The CEO of South Automobiles, Inc. has asked for your help in some critical areas. You will address them throughout this course. This week there are some ethical issues to deal with.

The purchasing department of South Automobiles has been experiencing the following:

• A perception of favoritism in its purchasing practices

• A perception that situational ethics are being used in handling suppliers

These problems have been found to occur in the attempt to keep the costs down and in a desire to award contracts to friends and relatives of the top managers. This ethical issue needs to be resolved and you were asked to provide guidelines and recommendations on how to avoid the perception of favoritism and situational handling through creation of formal codes of ethics and conduct.

Create a 3- to 4-page report that includes the following:

• A formal code of conduct for the purchasing department

• A formal code of ethics for the purchasing department

• Some guidelines and recommendations on how to avoid the perception of favoritism and situational handling

Cite any sources in APA format.