Conflict of Interest
Procurement professionals shall:
Avoid any private or professional activity that would create a
conflict of interest or the appearance of impropriety
Avoid engaging in personal business with any supplier
representative or similar person
Avoid lending money to or borrowing money from any
supplier
Avoid any and all potential for nepotism
Avoid any overlap of duties in the procurement process
Safeguard the procurement process from political or outside
influence
Conduct with Suppliers
Business dealings with suppliers must be fair and transparent.
Procurement shall:
Refrain from showing favouritism or being influenced by
suppliers through the acceptance of gifts, gratuities, loans or
favours
Safeguard supplier confidentiality
Refrain from requiring suppliers to pay to be included on an
approved or preferred supplier list
Select suppliers on the basis of meeting appropriate and fair
criteria
Discourage the arbitrary or unfair use of purchasing
leverage or influence when dealing with suppliers
Avoid the exertion of undue influence or abuses of power
Treat all suppliers fair and equal
Corruption
Procurement professionals who become aware of any corrupt
activity have a duty to the profession and to their employing
organisations to alert their senior management and/or elected
officials. Procurement shall not tolerate bribery or corruption in
any form.
Forms include, but are not limited to:
Bribery is the offering, promising, giving, authorising or
accepting of any undue financial or other advantage to, by
or for any persons associated with the procurement process,
or for anyone else in order to obtain or retain a business or
other improper advantage. Bribery often includes (i) kicking
back a portion of a contract payment to government or
party officials or to employees of the other contracting party,
their close relatives, friends or business partners or (ii) using
intermediaries such as agents, subcontractors, consultants
or other third parties, to channel payments to government
or party officials, or to employees of the contracting parties,
their relatives, friends or business partners.
Extortion or Solicitation is the demanding of a bribe, whether
or not coupled with a threat, if the demand is refused.
Procurement professionals will oppose any attempt of
extortion or solicitation and are encouraged to report such
attempts through available formal or informal reporting
mechanisms.
Trading in Influence is the offering or solicitation of an undue
advantage in order to exert an improper, real, or supposed
influence.
Laundering the proceeds of the corrupt practices mentioned
above is the concealing or disguising the illegitimate origin,
source, location, disposition, movement or ownership of
property and/or money, knowing that such is the proceeds
of crime.
Nepotism is the use of authority or influence to show
favouritism to relatives or friends without merit.
Business gifts and hospitality
The offer and receipt of business gifts and entertainment are
sensitive areas for procurement professionals, despite being
recognised as standard private sector business practice.
Procurement organisations should develop a clear policy on
accepting business gifts and procurement professionals and
suppliers must comply with any such policy as well as prevailing
laws.
Minimal guidelines include:
Not soliciting or accepting money, loans, and credits or
prejudicial discounts, gifts, entertainment, favours or
services from present or potential suppliers which might
influence or appear to influence a procurement decision/
process
Avoiding meals or other hospitality with suppliers
Other policies and considerations
Ethical practices should be defined and embedded in other
policies, procedures and practices which overlap procurement.
Other policies in the procurement space which will need to be
considered may include the subjects of:
Competition and anti-competitive practices
Supplier diversity
Supplier equality
Corporate Social Responsibility (CSR)
Sustainability
Anti-discrimination policy
Transparency
