Committing to Procurement Integrity.

• Author: Caulfield, Tom
• Position: Ethics Corner

Who owns the commitment to procurement integrity in a contractor's organization? Traditionally, research and regulations place the requirements at the doorway of the executives as their tone carries throughout the entire workforce.

However, employees have an individual responsibility to follow the organization's established policies, procedures and processes designed to provide reasonable assurance towards achieving and maintaining fair, honest and legal contracting. So, is it then not logical to believe they also share responsibility in the organization's commitment to procurement integrity?

Ernest & Young's "14th Global Fraud Survey," reported that of the 2,825 global executives surveyed, nearly half--42 percent--were willing to justify unethical behavior when under pressure to meet financial targets. The survey further reported that 10 percent would make a cash payment--in other words, a bribe--to win or retain business in an economic downturn, and 7 percent would be prepared to backdate contracts that would falsely show revenue. Unethical behavior is not limited to those executives in the boardrooms running the company, it can be found at all levels from first-line managers to supply-chain workers.

Regardless if it's the CEO, the director of contracts, or a single employee working the production line, an individual's ethical behavior is influenced to a large part by the moral character of the person and the environment in which they work and live. It is the responsibility of the organization's leadership and management, regardless of its size, to invest reasonable resources and time in ensuring an ongoing culture of ethics and integrity for employees to learn from and work within.

The National Defense Industrial Association has an expectation of its members to implement a formal company ethics program that includes a written code of conduct; to communicate institutional values and expectations; and to guide employees and management in their decisions and conduct.

For those in leadership working within the procurement office, whether in the corporate or public sector, no single element has more influence on the workplace's ethical behavior than a clear, visual, demonstrated direct commitment to ensure fair, honest, impartial and legal contracting. That means procurement management should require adherence, reinforce and periodically articulate the organization's code of conduct and expectations of ethical behavior in all contracting...