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- A conflict of interest arises when what is in a person’s best interest is not in the best interest of another person or organization to which that individual owes loyalty.
ethicsunwrapped.utexas.edu › glossary › conflict-of-interest
Conflict of Interest. A conflict of interest arises when what is in a person’s best interest is not in the best interest of another person or organization to which that individual owes loyalty. For example, an employee may simultaneously help himself but hurt his employer by taking a bribe to purchase inferior goods for his company’s use.
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What is a conflict of interest in business ethics?
Do employees have a conflict of interest?
What is an example of a conflict of interest in business?
What is a conflict of interest?
A conflict of interest in business ethics is when an individual has a conflict with another employee or the business as a whole. For instance, a business may have a conflict of interest when leaders hire family members or friends instead of more qualified candidates.
- Overview
- What is a conflict of interest?
- Understanding conflict of interest
- 20 conflict of interest examples
- Strategies for preventing a conflict of interest at work
Many companies actively seek to eliminate conflict of interest in the workplace to ensure the business remains successful and doesn't subject itself to employee issues. Conflicts can have a profound effect on how an employee performs at work, including how they make decisions, and can—both directly and indirectly—impact the business and its success...
A conflict of interest is when you have a certain personal interest that may interfere with the interests you must have as someone connected to another person or entity, like your employer. A conflict of interest can cause one party to question what another party's intentions are. It can also call to question your ability to remain unbiased in your...
When employees go to work for an organization, the stakeholders, managers and members of the executive team expect a certain level of commitment to remaining employed at the company and acting in the best interest of the business.Many times, the human resources department requires that an employee sign an agreement that states they understand what ...
Even though conflicts of interest can occur in any workplace, there are often other considerations that an individual can make to prevent them from engaging in a conflict. Consider these examples of conflicts of interest so you are aware of what an employer may consider a conflict in the workplace:
•An executive at the company who holds several shares of company stock sells their holdings after becoming aware that the business will take certain actions that can lower the price of stock in the near future.
•A manager hires their nephew in a supervisory role even though their family member does not have any experience and other candidates are better suited for the position.
•An employee accepts a vacation package as a gift from a vendor, then purchases more than what the business needs from the vendor as a thank you.
•A human resources professional choosing not to investigate a claim of inappropriate behavior because the person the complaint is against is a personal friend of theirs.
•An employee works for a marketing agency, but uses their work account on certain tools and programs to manage their own list of clients for their personal business.
1. Review the employee handbook
Many times, an organization dedicates a section of the employee handbook to describing what a conflict of interest is for the organization, how you can avoid them and what the consequences are if you knowingly engage in a conflict. You may also find this information in a company's code of conduct or a non-disclosure agreement. If you want to perform an action in the workplace or make a decision and you're unsure if your employer will consider it a conflict, consider asking your human resources representative or manager first.Related: 30 Best Pieces of Career Advice No One Ever Told You
2. Attend business ethics training
If your company offers training on business ethics, consider signing up. This training can provide even more knowledge about conflicts of interest in the workplace. You may hear about more scenarios that can help guide you in future situations, helping you understand what constitutes a conflict of interest and, more importantly, what you can do about your situation if you conflict with interest.Related: FAQ: Business Ethics (With Examples)
3. Report conflicts of interest
If you know that a coworker or manager is engaging in a conflict of interest, consider taking the appropriate steps as outlined in your employee handbook. This may include approaching the individual and discouraging the behavior or making them aware that their actions are a conflict of interest. Otherwise, most organizations ask that you inform human resources of any questionable activities so they can investigate. By taking this action, you're complying with the company's code of conduct and possibly preventing future conflicts in the workplace.
Searches related to What is a conflict of interest in business ethics?
Jan 21, 2014 · When employees accept outside employment or positions, they need to make sure they do not conflict with their company’s interests and do not use potential business opportunities for their own personal gain. If there is a conflict of interest, it is always important to declare it.
Jul 30, 2024 · A conflict of interest in business normally refers to a situation in which an individual's personal interests conflict with the professional interests owed to...
- Troy Segal
- 1 min
A conflict of interest (COI) is an ethical challenge that occurs when an individual or organization is involved in multiple interests that are at odds with one another. COI is especially problematic in situations involving someone in a position of trust—e.g., a doctor or lawyer—who has competing professional or personal interests.
A conflict of interest is a situation in which a person has a private or personal interest sufficient to appear to influence the objective exercise of his or her official duties as, say, a public official, an employee, or a professional.
