XYZ, Inc.

In situations involving potential conflicts of interest, transparency and avoidance are key principles.

Conflict of Interest:The supply manager’s spouse being employed by one of the agencies presents a clear conflict of interest. The supply manager’s impartiality could be compromised, or perceived to be compromised, in making sourcing decisions.

Transparency:Informing the department supervisor and the stakeholder about the personal relationship ensures that all parties are aware of the potential conflict. Transparency in this situation helps maintain trust and integrity in the procurement process.

Avoidance:Requesting to be removed from the procurement eliminates any bias or perceived bias from the decision-making process. This step aligns with ethical guidelines and best practices in supply management and corporate governance.

References:

Institute for Supply Management. (2012). ISM Principles and Standards of Ethical Supply Management Conduct.

Treviño, L.K., & Nelson, K.A. (2017). Managing Business Ethics: Straight Talk about How to Do It Right. Wiley.