13. Procurement & Contracting
Best Practice Guidelines
Commit to fair trading: The code of conduct should state that the company is committed to integrity and will operate transparently and fairly in its business dealings. This commitment and the policy of zero tolerance of bribery should be made clear to third parties. This will enhance the reputation of the company, set the tone for the bidding process and, over time, deter demands for bribes.
Demonstrate your commitment: When awarding contracts, the company should communicate and demonstrate that its contracting and purchasing procedures are carried out in line with this commitment.
Assess the risks: The procedures for tendering and contracting should be examined rigorously to identify areas where there is risk of bribery and improvements should be made, such as strengthening of monitoring systems, and controlling rush orders or order changes which heighten the risk of bribery.
Monitor: Check for evidence of bribery or red flags during contract negotiations and in the contract implementation phase (it is in this phase that bribery typically takes place). Software can be used to monitor for red flags, such as unusual financial patterns or employees that are reluctant to take holidays (and hand over contractor relationships to colleagues).
