Ethical Procurement: What is its Importance?
What is Ethical Procurement?
The best way to understand ethical procurement is to define it as a process of evaluating and understanding the whole gamut of issues that may have a bearing on the sustainability and ethics-related targets of the organization. Ethics in procurement specify organizations' adherence to environmental, social, and legal ethics.
Ethical procurement is crucial in defining a company’s code of conduct based on social obligations, responsibilities, and expectations. Most companies undertake a comprehensive approach to ethical procurement to ensure that all unethical practices have been eliminated from their operations.
For example, sourcing raw materials from cartels or paying bribery to get a preference over others can cause considerable damage to the organization's reputation and standing.
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