How to Avoid Conflict of Interest in the Workplace

When doing business and working with other people, it is not uncommon to come across issues with conflicts of interest. In the business world. Conflicts of interest can arise due to professional affiliations, personal beliefs or any other issue that might cause two entities or individuals to clash. For this reason, it is helpful to have methods aimed at prevention and eliminating conflicts of interest before they occur.

Instructions

1. Research clients, employees, and companies thoroughly before doing business with them. Use a data-verification service to help with the process. This is especially important for supplier and vendor relationships.

2. Create and communicate a code of ethics that includes guidance on client/lawyer, doctor/patient and any other relationship of that nature. This will vary with the organization.

3. Obtain a recusal. Not all conflicts can be prevented, however, a recusal can be used to abstain from participating in a conflict. Examples include lawyers with a court case that affects their personal life or a board member who has a personal relationship with someone who is being considered for employment.

4. Provide a framework for third-party intervention. The third party can help to regulate between the person or company involved.

Tips & Warnings

• This is not to be construed as legal advice. If you have specific questions regarding conflict of interest, contact internal counsel.

References

• Smart Business - Avoid Conflict of Interest