what is conflict of interest

what is conflict of interest

1 month ago 18
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A conflict of interest occurs when an individual's personal interests-such as family, friendships, financial gains, or social factors-could compromise or appear to compromise their judgment, decisions, or actions in a professional setting. This clash between personal interests and professional duties can bias decision-making and affect job performance or organizational integrity

. More specifically, a conflict of interest involves situations where serving one interest might work against another, especially when an individual holds multiple roles with competing benefits or loyalties. These interests can be financial or non-financial, and the conflict is about the circumstances that create a risk of undue influence, not necessarily about actual misconduct. For example, a person may have a duty to act in the best interest of their employer or clients (primary interest), but personal gain or relationships (secondary interest) might interfere with that duty

. Conflicts of interest are taken seriously in workplaces and regulated by policies and laws because they can lead to unfair practices, loss of trust, and legal consequences. Common examples include favoritism toward relatives or friends, accepting gifts from vendors, or making decisions that benefit oneself financially at the expense of the organization. When conflicts arise, the usual response is to disclose the conflict and remove the conflicted individual from related decisions to maintain fairness and transparency

. In summary, a conflict of interest is a situation where personal interests have the potential to improperly influence professional judgment or actions, risking bias and harm to the integrity of decisions or organizations

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