When should suppliers understand the purchasing organisation's ethical practices?

Understanding the purchasing organization's ethical practices at the bidding stage is crucial for suppliers. This is the point where suppliers assess not only the contractual obligations but also the values and principles of the organization they wish to partner with. If suppliers are aware of the ethical practices upfront, they can determine if they align with their own values and business practices, which fosters a more ethical supply chain. Moreover, presenting these practices during the bidding process creates transparency, allowing suppliers to be better prepared and to address any potential ethical concerns proactively.

This approach also encourages a competitive environment where suppliers who prioritize ethical practices can highlight their commitment, leading to a more responsible selection of partners. In contrast, waiting until after the agreement is signed or only learning during audits may lead to misalignment and potential conflicts in values that could jeopardize the partnership and overall reputation of both organizations.