15 January 2010 | Jake Kanter
One-quarter of organisations do not have rules to prevent staff participating in deals where they have a conflict of interest, the latest SM100 poll has revealed.
The survey of international buyers found 24 per cent were not subject to regulations that prevented them from awarding contracts, even if they benefitted personally from the deal.
One buyer, who wished to remain anonymous, said: “We don’t currently have a policy, though we definitely should. I know that conflicts of interest exist within the business, but not in purchasing.”
Other survey respondents who were not subject to conflict of interest rules said they were trusted to declare when they should not participate in a tender. One said formal rules were needed to “put the fear of God” into employees to be honest.
Some pointed out rules alone cannot always prevent fraud and corruption.
However, 76 per of the respondents said their organisations had strong policies on such issues.
A respondent pointed out conflict of interest policies fall under the CIPS code of ethics