A person working in procurement must be responsible. If so, they will try to achieve things that seem impossible. If they fail, then it really isn’t possible – said Denis Miletović, the procurement director at Rand Shipyard, at the 17th Leader’s Procurement Conference, explaining in a unique way what his workday looks like.
– I often felt in my career like I was playing Space Invaders. You are attacked from all sides, you solve all these problems, but it is inevitable that sooner or later you will encounter a challenge that you cannot overcome.
The crucial moment is when we decide what kind of culture we will create in our organization. When an employee is hit by challenges, we must decide whether to beat them while they are down or to extend a hand, lift them up, and say: let’s move forward together – said Miletović.
The line between a bribe and a business gift is thin.
A person learns quickly and applies their knowledge at the same speed, which makes us feel confident. However, the more we learn, the less confident we become because we realize how little we actually know, he added.
– I worked at a trade fair and a potential client asked me for red polo shirts. I jumped into action, researched options, and put together the best possible offer and went to that director with it. He took my red shirts and threw them on the floor. ‘I asked for Ferrari red,’ he told me. In short, I returned soaked to my office and decided to give him the contact of the best manufacturer where he could find the desired shade. The conclusion of this story is that I never accepted an offer where everything was not crystal clear again – said Miletović.
He also explained that in the business world, there is a thin line between a bribe and a business gift.
– In any case, inform your superior, because if you remain silent, then it is a bribe and the supplier has leverage against you. I received a business gift worth more than 500 kuna and I informed my superior, and once I even received a whole prosciutto. I told my superior, and he replied: ‘Okay, now you will treat the team.’ With my own money, I bought cheese, cucumbers, bread, and juice, so that prosciutto ended up costing me a lot – he said, emphasizing that we must always be honest in business, even if it costs us.
– If we want to manage change, we first need to change ourselves. All the tasks we solve day by day ultimately come down to people. Take care of your employees, look after them, and reward their efforts. They will reward you by improving your business – concluded Miletović.
Procurement departments are the most at risk for corruption.
In a world of constant change, companies must also demonstrate their compliance with regulations, known as compliance, including in procurement, which is considered a sector highly at risk for corruption.
Silvija Vig, owner of CODUPO Compliance for compliance, anti-corruption, ethics, and integrity, explained at the Leader’s Procurement Conference what lies behind compliance in procurement and why compliance officers often tend to question and be demanding.
– Compliance tells us what we should do in business and provides us with answers to the question of what the rules of regulation are that we must follow in business. Unlike compliance, ethics gives us answers to the question of how to implement what is prescribed by law or regulations.
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Mandatory regulations (laws), as well as what the company agrees upon through various contracts or internal rules established within the system, must be aligned. All rules that are accepted and internally prescribed within the organization must be respected. The clauses adopted by contract are those that protect the business from corruption, fraud, and false spending of money – explained Vig, emphasizing that procurement must consider the welfare of the entire chain, not just suppliers but also subcontractors.
In Croatia, there is no special law for the implementation of anti-corruption programs, but companies entering the Croatian market and wishing to do business here look at the level of corruption risk in the country using the corruption perception index. If the risk number is above 60, Vig explained, companies must automatically conduct due diligence at the anti-corruption level and continue to monitor those organizations even after the contract is signed.
