conflict of interests

How to Deal with Conflict of Interests?

Conflict of interest is bound to happen, owing to the complexity of the organization’s infrastructure. There isn’t anything like CE Mark Certification services in Islamabad that later guarantees the safety of a product, one can never be assured of a conflict-free functionality of an organization. Before getting to the solutions and ways of dealing with conflict of interest, it is important to narrow down what a conflict of interest means:

What is meant by conflict of interests?

The conflict of interest occurs when an individual’s interest is at odds with their business and becomes untrustworthy. Conflict of interest is common to every business, irrespective of its size or niche. If not dealt with on time, they can further lead to legal issues and accusations that result in harming the reputation of not just the company, but employees as well. As a business owner, it might be difficult for you to deal with such issues but there are many ways with which you can do it effectively. 

What are the types of conflict of interest?

Here are some common types of conflicts of interest that you need to keep an eye for:

Part-Time Jobs:

This happens when your employees work for another company. They can either continue working within the same working hours for another company, send their emails, or attend calls within the time frame you pay them for, thus compromising their quality and pace of work for your company. They may also be leaving the workplace early to get to another job.

Business Resources:

The individuals might be using business resources for personal interests, for example, using the office photocopier to print flyers for their side business or promoting their business venture and attracting your clients to it. 

Nepotism:

This one is very common almost everywhere. Hiring close family or friends in your company can result in a conflict of interest. For instance, if your HR hires his son for a vacancy or promotes him to a post, he is not capable of working for, it will affect the working efficacy and quality of work and will compromise your business’s reputation in the corporate world.

Personal Relationships:

Building personal relationships within the workplace or the environment can have a bad impact on the overall progress of your company. For example, if any of your employees is dating a junior or an employee of a rival company or entering into a relationship with a salesperson of your supplier can result in a shift of their loyalties.

Tips to Avoid Conflict of Interests:

Here are some tips for you to avoid conflict of interests and keep your business venture working:

Specify the Person or Team Who Owns the Conflict of Interest Policy:

You must delegate the conflict of interest policy to a person or team and HR is the best-suited individual for it since they have sound knowledge of every individual’s background who is working for them.

Specify the Individuals to Whom the Policy Applies:

Make sure to state that to whom the policy applies. Either it includes your employers, managers, contractors, or any other individuals who are part of the working structure. 

Provide Details of What Comes in Bracket of Conflict of Interest:

Specify the types and actions that will lead to a conflict of interest in your policy. Give details of what sort of behavior and actions will be considered as a violation of the policy. Also, state that how this behavior can be damaging for the company and individual’s working progress.

State Method of Disclosure:

You can encourage your employees to report such unacceptable behavior to send provide them with methods through which it can be done, that can be an online tool or emails. Do not forget to mention the consequences of non-disclosure.

Avoid Hiring the Close Relations:

Make sure not to let your HR hire any of his/her close relations or any other recommendations by the office people. Moreover, no one in the office should be allowed to supervise their family or friends working in the same company. 

Get Professional Help:

Some conflicts of interest can turn into serious issues. To keep the investigation unbiased, you must hire another professional to help you deal with it. 

Conflict of interests is unavoidable; you need to be vigilant to prevent them from turning into a serious issue. 

See Also

What is Conflict of interest?

What is Non Disclosure agreement?