Ethical Issues In Business Contracts Essay

When considering the many facets of a business contract one must have an awareness of the possible ethical issues that may arise. Ethically speaking business contracts are only effective within the context that assumes most parties will adhere to and satisfy their contractual responsibilities. Bidding, negotiating, obtaining and fulfilling contracts in an ethical manner is the foundation for a successful business. Participating in unethical practices could have legal ramifications with a final result causing the company to lose contracts, disbarment from competing for future contracts and possible criminal charges. Questionable or ethical issues that can arise from an agreement between parties can be in the form of a conflict of interest. Conflict of interest can come in many different forms to include but not limited to financial conflicts of interest. Which may include gifts, favors, discounts, gratuities, amusement, hospitality, and loans. The best practice is not to give any gift at all. The same perception can result from giving discounts, gratuities, entertainment, hospitality or loans. Another possible conflict of interest is nepotism. Nepotism is the hiring and favoring of relatives or friends primarily by offering them employment. Nepotism is perceived as a preferential treatment even if the person is qualified for the …show more content…
Communication is two-way, and a transparent process that helps both parties to understand each other and their terms and conditions. It enhances their relationship and efficiency of the workplace. The relationship can only survive when the lines of communication are completely open. This is important on all level especially when the parties involved are located across the globe. Communicating with all sides involved is important, and the failure to do so creates a void causing misunderstandings thus leading to