principles and standards guidelines

7/28/2019 Principles and Standards Guidelines

1/16

PrinciPles andstandards of

Ethical Supply

ManagEMEnt

conductwith Guidelines


2/16

Pub b:

iu supp Mm, i.Pu nv, cPsM, c.P.M., a.P.P., MciPs, c exuv o

2012

iu supp Mm

P.o. Bx 22160

tmp, az 85285-2160

Usa

www.m.w

isM B d ppv 2012.

a v. M m b p u w pm, w v isM.

P U s am.


3/16

PrinciPles and standards of ethical

sUPPly ManageMent condUctwith Guidelines

taBle of contents

preme ____________________________________________________1

1. imrre_______________________________________________1

2. c ieres ________________________________________2

3. iee _________________________________________________2

4. Resses e Emer___________________________4

5. Ser csmer Ress ______________________5

6. S Ress Ss ___________________5

7. ce prrer irm __________________6

8. Rer _______________________________________________7

9. ae ls, Res tre areemes _______8

10. press cmeee _________________________________9

akeemes _________________________________________10


4/16

PrinciPles

ier yr dess as

Ve r yr Emer

l yr press

From prcp ar rv isM aar o ppy maag-

m coc:

standards

1. iMpRopRiEty. Prv a apparac o ca or

compromg coc raop, aco a commcao.

2. conflict of intERESt. er a ay proa, b

a or acv o o coc a r o yor

mpoyr.

3. influEncE. Avo bavor or aco a may gavy -

c, or appar o c, ppy maagm co.

4. RESponSibilitiES to youR EMployER. upo fcary a

or rpob g raoab car a gra aoryo vr va o yor mpoyr.

5. SuppliER and cuStoMER RElationShipS. Promo po-

v ppr a comr raop.

6. SuStainability and Social RESponSibility. Campo

oca rpoby a aaby pracc ppy

maagm.

7. confidEntial and pRopRiEtaRy infoRMation. Proc

cofa a proprary ormao.

8. REcipRocity. Avo mpropr rcproca agrm.

9. applicablE lawS, REgulationS and tRadE

agREEMEntS. Ko a oby r a pr o a, rg-

ao a ra agrm appcab o ppy maagm.

10. pRofESSional coMpEtEncE. dvop k, xpa ko-

g a coc b a mora compc a

promo ppy maagm proo.


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1

standards and gUidelines

preme

A gg caracrc o a proo a pracor comb

ca aar prormac o cca k. sppy maag-

m prooa m bcrb o a o ca prcp a a-ar o g va a grop co a aco.

Or ca prcp ar gry, va a oyay. From prcp

or aar ar ab o (1) corag arc o compro-

mg ca bavor, (2) cra aar a accpac o ca

coc, a (3) mpaz ro o c ormag co.

t aar ar g or by a o maag or c

ppy ca. t aar o o ppa a orgazao poc b

ar a mo or corao.

evry ppy maagm prooa rpob o rv or accp-

ac a arc o ca aar. Orgazao ar cor-

ag o vop, pb a orc a c pocy a ppor

prcp a aar. Poc a procr m b car, rapar

a orcab. t c pocy o b ar a mpoy,

cg o o ppy orgazao, a ppr. trag

m b o-gog a comprv.

iormao coa book prov g or ag -c ay-o-ay mar. hovr, aar a g cao covr

vry ao, or ac, a o o ak pac o goo jgm or

vy o or cr, a, com a pracc. w ob,

co maagm a prooa coag.

1. iMProPriety

Prevent the intent and appearance of unethical or compromising conduct in relation-

ships, actions and communications.

sppy maagm prooa a ra a xra comr

a ppr. iraco a ram b ppy prooa

a co m b o a ar-m. Avo aco a

appar o, or acay, m ca coc. Coqc o a prcv

mpropry ca b am a coqc o a aca mpropry.

Rcomm g or prvg mpropry:

a. Maa b prooam a commcao, cgoca ma.

b. work o y ao c, v rog acpa cr-cmac, may gavy mpac b raop.

c. dc a aca or poa mpropry maagm. takaco a appropra.

. Avo aco rogo orgazao a mg cra pco o mpropry.


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2

. sc o b a v v car o maagpob mprcpo by b commy or or.

. Avo xcv co o proa mar.

2. conflict of interest

Ensure that any personal, business and other activities do not conflict with the lawfulinterests of your employer.

sppy maagm prooa m o r poo o c

aor pro o prov appropra b o mv or or.

Poa coc ar rom amy, b, proa or aca rao-

p. ev og a coc may o ccay x, ppy maagm

prooa m avo apparac o c a coc.

