Why has CIPS developed a Corporate Code of Ethics?
CIPS has always had a Code of Conduct for individual members which enables us to self-regulate our profession and ensure, as far as we are able, that CIPS members operate ethically.
The increase in complex global supply chains is also increasing the opportunities for procurement malpractice. We have seen serious issues of bribery, fraud, corruption and human rights abuse emerging and we believe procurement and supply management has a part to play in eradicating these problems. We also believe it is important for procurement teams, which may include non-members, to be held accountable for sourcing, including supplier selection, and supplier management and for the organisations they work for to set the highest ethical standards for them to work to. If we are to eradicate unethical business practices from the supply chain, it is not enough to rely on individuals, we need to change organisational behaviour.
Is the Code mandatory?
Any organisation is free to adopt the CIPS Corporate Code of Ethics or use it as a guide to improve and strengthen its existing code. However, adoption of the CIPS Corporate Code of Ethics (or its key principles) is mandatory for organisations wishing to achieve and retain the CIPS Corporate Ethics Mark.
What does the CIPS Corporate Ethics Mark stand for?
The Mark is a way for an organisation that commits to ethical procurement to be recognised by CIPS and – because organisations that hold the Mark are listed on a publicly accessible register – by the wider community. It shows that they have been able to demonstrate the value they place on ethical procurement and gives suppliers, customers, potential employees and other stakeholders confidence that they are dealing with a business that is committed to ensuring its staff are trained in ethical sourcing, supplier selection and supplier management, and they have adopted ethical values in the way in which they source and manage suppliers.
For the organisation itself, the Mark contributes to enhancement of its brand and is a sign that it has taken steps to safeguard itself against procurement and supply chain malpractice, thus reducing supply chain risk.
What is Corporate Ethical Procurement and Supply?
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