Ethical Issues in Government Purchasing

Ethical Issues in Government Purchasing

Ethics in Government Administration and Purchasing

Government administration in general requires conscientious attention to ethical concepts, principally because many of the authorities and privileges associated with governmental authority can so easily be corrupted for personal gain (Halbert & Ingulli, 2008). Unlike elected officials, government purchasing agents do not have the ability to influence legislation, but they may have considerable authority to award contracts and to make purchases on behalf of the government to individuals and professional organizations that violate fundamental ethical rules.

In principle, government purchasing agents cannot ethically benefit from any decisions made in their capacity as public servants (Edwards, Wallenberg, & Lineberry, 2008; Halbert & Ingulli, 2008). While certain types of relationships and potential benefits are permissible with full, appropriate, and timely disclosure, other types of relationships and potential interests so ethically problematic that they cannot be purified or "cured" by full disclosure (Edwards, Wallenberg, & Lineberry, 2008; Halbert & Ingulli, 2008).

In the United States, ethical principles are fully incorporated into federal law and into comprehensive employee training programs tailored to specific agencies, industries, and position-related employment responsibilities and authorities. Likewise, a regular internal auditing process (typically conducted by agency Inspectors General) ensures legal and ethical compliance with formal statutory law and agency policy (Edwards, Wallenberg, & Lineberry, 2008; Halbert & Ingulli, 2008).

Conflict of Interest -- Family Relations

An ethical conflict of interests arises anytime a government purchasing agent awards a contract for service or procures goods or materials from suppliers that could potentially benefit any family relation or other intimate acquaintance who maintains an interest in the outcome of that decision. Therefore, government purchasing agents may not negotiate arrangements on behalf of the government that directly benefit the interests of close family (and other intimate) personal relations (Edwards, Wallenberg, & Lineberry, 2008).

Conflict of Interest -- Financial Stakeholders (Business Interests/Stock Ownership)

Similarly, ethical principles prohibits government purchasing agents from making decisions in their professional capacity that benefit specific companies or privately held stock in those companies (Edwards, Wallenberg, & Lineberry, 2008; Halbert & Ingulli, 2008).

Conflict of Interest -- Former and Future Employers

Where decisions made by government purchasing agents could potentially benefit the interests of former employers or future employers, an ethical problem exists unless that potential benefit is fully disclosed (Edwards, Wallenberg, & Lineberry, 2008).