Improper Business Practices


The modern society lives with expectations that the government will deliver standard services in public institutions that will cater to their needs. Likewise, the government expects that the business contracts display ethical behavior and use resources properly. Therefore, the government and business need to forge a business relationship with strong pillars of trust and integrity. A trustworthy relationship can be achieved by avoiding conflict of interest at all costs by both parties. The government officials need transparency and honesty; they should not venture in contracts for personal gains. The government personnel must observe the official conduct and disclose all information regarding the agreement. The contractors also need to use the funds, resources, or power allocated to them in the right way to avoid abuse. The parties should strictly adhere to the contract’s laws and policy and discuss solutions when conflicts in interests arise (OECD, 2005).


The Federal Acquisition Regulation Council declared a new rule that would govern personal conflicts of interest for contractor’s employees by observing the standard of conduct. Anyone violating the rule of conduct will face substantial penalties for disciplinary purposes. The contractor shall also disclose all details regarding finance to government failure, which will break the binding agreement. The government shall certify companies by evaluating whether; the company sells products to government at standard prices, whether the company publishes price lists, tariffs, and rates of products sold to the government and if the government’s products have potential customers (, 2020). Honesty is crucial in winning contracts and preventing the risks of personal conflict of interest. The government shall reject proposals in case of signs of dishonesty and violation of the contract’s basic requirements.


Conflict of interest can be overcome by setting achievable and realistic policies and enforcing mandatory standards. Apart from restricting the private sector interest, the government needs to monitor and train their officials to ensure adherence to conduct rules. According to OECD, 2005, corrupt conduct arises when the contractor interests and that of the public officials fail to synchronize. Both parties’ benefits should be identified, properly managed, and resolved efficiently to avoid misconduct, misuse of resources, and breach of trust. If the personal interest of an official public cloud, his/her judgment, the organization’s reputation can be ruined, and the resources of the office corrupted in the process (OECD, 2005). Therefore, the management of civil servants’ interests is crucial for a proper business relationship.

Codes of ethics contribute significantly to avoiding personal conflicts of interest in business relationships. The core ethics required for a healthy business environment include accountability, integrity, transparency, fairness, legitimacy, and responsiveness. Moral ethics build trust, create responsibility, and eliminate selfish desires that could lead to improper practices.


            The development of personal conflict of interest in business practices is inevitable due to the mysterious human nature. However, conflicts of interest can be avoided if we incorporate codes of ethics in daily business transactions. The application of ethics neutralizes the effects of interests and creates a business environment of mutual trust where all stakeholders mutually benefit. Ethics encompasses virtues that fuel business to display high levels of honesty and transparency in disclosing financial statements. Government business contracts require a commitment on both sides so that resources are fully utilized. The contract’s policies should be obeyed, and those of violating the conditions should be heavily punished.

References (2020). Part 3 – Improper business practices and personal conflicts of interest | Acquisition.GOV. Acquisition.GOV |

OECD. (2005). Managing conflict of interest in the public sector: A toolkit. OECD Publishing.

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