109 - Introduction to Ethical Procurement

Question 1

The Importance of Ethical Procurement

Answer 1

-providing the goods and services governments need to accomplish their missions
-Openness and transparency in order to assure accountability of the public officials to the tax payer
-Maintaining the integrity to ensure procurement officials adhere to ethical standards

Question 2

Ethics

Answer 2

-A principle of right or good conduct or a body of such principles
-System of moral principles or values
-code of conduct
-Prohibits breach of public trust for personal gain

Question 3

Elements of being ethical

Answer 3

-Ethical behavior
-Ethical decisions
-Ethical Obligations
-Ethical Responsibility

Question 4

Ethical Behavior

Answer 4

1. Transparency. The agency has followed all the necessary laws, policies, and procedures with each procurement. An agency’s procurement is operated in a fair, open, and consistent manner
2. If a mistake was made, the agency will work expeditiously to correct it, even if the procurement must be stopped and redone

Question 5

Ethical Decisions

Answer 5

Have extended consequences, multiple alternatives, mixed outcomes, uncertain consequences, personal implications.

Question 6

Ethical Obligations

Answer 6

Exceed legal duties.

-Laws embody ethical principles but does not prohibit many acts regarded as unethical and vice-versa

Question 7

Ethical Responsibility

Answer 7

Combination of organizational standards and your personal ethics and values

-It’s not about what’s legal, it’s about what’s appropriate and ethical

Question 8

Conflict of Interest

Answer 8

A conflict between the private interests and the official responsibilities of a person in a position of trust

Elements:
-Conflicted party
-Conflicted party’s interest
-Conflicted party’s responsibility or “competing interest”

Question 9

Kickback

Answer 9

A return of a part of a sum received often because of confidential agreement or coercion

Question 10

Bribe

Answer 10

Money or favor given or promised in order to influence the judgment or conduct of a person

Question 11

Revolving Door Restriction

Answer 11

Named for a circular image of a former employee participating on both sides of an issue

Question 12

Code of Ethics

Answer 12

A standarized guide to acceptable and ethical behavior as defined by an organization or entity

Question 13

Importance of a Code of Ethics

Answer 13

1. Unethical behavior threatens the integrity of the entire procurement process
2. Helps members understand what is considered right and wrong within an organization

Question 14

Examples of Ethical Standards

Answer 14

-Be independent
-Act only in the public interest
-Remain a trustee of the public’s money
-Follow the law
-Strive for market efficiency
-Take nothing, ever
-Do not socialize with suppliers
-Maintain confidentiality
- Do not play favorites
-Know the importance of perception
-Maintain integrity
-Impartiality and independent judgement

Question 15

Antitrust Laws

Answer 15

Address anti-competitive economic behavior, as well as the civil remedies and criminal penalities in place to enforce them

Ex: Sherman Act, Clayton Act, and the Federal Trade Commission Act

Question 16

Examples of unethical activities

Answer 16

-Cost Cutting
-Price Cutting
-Misrepresentation
-Predatory Actions
-Facilitating Payments
-Offering Inducements
-Exerting Pressure
-Illegally Diverting Funds
-False Reporting
-Evading Taxes

Question 17

Contingent Fees

Answer 17

A commission, percentage, or other feed that is conditional upon the success that a person or concern has in securing a contract

Question 18

Ethics vs. Laws and Regulations

Answer 18

Ethics hold a procurement officer to a higher standard than that of the law whereas the law are the governing rules by which the procurement officer/government employee must abide or they may face civil or criminal penalties if they are broken.