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Use a Partner Code of Conduct to Set Clear Expectations for Contractors and Subrecipients

due diligence efficiency partner code of conduct responsible contractors Oct 30, 2024
Partner Code of Conduct

A Partner Code of Conduct (PCC) is a powerful tool your organization can use to maintain productive, ethical, and compliant relationships with contractors, subrecipients, and other third-party partners.  From protecting your reputation to improving the quality and reliability of your relationships, a code of conduct provides clear guidelines and standards for your partners to follow.


A PCC is also a great tool to help communicate funder and regulatory expectations to your partners, covering important expectations regarding compliance with procurement standards, labor laws, and data protection.  


If you’re considering implementing a partner code of conduct in your organization, this blog’s for you. In it, I break down:

  • What a partner code of conduct is
  • The benefits of having one
  • 6 key sections you’ll want to include
  • How to communicate your PCC to your partners

Let’s get started.


What is a Partner Code of Conduct?


A partner code of conduct is a set of guidelines and standards your organization outlines for your partners regarding expectations for responsible and ethical business practices. A partner code of conduct aims to ensure that your partners operate in a manner that aligns with your organization’s ethical principles and values. 


The PCC provides:

  • Framework for what your organization expects from your third-party partners, such as vendors, contractors, and subrecipients, 
  • Vehicle for you to communicate those expectations, and
  • Standards you can use to monitor partner compliance with your code of conduct.


Benefits of Having a Partner Code of Conduct


Implementing a PCC is beneficial for both you and your partners. The benefits to your organization include:

  • Trust: A partner code of conduct helps to build trust with your constituents, stakeholders, and the broader community, as it shows you are committed to working with partners who share your own ethical values and principles.
  • Improved Partner Relationships: A PCC helps ensure that you and your partners are aligned on core principles, allowing you to build transparent and accountable relationships.
  • Compliance: Your organization wants to ensure your partners comply with applicable laws and regulations. A PCC helps to ensure that partners are aware of your expectations and their legal obligations due to  their relationship with you.
  • Social Responsibility: More and more organizations are integrating social responsibility into their operations – and those responsibilities flow down to their partners. A PCC helps you communicate and promote practices that are consistent with your own social responsibility goals. 

 

What to Include In Your Partner Code of Conduct


The specific contents of a partner code of conduct vary from one organization to the next.  It’s critical to tailor your PCC to align with your organization’s ethical standards and industry requirements. 


With that said, common areas that are typically covered include:

  1. Business Integrity: Standards for ethical business practices, including anti-corruption, anti-bribery, and transparency.
  2. Compliance: A commitment to compliance with applicable laws and regulations, including those imposed by your funders.
  3. Environmental Protection: Requirements for responsible environmental practices, including reducing waste and minimizing the impact of operations on the environment.
  4. Health and Safety: Standards for promoting and protecting worker health and safety, including requirements for safe working conditions and adequate training.
  5. Labor and Human Rights: Requirements and standards for fair labor practices, non-discrimination, and respect for human rights, including freedom of association, child labor, and forced labor.
  6. Implementation and Communication: Expectations for how the partner will communicate the code of conduct within their organization.



A well-written PCC should also address what happens if the partner doesn’t comply, including process changes, training, or possible termination of the business relationship.


How to Communicate Your Code of Conduct to Partners


A best practice is to communicate your partner code of conduct, in writing, during your risk assessment process (pre-contract). This ensures that partners know your expectations before signing a contract and allows you to perform diligence on the partner to ensure they have the necessary policies and controls in place to comply with the PCC.


It’s also important to communicate your PCC periodically to refresh partners on your expectations and to inform them of any changes. This can be done as part of a general communication or as part of your periodic due diligence process. Many organizations also post their partner code of conduct publicly on their website or through a secure partner portal.


Final Thoughts


Overall, the key to effectively communicating the partner code of conduct is to ensure that it is clear, concise, and accessible to all partners, and to reinforce the importance of compliance through training, monitoring, and enforcement.


If you’re interested in creating and implementing a Partner Code of Conduct for your organization, Contact Us to learn how we can help.

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