Is arranging a kickback for giving an association contract ethically acceptable?

• A. Yes
• B. No
• C. Only with Board Approval
• D. It Depends on the Amount

Answer: (B)

Arranging a kickback for awarding a contract breaches fundamental integrity in procurement. In a community association, contract decisions must be fair, transparent, and made in the best interests of members. A kickback creates a conflict of interest and can amount to bribery, exposing the association and its leaders to legal risk, financial loss, and reputational damage. Because ethics and law don’t permit improper influence, any such arrangement is not acceptable, even if someone tries to justify it with board approval or the size of the amount. The right approach is a formal, competitive bidding process with clear disclosures and routines for handling gifts or relationships that could bias decisions.