISCUSSION AND INTERPRETATION OF FINDINGS
(Include all headings/ subheadings – this will differ for every study)
this chapter, you will present your findings, analysis
of results, discussion of findings. You need to ensure the following when
writing this chapter:
6.4.1. Presentation
• Use tables or graphs to present findings.
• The tables and graphs must appear in the order that
they appear in the research instrument.
• Ensure that tables or figures are numbered
correctly.
• Use percentages to present data.
• You need to make reference to tables or figures when
explaining the results obtained.
• All tables and figures must be on the same page.
Tables cannot be continued on the next page.
• Explanation of tables and figures must appear
directly below the table/figure.
• Interpretation, justification and discussion follow
each table/figure.
• Refer to the guide on “Basic introduction to
statistics” for further assistance on presentation and analysis of findings
Appendix
B: Interview Schedule
This interview schedule has been designed
in line with the aims and objectives of this study. The following questions will be asked to each
participant, during interviews which are estimated to take approximately 20
minutes each.
Section: interview questions
of An investigation into the ethical challenges affecting compliance of the
procurement policy implemented at South African national taxi council
- Describe the current procurement framework
implemented and its effectiveness at your place of employment?
- What are the main challenges the department is
facing with regards to the implemented framework?
- Do you have a
policy/ system in place agreeing or managing exceptions?
- What is your
approach to monitoring potential conflict of interest?
- Are those
involved in the procurement required to declare any potential conflict of
interest and remove themselves from the procurement process?
- What role do
you play in ensuring that there is full compliance with the procurement
policy?
- Are those
involved in the procurement required to declare any potential conflict of
interest and remove themselves from the procurement process?
- What impact
does non-compliance have on performance of the department?
- What are the
areas should be focused more in order to improve the implemented
procurement processes/ policy?
5. CHAPTER FIVE: CONCLUSIONS AND RECOMMENDATIONS
5.1. Introduction
Ethics play a major role in
procurement and are considered more important as technology and consumer
behaviour change. Being ethical means being in accordance with the rules and
standards for right conduct and practice, especially the standards of a
profession. For instance: procurement
is involved in supplier selection, evaluation, negotiation, contracts sign off
and awarding business to suppliers
5.2. Findings from the
Study of An investigation
into the ethical challenges affecting compliance of the procurement policy
implemented at South African national taxi council
Thus, the findings from this study are expected to provide an update on
the importance of compliance in the supply chain processes. For example, the
information may be helpful in improving the procurement systems. In this
instance, the findings may suggest that the respondents in SANTACO are
generally happy with the current implemented policy system.
5.2.1.
Findings from the Literature Review
The findings of the literature review reveals that Being ethical means
being in accordance with the rules and standards for right conduct and
practice, especially the standards of a profession. It is critical for everyone
who is involved in supply chain management to ensure that they behave in an
ethically acceptable manner to yield the desired results that will benefit
communities.
5.2.2.
Findings from the Primary Research
The research methods used in this study is qualitative. An interview schedule with a list of
questions was utilised. For the purpose of this research, interviews were
administered telephonically. This is because of the global pandemic known as COVID-19.
The decision to choose this study is not merely
motivated by its simplicity and wide use in research (Boyatzis, 1998; Braun
& Clarke, 2006; Roulston, 2001), but also the benefits the analysis can
offer
5.2.3. Conclusions of An investigation
into the ethical challenges affecting compliance of the procurement policy
implemented at South African national taxi council
In this it has been concluded that Ethics play a major role in
procurement and are considered more important as technology and consumer
behaviour change. Being ethical means being in accordance with the rules and
standards for right conduct and practice, especially the standards of a
profession. It is
critical for everyone who is involved in supply chain management to ensure that
they behave in an ethically acceptable manner to yield the desired results that
will benefit communities. The decision to choose this study is not merely
motivated by its simplicity and wide use in research.
5.3. Recommendations of An investigation
into the ethical challenges affecting compliance of the procurement policy
implemented at South African national taxi council
In this it has been mentioned that the effect of unethical conduct in
south Africa would be judged by one criterion which is related with the effectiveness
in providing their services which complete all the basic requirements of all
the south African population. Depends on the research analysis the finding of
the study reveals that lack of compliance and improper implementation of
policies can affected the performance of the Organization as a whole. It must
also enhance the ethical practices to run their functions and business in
smooth ways. Moreover, they required the potent leadership to begin with the great
model of ethical conduct within their organization. as well as it is
significant for the government to take account the various pronouncing function
in order to accomplish the level of quality to execute functioning.
6.
CONCLUSION of An investigation into the ethical challenges affecting compliance of
the procurement policy implemented at South African national taxi council
In this it has been
concluded that the supply chain is the process, which starts from the
manufacturing/production of the product, then delivering the established
products to targeted customers. According to Ambe (2016:20) supply chain
management “involves planning, managing the activities in sourcing,
procurement, conversion, with also logistics. The significance of the research is not only to identify the factors
affecting the compliance procedures associated with the procurement policy, but
it will also help to open more future research areas for other researchers to
further investigate. procurement and determines that “when an organ of state in the national,
provincial or local sphere of government, or any other institution identified
in national legislation, procure contracts for goods or services, it must do so
in accordance with a system which is fair, equitable, transparent, competitive
and cost-effective. Ethics is the study of moral judgements and right and wrong
conduct. Ethics and conflict of interest greatly affect SCM implementation.
Enormous power is wielded by some chief financial officers but there is also a
lack of proper consultation with other senior officials. While the National
Treasury’s guide to accounting officers prescribes a standard approach towards
SCM procedure, in many instances there is lack of compliance and application of
the guidelines.
The South African National
Taxi Council’s aimed to provide the best value for money by accepting the
lowest price offer that meets mandatory requirements. Best value for money
means the best available outcome when all relevant costs and benefits over the
procurement cycle are considered. This study aim was to investigate challenges
that, The South African National Taxi Council face with regards to compliance
of the Procurement policy currently implemented. Effective policy-making requires information on whether governments are
doing things right and whether they achieve the results intended (Acevedo,
Rivera, Lima & Hwang, 2010). Strong monitoring and evaluation systems
provide the means to compile and integrate this valuable information into the
policy cycle, thus providing the basis for sound governance and accountable
public policies
The author further argues
that regardless of the factors promoting noncompliance in procurement, an
organization should be in a position to guide its employees to compliance of
company policies. The same sentiments are shared by Bernard (2005) who debates
that, a company with strict policies is capable of withstanding any factor that
seems to pressure employees towards breaking of these policies. In regards to
psychological and economic factors these two factors are the easiest to
influence in any organizational setting. For this research telephonic interviews
was conducted to collect the data from the respondents, prior to the interview
sessions, the confidentiality and anonymity of the respondents was reiterated
to encourage their openness during the interviews. Data gathered from
interviews was analysed using thematic analysis, which is a method that
identifies analyses and reports patterns within data. This thematic analysis
was performed in six phases following the step-by-step guide.
A sample of the study of five employees from
South African National Taxi Council who are mostly active participants as
full-time professions in that field of supply chains. The findings revealed that lack of compliance and improper implementation
of policies can affected the performance of the Organization as a whole. It must
also enhance the ethical practices to run their functions and business in
smooth ways.
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investigation into the ethical challenges affecting compliance of the
procurement policy implemented at South African national taxi council
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(2003), "Developing a framework to evaluate electronic resources",
SCONUL Newsletter 30, pp. 24-25.
Appendices
Appendix A
Appendix B
Appendix C
LIST OF TABLES Page
LIST OF ACRONYMS