Code of Conducts

Table of Contents:

Abstract:

Supply managment professionals needs to subscribe to a set of ethical pricinples and standards to make decisions and actions by the groups and individuals. The standards are guidelines for use by all the supply managers or people influence the supply chain.

Standards are the model for consideration for an organization and they don't supplant the policies.

These standards are responsibility of every supply management professional to adhere and strive for. Organizations are encouraged to develop, publish and enforce a policy that supports standards and principles. Policies and procedures need to be transparent, clear and enforceable. Employees inside and outside the supply organization with the suppliers should share the ethics policy along with an on-going comprehensive training.

The standard guidelines booklet should provide information for handling day-to-day difficult matters but it cannot cover every situation, or nuance, and don't take the place of sensitivity of other cultures, laws, customs, practices and good judgment. In such situation, employees should consult with management and colleagues.

Standards:

1992 Standards

From these principles are derived the ISM standards of purchasing practice. (Global)

1. Avoid the intent and appearance of unethical or compromising practice in relationships, actions, and communications.

2. Demonstrate loyalty to the employer by diligently following the lawful instructions of the employer, using reasonable care and only authority granted.

3. Refrain from any private business or professional activity that would create a conflict between personal interests and the interests of the employer.

4. Refrain from soliciting or accepting money, loans, credits, or prejudicial discounts, and the acceptance of gifts, entertainment, favors, or services from present or potential suppliers that might influence, or appear to influence, purchasing decisions.

5. Handle confidential or proprietary information belonging to employers or suppliers with due care and proper consideration of ethical and legal ramifications and governmental regulations.

6. Promote positive supplier relationships through courtesy and impartiality in all phases of the purchasing cycle.

7. Refrain from reciprocal agreements that restrain competition.

8. Know and obey the letter and spirit of laws governing the purchasing function and remain alert to the legal ramifications of purchasing decisions.

9. Encourage all segments of society to participate by demonstrating support for small, disadvantaged, and minority-owned businesses.

10. Discourage purchasing's involvement in employer-sponsored programs of personal purchases that are not business related.

11. Enhance the proficiency and stature of the purchasing profession by acquiring and maintaining current technical knowledge and the highest standards of ethical behavior.

12. Conduct international purchasing in accordance with the laws, customs, and practices of foreign countries, consistent with United States laws, your organization policies, and these Ethical Standards and Guidelines.

2002 Standards

From these principles are derived the ISM standards of supply management conduct.

1. Avoid the intent and appearance of unethical or compromising practice in relationships, actions, and communications.

2. Demonstrate loyalty to the employer by diligently following the lawful instructions of the employer, using reasonable care and granted authority.

3. Avoid any personal business or professional activity that would create a conflict between personal interests and the interests of the employer.

4. Avoid soliciting or accepting money, loans, credits, or preferential discounts, and the acceptance of gifts, entertainment, favors, or services from present or potential suppliers that might influence, or appear to influence, supply management decisions.

5. Handle confidential or proprietary information with due care and proper consideration of ethical and legal ramifications and governmental regulations.

6. Promote positive supplier relationships through courtesy and impartiality.

7. Avoid improper reciprocal agreements.

8. Know and obey the letter and spirit of laws applicable to supply management.

9. Encourage support for small, disadvantaged, and minority-owned businesses.

10. Acquire and maintain professional competence.

11. Conduct supply management activities in accordance with national and international laws, customs, and practices, your organization's policies, and these ethical principles and standards of conduct.

12. Enhance the stature of the supply management profession.

2005 Standards

1. Avoid the intent and appearance of unethical or compromising practice in relationships,

actions and communications.

2. Demonstrate loyalty to the employer by diligently following the lawful instructions of the

employer, using reasonable care and granted authority.

3. Avoid any personal business or professional activity that would create a conflict between

personal interests and the interests of the employer.

4. Avoid soliciting or accepting money, loans, credits or preferential discounts and the

acceptance of gifts, entertainment, favors or services from present or potential suppliers that

might influence, or appear to influence, supply management decisions.

5. Handle confidential or proprietary information with due care and proper consideration of

ethical and legal ramifications and governmental regulations.

6.