Rcomm g o avo a maag coc o r:a. Potential Conflicts:dc aca or poa coc() o r

maagm. Rag ppy maagm rpoba arra or cary.

b. Guidance on Conflicts:noy appropra pro or gacor roo a poa coc o r ar.

c. Conflict of Interest Statements:Avoca a yor mpoyroba a rv coc o r am a coragmpoy o co ay poa coc o r po a

mpoym a aay rar.. Secondary Business/Employment:do o arm r o

yor mpoyr rog a coary b or or mpoym.

. Personal Business:do o gag appropra proa b- yor mpoyr, mpoyr compor or ppr. Forxamp, g moy o, or borrog moy rom, ay c-omr or ppr.

. Investments or Business Ownership:Foo mpoyr poca pracc covrg vm, q a or aca

rm.g. Inside Information:do o ormao or proa ga.

. Outside Activities:do o m yor poo a a mpoy o rm o yor mpoyr or rpao.

3. inflUence

Avoid behaviors or actions that may negatively influence, or appear to influence, supplymanagement decisions.

evry pro a poo o c a ppy co m avo a acvy

a may m, or v appar o m, objcvy o co-

makg proc. ir o mpoyr m b rv by o o ar

a par o ppy proc.

ic a acor amo a b co. u car o vaa

a prcpo o c o ppy maagm co.

Cary ca o b ga by akg qo c a:


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3

i b acvy b r o mpoyr?

ho b acvy b prcv by pr a or?

sorc o c ca b roc o raop b byr

a r, cg:

a. empoyr pocb. G, gra or ram

c. B ma

. Raop

. Proc amp

. Poca mar

g. Avrg

. Mark por

. spccao a aar

Rcomm g or ag mar o c:

G cao covr vry ao a o o ak pac o goo

jgm or vy o or cr, a, com a pracc.

a. Employer Policies:sppy maagm prooa ocorag a rcomm vopm a mpmaoo poc a ma or rc appropra c o

ppy proc.b. Gifts, Gratuities and Entertainment:t gvg or rcvg o g,

gra or ram av poa o c bygco. t may b or o a ppy prooa, orvov a byg co or o a amy mmbr.

Maag a vaa cary accpac o g, graor ram, v va ma. dvop a com-mca a r pocy.

Cor rqcy o gvg or rcvg g, gra or

ram a mar cocv mpac. Ab by r a o g a poc.

do o oc g, gra or ram or yor, yormpoyr or yor amy.

Avo accpg mo, oa, cr a prraco.

sk rco rom maagm r cocr a a b- raop may b mpar or appar o b mpar byra o a g, gray or ram.

c. Business Meals:Ma ar occaoay rqr cocgb a ar o a par o bg b raop.

u car o r a ma or a pcc b prpo.

Maag ma rqcy a co ppr.

. Relationships:Avo ao r raop may gavympac b co.


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4

. Product Samples:Proc amp may b or by ppr orrq by byg orgazao cary or gor or prpo. docm raaco covrg accp-ac a o proc amp. Cary rpoby or co o amp a ar ay obgao or arg r ppr.

. Political Matters:A orgazao ar bjc o ra axra orc a prr. ira orc a prr rrom a orgazao cr. exra orc a prr rrom coomc coo, a, rgao, pbc opo, p-ca r grop a poca . t gav c ora a xra orc a prr o ppy maagmca b mmz orgazao aop, commca,a bav ba o ca prcp a aar.

g. Advertising:exrc car accpg avrg or promo-

oa m, parcpag acv a promo o pprovr aor or acv a co b prcv a prraram.

. Market Power:sppy maagm prooa m b aaro r orgazao poo (.g., coomc z, por, c.) markpac a r a mark por o ab.

. Specifications and Standards:sppy maagm prooam r a pccao a aar ar objcvyvop a commca.

j. Communication:Foo orgazao ma poc, cgo ra o oca ma.

4. resPonsiBilities to the eMPloyer

Use reasonable care and granted authority to deliver value to the employer.

t ppy maagm prooa m rv a r o

mpoyr. t rqr appcao o o jgm a cor-

ao o bo ga a ca mpcao.

Rcomm g or ayg rpob o mpoyr:

a. ura aory gra by yor mpoyr.

b. Oba maxmm va or mpoyr.

c. Avo acv a comprom, or cra prcpo o com-promg, b r o mpoyr.

. er vra oc, a or orkg arragm, vrva o mpoyr.

. noy mpoyr o ko or pc a or caacv.

. Avo aorz o mpoyr am.

g. Avo g mpoyr prcag por o mak prcaor o-b . i mpoyr-poor proa prcagprogram x, mak cra a arragm ar ar o p-pr, mpoy a mpoyr.


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5

5. sUPPlier and cUstoMer relationshiPs

Promote positive supplier and customer relationships.

sppy maagm prooa ar rpob or vopg a

maag cv b raop ppr a comr.

imparay acro a b raco a raaco ac rpao a goo ag o mpoyr, ppy maagm

proo a va ppy prooa.

