Title: Ethics in outsourcing of procurement: a case study in a professional services firm

Authors: Marcio Panassol; Gilmar Masiero

Addresses: Faculty of Economics, Administration, Accounting, and Actuarial Science, University of São Paulo, Brazil ' Faculty of Economics, Administration, Accounting, and Actuarial Science, University of São Paulo, Brazil

Abstract: Global economic changes have heightened competitiveness, prompting organisations to prioritise their 'core competencies' while seeking business partners to handle 'non-core' activities. This article presents a case study of a professional services firm that outsourced its procurement function, aiming to assess the need for and implementation of changes in its ethics and compliance program. The case study is organised into three sections: a review of relevant literature on ethics and procurement outsourcing activities; an examination of technical documents from the service firm; and interviews with three executives possessing practical experience in the field. Based on the literature review and empirical field study, it was observed that although there were appropriate changes in the firm's governance structure, no substantial modifications were made to the compliance and ethical program. The study underscores the importance of considering compliance and ethical programs when implementing changes, particularly in the context of the firm's governance structure.

Keywords: ethics outsourcing; make or buy; procurement outsourcing; professional services; core competencies; compliance programs; governance structures; supply chain resilience; risk management; overregulation; sustainable procurement; Brazil.

DOI: 10.1504/IJPM.2025.145894

International Journal of Procurement Management, 2025 Vol.23 No.2, pp.147 - 167

Received: 10 Dec 2023
Accepted: 17 Dec 2023
Published online: 30 Apr 2025 *

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