PurchTips - Edition # 201

 

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Procurement Ethics: Use DRD & Stay Clean

By Charles Dominick, SPSM, SPSM2, SPSM3

How Can You Avoid A Procurement Ethics Scandal?

Plain and simple: it is unethical for a procurement professional to award an order to a supplier with whom he or she has a personal or financial relationship. However, finding an organization where none of its employees have a friend, spouse, etc. among its supply base's thousands of employees can be challenging.

So, what should you do if you have a relationship with a current or potential supplier's employee?

I recommend a process called DRD, which I pronounce like "dirty" for ease of remembering. DRD stands for Disclose, Recuse, Document - three steps to take so that decisions are made without unethical influence.

Disclose means to advise management of a relationship that may appear to be a conflict of interest.

Recuse means to remove yourself from participation in a decision in order to avoid a conflict of interest. When you disclose the relationship to management, advise them that you want no involvement in the decision due to the potential for real or perceived personal gain.

Document means to produce and retain written correspondence about your disclosure. Ethical accusations often arise months or years after a decision is made. By then, it can be difficult to remember the steps taken to maintain the integrity of the decision-making process. Forgotten details only strengthen the appearance of impropriety. Good documentation can prove that a decision was reached ethically.

A procurement department should then ensure that those with a personal supplier relationship are prevented from accessing sensitive information such as the pricing of competing suppliers. Some organizations even go as far as maintaining a conflict of interest database and requiring employees to disclose certain relationships upon being hired, when permitted by law.

Though you can't guarantee that every procurement team member will be free of relationships with supplier employees, good procedures can reduce the risk for accusations of unethical procurement decisions.

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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.

Is lacking a purchasing certification keeping you from getting the results, opportunities, respect, and money that you want out of your career? Today's employers refuse to reward employees for yesterday's skills. They want you to save more money, achieve better operational performance, and reduce risk. They demand that purchasing professionals like you achieve unprecedented results and without the most modern skills that can be a challenging feat!

So how can you acquire the most modern skills, achieve meaningful results, and convincingly prove your capabilities to today's employers? There is an impressive purchasing certification program that will teach you what you need to accomplish all of this and more. It is the SPSM® Certification, earned by completing the Senior Professional in Supply Management® Program. And you could earn it in less than a year - maybe even much less than a year!

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 iPad) (with the option of getting a Study Guide on an iPad) at:

Distinguishing yourself as an achiever in purchasing is key to sustaining a rewarding career, even in these difficult economic times. Earning your SPSM® Certification by completing the Senior Professional in Supply Management® Program is 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 iPad) at:

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. And if you sign up for the Senior Professional in Supply Management® Program on or before May 31, 2008, SPSMSM Certification Program on or before 4/30/2007, you also get these and other bonuses valued at over $700:

  • FREE $30 gift certificate to Amazon.com!
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To learn how to earn your SPSM® Certification and get these valuable bonuses, visit:

Earning your Senior Professional in Supply Management® (SPSM) Certification is the action to takeif you want to bring the most modern purchasing practices into your organization and achieve your career potential. Learn how to earn your SPSMSM Certification at:

Learn how to earn your SPSM® Certification at:

www.NextLevelPurchasing.com/spsm.html



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