Example Form: Code of Ethics – purchasing and payments
This documents sets out the guidelines for employees involved in purchasing and payments, giving
guidance on the behaviour expected to maintain the reputation of the organisation.
Code of Ethics – purchasing and payments
Introduction
All members of staff must maintain their high reputation for ethical behaviour and fair dealing in the
conduct of their business.
In most cases, decisions as to what is ethical or fair are common sense and will be obvious to any
reasonable person. However, there may be situations where an element of doubt or ambiguity arises. To
help in these circumstances and to protect and guide members of staff, our organisation has produced a
written code of ethics.
It is not possible to provide for every situation in the code of ethics. If there is any doubt about the probity
of any particular situation, the Head of Risk Management should be consulted about that situation by the
individual concerned.
Scope
The Code of Ethics applies to all members of staff engaged in purchasing and payments, including those
involved in advisory and decision making capacities.
It will make sure staff never use their authority of office for personal gain and shall seek to uphold and
enhance the reputation of the organisation by:
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Maintaining the highest standard of integrity in all their business relationships both inside and
outside the organisation;
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Encouraging the highest possible standards of professional competence;
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Optimising the use of organisation resources, for which they are responsible;
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Complying both with the letter and spirit of the law of the country and such guidance on
professional and regulatory practice issued from time to time.
Principles of the Code of Ethics
The guiding principles of the Code of Ethics can be summarised under five headings:
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Declaration of Interest;
Confidentiality and accuracy of information;
Legality;
Competition;
Gifts and Hospitality.
Declaration of Interest
Any personal interest that might impinge or might reasonably be deemed by others to impinge on a
member or a member of staff’s impartiality in any matter relevant to his or her duties should be declared.
Page 1 of 3
Example Form: Code of Ethics – purchasing and payments
This documents sets out the guidelines for employees involved in purchasing and payments, giving
guidance on the behaviour expected to maintain the reputation of the organisation.
Where a conflict of interest situation could arise for an employee, he/she must desist from dealing with the
contract giving rise to that situation, and may not attempt in any way to influence the decision on the
matter.
Confidentiality and accuracy of information
The confidentiality of information received in the course of duty should be respected and should never be
used for personal gain. Information given in the course of duty should be true and fair and never be used
for personal gain or designed to mislead.
Legality
In order to ensure that the employing authority complies in its business dealings with the laws the land,
staff are required to:
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Fulfil all regulatory and supervisory obligations imposed in relation to work carried out;
Co-operate with relevant regulatory and supervisory bodies;
Avoid false, inaccurate and misleading entries in records;
Ensure that all relevant legislation is upheld;
Encourage effective and fair competition at all times;
Comply with all purchasing and tendering procedures and with prescribed levels of authority for
sanctioning any relevant expenditure; and,
Avoid engaging in any illegal or criminal activities.
Competition
While bearing in mind advantages to staff maintaining a continuing relationship with a supplier, any
arrangement which might in the long term prevent the effective organisation of fair competition, should be
avoided.
Gifts and Hospitality
It is customary for many suppliers to offer gifts, hospitality or entertainment to named pharmacy
employees with whom they have contact as a result of business dealings.
Gifts
Employees may accept gifts from suppliers or partners, provided:
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The gift is unsolicited;
The gift is one of small intrinsic value (e.g. diary, calendar, bottle of wine/spirits etc.)
In all other cases, the gift should be returned to the sender, with a note advising that acceptance would be
contrary to the Association’s policy. Details of returned gifts must be notified at once to the recipient’s
superior.
Sponsorship requested has to be, either directly or indirectly, in the interest of the organisation and
documented accordingly, with no positive gain to be had on behalf of the individual seeking sponsorship;
any such sponsorship must be within local protocols or guidelines.
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Example Form: Code of Ethics – purchasing and payments
This documents sets out the guidelines for employees involved in purchasing and payments, giving
guidance on the behaviour expected to maintain the reputation of the organisation.
Hospitality
Appropriate hospitality may be accepted, provided:
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The frequency and scale of the hospitality is not more than the employing authority might be expected to
give in return.
The numbers of staff availing of the hospitality is appropriate to the purpose of the event e.g. conference or
meeting.
Invitations, which include offers of payment or part payment of registration fees and the provision of travel
or overnight accommodation, are associated with participation in conferences or seminars.
Availing of the hospitality does not identify the organisation in a public way with any particular supplier or
contractor.
When it is not easy to decide between what is not acceptable in terms of gifts or hospitality for educational
purposes, the offer should be declined or advice sought from the employee’s superior.
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