How are conflicts of interest handled in contracting?

Conflicts of interest in contracting are handled primarily by enforcing disclosure requirements and necessitating possible recusal. This approach ensures transparency and maintains integrity within the procurement process. When individuals or entities involved in contracting have personal or financial interests that could potentially bias their decisions, they are obligated to disclose these interests.

This disclosure allows the responsible parties to assess the situation and determine if the individual needs to recuse themselves from contract decisions or discussions that could be influenced by these interests. By actively addressing conflicts of interest in this manner, organizations can help prevent unethical practices and promote fair competition.

The other choices do not effectively manage conflicts of interest. For example, relaxing rules can lead to ambiguity and increase the risk of unethical behavior, while ignoring conflicts unless they are severe undermines the entire integrity of the contracting process. The engagement of independent auditors, while beneficial for oversight, does not directly address individual conflicts of interest that may arise in contracting situations.