FOCUS TODAY - January 2002

Purchasing Ethics...

Does your club have a written policy covering the behavior of both employees and suppliers when buying decisions are made? While a club may expect those responsible for purchasing to act honestly and to the benefit of the club, too often those expectations are vague and undocumented. Here is how one club detailed its policy in a letter to suppliers:

Dear Vendor,

Our club requires that all of its employees and agents, including those authorized to purchase for the club, conduct themselves professionally in all business dealings and comply with the law and the highest ethical principles. This will ensure the highest level of objectivity while maintaining fair and consistent business practices.

Our relationship with our vendors, suppliers, contractors and consultants have been very good. This is due, in part, to the open communication we have had with all of you. As such, it is important that you understand the club�s internal ethical standards, which govern our employees and agents when dealing with vendors, suppliers, contractors and consultants.

It is company policy to:

a)      Make buying decisions based on the club�s best interests by keeping employees and agents free from favors or bias.

b)      Promote open and fair competition among qualified vendors, suppliers, contractors and consultants.

c)      Buy without prejudice, seeking to obtain maximum value for each dollar expended.

d)      Ensure that goods and services are fully received, cared for and properly used.

The club�s employees and agents (and members of their immediate families) are forbidden from seeking or accepting, directly or indirectly, anything of value from any vendor, supplier, contractor, consultant or other person or company, as a condition or result of doing business with the club. This includes payments, fees, gifts, loans, services or other things of value, which could influence or appear to influence the purchasing or contracting decisions of the club

The club expects that our vendors and others with whom we do business will assist us in ensuring that these standards are always met by also fully complying with these policies when dealing with club employees and agents. The club will cease to do business with vendors, suppliers, contractors or consultants who willfully violate these policies.

We believe these policies will help ensure that purchasing and contracting decisions of the club will remain independent, objective and fair, and that this will ultimately benefit both the club and you.

Very truly yours,

The Club Controller