Procurement’s diversity and threat equation
Procurement professionals need to protect their businesses from the growing legal risk of third party corruption. Meanwhile, virtually all “diversity” suppliers meet or exceed expectations.
Revelations in a recent survey that only half of multinational businesses carried out basic corruption checks on third parties last year prompted a stern rebuke from David Noble, group CEO of the Chartered Institute of Procurement and Supply (CIPS).
In a new report, he notes that new laws continue to make companies increasingly liable for third parties’ acts of corruption or bribery, thereby placing added pressure on businesses to conduct the right due diligence on their partners. However, while low levels of investigation in large businesses are disappointing, they may not be surprising, says Noble.
“A licensing approach to procurement and supply will begin to ensure the right structures are in place to enable this to happen, with the attendant law of consequence that the license will be lost if malpractice is discovered,” he advises.
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Revelations in a recent survey that only half of multinational businesses carried out basic corruption checks on third parties last year prompted a stern rebuke from David Noble, group CEO of the Chartered Institute of Procurement and Supply (CIPS).
In a new report, he notes that new laws continue to make companies increasingly liable for third parties’ acts of corruption or bribery, thereby placing added pressure on businesses to conduct the right due diligence on their partners. However, while low levels of investigation in large businesses are disappointing, they may not be surprising, says Noble.
“A licensing approach to procurement and supply will begin to ensure the right structures are in place to enable this to happen, with the attendant law of consequence that the license will be lost if malpractice is discovered,” he advises.
About the Author
Patrick Burnson, Executive Editor Mr. Burnson is a widely-published writer and editor specializing in international trade, global logistics, and supply chain management. He is based in San Francisco, where he provides a Pacific Rim perspective on industry trends and forecasts. He may be reached at his downtown office: [email protected].Subscribe to Supply Chain Management Review Magazine!
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