Conflict of interest

Conflict of interest

Conflict of Interest

refers to a situation whereby there is an individual who has competing loyalties

or interests to more than one organization or person because of the

responsibilities and duties they have. It occurs when there is a compromise of

objectivity or judgement (Trevino and Nelson, 2010). There are four dimensions

of conflict of interest, and they include:

Overt bribes and kickbacks-Overt bribes refer to the receiving or giving of

anything valuable to influence the behaviour, actions and attitudes of another

person in a corrupt manner. Kickback is a form of bribe incrementally paid by

the contractor in the process of being paid. Anything considered being kickback

or bribe is a conflict of interest regardless of whether it is in the form of

the valuable thing or money offered for the exchange of specific services, products

or even influence (Trevino and Nelson, 2010).

Subtle bribes-Bribes

can also include entertainment and gifts. Some organizations have prohibited

gifts even those of nominal value, for example, pens and notepads. Reciprocity

applies where you have to do to something good in return for the donation obtained.

For instance, prescribe drugs produced by a company that gave pens and notepads.

Conflict arises if you do not prescribe or reciprocate. Conflict also occurs

where discounts on some personal items are accepted. (Trevino and Nelson, 2010)

Influence-Influence

refer to the capacity to affect the character, development or behaviour of

someone else. The relationship with someone can influence some decisions, and it

can be a form of conflict of interest. For instance, if you are the manager of

purchasing the advertising materials and your neighbour has an advertising

agency. Hiring such a firm is considered a conflict. One should avoid decision

making that involves someone that they are related personally. To prevent such

conflicts, one can engage other employees in the process of decision-making

(Trevino and Nelson, 2010).

Privileged information-Employees usually holds valuable information about the company where

they work. Conflict of Interest arises where the full-time employee of one

company decides to be contracted by another company to do some consultation

work. Transparency ought to be the policy to help mitigate this conflict. Full

disclosure also helps to overcome this risk in situations where privileged

information is involved (Trevino and Nelson, 2010).

Reference

Trevino, L. and Nelson,

K., 2010. Managing Ethics in

Business Organizations. Fifth ed.

Stanford, Calif.: Stanford Business Books, pp.124-126.