Rcomm g or maag pov ppr a comr

raop:

a. dvop a mpm poc a procr or b pro-c a ar ar, ba a app coy, cgr og-rm raop x ky ppr acomr.

b. ecorag promp a ar probm roo.

c. Avo raoab ma.

. Commca prompy, opy a rcy.

. eab a proc or ppr a comr o oy yormpoyr o ko or pc a or ca acv.

6. social resPonsiBility and

sUstainaBilityChampion social responsibility and sustainability practices in supply management.

sppy maagm prooa ar a poo o a a rc

vopm a grao o aaby a oca rpoby po-

c a rag o b a ppy ca. sppy prooa

ar ao poo o rorc mporac o proa commm

a o c commm mpac aaby a oca rpoby

av a ocom.

isM o o aaby, oca rpoby a ra prcp

oo:

Anti-Corruption. Corrpo a o orm, cg xoroa brbry, o b ora.

Diversity and Inclusiveness Workforce and Supply Base

Workforce. workorc vry a cv aracoa ro o a orkorc a raoaby rpr c-omr a comm c orgazao opra.

Supply Base. Araco a ro o a vr ppy ba rpoby o ac ppy prooa.

Environment. sppy maagm promo proco, prrva-o a vay o ara vrom.


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Ethics and Business Conduct. evry ppy maagm pro-oa rpob or bavg cay a acvy promogca coc rogo ppy ca.

Financial Integrity and Transparency. Facay rpob ppymaagm caracrz by gry a raparcy appy-ra ag a co.

Global Citizenship. Goba czp ca a mora ob-gao o ac or b o ocy ocay, gobay a vray.

Health and Safety. ha a ay coo o bg pro-c or r rom occrrc o rk o jry, agr, ar,rror, acc, arm a o o .

Human Rights. hma bg av vra a ara rg aa rgar o ga jrco a oca acor.

Labor Rights. sppy maagm comm o procg a

rpcg abor rg gobay. Sustainability. saaby aby o m crr

o rg aby o m o r gra-o rm o coomc, vroma a oca cag.

For mor a ormao, pa v .m./r.

7. confidential and ProPrietary

inforMation

Protect confidential and proprietary information.

Coa a proprary ormao rqr proco a o

b ar or oy . Acc m m mpoyr

ca g, coraca obgao, govrm rgao a

a. sppy maagm prooa o r a rcp o

coa a proprary ormao ko a y av a obgao o

proc .

examp o ormao a may b cor coa or proprary

c:

Prc a or ra m

Corac rm a coo

B a qoao

Proc a or co

dcrpo o orma a proc

dg a rag

Orgazaoa pa, goa, objcv, rag, a r Faca ormao o avaab rom pbc orc

iormao a may mpac prc o aca rm

wag a aar

iormao abo mpoy, ocr a rcor


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7

Proa mograpc a or aa, cg backgrocck a vgao

sorc o ppy

Compr oar program, agag a appcao

Rcomm g or coa a proprary ormao:a. dvop a commca a pocy rgarg proco o co-

a a proprary ormao.

b. Mark a y coa a proprary ormaoappropray.

c. u ocor agrm a a rm or o co-a a proprary ormao.

. Accp o coa or proprary ormao yo av rg a o .

. Proc coa a proprary ormao gv o yo.

. Rqr a coa a proprary ormao gv oor b proc by m.

g. u coa a proprary ormao oy or prpo.

8. reciProcity

Avoid improper reciprocal agreements.

Rcprocy bo a ga a a ca a may r ga ac-

o aga orgazao, maagm a/or ppy maag-

m pro.

w ppy maagm prooa or r orgazao gv prr-

c o ppr bca y ar ao comr, or orgaza-

o c a ppr o bcom a comr, prooa or

orgazao gagg a pracc ko a rcprocy. Agrm

vovg a pcc commm o by xcag or a pcc comm-m o ao co rcprocy.

Rcomm g or ag rcprocy:

a. ura ppr a ar ao comr may o b aprobm comr/ppr b orc.

b. u car ppr a r y ar o prov oor or r prg mpropr rcproca agrm.

c. Appy a oba accog, ga a ca gac

poa o rcprocy ar.. Rcogz a rcproca raop may b a ga rra

o ra om cor.


