29 October 2009 | Allie Anderson
Most buyers would boycott a supplier found guilty of corruption, the latest SM100 poll has found.
When asked if they would blacklist guilty vendors, 79 per cent of the buyers quizzed by SM answered "yes". Many said corrupt practices were damaging to all parties involved, not just the supplier.
Several said instant blacklisting is the only way to get the message across that corruption, bribery and other illegal practices are not tolerated in a culture of ethical trading.
Many buyers believed the risk of a guilty company reoffending would be too high. Others pointed out that while they would not tolerate institutional corruption, they would be less likely to blacklist if only one person was found to be involved.
A number commented that in a competitive market, there are plenty of suppliers vying for business which negates the need to continue working with one that had been involved in fraud of some kind.
But 21 per cent of those surveyed would not shun corrupt vendors. Several buyers said it was unnecessary to do so, suggesting improved controls and working with the supplier to address the problem would be a suitable alternative.