Introduction
Certain professions have sets of principles that guide their behavior in order to ensure that their work is conducted with integrity and in the best interests of their organization. This applies to contract management professionals in the field of acquisition (Contract Management Body of Knowledge, 2020). The Code of Ethics, compiled by the National Contract Management Association (NCMA), sets out the values and standards that contract managers should adhere to (Code of Ethics). It is intended to ensure that members of the NCMA conduct themselves with accountability, compliance with laws, confidentiality, good faith, integrity, professionalism, respect, and trust (Code of Ethics). Through analysis of the NCMA Code of Ethics, it becomes clear that ethics are of utmost importance in acquisition due to creating public trust and confidence in the integrity of the contract management process.
Review of the NCMA Code of Ethics
Accountability
In order to better understand the importance of the NCMA Code of Ethics, each of its guiding principles needs to be discussed in detail. The original wording is to be used to retain most of the meaning that was imbued into the Code of Ethics during its inception by the NCMA. The first principle, accountability, requires that the NCMA members “accept responsibility for their own conduct and hold each other accountable” (Code of Ethics, para. 3). This principle emphasizes the importance of taking personal responsibility for one’s actions and being accountable for the outcomes of those actions. It also encourages contract management professionals to hold each other accountable for their actions with the aim of promoting a culture of integrity and professionalism within the profession.
Compliance with Laws
The second principle of the NCMA Code of Ethics is compliance with laws. This principle underlines that the NCMA “members follow all laws and regulations” (Code of Ethics, para. 4). Overall, this principle stipulates the importance of following the law in all aspects of contract management work. This includes following federal, state, and local laws, as well as any industry-specific regulations that may apply.
Confidentiality
Confidentiality is the third principle of the NCMA Code of Ethics. According to this principle, the NCMA “members protect confidential information concerning the business affairs of any present or former employer, governmental agency, business partner, organization, or public body on which they serve” (Code of Ethics, para. 5). This principle underlines the importance of maintaining confidentiality and protecting sensitive information in the course of contract management work.
Good Faith
The fourth principle of the NCMA Code of Ethics can be described as good faith. This principle states that “members conduct all business in good faith, make any required disclosures, and avoid actual or perceived conflicts of interest (whether by reason of financial interest, family relationship, or any other circumstances)” (Code of Ethics, para. 6). Moreover, it stipulates that the NCMA “members strive to advance the profession and the Association without compensation” (Code of Ethics, para. 6). This principle highlights the significance of acting in good faith, making mandatory disclosures, and preventing conflicts of interest in the course of performing one’s contract management duties. Additionally, it motivates those who work in contract management to improve the industry and the association without looking for financial gain.
Integrity
Integrity is the fifth principle of the NCMA Code of Ethics. As per this principle, the NCMA “members fulfill their duties without deception or misleading practices” (Code of Ethics, para. 7). In addition, the principle requires that the NCMA “members actively support and encourage others in adhering to this Code” (Code of Ethics, para. 8). This principle emphasizes the importance of acting with integrity and honesty in the course of contract management work. It also calls on experts in contract management to support and motivate others to follow the Code of Ethics.
Professionalism
The sixth principle of the NCMA Code of Ethics is professionalism. The main tenet of this principle requires the NCMA members to “educate themselves on all aspects of the contract management profession and apply this knowledge to the best of their ability” (Code of Ethics, para. 9). Additionally, the principle guides the NCMA members to “stay up to date on developments in the contract management” (Code of Ethics, para. 9). Finally, it is required of the NCMA members to “make only truthful claims concerning their professional qualifications, education, certification status, or experience” (Code of Ethics, para. 9). This principle emphasizes the importance of professionalism and continuous learning in the contract management profession. It encourages those who work in contract management to be informed of industry changes and to appropriately reflect their background and experience.
Respect
Respect is the seventh principle of the NCMA Code of Ethics. This principle is twofold: on one the hand, the NCMA “members acknowledge the importance of diversity, equity, and inclusion across the Association and contract management profession” (Code of Ethics, para. 10). On the other hand, the NCMA “members do not make statements that could reflect poorly on another contract management professional, the reputation of the Association, or the contract management profession” (Code of Ethics, para. 10). This principle places a strong emphasis on the values of diversity and equality in the field of contract management. Additionally, it exhorts those who work in contract management to show respect and refrain from saying anything that can be seen as disparaging to them or their field.
Trust
The eighth principle of the NCMA Code of Ethics is trust. It stipulates that the NCMA “members conduct themselves in a manner to establish and maintain trust and confidence in the integrity of the contract management profession and processes” (Code of Ethics, para. 11). This principle emphasizes the importance of building and maintaining trust in the contract management profession. It encourages those who work in contract management to act in a way that fosters and upholds confidence in the reliability of the procedures and the profession as a whole.
Violations
Finally, the NCMA Code of Ethics has a special clause on violations of the Code. This clause mainly states that “members must report any suspected violations to an official of NCMA at either the chapter or national level” (Code of Ethics, para. 12). The clause also outlines that penalties for the violations of the Code of Ethics remain at the NCMA’s discretion (Code of Ethics). This principle serves to establish a process for reporting and addressing suspected violations of the Code.
