Next Level Purchasing - Helping Purchasers Become Indispensable
Home   |   Contact Us   |   Email This Article To A Friend  |  
Photograph of Charles Dominick, SPSM This is the Web-based version of this article. Click here for the printer-friendly version.
  * More Purchasing Articles

5 Components of Ethical Procurement


PurchTips - Edition # 211

By Charles Dominick, SPSM

 

What Are You Doing To Keep Procurement Ethical?

It would be great the front pages of newspapers featured the procurement profession for the fine work that is done within it. Sadly, most news coverage of procurement comes when something unethical has happened.

You don't want your organization to be covered for a procurement ethics lapse. So, how do you ensure that your organization's procurement ethics are upheld? It starts with having these five components in place:

  1. An ethics policy. An ethics dispute should never be the result of a difference of opinion between the procurement department and a company employee. Every organization should have a written policy making it clear what top management considers ethical and what it considers unethical. If you don't have an ethics policy, don't wait for an ethics dispute to arise to realize that you need one!
  2. Ethics training. The great part about having an ethics policy is that the rules are in tangible, indisputable form. The unfortunate part is that no one reads ethics policies! Supplement an ethics policy with procurement ethics training for anyone who is involved with the purchase of products or services and/or who meets with suppliers.
  3. An ethics ombudsman. Some organizations appoint an ethics ombudsman - a person in the organization with whom an employee can confidentially communicate any real or perceived ethical violations. Because it is difficult to confront internal customers who may be more "politically powerful," having an ethics ombudsman can make procurement employees more comfortable in revealing behaviors of questionable ethics.
  4. A process with checks and balances. Every major procurement should require management review to confirm that all guidelines were followed and that no ethical violations have occurred or will occur.
  5. Audits. Periodically, audits should be performed to verify that all procurement activities were conducted ethically and in accordance with procedures. Audits also serve as a deterrent to future unethical behavior.

(keep reading for a FREE Offer)

Spotlight On Professional Development Opportunities

SPSM Certification

Are you tired of not getting enough opportunities, respect, and money out of your purchasing career? Well, guess what? Nothing will change unless you take action towards becoming a world-class purchasing professional.

You see, today's employers refuse to reward employees for yesterday's skills. They demand that purchasing professionals like you use the most modern skills and achieve unprecedented results. They want you to save more money, achieve better operational performance, and reduce risk.

Earning your SPSM® Certification by  completing the Senior Professional in Supply Management® Program is the action  to take if you want to bring the most modern  purchasing practices into your organization and achieve your career potential. Learn how to earn  your SPSM® Certification (and perhaps get an iPod) at:

 www.NextLevelPurchasing.com



The Latest Purchasing News

 

FREE Offer!

Do you struggle to keep up with the latest purchasing developments? Then check out our FREE report "Staying Up To Date With Purchasing Using RSS!" This report teaches you how to get the latest purchasing news, trends, and more brought right to you!

To get your FREE copy of "Staying Up To Date With Purchasing Using RSS," follow the instructions at www.NextLevelPurchasing.com/purchasing-trends.html www.NextLevelPurchasing.com/purchasing-trends.html .


Copyright 2010. This article is the property of Next Level Purchasing and may not be copied or republished in any form without the express written consent of Next Level Purchasing. Click here to request republishing permission.