Code of ethics in Contract Management: Research Paper

Code of ethics in Contract Management

Organizations strive to build on their competitiveness in the modern business world by providing quality products and services that meet consumer expectations. They also strive to avoid legal and ethical confrontations that may result from engaging in unprofessional behavior. Consequently, most professions outline a set of rules and principles that people follow to ensure that they follow acceptable norms and procedures when performing their duties in the business. A code of ethics, therefore, constitutes a guide of principles that are designed to help professionals conduct business activities honestly and with integrity to ensure that all activities within a business organization are tailored toward meeting its mission, vision, and strategic objectives. Business organizations also establish their codes of ethics to provide their workforce with a framework of the rules and regulations that help them to act responsibly from a regulatory and law-enforcement standpoint. In contract management, the code of ethics provides a framework through which contract managers ethically perform their duties to ensure satisfaction by all parties involved in contracts. This study investigates various moral and ethical standards in contract management and describes their role in ensuring that contract managers act acceptably and professionally. Compliance-based, value-based, and profession-based codes of ethics help contract management businesses to attract and retain customers, refine their operational strategies, and accrue multiple benefits to society.

At a minimum, the code of ethics in contract management entails following the law. Code of ethics in contract management may take different forms to ensure that all people involved in a contract follow the state and federal laws and that their actions benefit all stakeholders they collaborate with. As such, a compliance-based code of ethics in contract management seeks to ensure that the processes involved in contract dissemination agree with federal and state laws. To achieve such an objective, businesses include federal and state regulations regarding contract management in their organizational code of ethics and establish the potential legal repercussions individuals may face after breaking such laws. Contract managers also undergo formal training to gain information regarding rules and regulations that govern contracts as well as the penalties that may result from noncompliance. Organizations often appoint compliance officers who oversee the activities and processes involved in the contract management process to ensure that the aims and principles of the code of ethics are followed by all stakeholders involved in the contract execution and ensure their alignment with federal and state laws. For example, the compliance officer ensures that parties involved in the contract sign an execution clause to authorize contract managers to proceed with the execution of a contract (Chikwere, Simon, Dzandu & Dza, 2019). Therefore, a compliance-based code of ethics in contract management ensures that all stakeholders abide by federal laws.

Value-based codes of ethics are also instituted in contract management to ensure that the activities of contract managers concur with business values. A value-based code of ethics outlines the standards of responsible conduct as they relate to the larger public good and environmental sustainability. Such codes of ethics seek to ensure that stakeholders involved in contract management do not engage in activities that may harm other members of society. Therefore, contract management members are expected to fulfill their duties without deception or misleading practices and refrain from making disparaging statements that could negatively affect the professional reputation of contract managers. They are also expected to demonstrate values such as honesty, accountability, and sensitivity when performing their duties to ensure that their actions have positive impacts on the people they associate with and the general society. For example, contract managers are often tasked with the responsibility of overseeing important legal processes relating to construction projects and ensuring that any issues that arise are resolved as quickly and effectively as possible to promote the effective execution of contracts (Governatori et al., 2018). They are, therefore, expected to demonstrate accountability when performing such tasks to ensure that their decisions benefit all stakeholders and seek to bring about the common good for society rather than their benefits. Therefore, value-based codes of ethics in contract management ensure that contract managers and other individuals involved in contracts demonstrate moral and ethical values in their actions.

There also exist profession-based codes of ethics in contract management. Contract managers are expected to demonstrate professionalism in their actions to guarantee their clients and local authorities their competence and capacity to manage contracts. To ensure contract management professionals meet such ethics, companies and governmental organizations establish minimum requirements for contract managers. Depending on federal laws in a country, contract managers are required to be state-accredited and possess educational qualifications that concur with the profession. For example, to become a certified federal contracts manager in the United States, a person needs to possess at least a bachelor’s degree from a nationally accredited university, more than a year’s working experience in the field of contract management, and traceable progressive professional education (National Contract Management Association, 2021). Contract managers must also demonstrate key professional attributes such as time consciousness, effective communication, and collaboration. Therefore, the National Contract Management Association outlines minimum professional qualifications for certified federal contract managers and conducts professional assessments on aspiring individuals to confirm their capacity to abide by ethical codes and standards of the profession. Professional codes of ethics, therefore, constitute critical factors for proficiency among contract managers.

Corporate social responsibility also constitutes a common constituent of the code of ethics in the contract management profession. In the contemporary business world, corporations develop their corporate social responsibility initiatives to pay adequate attention to their corporate practices’ economic, environmental, and social impacts. They also strive to initiate ways that can improve their ethical image and the kind of legacy they leave in society. Similar to other industries, modern contract management involves the establishment of initiatives that seek to promote community well-being and development while remaining mindful of the potential implications of contract management activities on the natural environment. Corporate social responsibility in contract management may also take the form of philanthropic and economic responsibility. Philanthropic responsibility refers to efforts by contemporary contract managers to contribute to community development and make the world and society a better place (Wu, Li, Gou & Gu, 2017). They actively participate in the community development agenda and offer material and financial support to such initiatives. While the primary objective of any business is to maximize profits, contract managers have an ethical responsibility to prioritize positive impacts on the environment and society. In response to multiple corporate crises surrounding contract management, governments across the globe have developed policies that mandate corporate transparency and ethical conduct in the contract management sector. Such trends indicate an increasing government role in streamlining business operations, which presents corporate social responsibilities as legal and ethical obligations for contract managers.

