What is the purpose of a purchasing code and ethics?

• A. To maximize profits at any cost
• B. To make sure behavior is acceptable
• C. To enforce vendor contracts
• D. To determine price points for all items

Answer: (B)

Ethics in purchasing establishes the standards for how buyers should act to ensure decisions are fair, honest, and compliant with laws and company values. A purchasing code guides choices, helps prevent conflicts of interest, bribery, and favoritism, and promotes transparency and accountability in supplier relationships. This creates trust with vendors, protects the organization and its guests, and supports consistent quality and value. The focus is on acceptable conduct rather than outcomes, so it isn’t about maximizing profits at any cost, enforcing vendor contracts, or setting price points—those are separate functions. The code serves as a compass for everyday procurement decisions, ensuring integrity across all purchasing activities.