A conflict of interest arises in the workplace when an employee has interests or loyalties that are—or at least potentially could be—at odds with each other.
Conflicts of interest can lead to difficulties in the workplace between employees and their employers, or financially disadvantage or harm the employer’s organisation.
Conflicts of interests that may occur in a workplace include:
- Personal relationships. Personal relationships within the workplace raise issues relating to decision making in recruitment, promotions and disciplinary action, as well as financial decisions, for example appointment of suppliers, contractors or providers;
- Financial conflicts created by shareholding or third party ventures. These conflicts can occur when an employee, director or officer uses the entity’s resources for a personal profit, accepts undeclared gifts from clients, or has a vested interest in a company that the employer does business with. For example, employees, directors or officers who participate in an external venture which places them directly in competition with their employer;
- The passing on of information, including disclosure of confidential or sensitive information relating to finance, customers or clients, marketing or other trade sensitive material to gain a personal benefit;
- Internal conflicts between employees leading to unfair or improper decision making, for example, an employee not being promoted because their manager dislikes them. The effect of these conflicts can be that recruitment and promotions may not be made on merit, creating disputes and procedural fairness issues within the workplace;
While the legislation allow an employer to take action against employees who allow their actions to be affected by conflicts of interest, prevention is better than a cure. With that in mind, employers should try to manage the risk of conflicts of interest through policies and employment contracts.
For further information on this topic please click on the following link: https://www.lawdepot.com/blog/conflict-of-interest-in-the-workplace/
Source: www.lawdepot.com;
