Conflicts of interest occur in all businesses. The important thing is to make sure that you and your employees know the process to declare them.

Conflicts of interest arise when the personal interests of an employee conflict with the professional interests of a business.

Examples of conflicts of interest include:

  • an employee starts a part-time business offering similar services
  • an employee accepts a gift from a supplier in exchange for business over other suppliers
  • a manager fails to disclose that they are related to a candidate being considered for a job

Even the perception of a conflict of interest can damage your business’ reputation.

If you have a code of conduct, a conflict of interest policy, or an employment contract term that covers conflict of interest, you can hold your staff accountable.

Want more?

Learn how to prepare an employment contract that helps to protect your business.

Understand why you should maintain policies, procedures and processes in your business.