ARE SUPPLIER CODES OF CONDUCT EQUITABLE? | The Equity Connection

Organizational leaders spend their time, talent, and treasure living out their mission and protecting their brand. That’s why it’s important to spend time getting to know the suppliers who provide products and services. In addition to building a relationship with suppliers, many organizations have implemented a Supplier Code of Conduct, a set of guidelines and principles that outlines the company’s ethical and business expectations for its suppliers, vendors, contractors, and other business partners. It serves as a framework to ensure that all parties involved in a business relationship adhere to certain standards and behaviors. The goal is to promote responsible and sustainable practices throughout the supply chain, mitigate risks, and enhance the company’s overall reputation.

Ironically, those companies have their own mission, brand, recruiting practices, and supplier diversity goals. Is it equitable to ask them to align with yours or does that create exclusion? Let’s unpack the contents of a Supplier Code of Conduct and the expectations to help us make a decision.

Content	Supplier Expectations
Compliance	Follow all applicable laws, regulations, and industry standards in the footprint of the contractual agreement.
Ethics	Conduct business with integrity, honesty, and fairness, avoiding bribery, corruption, and conflicts of interest.
Labor	Treat employees fairly and with respect. No forced labor or child labor. Employees’ right to freedom of association (interact with and organize among themselves to collectively express, promote, pursue, and defend common interests.
Sustainability	Demonstrate commitment to environmentally responsible practices, waste reduction, and resource conservation.
Health and Safety	Provide a safe working environment for employees and visitors, focusing on accident prevention and adherence to health and safety regulations. Ensure the safety of the product or service.
Data Privacy and Security	Protect sensitive or personal information and comply with data protection laws.
Quality	Adhere to agreed-upon quality standards.
Responsibility	Extend applicable aspects of the Supplier Code of Conduct to their own suppliers and contractors.

Organizations may conduct audits, evaluations, and assessments to ensure that suppliers are following the Supplier Code of Conduct. Be sure to build this into the Master Service Agreement and/or Statement of Work where applicable. It’s also important to include the actions your organization will take if any violations are found (e.g. corrective action, termination of the business relationship, etc.). The actions should be aligned with the severity of the non-compliance.

Considering what we’ve learned about a Supplier Code of Conduct, it’s definitely not exclusionary. And just to be sure, some organizations have implemented or connected suppliers to programs and resources to help them obtain what they need to align with the code. Does your organization have a Supplier Code of Conduct? Are you a supplier who has experience aligning with another organization’s code of conduct? If so, we’d like to hear about your experience.

Sherrice Thomas 
Vice President of Diversity, Equity, Inclusion & Access
SherriceThomas@columbus.org