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8

9. aPPlicaBle laWs, regUlations and

trade agreeMents

Know and obey the letter and intent of laws, regulations and trade agreements appli-cable to supply management.

sppy maagm prooa o vop a maa a r-ag o ga cocp a govr r acv a ag o r

mpoyr cor c y opra. t c a, rg-

ao a ra agrm a raoa, aoa, a, provca

a oca v. i ao, commo or r o av q rg-

ao a a c ppy maagr m compy.

som xamp o a a rgao a ppy maagm pro-

oa o b aar o c:

Agcy a

Corac a commrca a

ecroc commrc a

Ar a

tra agrm

tra rgao

iry-pcc a a rgao

Govrm procrm rgao

Pa, copyrg, ra cr a ramark a

evroma a

empoym a a rgao

workr a a ay a

traporao a ogc a a rgao

Faca a a rgao

Or a a appcab

t isM wb coa co rgarg appcab a, rgaoa ra agrm o r cor a: .m./oo/co-

.cm?imnmbr=18252.

Rcomm g or rag a compyg appcab

a, rgao a ra agrm:

a. sk rag ga apc a govr coc o ppy maag-m prooa.

b. ura a oo a, rgao a ra agrm

a ar pcc o cor r b raac.c. ivov ga co ary aay a pag o y a

avo poa ga .

. ura a appy a pcc o govrma .

. sk ga co coc may x. irprg a rpoby o ga co.


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10. Professional coMPetence

Develop skills, expand knowledge and conduct business that demonstrates compe-tence and promotes the supply management profession.

Compc xpc o ppy maagm prooa. dvopg

b k a crag kog o ppy maagm mo-

ra a commm o proo a povy mpac yo, yor

mpoyr, pr a ppr. Prooa vopm rqr cog

cao.

Rcomm g or acvg a g v o prooa

compc:

a. Proay aop a promo ca aar xpc o appy maagm prooa.

b. ecorag, ppor a parcpa ogog c rag.c. eab a -vopm program g o y a

gap o rma crr cag mpacg ppy ma-agm proo a b.

. ecorag ogog prooa vopm o mpoy appr.

. Mor a ac o o a o ar.

. Bcom acvy vov ppy maagm a or pro-oa aocao.

g. ear a maa Cr Prooa sppyMaagm (CPsM), Cr Prcag Maagr (C.P.M.),Cr sppy Maagm (CsM), Cr Proa sppr dvry (CPsd), a or prooa cra.


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10

acknoWledgeMentsisM apprca g o Prcag Maagm Aocao

o Arzoa o ar r G or eca Procrm Pracc, pb-

1986, a a mo. t ocm a b rv a pa by

isM eca saar Comm o a ogog ba a a vov o

bcom a ko oay a ISM Principles and Standards of EthicalSupply Management Conduct with guidelines.

chaiR

sv smy, C.P.M.

Or

Go h logc, ic.

wam hazcro

sor drcor, Corpora Procrm

srg M lPla J. Jama-la, CPsM, C.P.M.,

A.P.P.

drcor, Procrm a sragc

sorcg

u spac Aac

Krr On

Corac Maagr

uRs Corp.

sp trox, C.P.M., A.P.P.

iSM liaiSon

sco R. srz, CPsM, CPsd, C.P.M.,A.P.P.

Vc Pr, ecaoa dvopm

Rorc & O a Vra ecao

sa

isM

chaiR

sy Joo, CPsM

Vc Pr, Goba sppy

Maagm

dp Corporao

Ja Barcr, P.d.

Vc Pr, Goba Procrm

exxo Mob Corporao

Jop C. Back, Jr.

C Procrm Ocr

Aa, ic.

Jac l. dav

Vc Pr a C Procrm

Ocr

Bombarr Aropac

tmoy R. For, CPsM, C.P.M., MCiPs

Cc R. ho

sor Vc Pr, Oprao

sppor a C Procrm Ocr

sor Caora eo

Crag J. Joo, C.P.M., A.P.P.

C excv Ocrharry & dav hog, ic.

Jao Ka

Vc Pr, sragc Goba sorcg

a C Procrm Ocr

MaporGrop

toma K. lo

sor Vc Pr a C

Procrm Ocr

Fxroc

la Mar, C.P.M.

sor Vc Pr, wor

Procrm a Oprao

Pzr ic

sv G. Mr

sor Vc Pr, sorcg a

Procrm & Facy srvc a

sppor

t wa dy Compay

Pa novak, CPsM, C.P.M., A.P.P., MCiPs

C excv Ocr

i or sppy MaagmRoa d. scr, CPsM

Vc Pr, dary sppy a

Oprao

wwav Foo Compay

Ex officio

dbora wbbr, CPsM, CPsd, C.P.M.,

CAe

sor Vc Pr a Corpora

trarr

i or sppy Maagm

nora P. nbrga, CPsM, CPsd, C.P.M.

sor Vc Pr a Corpora

scrary

i or sppy Maagm

iSM br drers

iSM E Srs cmmee


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w p bu,

v isM Wb www.m.w/.

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ISM is a member of the International

Federation of Purchasing and Supply

Management (IFPSM)

principles and standards guidelines

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