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A manager admits approving a vendor owned by a close relative without disclosing the relationship. The vendor's price is competitive and service has been good. What should HR recommend?

Apply the organization's conflict-of-interest policy, require disclosure, and have the vendor decision reviewed independently. Ignore the issue because the organization did not suffer a financial loss. Terminate the vendor immediately without reviewing the policy or procurement facts. Allow the arrangement if the manager promises not to influence future invoices.

Correct Answer:

Apply the organization's conflict-of-interest policy, require disclosure, and have the vendor decision reviewed independently.

Explanation:

A conflict can exist even when the transaction appears favorable. Disclosure and independent review protect integrity and help determine the proportionate corrective action.

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