ABSTRACT

The political system, the cultural norms and the state of development of a country all influence the manner in which the purchasing of goods and services deviates from the theoretical ethical process. Nevertheless, it is up to the project manager to set and maintain the ethical standards on a project. Naturally government policy, the United Nations, the World Bank and other lending banks, the European Union Directives and other official organizations rules will be primary determinants in awarding contracts, whether for goods or services. In South Africa a Black Economic Empowerment (BEE) policy of preferential procurement takes place whereby all contracts are awarded to black businesses. In business transactions the equivalent of the gratuity is the Christmas gift made as a goodwill gesture for the orders. A project manager working in one of the states of the former Soviet Union summed matters up correctly, there is no doubt that there are countries where the brown bag culture exists.