Business deals take place every day, but not all are based on ethical behavior. Sometimes, business decisions are clouded by personal considerations in conflict with a business' goals. When business deals move beyond what is appropriate to create conflicts for the parties involved, action should be taken to correct the conflict.
Definition
The Ethics organization defines "conflict of interest" as an action or relationship that might impair an employee's ability to make objective and fair decisions relating to his job. There are a variety of situations where an employee risks creating a real conflict of interest or the appearance of one. For example, an employee searching his company's files for leads for a second job he is seeking could present a conflict for both the employee and the employer.
More Examples
Other examples of conflict of interest include hiring a relative, friend or acquaintance for a key position based solely on the relationship, closing a deal with a contractor, supplier or distributor in which an employee owns stock or is an owner of the company, or obtaining information from an employer so the employee can later use the information to compete with the employer as a competitor.
Legality
Employee conflict of interest -- or the appearance of a conflict -- is not always illegal, but is considered unethical, and in most companies, it is strictly prohibited. In some instances, it can lead to termination. Employees who believe a conflict of interest is or has taken place should notify management immediately with the names of the parties involved in the incident. A full disclosure could prevent termination, and, at the very least, raise awareness that a conflict of interest is taking place.
Questions
To determine if a conflict of interest exists, an employee may ask, "Am I served as an employee by the outcome of this situation?" "Am I using company time on or any company resources to better a side business for which I am an employee or an owner?" and "Am I accepting gifts that may be viewed as inappropriate and would exceed limits set by my employer?" Answering "yes" to any of these questions, suggests that there may be an actual conflict of interest taking place.
