Institute for Supply Management

Formerly the National Association of Purchasing Managers, the Institute for Supply Management (ISM) is the leading professional organization of PURCHASING and supply-chain MANAGEMENT professionals; the organization changed its name in 2002. The ISM’s mission is “to educate, develop, and advance the purchasing and supply management profession.” Established in 1915, the association has over 48,000 members, provides a variety of publications, and offers seminars, conferences, and two certification programs: Certified Purchasing Manager (CPM) and Accredited Purchasing Practitioner (APP). The ISM is most noted for its Purchasing Managers’ Indexes (PMI), which are based on surveys of purchasing managers around the country and recognized as important INDICATORS of economic activity. The PMIs include production, new orders and backlog of new orders, supplier, prices, inventories, new exports, and import of materials. Because purchasing managers are directly involved in production management and must order materials and supplies in advance of actual production activity, their assessments are good predictors of nearterm manufacturing activity. The ISM’s standards of supply-management conduct provide a number of valuable insights into ethical conflicts in business. Some of their standards include
• perceived impropriety—avoid the intent and appearance of unethical or compromising conduct in relationships, actions, and communications
• CONFLICT OF INTEREST—avoid any personal business or professional activity that would create a conflict between personal interests and the interests of the employer
• personal INVESTMENT—ownership of stock by a supplier of goods or services, competitor, or customer should be reported to the employer for review and guidance to avoid the potential for impropriety
• issues of influence—avoid soliciting or accepting money, LOANS, credits, or preferential discounts, and the acceptance of gifts, entertainment, favors, or services from present or potential suppliers that might influence, or appear to influence, supply-management decisions
• confidential and proprietary information—handle confidential or proprietary information with due care and proper consideration of ethical and legal ramifications and governmental regulations.