Conflict Of Interest
Conflict of interest are bound to happen with the complexity of modern organizations, they generally do not pose a problem for the organization when handled appropriately. However, when not handled correctly, they can quickly turn into a serious matter of great concern.
Conflicts of interest are considered a form of compliance issue, so an organization has the responsibility to find, address, and keep track of any such instances.
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What is conflict of interest ?
Conflict of interest arises, whenever individuals as a part of their duties for the organization, has competing professional obligations or interest (personal/financial) that are influenced by their decision. The influence benefit’s the obligation or interest in a positive or negative way, making the decision to be biased. Interest (Private/ Personal) include family, friends, societies, or clubs to which the individual belongs to.
Examples of conflict of interests:
Even when not harming the business, any such decisions are considered as conflict and so needs to be disclosed.
Managing conflicts of interest, you need to ensure that employees are aware of the organizations policies. From a Compliance Department’s perspective, conflicts of interest can be perceived, potential or actual and will need to be handled accordingly. A comprehensive evaluation of the situation as well as an assessment of the proximity and severity of it, needs to be conducted to assess whether the situation qualifies as a conflict of interest. If so, ensuing measures to resolve the conflict of interest should be taken.
As an organization its crucial to maintain public trust and confidence in the organization. Any conflict of interest not managed correctly can have irrevocable consequences on its reputation. When a conflict of interest arises, the effectiveness and integrity of your organization’s decision-making processes might be hampered. As such, poorly managed conflicts of interest represent a significant risk for all organizations.
How to Manage a Conflict of Interest ?
Every organization should strive to create a culture of ethics and trust by setting the right tone. Clear messaging on how to manage a conflict of interest should be part of the tone from the management, making everyone in your organization aware. This also contributes to creating a safe environment in which employees are not afraid to bring up and disclose conflicts of interest.
Have a robust system in place for reporting, investigating, and tracking every instance of conflict of interest in a timely manner. Setting up a system which is simple enough to help identify and report a conflict of interest, but thorough to be able to cater to all criticalities. Be easily accessible but be confidential as well. Allow enough time to investigate, but also remind in case of timeline not being met.
What unique features do we have
Different types of conflicts
HR Conflict
(employee hiring)
Procurement Conflict
(getting things through a supplier)
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