Explain Conflict of Interest
Conflicts of interest occur in a variety of scenarios spanning from business to personal. In personal settings, conflicts of interest can be quickly resolved between friends or family members. However, in business, a conflict of interest can mean legal trouble and severed professional relationships. Though easy to avoid, conflicts of interest commonly occur in government, business and nonprofit scenarios.
Other People Are Reading
-
What is a Conflict?
-
A conflict of interest occurs when a person or entity has multiple interests or activities that are not ethically in agreement. When the conflict occurs, the true motives of the entity or individual are called into question. Remaining impartial in professional and community situations helps strengthen ties with your colleagues. Due to corruption in business and government, it is important to keep conflicts of interest to a minimum. Coincidences in events do occur, but when accused of engaging in a conflict of interest, it is important to immediately respond to accusations and remedy the situation.
Business
-
You can fall into a conflict of interest in business in a number of ways. Inappropriate interpersonal relationships, such as an affair with a manager or boss, financial relationships, such as receiving a commission from a vendor and political relationships, can be damaging to your reputation. The woman who is promoted after starting a relationship with her superior will likely be questioned by peers who believed they were qualified for the promotion.
-
Government
-
Conflicts of interest are a sensitive topic in politics. Politicians with private interests can draw criticism from the general public if their policies directly benefit their business. In general, politicians and city officials should not benefit financially from policies unless they are derived from the democratic process. For example, if a governor owns a corporation, his petition for a large tax break for big businesses in his area is a major conflict of interest and will lead to his loss of credibility in the public sphere. Conflicts of interest in government extend beyond the official to include family members and close friends.
Nonprofit
-
Volunteering on the board or committee of a prestigious nonprofit can prove to be a rewarding networking experience. You can mingle with the city's prominent professionals while contributing to a significant cause. However, volunteers should not expect any form of direct or indirect compensation for their contributions. If you enlist the services of your own firm to service the organization, this is a conflict of interest. Avoid any activities for profit unless the entire committee or board petitions for you or your company to provide a paid service.
-
