A common question is: “Is it OK to be a supplier to the company I work for?”
It can be ethical to be a supplier of your own organization if:
a. Someone else makes the purchase decision
b. The decision is made objectively, giving no favorable treatment to your organization
c. You do not access or try to access confidential information about other suppliers that aren’t available to all competitors
That said, it probably isn’t the best idea to be a supplier to your own organization or your organization’s competitors. Totally ethical practices are those where there is no real or perceived conflict of interest. While you may avoid a real conflict of interest, it is likely that others will perceive that something unethical is happening. And that is an unhealthy situation for an organization, its employees, and its management.