Earlier this year, the channel was treated to a much-publicised fight between a major international vendor and one of its local distributors, relating to a potentially corrupt tender process.

While this created a number of ripples in the local industry, probably the most crucial understanding to come from this is simply that distributors and partners absolutely have to consistently follow good business practice.

Of course, explains Traci Maynard, Microsoft Executive at Axiz, if an organisation is to follow good business practice, it must be completely aware of all the vendor rules, otherwise it might fall foul of these without even meaning to.

“Take this common scenario: In most cases where a partner works with an end-customer to fulfill a specific business need, such a project will encompass vendor software or hardware. To this end, the partner seeks out a quotation from the supplier or distributor, one which pushes for the most aggressive pricing that can be obtained from the vendor,” she says.

“After this, the partner adds on their margin for services and the like, and due to the overly aggressive pricing, the partner will likely find itself in the front line for winning the business. While little sounds amiss about this, the true question here is to what point do we, as business people, drive the request for more discount from all the parties in the chain?”

This, continues Maynard, is where one needs to always keep in mind the need for good business practice. Sometimes you can find yourself in a position where you find that business success is in direct conflict with the principle of ‘doing the right thing’, or where the most practical choice still feels like it may not be the most ethical one.

“In a dynamic business environment, it is not unexpected that you may face such situations, but be aware that by their nature, they are likely to cause anxiety or stress if they leave you uncertain about what to do.”

“In such a situation, the answer is really quite simple: stick to following your company’s code of conduct. This is a framework for all employees to follow and should include the impact of bribery and corruption on a business. The stories of corruption and malfeasance that are pouring from the Zondo Commission in a seemingly continuous stream highlight the kind if significant reputational damage your company may face, if it becomes associated with any kind of bribery or corruption.”

She indicates that King IV is designed to make businesses aware of what is expected in this regard, adding that Axiz – which holds many international vendor contracts – understands that this means its compliance is paramount to its relationship with these vendors.

“The beauty of this is that it means our role in the channel is to be compliant, which means that by default, our compliance means our partners are compliant. But this is not all we do. Axiz also regularly completes ethics and integrity training as part of these vendor contracts, not to mention driving its own internal ethics awareness, which forms a core pillar of our employee code of conduct.”

“Two final pieces of advice: firstly, in this industry you must always beware of the word ‘excessive’. Whether you are being asked to give ‘excessive’ discounts, or being offered ‘excessive’ commissions, this is a term which should immediately raise a red flag. Secondly, when selling to public sector entities, ensure that you support fair and open competition by complying with all laws and regulations related to government procurement, tenders and bids,” concludes Maynard.