Driving Ethical Procurement and

Supply

Cath Hill
Group Director of Marketing and Membership

Leading global excellence in procurement and supply

Ethical Procurement and Supply
Horse meat in the supply chain

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Ethical Procurement and Supply
Human rights

FIFA World Cup

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Ethical Procurement and Supply
Poor working conditions

Rana Plaza

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Ethical Procurement and Supply
Slavery in supply chains

“It is all around us, hidden in plain sight. It is walking our

streets, supplying shops and supermarkets, working in
fields, factories or nail bars…
…slavery.”

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The Burning Platform
Ethics & Transparency Fraud
• 35.8m people are forced to live in slavery • Corruption adds 10% to the cost of
around the world today business and 25% to public procurement
in developing countries
• Every day 6,000 people around the world
die from work-related accidents or • More than US $1 trillion are paid in bribes
diseases annually

• Integrity in food and retail supply chains

is at a low low

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Ethical Procurement & Supply
CIPS Role

Educate the Educate the Inform the

Profession Public Debate

Licencing the Profession

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Educating the Profession

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Ethical Procurement and Supply
Code of Conduct - updated

Promote the eradication of unethical business practices,

by:
• Fostering awareness of human rights, fraud and
corruption issues in all my business relationships
• Responsibly managing any business relationships
where unethical practices may come to light, and
taking appropriate action to report and remedy them
• Undertaking due diligence on appropriate supplier
relationships in relation to forced labour (modern
slavery) and other human rights abuses, fraud and
corruption
• Continually developing my knowledge of forced
labour (modern slavery), human rights, fraud and
corruption issues, and applying this in my professional
life

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Ethical Procurement and Supply
Ethical Guides

10

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Ethical Procurement and Supply
CIPS Ethics E-Learning and Test – launched February 2014

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Ethics and Sustainability
Ethics mark and professional register

12

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Ethical Procurement and Supply
Corporates – collateral and online

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Ethical Procurement and Supply
Corporate ethical mark, usage guidelines and global register

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Educating the Public
CIPS Slavery in the Supply Chain Research hits the press

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Slavery in the Supply Chain - The Research
CIPS Surveyed 3,406 individuals between 2nd and 14th May including consumers,
senior business decision makers and supply chain professionals

This included:

459 CIPS members

588 senior business 2,359 consumers
at Manager level
decision makers polled by YouGov
and above

• The research was released to the media after the FT was offered an exclusive
opportunity – which they took.
• Timing of the release was chosen for maximum impact following the second
reading of the Modern Day Slavery Bill.
• Not only was the research topical it was underpinned by the call for licensing.

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Vital Statistics

72% of supply chain professionals admit to having no visibility of their

supply chains below the second tier

11% of business leaders believe modern slavery already exists in their

supply chain

Only 1/5 of supply chain leaders say that they can guarantee no malpractice
in their supply chains

51% admit that recent supply chain scandals* are not leading to risk being
taken more seriously
* Relates to horse meat scandal

Research Undertaken by You Gov plc and CIPS

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FT exclusive - Page 2
21st July

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Business Reporter – Daily Telegraph
23rd July

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Real Business
21st July 2014

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Supply Chain 24/7
23rd July 2014

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PYMNTS.com
23rd July 2014

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The Tablet
1st September 2014

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Informing the Debate
Modern Slavery Bill

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Consultation and Presence
Evidence given at Select Committee on draft Modern Day Slavery Bill in Feb
2014 and responded to consultation in May 2015

Attended Home Office Supply Chain workshops to inform the draft bill

Consultation with CIPS membership and CEOs to gain validation

Engagement with Karen Bradley MP Minister for Preventing Abuse and

Exploitation, Kevin Hyland OBE Anti-slavery Commissioner and Paul
Broadbent CEO Gangmasters Licensing Authority

CIPS CEO attended the signing of the Faith Leaders’ Universal Declaration
Against Slavery at The Vatican, December 2014

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Licensing the Profession
CIPS offers a pragmatic approach

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Ethical Procurement & Supply
CIPS Policy Statement

The procurement and supply profession must have a self-

regulated approach to licensing both to protect the public
good and to enhance and underpin its significance. We are
calling for:

• Clear and accountable corporate supply chain governance

• A clear focus on personal accountability through self-regulation by ensuring
individuals are ethically and professionally qualified personnel
• All enterprises/employers with a dedicated procurement and supply activity –
whether in the public or private sectors to self-regulate by ensuring the above
• Demonstration of a pre-determined level of competence and understanding that
should be continually updated
• All bodies representing the profession (NGO’s, professional institutes,
consultancies etc) to support this policy
• In order to protect the interests of the Profession, should any government wish to
introduce any form of procurement or supply chain legislation, CIPS as a global
independent professional body, would be willing to step up and act as the
appointed regulator if called upon

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Supply Chain Standard
22nd July 2014

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Leading global excellence in procurement and supply
CIPS / UNDP Announcement
As a profession we need to step forward and be accountable for our
actions. We can no longer accept inadequate procurement practices and
therefore we must ensure this profession is fit for purpose.

Professional
Procurement Licence

30

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Licensing the Profession Proposal

Self
Regulation
Regulation
Individual A Supply Chain Governance
Licence = MCIPS
Advanced Licence = Chartered
Standard that is auditable and
re-licensed each year, with What should this look like?
MCIPS as the compulsory • Self certification?
foundation for this • Advanced code of conduct?
• Ethics test?

Organisation A Supply Chain Governance

Standard that has to be
achieved each year
CIPS Certification and Advanced
CIPS will accredit to this Certification standards
standard

Others will be licenced to audit

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Licensing the Profession
Global The Journey
Standard ‘Professional Regulation’ Vehicles
Advanced Advanced Licence • Executive Diploma • MBAs

Other
CIPS
• Experiential
Professional Chartered • Corporate
(Masters level) Award –
Masters Level

Professional Licence • Professional Diploma • Accredited

Other
CIPS
• Experiential Degrees
MCIPS • Corporate Award – • CIP Inside
(Hons Degree level) Advanced business
Practitioner degrees

Managerial Pre-licence • Advanced Diploma

Other
CIPS
• Diploma

Operational • Advanced Certificate

• Certificate
Tactical • Ethics Test

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A Practical Solution
Issue – the scope of the problem can only be addressed through focussed and
effective accountability
Licensing: Alternative:
the practical approach the bureaucratic approach
All
companies Impractical
Sets a
required to as c10k Mass of
standard Staff are Sign up to
Processes supply huge suppliers at bureaucracy
that is trained and CIPS - the Others can accountabi-
are assessed amounts of all tiers for in trying to
measured by assessed to a independent provide the lities without
to that data on all SME and c1 show
CIPS – common regulator delivery etc. any real form
standard tiers of million plus compliance
an insurance standard of control
supply for major at all levels
policy
chains – too corporations
large

Let the appropriate individuals take Reporting without responsibility or

responsibility with accountability accountability
Solution – Licensing needs to be positioned as a credible and achievable alternative
to the bureaucratic approach

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Ethical Procurement and Supply
Contact us:

corporateethics@cips.org

Leading global excellence in procurement and supply