Why Enterprise Software Buyers Now Demand a Supplier Code of Conduct

Episode notes

In this episode of B2B SaaS Talks, Lucas and Luna explore the growing demand for supplier codes of conduct in enterprise software deals. They anchor on a 2025 Gartner report showing that 68% of large enterprises now require a supplier code of conduct as part of procurement, up from 42% in 2022. The conversation drills into how one software vendor, DataSync, lost a $12 million deal with a European bank because its code of conduct didn't address subcontractor labor practices. Lucas explains the typical sections of a code - labor rights, environmental standards, data ethics, and supply chain transparency - and why procurement teams are treating non-compliance as a reputational risk. Luna pushes back on whether this is just checkbox compliance or genuine due diligence. They discuss how AI governance clauses are starting to appear in codes of conduct, and what vendors should be doing now. The episode ends with a forward-looking question about whether codes will eventually standardize into an industry-wide framework.

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