Four Legal Terms Regarding Ethics Procurement Professionals Should Review

ethicsEthics in procurement has been a hot topic for many years. Ethics is more than just what is right or wrong or what is legal or illegal. Your company’s ethical practices reflect the culture of your organization as a whole. Simply put it’s your organizations moral principles put in action.

Being ethical doesn’t mean you can’t be a firm negotiator or a make shrewd business moves. On the contrary, ethical negotiations provide organizations the high ground needed to operate in good faith.

Every Lean Practitioner in procurement should be aware and review periodically the main laws governing ethics in the workplace.

Disparagement – This refers to making statements of fact that are misleading or untrue regarding another company’s product or service. This is typically done to influence consumer not to buy the a competitors product.

Libel – Is published false statement that is damaging to a person’s reputation; a written defamation. The value of your reputations is highly valued in the United States and there are laws protection individuals and companies from defamation.

Slander – This is simply Libel in oral form. Libel is written defamation and slander is spoken defamation.

Bribery – Commercial bribery refers to giving of gifts, cash or other favors in return for business. Throughout the years rules on gifts and gratuities especially for governmental entities has tightened substantially. What used to be standard business practices may now be illegal. Be sure your company is up to date and familiar with the latest rules and regulations.

What are your thoughts regarding ethics in procurement? Do you any stories to share would you like to submit a guest post on any form of continual improvement? If so just let us know.

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