President Mary Sue Coleman has accepted the recommendations of a task force on purchasing ethics, including the creation of a Dispute Review Board (DRB), which will oversee compliance with a Code of Conduct for University Vendors.

In her charge to the seven-member task force—chaired by Theodore St. Antoine, professor emeritus of law—Coleman cited the University’s longstanding commitment to sound, ethical and socially responsible practices. The group, formed after concerns were raised that a University vendor was paying substandard wages to its employees, was to recommend ways to ensure that such practices are codified for the University’s vendors.

The code (posted at http://www.umich.edu/pres/committees/tf_code.html) was designed to address the moral implications of the University’s vendor relationships while taking into account practical considerations, such as the number and variety of affected vendors and the cost associated with time-consuming contract negotiations.

There is one mandatory provision contained in tier one of the code, which is a restatement of existing University policy: Vendors are required to comply with all applicable laws. The second tier establishes a set of “Primary Standards” and requires that the University will make every reasonable effort to choose vendors that meet these standards. Basically, they elaborate on federal or state labor law but also draw some provisions from U-M’s current code of conduct for licensees (online at http://www.ilir.umich.edu/colshr/).

Coleman has assigned primary responsibility for implementation of the task force recommendations to Timothy Slottow, executive vice president and chief financial officer.

Slottow says he worked over the summer to establish the DRB, whose primary work will be to review, on behalf of the University community, issues raised concerning vendor compliance with the code.

“The board will review the work of the task force and the compliance procedures recommended by them, and develop operating procedures for reviewing charges against vendors,” Slottow says. “I am confident that this board will demonstrate the University’s commitment to the values stated in our code.”

The task force met regularly during the summer and fall terms of 2003 and the winter term of 2004, St. Antoine says. “We also held public forums in July and September, at which vendors, students, faculty, civic officials, public and private organizations and other interested parties could submit their views on the issues presented in drafting the code.”

In a letter to members of the task force, which included faculty, staff and students, Coleman praised the excellent commitment and individual contribution to its success.

“You have developed a document that clearly articulates the University’s institutional values for its vendor community,” Coleman said. “Your work in developing our code serves as a model for other institutions to emulate as they seek to address the issue of socially responsible purchasing.”

Members of the Purchasing DRB include: Frank Stafford, professor of economics and research professor, Survey Research Center, Institute for Social Research (chair); Ashley Graham, LSA undergraduate; Andy Hoffman, associate professor, School of Natural Resources and Environment and Stephen M. Ross School of Business; Sherrie Kossoudji, associate professor, School of Social Work; Jim Kosteva, director of community relations, Office of the Vice President for Government Relations; Dennis Poszywak, assistant director, University Procurement; and Julia Ris, LSA undergraduate.