Managing ethics in contract management has been associated with multiple strategic and competitive benefits. Code ethics give contract managers a competitive advantage and a positive societal reputation. When contract managers abide by legal and ethical obligations, they gain social recognition and approval from members of society, which builds on their outlook and reputation. Consequently, contract managers record increased leads that later convert into loyal clients, which enhances their financial health. For example, when contract manager demonstrates honesty and accountability in their actions, they gain the trust of business leaders and are more likely to be placed in charge of business contracts. As a result, such individuals develop personally and professionally as they gain greater exposure to the industry and earn more revenue. Similarly, when contract management companies establish ethical standards, they develop a positive image in the market, attracting more customers (Itani, Jaramillo & Chonko, 2019). As a result, such companies record an increase in sales, further enhancing their economic capacity to compete with similar businesses. Such companies also record greater customer loyalty as their clients believe they are treated fairly and with dignity. As such, the code of ethics in contract management is associated with increased customer loyalty and economic growth.

A Code of ethics in contract management also promotes synergy and a positive work environment. Members of the workforce in contract management companies desire career advancement that is based on the quality of the work they do and not on favoritism. When the organization outlines its code of ethics, it encourages workers to demonstrate professional and moral standards in their activities. As the management demonstrates impartiality in offering opportunities for growth and appreciation to employees, their level of motivation and commitment to the organization’s objectives improves. As a result, the organization records increased levels of workplace synergy, which contributes to productivity in the long run (Feng et al., 2018). Similarly, when contract managers exercise business ethics in their actions, they avoid unnecessary legal and disciplinary confrontations by authorities, which helps them to maintain a positive attitude toward the profession. Consequently, such individuals achieve personal and professional development as they develop positive relationships with other stakeholders in the contract management sector. Moreover, when contract managers remain honest about their capabilities and experience, they establish more opportunities for professional development as their superiors trust them with confidential information through which they gain greater industry exposure. A Code of ethics among contract management companies also helps to attract greater investor confidence. When investors are assured that the company they work with prioritizes moral and ethical standards, they develop the confidence to invest their money in such businesses as they are sure that their money will be used responsibly. Eventually, such organizations achieve economic growth due to increased investment rates.

Embracing business ethics in contract management also promotes community well-being and development. When contract management businesses embrace business ethics, they adopt diverse corporate social responsibility initiatives to promote community well-being and reduce potentially harmful implications of business operations in society. Moreover, embracing business ethics in contract management helps to ensure that a business is mindful of its relationship with other community stakeholders, which helps to establish a mutual association that brings about collective benefits to all members of society (Sroka & Szántó, 2018). For example, codes of ethics in contract management helps to avoid unethical business practices such as discrimination, abuse, and unfair labor policies, which helps to ensure that all members of society have equitable access to resources and opportunities to promote community development. By running ethical operations, stakeholders involved in contract management perceive that they are positively contributing to society. Such a sense of accountability provides meaning and context to what they do daily, motivating them to contribute positively to the community. As a result, community development and safety are enhanced as both businesses and consumers become more aware of the importance of business ethics and support initiatives by companies that uphold strong morals to encourage the progression of ethical practice across generations. Therefore, embracing a code of ethics in contract management accrues multiple benefits to society.

However, codes of ethics in contract management business are associated with limited capacity to maximize profits. Implementing and maintaining codes of ethics in the contract management business structure often consumes a lot of time which could have otherwise been used to support productivity. Especially when contract management businesses seek to become more ethical when they have previously followed unethical practices, such processes may consume a lot of time and economic resources, which delays growth within the business. Moreover, due to the dynamic nature of the contract management sector, ethical practices need to be continuously updated to concur with emerging issues and policy changes. Such processes consume a lot of time and finances, which delays an organization’s growth capacity in the long run. The contract management business also experiences a limited capacity to maximize its profits as it is forced to spend a portion of its earnings to implement and update its code of ethics. Despite such challenges, contract management businesses find the need to implement codes of ethics to avoid business risks associated with unethical practices. Acting responsibly allows such businesses to attract and keep customers to reserve their position in the market. As such, a code of ethics is critical to the success of contract management businesses.

By implementing compliance-based, value-based, and profession-based codes of ethics, contract management businesses attract and retain customers, refine their operational strategies, and cause meaningful impacts on stakeholders and the general community. Compliance-based code of ethics in contract management seeks to ensure that the processes involved in contract dissemination concur with federal and state laws. Value-based codes of ethics are also instituted in contract management to ensure that the activities carried out by such businesses concur with business values. Profession-based codes of ethics allow contract managers to demonstrate professionalism in their actions to guarantee their clients and local authorities regarding their competence and capacity to manage contracts. Corporate social responsibility also constitutes a common constituent of the code of ethics in the contract management profession. Managing ethics in contract management has been associated with multiple strategic and competitive benefits. When contract managers abide by legal and ethical obligations, they gain societal approval, which helps to attract and retain customers. Codes of ethics also promote synergy and a positive work environment. Embracing business ethics in contract management promotes community well-being and development. Although the process of implementing codes of ethics in business is associated with a limited capacity to maximize profits, contract management businesses find the need to implement and update their ethical and professional standards to avoid business risks associated with unethical practices.

References

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National Contract Management Association. (2021). Certified Federal Contract Manager. https://www.ncmahq.org/Web/Certification/CFCM.aspx

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Feng, J., Zhang, Y., Liu, X., Zhang, L., & Han, X. (2018). Just the right amount of ethics inspires creativity: A cross-level investigation of ethical leadership, intrinsic motivation, and employee creativity. Journal of Business Ethics, 153(3), 645-658. https://link.springer.com/article/10.1007/s10551-016-3297-1

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