What process helps procurement professionals ensure they do not commit an offence and that suppliers are ethical?

The process that helps procurement professionals ensure they do not commit an offence and that suppliers adhere to ethical standards is due diligence. Due diligence refers to the comprehensive appraisal of a business or individual prior to entering into a contract or agreement. In procurement, this process includes assessing a supplier's business practices, compliance with laws, ethical standards, and overall reliability.

Through due diligence, procurement professionals gather relevant information about potential suppliers, such as their financial stability, past business conduct, adherence to regulations, and ethical behavior. This proactive approach minimizes risks associated with fraud, corruption, and unethical practices, ensuring that the procurement process aligns with legal and ethical standards.

While market analysis, supplier evaluation, and risk assessment are all important components of the procurement process, they do not specifically encompass the thorough scrutiny of suppliers needed to verify their ethical standing before establishing a business relationship. Due diligence provides a focused methodology to investigate suppliers and maintain integrity in procurement practices, ultimately safeguarding the organization from potential legal and reputational damage.