In 1500 words, explain the importance of CIPS code of conduct in procurement and supply (Do it in a

unique way)

Imagine a world without rules, regulations, or ethical standards. A world where everyone acted solely in
their own self-interest, and deceit and dishonesty were the norm. Chaos and confusion would reign, and
society as we know it would cease to exist. This is why we have codes of conduct, to guide us in our
actions and to ensure that we behave in a manner that is both ethical and responsible.

In the world of procurement and supply, the Chartered Institute of Procurement and Supply (CIPS) has
developed a code of conduct that outlines the ethical and professional standards that all procurement
professionals should adhere to. The CIPS code of conduct is a set of principles and guidelines that govern
the behavior of procurement professionals and ensure that they act in the best interests of their
organizations and the wider society.

The importance of the CIPS code of conduct cannot be overstated. In today's global economy,
procurement is a critical function in almost every organization. Procurement professionals are
responsible for sourcing goods and services, negotiating contracts, and managing supplier relationships.
They play a critical role in ensuring that their organizations are able to operate efficiently and effectively.

However, procurement is also an area that is prone to corruption, fraud, and unethical behavior. This is
why it is essential that procurement professionals operate within a strict ethical framework that ensures
they act with integrity, honesty, and transparency at all times.

The CIPS code of conduct is designed to achieve this goal. It sets out the core values and principles that
all procurement professionals should adhere to, including:

Integrity: Procurement professionals should act with honesty, transparency, and impartiality at all times.

Professionalism: Procurement professionals should maintain high standards of professionalism and

Objectivity: Procurement professionals should base their decisions and actions on objective criteria and
avoid conflicts of interest.
Confidentiality: Procurement professionals should respect the confidentiality of information they are
entrusted with and ensure that it is not disclosed to unauthorized parties.

Responsibility: Procurement professionals should take responsibility for their actions and be
accountable for the outcomes of their decisions.

By adhering to these principles, procurement professionals can ensure that they are acting in the best
interests of their organizations and society as a whole. The CIPS code of conduct provides a framework
for ethical behavior that helps to prevent corruption, fraud, and other unethical practices.

In addition to providing guidance on ethical behavior, the CIPS code of conduct also serves as a
benchmark for procurement professionals. It sets out the standards that are expected of procurement
professionals and provides a means of assessing their performance.

Procurement professionals who adhere to the CIPS code of conduct are seen as trustworthy, reliable,
and ethical. They are more likely to be respected by their colleagues and clients, and are more likely to
be successful in their careers.

The CIPS code of conduct also helps to build trust and confidence in the procurement profession as a
whole. By promoting ethical behavior and best practices, it helps to enhance the reputation of the
procurement profession and encourages more people to consider it as a career.

Ultimately, the importance of the CIPS code of conduct lies in its ability to promote ethical behavior and
professionalism in the procurement profession. By adhering to its principles, procurement professionals
can ensure that they are acting in the best interests of their organizations and society as a whole, and
can build successful and rewarding careers

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How do organizations enhance and protect the standing of the profession (Procurement and supply)

Organizations can enhance and protect the standing of the procurement and supply profession in
several ways:
Develop and promote professional standards: Organizations can establish professional standards that
define the competencies, behaviors, and ethics expected of procurement and supply professionals. They
can also develop training and certification programs to ensure that professionals meet these standards
and maintain their knowledge and skills.

Encourage collaboration and knowledge sharing: Organizations can facilitate collaboration among
professionals and encourage knowledge sharing to improve the quality of procurement and supply
practices. This can be done through networking events, professional associations, and online
communities.

Advocate for the profession: Organizations can advocate for the procurement and supply profession by
promoting its importance and value to stakeholders. This can include educating senior executives,
policymakers, and the public about the role of procurement and supply in achieving organizational goals
and delivering value.

Monitor and address unethical behavior: Organizations can monitor the behavior of their procurement
and supply professionals and take action to address unethical or illegal conduct. This can include
establishing a code of conduct, conducting regular audits, and providing training on ethical behavior.

Embrace technology and innovation: Organizations can embrace technology and innovation to improve
the efficiency and effectiveness of procurement and supply practices. This can include using data
analytics, automation, and artificial intelligence to streamline processes and make better decisions.

By taking these steps, organizations can enhance the standing of the procurement and supply profession
and ensure that it continues to play a critical role in driving organizational success

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3.

How do organizations maintain the highest standard of integrity in all business relationships
Maintaining the highest standard of integrity in all business relationships requires a strong commitment
from the organization's leadership and a culture of ethical behavior throughout the entire company.
Here are some steps that organizations can take to ensure that they maintain the highest standard of
integrity in all business relationships:

Develop a Code of Conduct: The organization should develop a code of conduct that sets out the
expected ethical standards for all employees, suppliers, and partners. The code of conduct should be
based on the organization's values and principles, and it should be communicated clearly and regularly
to all stakeholders.

Provide Ethical Training: The organization should provide regular training to all employees, suppliers,
and partners on ethical behavior, including the organization's code of conduct and any relevant laws and
regulations. The training should be interactive and engaging, and it should provide practical examples of
ethical dilemmas that employees may face in their work.

Encourage Reporting of Ethical Concerns: The organization should encourage all stakeholders to report
any ethical concerns they have, and it should provide a safe and confidential mechanism for doing so.
The organization should also ensure that all reports are thoroughly investigated and that appropriate
action is taken.

Monitor Compliance: The organization should regularly monitor compliance with its code of conduct and
other ethical standards. This may involve conducting audits, reviews, or assessments of suppliers and
partners, as well as monitoring employee behavior and performance.

