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Ethics within the Procurement Function

Ethical Sourcing

Nowadays, ethical sourcing is a crucial component in supply chain management and procurement. It is no longer acceptable for companies to disregard ethical considerations regarding both their internal practices and those of their supply chain partners. With the rise of globalization, it has become even more vital for organizations to keep a close eye on the ethical conduct of their suppliers and subcontractors across borders before products reach consumers.

Ethical Companies

Can you explain what makes a company ethical? Ethical companies are those that set and uphold fair and honest standards of behavior for all parties involved, including their partners in the supply chain. When it comes to procurement, building long-term partnerships with suppliers is crucial. Achieving this often means shifting the culture between buyers and suppliers from an adversarial approach to a more collaborative one.


Ethical Standards – A set of guidelines for proper conduct by business professionals.



For an organization to have a strong corporate-wide attitude toward ethical behavior, it is essential for upper management to drive the initiative. This will ensure that all employees and stakeholders understand the company’s policy towards unacceptable conduct. Senior management should set the tone and take appropriate action when unethical behavior occurs. Procurement plays a critical role in ensuring that suppliers adhere to the same ethical standards.

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