Where is the ethical line in procurement?
Including a supplier in a selection process because senior management has a preference for them. Giving one supplier more or better information than another. Or allowing a purchasing decision to be influenced by a personal relationship with a supplier representative.
These are examples of situations in which professional conduct and questionable behaviour can come very close together.
In The Grey Side of Procurement: Identifying and Addressing Questionable Purchasing, Fanny Chen of Erasmus University Rotterdam examines which questionable purchasing practices occur, how they are perceived and which factors may influence involvement in such behaviour. The research also provides organisations with ways to strengthen ethical behaviour in procurement.
The particular position of the procurement professional
The research defines ethical behaviour as behaviour that is consistent with professional norms. Unethical purchasing behaviour refers to behaviour that violates generally accepted societal moral norms relating to the procurement process.
Procurement professionals occupy a particular position in this respect. They act as a link between the internal organisation and suppliers. In this boundary-spanning role, they have to deal with different interests, relationships and expectations. This can create situations in which professionals need to make an ethical judgement.
The research identifies supplier selection in particular as a phase with a high level of vulnerability to unethical behaviour.