Managerial Conflicts of Interests Essay

Managerial Conflicts of Interests

According to the Merriam-Webster dictionary, a conflict of interest is defined as a conflict between the private interests and the official responsibilities of a person in a position of trust. For example, a conflict of interest may occur where an employee or a family member receives a gift, a unique advantage, or an improper personal benefit as a result of the employee’s position at the Company. A conflict of interest could make it difficult for an employee to perform corporate duties objectively and effectively because he or she is involved in a competing interest.
In this paper we will look at different types of common examples of conflicts of interest that mangers have to be aware of and look to avoid. Regardless of the type of conflict of interest and of whether it is an actual or a perceived conflict, it can be detrimental to your career and to the overall successfulness of the organization. In order to avoid inadvertently getting into a conflict of interest you must familiarize yourself with being able to quickly identify when a conflict is about to arise and the associated dangers of getting caught up in a conflict of interest. One should sensitize their selves to looking for early warning signs that something maybe askew and to prepare oneself for avoidance or removal from the situation to avoid those inherent dangers.
The following are examples of situations in which a manager/employee might experience a conflict of interest.
1. You own a business or part of a business that sells goods or services to your employer. You may be tempted to have your employer order the goods and services of a company you own, instead of using an alternative vendor and you might be tempted to pay your own company a bit more for its goods or services.

2. You hire a friend or relative to fill a job opening.
You may find yourself being questioned if you hired the most qualified applicant.

3. You shared confidential information with a client or competitor.
You must consider if that sharing may have made your own relationship with the client closer, or tempted a competitor to hire you in the future, at your employer’s expense.

4. You accept a favor or a gift from a client.
Business gifts are given and received all the time. You must be able to understand that they may be intended to sway your judgment, and of the perception that others have about your acceptance of the gift.

5. Your employment by, or doing business with, a competitor in any capacity.
Loyalty is an implied promise by employee to employer. A person with two competitive “masters” simply can’t avoid the resultant conflict.

6. Conducting business of any kind with a friend/relative, or a company in which a friend/relative has an interest or a job at.
Consciously or subconsciously, it’s hard to be objective when it comes to doing business with loved ones.

7. Taking personal advantage of a business opportunity that your company might have pursued itself.
Business opportunity is just like business information: it is advantageous, valuable, and the property of your employer. Taking an opportunity that should be made known and available to your employer is surely a conflict of interest.

8. Sharing information about your employer’s activities or plans with anyone outside the organization.
Many large companies have a formal Conflicts of Interest policies and training to make sure managers/employees are aware of the required guidelines that are expected to be followed while employed with the company.

How managers/employees choose to conduct business with customers, suppliers, and vendors may directly impact your career, your department, and eventually the entire organization and all of its members. The decisions a manager makes concerning how business between the company and its vendors is to be acquired, conducted, and subsequently paid for must be made without any personal interests being involved that

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