Importance of the Code of Ethics in Acquisition
Having reviewed the NCMA Code of Ethics in full, its importance for the field of acquisition becomes apparent in the way it helps to ensure that contract managers adhere to ethical standards in their work. In particular, the NCMA Code of Ethics is essential for building trust and confidence in the contract management profession. By ensuring the fair and effective functioning of the contract management process, it enhances the reputation of the profession as a whole.
In addition, ethical conduct is important for protecting the interests of stakeholders involved in the contract management process. It ensures that the interests of all stakeholders are considered and that contracts are administered in a way that is fair and equitable for all parties involved (Mrabure & Abhulimhen-Iyoha, 2020). This is particularly important in situations where contracts involve large amounts of money or where contracts are being managed on behalf of public entities or other organizations that are accountable to the public.
It can be concluded that the NCMA Code of Ethics has major implications for building trust and confidence among the public and protecting the interests of the organization and the public. The reputation of the contract management profession is built on the actions of individual contract managers, so it is essential that they conduct themselves in an ethical and professional manner (Bowman, 2019). By following the NCMA Code of Ethics, each acquisition professional can ensure that the reputation of the profession remains positive and the interests of the public are protected.
Building Trust and Confidence
By adhering to a set of ethical principles, such as the NCMA Code of Ethics, contract managers demonstrate their commitment to upholding high standards of conduct and professionalism. Building trust and confidence in the contract management profession is important (Solaja, 2018). Namely, trust and confidence help to ensure that contract managers and other employees are able to effectively carry out their responsibilities and achieve their organization’s goals (Solaja, 2018). Furthermore, trust and confidence help to foster a positive working environment and can lead to more productive and collaborative relationships with other stakeholders (Solaja, 2018). Additionally, trust and confidence can help to ensure that the organization is viewed positively by the public, which can be important for its success (Solaja, 2018). All of the above can help to foster trust and confidence in the work of contract managers, both within their own organization and in the wider community.
There are several ways in which contract managers can build trust and confidence in their work. One of them is adhering to such principles of the NCMA Code of Ethics as trust, integrity, and professionalism in their interactions. Moreover, being transparent and open in their decision-making and avoiding conflicts of interest is of equal importance. Finally, actively seeking to improve their knowledge and skills in order to better serve their organization and the public by following relevant laws, regulations, and professional standards that apply to their work is vital. By building trust and confidence in their work, contract managers can help to foster positive relationships with other stakeholders and contribute to the overall reputation of the contract management profession.
Protecting the Interests of the Organization and the Public
The NCMA Code of Ethics is related to protecting the interests of the organization and the public in several ways. First, by adhering to the NCMA Code of Ethics, contract managers can help to protect the interests of the organization by acting in a manner that is transparent, fair, and compliant with relevant laws, regulations, and policies. This can help to prevent misconduct and legal violations that could potentially harm the organization and its reputation (Hersel et al., 2019). Moreover, the NCMA Code of Ethics also helps to ensure that contract managers act in the best interests of the organization by making decisions that are in line with the organization’s values and goals. This can help to maximize the value and efficiency of the acquisition process, and ensure that the organization is getting the best possible return on its investments.
Finally, the NCMA Code of Ethics helps to protect the interests of the public by ensuring that contract managers deal fairly with suppliers and contractors, and by promoting transparency and accountability in the acquisition process. This helps to ensure that the public is getting the best value for its money and that the acquisition process is fair and unbiased (Malacina et al., 2022). Overall, the NCMA Code of Ethics plays a critical role in protecting the interests of the organization and the public by promoting ethical conduct, fairness, and compliance in the field of acquisition.
The Impact of Ethical and Unethical Behavior
The actions of contract managers can have a significant impact on the reputation and credibility of the contract management profession. When contract managers act ethically and professionally, they can help to build trust and confidence in the profession, as well as contribute to the overall reputation and success of their organization (Mascarenhas, 2019). This can be achieved by adhering to ethical principles and professional standards and conducting their work with integrity and in the best interests of their organization and the public. It can be concluded that ethical behavior can help foster positive relationships with other stakeholders and contribute to the reputation of the contract management profession.
On the other hand, contract managers who act unethically or engage in inappropriate behavior can damage the reputation of the profession and undermine trust and confidence in the work of contract managers. This can occur if contract managers engage in activities such as fraud, corruption, or unethical conduct in their interactions with other stakeholders (Rustiarini et al., 2019). Such behavior can have negative consequences for the organization and the public, including financial losses, legal issues, and damage to the organization’s reputation.
Indeed, due to their position inside the company, contract managers typically confront more ethical difficulties than many other employees. According to a survey by the NCMA, the majority of the workforce in contract management reported feeling pressured to break the law, seeing ethical wrongdoing, and reporting it more frequently than the overall corporate community (Rendon, 2018). Therefore, contract managers must act with integrity and professionalism in order to protect the interests of their organization and the public and to uphold the credibility and reputation of the contract management profession.
Conclusion
Overall, it can be concluded that the importance of the NCMA Code of Ethic lies in ensuring the contract management process is fair, transparent, and effective. By ensuring accountability, compliance with laws, confidentiality, good faith, integrity, professionalism, respect, and trust, it upholds the reputation of the field of acquisition. It is essential for building trust and confidence in the profession, and for ensuring that contracts are developed and administered in a fair and equitable way. From all the above, one can judge that the NCMA Code of Ethics is an important part of the contract management profession.
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