Technological Approach to Ensure Ethical Procurement Management

Abstract

Various studies have reported a positive connection between the public procurement and economic performance of a country, in terms of value for money, enhanced human welfare and improved economic growth. According to the World Bank, a distinction can be made between accountable governments where public procurement’s share of the GDP is over fourteen percent, medium accountability countries with a share of thirteen percent and low accountability countries with less than twelve percent. In response to the ever-increasing complexity of procurement, many disruptive innovations as well as rapid developments in digitalization are reforming global supply chains. The principles of a sound procurement system include accountability, competitive supply, and consistency, which when viewed together with ethics and good governance, become the corners stones of an effective, efficient, transparent, and reliable procurement system. Ethical risks are possible in every stage of the procurement process; however, e-procurement has become a powerful tool to curb fraud, corruption, and unethical behaviour in public procurement as it reinforces the ethics of transparency, accountability, and integrity in procurement functions. With e-procurement being a relatively new form of procuring goods and services, it has been up against several challenges, notwithstanding the proven benefits of using electronic means in procurement. The movement to e-procurement has been a slow process globally, but various countries such as Germany, Korea, Brazil, and Zambia have already started to reap the fruits of their efforts. The main benefit of introducing e-procurement recorded by the World Bank has been a marked upturn in transparency and competition. This chapter aims to unpack the link between technology, procurement, and ethics towards the provision of goods and services by governments for the greater good of all.