Ethical procurement strategies for International Aid Non‐Government Organisations

Abstract

PurposeThe objective this paper is to develop and describe a conceptual framework for collaborative Ethical Procurement Due Diligence (EPDD) between International Aid Non‐Government Organisations (IANGOs) in Humanitarian Supply Chains (HSCs). Second, to explore EPDD relationships with IANGOs, IANGOs and their suppliers, IANGOs and their suppliers' suppliers, donors, IANGOs and IANGO suppliers.Design/methodology/approachThe approach takes the form of qualitative research in the shape of a number of in‐depth interviews, and the collection of secondary information across 11 IANGO organisations with senior logistics and purchasing managers.FindingsSupply chain co‐opetition strategies are being enacted by IANGOs to explore the formulation of EPDD. Concerns surrounding ethical risk in HSCs differ from commercial supply chains (CSCs) in relation to NGO relationships with donors and supplier networks. EPDD by IANGOs beyond the first tier of suppliers in HSCs is limited to Lead IANGO(s).Research limitations/implicationsThe case study approach adopted restricts the generality of findings; however, the research explores ethical behaviour in a new direction, that of IANGOs in HSCs, and their relationships with donors and supplier networks. This has implications for the management of ethical risk strategies in HSCs.Practical implicationsThe paper determines barriers and enablers to collaboration between NGOs and as such assists in the process of developing risk‐rating systems for ethical procurement in NGO HSCs.Originality/valueThis is the first study to investigate the issues surrounding collaborative ethical procurement in IANGO HSCs, and associated ethical procurement risk management strategies in relation to donors and supplier networks.