Ethics in Purchasing

A recent article in Home Channel News gave us thought to “Do distributors, and for that matter manufacturers, have ethics policies for their purchasing departments and for their salespeople?”

The reason for the question can be found in this HCN article that highlights a kickback scheme that was uncovered by Home Depot. The company did no wrong but the article highlights the temptations that can be faced by purchasing agents. There are times that suppliers will do “anything” to get in the door or to remain as a preferred supplier. Nominal gifts can be acceptable, but what is the definition of “nominal”? Is an “entertainment” trip an opportunity to build a relationship or a vacation?

With manufacturers focused on capturing market share and customer purchasing agents driving for lower prices, there are times that the right decision may be made for the wrong reason.

We’re not inferring that there may be many bad apples, but, if Home Depot can be susceptible to kickbacks, could you?