The Role of Collective Action in Advancing High-Standard Business Ethics Critical to Patient Safety and Innovation

In the rapidly evolving medical technology sector, ethical business conduct is paramount to patient safety and advancing innovation. Over the years, standards for ethical business conduct have been raised, met, and exceeded thanks in no small part to the relentless drive of many in the medtech industry. The increasing complexity of global trade, however, underscores the need to look forward, strategize, and commit to continued hard work ahead. While the development and implementation of codes of ethics remain vital, these efforts can only go so far when some bad actors refuse to adhere to ethical standards. To tackle future challenges, even the world’s most ethical companies, including medtech companies, need bold action from governments to incentivize ethical business conduct.

AdvaMed is preparing to participate in the upcoming 2024 Business Ethics for APEC SMEs Forum and the 15th Meeting of the Inter-American Coalition for Business Ethics in the Medical Technology Sector from 16-18 September in Lima, Peru. These events will bring together hundreds of leading health care stakeholders, including the U.S. Department of Commerce and other Asia-Pacific Economic Cooperation (APEC) member economies, medtech associations and their member companies, patient and physician organizations, and others in health-related sectors to align on pivotal strategies for advancing business ethics. By focusing on collaborative solutions through collective action, these meetings aim to create a level playing field and ensure that the highest ethical standards are upheld across the industry. Key topics of discussion include incentivizing ethical business conduct in the public procurement process and continuing advancement of global harmonization of medtech industry codes of ethics.

AdvaMed welcomes the APEC Recommendations for Enterprise Integrity in Public Procurement and updates to the UNODC/OECD Resource Guide on State Measures for Strengthening Business Integrity, which include recommendations/guidance for enterprises/companies and economies/governments, including economy implementation of procurement incentives for enterprises that demonstrate ethical business conduct. The 11th APEC Business Ethics for SMEs Forum will utilize these resources, along with the APEC Kuala Lumpur Principles For Codes of Ethics in the Medical Technology Sector, to focus discussions on the practical application by enterprises and economies to enhance business integrity across the medtech sector, ensuring patient safety and building trust with the patients we serve.

• The APEC Recommendations provides that economies “[i]dentify enterprise integrity provisions within [their] public procurement system that incentivize ethical business conduct before, during, and/or after a public tender is awarded. One example of this provision can include demonstration by enterprises of adherence to a code of ethics, either as a qualification to participate or as an incentive in the tender process.”

• The UNODC/OECD Guide provides that “[t]he simplest form of [the public procurement] incentive is a requirement that companies meet certain minimum good practice standards as a condition for doing business with State agencies in charge of procurement. Mandatory programme requirements based on recognized sector-specific standards, such as codes of ethics, can be an effective way to strengthen business integrity practices, particularly in industries where a large portion of the marketplace consists of public purchasing or reimbursement. Multinational corporations frequently make available good practice guidance and training of key partners in their supply chains, including SMEs and other third-party intermediaries. Governments and industry associations also provide technical assistance to companies on the corporate integrity practices necessary for doing business with State agencies. This assistance takes the form of codes of ethics and guidance, training seminars, model content and other means.”

These resources provide a solid foundation for governments to implement incentives in public procurement for ethical business conduct, encouraging health care companies of all sizes to conduct business ethically. 

• The Inter-American Coalition for Business Ethics in the Medical Technology Sector has also benefited from the APEC and UNODC/OECD resources.  Objectives of the Coalition’s meeting include evaluating strategies for effective advocacy focused on the critical importance of maintaining rigorous ethical standards to ensure patient safety.

As we move beyond September, the collective efforts sparked through these initiatives will evolve with AdvaMed, its members, and global leaders strengthening the medtech sector through a continued commitment to ethical practices in procurement and codes of ethics, ensuring integrity and innovation remain intertwined.

Additional Background

Since 2010, AdvaMed has served as medtech industry lead for the APEC Business Ethics for SMEs Initiative, helping to extend high-standard codes of ethics to 31 medical technology associations across 19 economies in the APEC region. These associations collectively represent over 12,000 enterprises, of which over 10,000 are SMEs. The Business Ethics for SMEs initiative is the largest public- private partnership dedicated to promoting ethical business practices in health-related industries.

To learn more about AdvaMed’s Code of Ethics, click here.