SUPPLIER CODE OF CONDUCT
Every successful company that has made it to the top 500 fortune company has a supplier code of conduct that is well structured and adhered to by all the suppliers and their allies for the effective supply of the company’s products. Amazon company has made it to the top ten of the listings at position 8.amazon has embraced some of the following codes that has contributed to the success of all its operations all through the recent years.
1) Conflict of interest
Whenever a private interest arises, the company’s interest is first considered because the company’s interest must always come first for the well being of the business or its clients. Amazon supplies must in all means try to avoid all real, apparent or potential conflicts between individual ,personnel’s or the organization itself that may consist of their supply chain and the interest of Amazon and also their customers.( Jones,2010).
2) Money laundering
This involves any act that identifies itself to have come from a genuine source to acquire illegal proceeds by concealing or disguise. Amazon suppliers must avoid their organizations from being used for money laundering. This is done by putting in place money laundering control regulations. For example, undertaking identity checks on the valuable owners and checking the source of all funds so as to avoid exploitation by criminals.
3) Modern slavery
This is whereby a person’s independence is ignored by another in order for them to toil for the benefit of the other person gain individually or cormacially.Modern slavery includes servitude, slavery, forced and compulsory labour, child labour, early and forced marriage and human trafficking among many others that deny the free will of the people working in or around any business.
4) Anti competitive behaviour
This are business practices that avert free and fair competition which include, price fixing, cover pricing, bid rigging and market sharing. Amazon Company is committed to a free and fair competition and it is the obligation of all its suppliers to follow the same measure and adhere to this code of conduct. Failure to do so will compromise the supply chain embraced by Amazon.
5) Public sector
This is the part of the economy that is controlled by the state. This code comprises of the international government organizations such as the World Bank, the United Nations development programme and the European bank for reconstruction and development, as well as national state, local and provincial government, government agencies and departments. Amazon focuses on the provisions of the public sectors which their suppliers must also stick on to the same code of conduct so as to avoid any quarrel with the state.
This is an offer or reward that is provided to an individual or organization by another party who will gain in any way through the act. Amazon is against this act for it is dishonourable, therefore the suppliers are subject to reject any act of buying-off from any party that will offer a bribe in Oder to gain something in return either in person or commercially.
This is a situation whereby an individual or organization obtains a benefit dishonestly which in return causes loss to another person or the organization. It does not mean that fraud comes with financial gain by the individual(s) involved but also leads to the ruin of the reputation and financial hitch of Amazon and all its clients.
Corruption involves the abuse of entrusted power to obtain an advantage through the means that are illegitimate, wicked and not in the ethic of work without the consideration of one’s obligation and the rights of others in the organization. Amazon disregards this act either done deliberately or without awareness. Any supplier that use corrupt means for the benefit of his own personal interest or the organization will be subjected to lawful punishment and distortion of the contract.
These are the people who handle Amazon operations and work on their behalf. They include all those folks who work for the benefit of the Amazon Company; they consist of interns, paid and unpaid employees, consultants and board members. (Jennings, 2014).
10) An approach with zero tolerance
This approach is applied without any or even minimum exception and despite mitigating or extenuating factors, except in the case of established legal defences.
CHANGES MADE BY AMAZON
Change is inevitable since at a point in any organization it has to be made. Amazon Company has been over the years making steps o improve its productivity and increase its profit margin. This is mainly one through embracing several changes that are very crucial for the growth of the company. The suppliers play a major role in its operations and it is by this, Amazon chose to change some of the supply codes for effective operation and minimal loss and maximum profits. Conforming to a new change has never been easy but with Amazon flexibility change is a way of exploration and success of most of its endeavour. They believe that it is better to try and fail than to fail to try at all. During the recent years the company has embraced the following outlined changes that I believe worked and became a total success: (Christopher,2016).
- Observation of the code compliance
- Strict regulation on cases related to fraud, corruption and bribery
- Record keeping and editing
- Gifts and hospitality
I. Observation of the code compliance
The contents in this document contain the treaty between Amazon and Amazon suppliers. All the suppliers under the Amazon Company must adhere to under no obligation of excuse or resistance.
For example, all the Amazon suppliers must ensure they match to all the stipulated national and international laws, rules and codes of operation in the countries in which they operate. If there is no present local legal requirement or it is not comprehensives required in this code, all Amazon suppliers must comply with this code.
All the supplies under Amazon must put down well documented and formulated policies and procedures which meet the needs of this code so as to encourage best practice and function of the organization.
Failure to follow the above code will be termed as a breach of contract and the suppliers who will not adhere to this will lead to the cessation of the correlation they have with Amazon. (Savitz, 2013).
II. Fraud corruption and bribery
Amazon encourages all its suppliers to avoid any act that is unscrupulous prior to its code of straightforward operations. All supplies are required to report any act of fraud, corruption or bribery immediately to the Amazon. For example, any effort of this must be recorded during the communication so as to liberate the Amazon suppliers from closure and the long arm of the government.
Amazon is always after sustainability and requires the same from their suppliers. For example, the suppliers must always aim at engaging their activities towards minimizing the effect on the environment and are expected to put methods of processing that favour the surroundings and encourage the continuation of the supply chain.
IV. Record keeping and editing
All Amazon suppliers are required to keep high-quality records of all their transactions and all documentations for a period of seven years from the date the work ceased or a later date as required by Amazon or any appropriate laws and regulations.
For example, under no circumstance can the supplier destroy records without prior notification to the Amazon Company. When notified, Amazon suppliers must grant Amazon permission to go through all their account, records and other related documentations for their job for Amazon and to give way for the appointed Amazon auditors upon request.
V. Gifts and hospitality
Any offerings and hospitality should not be given or received by Amazon suppliers which may be in return to give favours and first priority. For example, all suppliers are required to record the gifts and hospitality received in a register of interests. Also the suppliers must give Amazon permission to scrutinize their register of interests.
To some point complaints are made to the suppliers. When this condition occurs all the Amazon suppliers will be required to report the complain to Amazon within two working days after they receive a complain. They are not allowed to respond to any complain without notifying Amazon.
For example, the suppliers must receive a go ahead from Amazon to respond to the complain. Amazon also has formulated a helpline whereby any complains about their codes of conduct can be reported.
The stipulated codes of conduct are very vital for the success of Amazon. Making it to the top has not been an easy task, but through the loyalty of the suppliers success has become their portion in the recent years and they are always on their toes to keep the record and maintain a steady supply of its products aiming at customer satisfaction. Every challenge has been faced head on and always there is a solution to every problem it only takes good courage and prowess of a business mind to handle any when it arises.
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- Dr. Mutinda Jackson (Author), 2017, Supplier Code of Conduct exemplified by Amazon, Munich, GRIN Verlag, https://www.grin.com/document/437930