Supplier code of conduct is a statement, a set of expected behavior of supplier and its staff if they wish to conduct business with a company. It is one of the company policies in procurement area to ensure desired level of quality of supplier and vendors. It may extend to the supply chain on how the supplier work with its suppliers to build trust and ensure compliance in whole supply chain.
- statement of the company’s expectations of its suppliers
- it serves as a tool to ensure that suppliers understand the company’s values and comply with them
- helps to protect the company’s reputation and security
What Supplier Code of Conduct typically includes
- Areas in which suppliers must comply to meet expectations
- Criteria that suppliers must meet
- Expectations for communication
- Principles how to handle confidential and proprietary information
- A process for auditing suppliers and a process for resolving disputes
- Consequences for not following the code of conduct, such as termination of the relationship