In order to understand what a conflict of interest means, it may help to examine what we mean by 'interest'. Almost all of us have personal or professional interests, whetherit be a hobby, an investment in a business or a desire to help our friends and family members succeed in their own interests. Sometimes we base our decisions on whether or not they will ultimatelybenefit one or more of these interests. Most of us would not face a conflict of interest situation because our hobbies rarely interfere or intersect with our professional responsibilities.
Conflict ofinterest is a set of conditions in which professional judgment concerning a primary interest tends to be unduly influenced by a secondary interest.
A conflict of interest occurs when an individualor organization is involved in multiple interests, one of which could possibly corrupt the motivation for an act in the other.
A conflict of interest can only exist if a person or testimony isentrusted with some impartiality; a modicum of trust is necessary to create it. The presence of a conflict of interest is independent from the execution of impropriety. Therefore, a conflict of interestcan be discovered and voluntarily defused before any corruption occurs.
Conflict of interest is a condition not a behavior.
Examples of Conflict of interest:
Although it is impossible to listall scenarios in which a conflict of interest can arise, some of the most common situations that can create such conflicts of interest occur in our relationships with fellow employees, suppliers orcustomers, and in our involvement with other companies. Following are some examples:
➢ A conflict situation can arise when an employee, officer or director takes actions or has interests thatmay make it difficult to perform company work objectively and effectively.
➢ Conflicts of interest also may arise when an employee, officer or director, or family member, receives personal...