The civic agency signed the pact with Transparency International (TI), a non-governmental organisation that monitors and publicises corporate and political corruption.
Jalaj Srivastava, Chairman, NDMC, said he is confident that the civic agency will set an example for other municipal bodies in the country by adopting guidelines and ethical practices as laid down in the MOU.
The pact ensures that all activities and transactions between a company or government departments and their suppliers are handled in fair, transparent and corruption free manner, he said.
The council recently also approved a proposal for more transparency in financial transactions.
According to the proposal, all expenditures over and above Rs 1 lakh will be uploaded on the NDMC website.
Transparency International promised to support NDMC in this regard and provide it with advice and resources to ensure successful implementation of the pact.