An Assessment of Ethical Procurement Practices in Nigerian Construction Firms: A Study of Julius Berger Nigeria Plc in Kogi State
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Background of the Study
Procurement is a critical function within the construction industry, ensuring that companies obtain the necessary materials, services, and resources required to execute projects. Ethical procurement practices refer to the policies, principles, and actions that ensure fairness, transparency, and accountability in the procurement process. These practices are increasingly becoming a focus in Nigeria, as businesses are pressured to act responsibly and contribute to sustainable development (Akinyemi & Adejumo, 2023).
Julius Berger Nigeria Plc, a leading construction firm, is well known for its significant role in infrastructure development across the country. The company has made strides in improving its procurement strategies to ensure ethical standards are upheld throughout the supply chain. However, challenges such as corruption, lack of transparency, and unethical supplier practices persist in Nigeria's construction industry, making it necessary to critically assess the ethical procurement practices employed by firms like Julius Berger. This study seeks to evaluate the extent to which Julius Berger Nigeria Plc has adopted ethical procurement practices, focusing on how these practices influence their operational efficiency and reputation in Kogi State.
Statement of the Problem
The construction sector in Nigeria faces significant challenges related to unethical procurement practices, including bribery, kickbacks, and lack of supplier diversity. These issues can lead to cost overruns, delays, and substandard work, damaging both the reputation of construction firms and the quality of projects. While Julius Berger Nigeria Plc has adopted various measures to improve procurement standards, the effectiveness of these measures and their impact on business performance in Kogi State remains unclear. The problem lies in understanding how well ethical procurement practices are integrated into the company’s operations and the overall outcomes of such practices.
This study will assess the ethical procurement practices of Julius Berger Nigeria Plc in Kogi State, determining their impact on supplier relationships, cost management, and project outcomes.
Objectives of the Study
- To evaluate the ethical procurement practices adopted by Julius Berger Nigeria Plc in Kogi State.
- To assess the impact of these practices on the company’s supply chain efficiency and project outcomes.
- To identify challenges faced by Julius Berger Nigeria Plc in ensuring ethical procurement in its operations.
Research Questions
- What ethical procurement practices are adopted by Julius Berger Nigeria Plc in Kogi State?
- How do these ethical practices influence the company’s supply chain and project outcomes?
- What challenges does Julius Berger Nigeria Plc face in implementing ethical procurement practices?
Research Hypotheses
- Ethical procurement practices improve the efficiency of the supply chain and project outcomes at Julius Berger Nigeria Plc.
- Adoption of ethical procurement practices leads to better relationships with suppliers and stakeholders.
- The implementation of ethical procurement practices is hindered by external factors such as corruption and limited supplier diversity.
Scope and Limitations of the Study
This study focuses on Julius Berger Nigeria Plc’s procurement practices in Kogi State, specifically evaluating their ethical standards. The study does not extend to other construction firms or regions of Nigeria. Limitations include potential bias in data gathered from company employees or suppliers and the challenge of obtaining reliable data on unethical procurement activities.
Definitions of Terms
- Ethical Procurement Practices: Procurement strategies that prioritize fairness, transparency, sustainability, and social responsibility in the selection of suppliers and acquisition of goods and services.
- Supply Chain Efficiency: The effectiveness of a company in managing the flow of materials and services from suppliers to customers.
- Construction Firm: A business involved in the planning, design, and execution of construction projects, including infrastructure development.
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