Brazilian Purchasing Executive Committee (CBEC)
Code of Ethical Behavior

Introduction
The code of ethical behavior of the Brazilian Purchasing Executive Committee is not intended to replace the already existent policies and practices of each company; however, it should serve as a complement to whatever is omitted therein. In the event of conflict with CBEC’s principles and recommendations, or uncertainty regarding its interpretation, the associates shall consult the Ethics Commission of CBEC.

Once an inappropriate behavior by an associate is evidenced, the CBEC may apply the penalty of notification, censure, suspension, or dismissal from the staff board, depending on the severity of the action and only after the assured wide defense right is granted.


General Principle
CBEC’s associates shall set the pace and inspire the actions of their subordinates, by means of an impeccable behavior when dealing with the interests of the private entity he/she works for, so purchasing professionals can be respected in the business community and seen by the overall society as practitioners of the highest ethical standards.


Code of Procedures and Recommendations
Exercising their professional powers, CBEC’s associates shall observe the following code of ethical behavior and recommendations, to wit:

1. It is not enough to be ethical and honest, it is vital to look as such. Situations, actions, and communications that may be seen as inappropriate or anti-ethical must be avoided, since this may consequently damage the professional reputation of the purchasing in the same way as if they had indeed been inappropriate or anti-ethical.

2. The main task of the purchasing professional is to get the best cost-effectiveness with each cent spent in the purchasing of products and services. In order to do so, in addition to the unrestricted loyalty to the company he/she works for, the associate must ensure that personal interests and friendships shall never interfere with the purchasing decision.

3. Suppliers must be treated as allies in the search of the most advantageous solution for both parties. It is imperative to promote a professional, impartial, and mutually respectful environment in the relationship with the suppliers, avoiding harmful favoritisms and ensuring the equality of conditions in the competition for the best proposal for products and services. Although long-lasting relationships with suppliers are acceptable, conditions must be ensured to keep the competitiveness in purchasing.

4. Throughout the business relation, the exchange of symbolic-value gifts and souvenirs is common, as well as the demonstration of appreciation and hospitality, such as business lunches, invitation for seminars, fairs, different kinds of events, etc. However, CBEC’s associates must avoid presents, invitations and favors that exceed the inherent value of mere courtesy and that may jeopardize his/her neutral judgment of such supplier’s products and services.

5. As Purchasing executives, the associates must improve the status of the profession by the continuous acquisition of new knowledge and skills in order to have his/her competency acknowledged in the market. Similarly, the associate is further responsible for alluring and keeping the best talents in the Purchase area and providing training, development, and inspiration to the new professionals under his/her command, so the category may stand out in the business sector and be respected by the strategic contribution to the company’s results.

6. Fulfilling laws, regulations, and rules must be part of the creed of the purchasing professional when exercising responsible citizenship. Associates must obey the Brazilian laws, international agreements, internal policies and rules of the company they work for, and agreements entered into with suppliers, so the businesses may be executed in an environment of confidence and observance of the rules.

7. When in doubt about suspicious or not clearly legitimate situations and businesses, the purchasing professional must share his/her concern with or seek advice from one of his/her superiors, CBEC’s associate colleagues or the Ethics Commission.

8. The reciprocity in business that may limit the competitiveness and the purchasing professional behavior itself must be avoided. In case said reciprocity is the result of superior orders, this condition must be duly documented to evidence the interference of this factor in the purchasing process.

9. The associate must restrain from any business or professional activity external to the company he/she works for that may create a conflict of interests. Even when involving relatives, the associate must forward the situation to the company’s Board of Directors in order to obtain a statement that there is no such conflict.

10. Upon the best cost-effectiveness analysis in the purchase process, CBEC’s associates must take into account the practices of the suppliers regarding the preservation of natural resources, support to assistance programs to the handicapped or physically impaired and the promotion of development and education opportunities to underprivileged children, avoiding purchasing from those that are against the society’s interests.

11. CBEC is a politically neutral entity and, therefore, its associates must avoid getting involved or associating the CBEC’s name with political parties or party politics. Any activity in that sense must be forwarded to the CBEC’s Board of Directors in advance.