Ethical Considerations and Principles
Date: December 02, 2025
A. Ethical Dilemma: Conflict of Interest
1. In the scenario, the procurement manager is accepting bids for a contract job;
if the contract is awarded based on financial and or personal/relational ties, it
can cause several negative consequences.
Accepting a bid from a friend without fair competition can lead to nepotism,
which is a Conflict of Interest. A conflict of Interest occurs when professional
judgment is compromised, and a breach of the duty of fairness has occurred.
This action could compromise the integrity of the procurement process and
result in an unfair advantage.
An invitation to bid is a formal process. The company accepts numerous bids,
which are evaluated and awarded to the company that can best meet the
requirements.
If a contact is awarded to the friend, other contractors can pursue legal action for
discrimination and unfair competitive advantage. The outcome of a conflict of
Interest creates an appearance of impropriety, erodes trust, and damages the
company's public reputation.
2. One consequence of rejecting a bid from a friend’s company may negatively
impact the relationship dynamics with the company. The rejection of the bid may
hinder future opportunities for collaboration. The friend may be less inclined to
work with the company, which could limit potential partnerships or projects.
3. Ethical dilemma from the Utilitarian Perspective:
a. Using utilitarian ethics can resolve the ethical dilemma from part A by being
impartial and considering the interests of all parties involved. Using
Utilitarianism to resolve potential ethical issues:
• Immediately disclosed the relationship to the employer. Informed the
immediate supervisor and department manager via email.
• Recuse yourself from the bidding process to avoid any perception of bias.