How to Recognize Conflict of Interest
Consider your financial interests., Make note of your personal relationships., Locate situations where the conflict of interest may arise., Consider the appearance of a potential conflict., Disclose your conflict of interest.
Step-by-Step Guide
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Step 1: Consider your financial interests.
When you work for a company, you should put their financial interests above your own.
You, your spouse, or a relative may own a company or stock that will earn money as the result of a business deal or contract.
You need to make sure that any sales or contracts do not personally benefit yourself.For example, your corporation needs a catering company for their conference.
You suggest a company owned by your wife.
The fact that you might make money off of your wife's company being selected represents a conflict of interest and should be disclosed to the selection committee. -
Step 2: Make note of your personal relationships.
You may have a relationship with someone else who may benefit in some way from your position.
Personal relationships include blood relatives, relatives by marriage, and romantic partners.
For example, teachers and professors may have a student who is related to them.
The teacher cannot show favoritism to this student.
If your office needs a new roof, it may be a conflict of interest if you suggest your brother as a roofer.
A new position may have opened up at your company.
It may be a conflict of interest to promote your boyfriend to the position, especially if your boyfriend is less qualified.
However, this is not true if your boyfriend is equally qualified for the position compared to the other candidates. , Different professions have different types of conflicts of interest.
Knowing what you may encounter in your profession will prepare you for dealing with the situation when it arises.
If you are a researcher, a company may hire you to do a study for them.
Because they are paying you, you may feel pressured to change your results so that they favor the company’s products.
The conflict arises when the report is provided to others without disclosing the relationship.
For example, a CPA has responsibilities to the public that over-ride the client's interests.
If you are starting a side business, it should not offer the same products or services as your main employer unless you have received approval from the employer to do so.
As a consultant, you should not offer services to two competing businesses unless you have disclosed that to the companies. , If there is the slightest possibility that a conflict might arise, it should be disclosed.
Even if you are not earning any money from it, you should still disclose the conflict.
Similarly, even if you hire a family member but do not favor them over other employees, you still need to let others know of your relationship.
For example, your business may be contracted by a non-profit to which you belong.
Accepting the contract may be seen as a conflict of interest as you would be offering your services for your benefit only.
Even if the contract would only contribute minimally to your sales, and you are offering your services as a favor, you should still disclose the potential conflict. , Disclosure is the remedy to everything.
Potential conflicts should be disclosed to the parties that will be affected by the action or decision.This should be done as soon as possible.
An outside party can help you put your interests in perspective to determine whether a conflict exists. -
Step 3: Locate situations where the conflict of interest may arise.
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Step 4: Consider the appearance of a potential conflict.
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Step 5: Disclose your conflict of interest.
Detailed Guide
When you work for a company, you should put their financial interests above your own.
You, your spouse, or a relative may own a company or stock that will earn money as the result of a business deal or contract.
You need to make sure that any sales or contracts do not personally benefit yourself.For example, your corporation needs a catering company for their conference.
You suggest a company owned by your wife.
The fact that you might make money off of your wife's company being selected represents a conflict of interest and should be disclosed to the selection committee.
You may have a relationship with someone else who may benefit in some way from your position.
Personal relationships include blood relatives, relatives by marriage, and romantic partners.
For example, teachers and professors may have a student who is related to them.
The teacher cannot show favoritism to this student.
If your office needs a new roof, it may be a conflict of interest if you suggest your brother as a roofer.
A new position may have opened up at your company.
It may be a conflict of interest to promote your boyfriend to the position, especially if your boyfriend is less qualified.
However, this is not true if your boyfriend is equally qualified for the position compared to the other candidates. , Different professions have different types of conflicts of interest.
Knowing what you may encounter in your profession will prepare you for dealing with the situation when it arises.
If you are a researcher, a company may hire you to do a study for them.
Because they are paying you, you may feel pressured to change your results so that they favor the company’s products.
The conflict arises when the report is provided to others without disclosing the relationship.
For example, a CPA has responsibilities to the public that over-ride the client's interests.
If you are starting a side business, it should not offer the same products or services as your main employer unless you have received approval from the employer to do so.
As a consultant, you should not offer services to two competing businesses unless you have disclosed that to the companies. , If there is the slightest possibility that a conflict might arise, it should be disclosed.
Even if you are not earning any money from it, you should still disclose the conflict.
Similarly, even if you hire a family member but do not favor them over other employees, you still need to let others know of your relationship.
For example, your business may be contracted by a non-profit to which you belong.
Accepting the contract may be seen as a conflict of interest as you would be offering your services for your benefit only.
Even if the contract would only contribute minimally to your sales, and you are offering your services as a favor, you should still disclose the potential conflict. , Disclosure is the remedy to everything.
Potential conflicts should be disclosed to the parties that will be affected by the action or decision.This should be done as soon as possible.
An outside party can help you put your interests in perspective to determine whether a conflict exists.
About the Author
Ann Ford
Brings years of experience writing about pet care and related subjects.
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