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PurchasingB2B

How ethical is your purchasing?

A component of a successful procurement career is to act ethically in all situations, says a report from US-based procurement education organization Next Level Purchasing.


September 15, 2011
Sandy MacIsaac

Purchasingb2b: July/August 2011

A component of a successful procurement career is to act ethically in all situations, says a report from US-based procurement education organization Next Level Purchasing. The report provides a checklist of ethical traps procurement professionals regularly face. Among the report’s suggestions are:
•  Don’t accept money, goods, services or favors from suppliers in exchange for information, decisions in their favor, or anything else;

•  Comply with your employer’s policy on accepting gifts, meals, and entertainment;

•  If your employer’s supplier gift policy allows gifts to be accepted from foreign suppliers for cultural reasons, distribute those gifts to others in the organization who are not involved in decisions affecting the suppliers;

•  When weighted supplier selection criteria are established before soliciting bids, do not change the weightings or criteria after receiving bids unless legitimate, new information has been discovered;

•  Do not use prospective suppliers solely to pressure incumbent suppliers. Only request bids from suppliers who truly have a chance of winning your employer’s business;

•  Never buy or hold the stock of your employer’s suppliers;

•  If a relative, friend, or yourself owns, manages, or sells for a supplier, remove yourself from decisions involving that supplier and do not access related information unavailable to competing suppliers;

•  Avoid soliciting charitable donations from suppliers or ensure that suppliers know donating or declining to donate will not impact the opportunity to do business with your employer; and

•  If you have a second job, do not sell to the suppliers of your primary employer.

The report also suggest procurement professionals actively try to educate other employees—including those outside of the procurement department—about ethical supplier interaction.