Trend Alert: The Supplier Code of Conduct

PurchTips - Edition #97 April 4, 2006

By Charles Dominick, SPSM

Who Is Using A Supplier Code of Conduct?

Today more than ever, the public judges a business by the companies with whom it spends its money. And such judgments are usually negative in nature.

Actress Pam Anderson rallied supporters to boycott the KFC food chain, claiming that KFC used suppliers that abused animals. Sony’s CEO was publicly vilified for Sony advertising on the obscene TV show “Nip/Tuck.”

This means that your work is under more scrutiny and can have a bigger impact on your organization than ever. Smart purchasers know this and their collective actions have spawned a new trend: the supplier code of conduct.

A simple Google search will link you to many supplier codes of conduct from top companies like HP, Pizza Hut, Federated Department Stores, Apple, Hallmark, and countless others in a variety of industries. Is there a reason for you not to use a supplier code of conduct?

If you want to quickly write a supplier code of conduct, let me save you some time. While an infinite number of items can be addressed in a supplier code of conduct, here are the ten most commonly addressed points:

1. All employment must be freely chosen
2. All employees must be a specified age
3. All employees must work less than a specified number of hours per week
4. The supplier must comply with wage laws
5. All employees must receive humane treatment
6. The supplier may not be discriminatory in its employment decisions
7. The supplier’s facility must meet safety standards
8. The supplier must have a plan for emergencies
9. The supplier must notify its employees of the applicable supplier code of conduct
10. The supplier’s compliance with the supplier code of conduct is subject to audit

(keep reading for a FREE Offer)

Spotlight On Professional Development Opportunities

What if other purchasing professionals told you their secret to a rewarding career? How they leveraged a qualification to get better jobs, excellent performance evaluations, and large pay increases. Would you copy what they did? Or would you continue to wait for career rewards to just come to you?

Three of your peers share such a secret in the “SPSM Certification^SM Success Stories” section of our Web site. Check it out to see how earning the Senior Professional in Supply Management^SM Certification can help you have a rewarding career.

But be warned. You will realize that a rewarding career will not just come to you. Are you up for the challenge and ready to reap the rewards? If so, visit:

www.NextLevelPurchasing.com/spsm

The Latest Purchasing News!

• Since the last edition of PurchTips, at least 4 new jobs preferring candidates with the SPSM^SM Certification have been posted at www.NextLevelPurchasing.com/jobs
• Next Level Purchasing has added a new member to its management team. Read more at www.NextLevelPurchasing.com/news

FREE Offer!

There are four irreversible business and technology trends that are likely to cost purchasers like you their jobs in the next 12 months. Do you know what they are? Do you know how to protect yourself from their effects? If not, you should get your FREE report entitled "Career Survival In Supply Management."

"Career Survival In Supply Management" describes these four trends and how they are steadily decreasing the number of purchasing jobs in today's volatile global economy. It then gives you a seven-step process to stay in the game under the new rules. If you want to remain in the purchasing profession for years to come, you owe it to yourself to check out this report!