Managing Conflict of Interest Issues in Purchasing

Robert Handfield · David L. Baumer

48 citations0/0 files storedJournal of Supply Chain Management

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Ethics in Business and Education Sustainable Supply Chain Management Governance, Compliance, and Sustainability

Abstract

SUMMARY One of the most important elements of ethical purchasing behavior is conflict of interest. In response to the heightened regulatory environment, many organizations have initiated reviews of their conflict of interest policies and ethical codes of behavior in supply management. The goal of the current exploratory study is to determine the most common approaches used to promote compliance with ethical codes of conduct (specifically conflict of interest policies) in supply management. Questionnaires were administered to eight “typical” Fortune 500 companies. Current conflicts of interest policies were identified, in addition to spotlighting common approaches to enforcing ethical behavior, including multiple communication and reporting channels, formal procedures, effective sanctions against violators and regular training of employees in ethical policies. Survey results were used to generate a scoring system that compares the overall level of ethics management maturity based on profiles of the companies studied in the research.

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