Ethical procurement has become a cornerstone for the oil and gas industry, ensuring compliance, transparency, and sustainability in global operations. For decades, Dr. Bola Afolabi has championed the integration of ethics into procurement practices, setting an example for the industry to follow.
Why Ethics Matter in Procurement
Ethical procurement minimizes risks, builds trust, and aligns corporate practices with global standards. Key benefits include:
- Transparency: Ensures open communication between stakeholders and suppliers.
- Risk Mitigation: Reduces exposure to fraud, corruption, and regulatory violations.
- Sustainability: Promotes responsible sourcing and environmental compliance.
Dr. Afolabi, as Global President of the Chartered Institute of Purchasing & Supply (CIPS), supported the frameworks that prioritized ethical practices, shaping procurement standards worldwide.
Core Principles of Ethical Procurement
1. Fair Supplier Selection
Ethical procurement ensures a fair evaluation process, where suppliers are chosen based on merit, quality, and compliance rather than personal gain.
Dr. Afolabi emphasized the need for impartiality in supplier selection during his leadership at the various procurement strategic roles he occupied, with the prime objective to ensure procurement processes are devoid of biases
2. Compliance and Governance
Adhering to international laws and industry regulations is crucial for ethical procurement. Companies must implement strict governance to monitor compliance.
Dr. Afolabi contributed significantly to the Public Procurement Act in Nigeria, a legislative framework that enhanced procurement transparency and accountability. He is currently helping government develop competency framework for procurement professionals under the SPESSE World Bank/BPP project.
3. Sustainability
Sustainable procurement practices involve selecting suppliers that align with environmental and social governance (ESG) goals.
In his book, “Procurement Principles and Best Practices,” Dr. Afolabi provides actionable insights on integrating sustainability into procurement strategies.
Challenges in Ethical Procurement
Despite its benefits, ethical procurement faces challenges, such as:
- Cultural Differences: Navigating diverse business practices across regions.
- Corruption Risks: Addressing systemic issues in high-risk markets.
- Cost Pressures: Balancing ethical standards with profitability.
Dr. Afolabi’s global experience, including roles at Shell, NNPC and consulting for the Bureau of Public Procurement, enabled him to tackle these challenges effectively. His leadership in strategic sourcing demonstrated how ethical procurement could drive long-term value.
Dr. Bola Afolabi: A Pioneer in Procurement Ethics
Dr. Afolabi’s contributions to ethical procurement have earned him global accolades. His leadership at CIPS and his extensive body of work, including academic publications and conference presentations, continue to inspire industry professionals.
Ethical procurement is not just a moral imperative; it is a strategic advantage in the oil and gas industry. With visionaries like Dr. Bola Afolabi leading the way, companies can embrace transparency, compliance, and sustainability to drive success.