Lead by Example: The organization's leadership should lead by example and set the tone for ethical
behavior throughout the company. They should demonstrate their commitment to ethical behavior by
adhering to the code of conduct, providing support for employees who report ethical concerns, and
taking swift action to address any breaches of ethical standards.

By implementing these steps, organizations can maintain the highest standard of integrity in all business
relationships, which can help to build trust and credibility with stakeholders and promote long-term
success.

4.
How do organizations protect the eradication of unethical business relationships

Organizations can take several steps to protect themselves from unethical business relationships and
prevent their recurrence. Here are some ways they can do so:

Implement a Code of Ethics: A code of ethics outlines the organization's values, principles, and
expectations for ethical behavior. This code should be communicated to all employees and stakeholders,
and regularly reviewed and updated.

Conduct Due Diligence: Organizations should conduct due diligence on their business partners, vendors,
and suppliers to ensure they meet the organization's ethical standards. This may include conducting
background checks, reviewing financial records, and evaluating their social and environmental practices.

Monitor and Audit: Regular monitoring and auditing of business relationships can help detect unethical
behavior early on. This includes reviewing financial statements, conducting surprise audits, and
monitoring social media and other online channels for potential risks.

Provide Training: Organizations should provide regular training to employees and stakeholders on
ethical behavior, including how to recognize and report unethical behavior. This training can be in the
form of in-person training sessions, online courses, or webinars.

Enforce Consequences: Organizations should have clear consequences for unethical behavior, including
termination of business relationships and legal action if necessary. These consequences should be
communicated to all stakeholders and enforced consistently.

Foster a Culture of Ethics: A culture of ethics is created when an organization's values, principles, and
expectations for ethical behavior are integrated into every aspect of the organization. This includes
hiring practices, performance evaluations, and reward systems.

By implementing these steps, organizations can protect themselves from unethical business
relationships and foster a culture of ethics that helps prevent them from occurring in the future.
4. [email protected]

How do organizations enhance the proficiency and structure of the profession (Procurement and
logistics)

Organizations can enhance the proficiency and structure of the procurement and logistics profession by
taking the following steps:

Implementing Best Practices: Organizations should implement best practices in procurement and
logistics, including benchmarking against industry standards, staying up-to-date with new technology
and tools, and creating processes and procedures that ensure efficiency and effectiveness.

Investing in Training and Development: Organizations should invest in training and development
programs for procurement and logistics professionals, including opportunities for professional
certifications, continuing education, and on-the-job training.

Establishing a Career Path: Organizations should establish a clear career path for procurement and
logistics professionals, including opportunities for advancement and leadership development.

Leveraging Technology: Organizations should leverage technology to improve procurement and logistics
processes, including automation, analytics, and supply chain management software.

Collaborating with Stakeholders: Organizations should collaborate with stakeholders, including

Measuring Performance: Organizations should establish metrics to measure the performance of

By implementing these steps, organizations can enhance the proficiency and structure of the
procurement and logistics profession, which can lead to increased efficiency, effectiveness, and cost
savings. Additionally, investing in procurement and logistics can provide a competitive advantage by
improving supply chain performance, reducing risk, and improving customer satisfaction

5.

Discuss practically the relevance of Ethics in procurement and Supply

Ethics

Ethics, according to Merriam-Webster (2015), are about the fairness, justness, rightness, or wrongness
of an action. They are the set of moral principles, or values, that guide our behaviour. Ethical behaviour
plays a significant role in procurement because procurement influences and controls significant financial
resources by awarding purchase contracts. This may result in unscrupulous sellers trying to gain an
unfair advantage with buyers by offering kickbacks or other financial incentives.

One of the challenges surrounding ethics is that no international agreement exists about what
constitutes ethical behaviour on a global scale. For example, according to the Greek Reporter, the Greek
Parliament declared that the traditional method of passing bribes in small envelopes may not be
unlawful because they are a way of expressing gratitude for favours (Onti, 2013, para. 1). However,
passing bribes in small envelopes could result in a jail sentence in many countries.

Ethics plays a crucial role in procurement and supply management as it ensures that the procurement
process is fair, transparent, and sustainable. Here are some practical examples of how ethics is relevant
in procurement and supply management:

Supplier Selection: In the procurement process, ethics requires that the organization selects suppliers
based on objective criteria, such as quality, price, and delivery time, rather than personal relationships
or other unethical practices. This ensures that the procurement process is fair and transparent.
Conflict of Interest: Ethics requires that procurement professionals avoid any conflict of interest, such as
receiving gifts or favors from suppliers, or having financial interests in suppliers. This ensures that
procurement decisions are made objectively and without bias.

Fair Treatment of Suppliers: Ethics requires that suppliers are treated fairly and with respect, including
providing a clear and transparent bidding process, timely payments, and fair contract terms. This
ensures that suppliers are motivated to provide high-quality goods and services, and that the
organization has a sustainable supply chain.

Sustainability: Ethics requires that the organization considers the environmental and social impact of its
procurement decisions, such as choosing suppliers that have a positive impact on the environment,
support human rights, and provide fair labor conditions. This ensures that the organization is operating
sustainably and responsibly.

Confidentiality: Ethics requires that procurement professionals maintain confidentiality regarding

In summary, ethics in procurement and supply management ensures that the procurement process is
fair, transparent, sustainable, and free from any conflicts of interest. Practicing ethics in procurement
and supply management can lead to increased trust, integrity, and reputation, which can ultimately
benefit the organization's bottom line.

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