Certified Texas Contract Manager Practice Exam

What does nepotism typically involve in procurement?

1. Conduct aimed at enhancing public service

2. Favoring a relative in a contract decision

3. Offering bribes to influence contracts

4. Creating legislation to protect employees

The correct answer is: Favoring a relative in a contract decision

Nepotism in procurement primarily refers to the practice of showing preferential treatment to relatives or close friends in decision-making processes, especially when selecting contractors or vendors. This can lead to biased contract awards that do not necessarily align with the best interests of the organization or the principles of fairness and transparency that are vital in public procurement. By favoring a relative in a contract decision, this unethical practice can compromise the integrity of the procurement process, potentially resulting in conflicts of interest and reduced competition among vendors. The other options describe different behaviors or practices that may be present in procurement contexts but do not accurately define nepotism. Conduct aimed at enhancing public service or creating legislation typically involves governance and policy-making aspects that are distinct from personal favoritism. Offering bribes relates to corruption rather than nepotism, which involves personal relationships rather than financial inducements. Therefore, the correct understanding of nepotism centers on the preferential treatment of relatives in procurement decisions.