Conflicts of Interest
conflicts of interest
A conflict of interest (COI) is an ethical challenge that occurs when an individual or organization is involved in multiple interests that are at odds with one another. COI is especially problematic in situations involving someone in a position of trust, e.g., a doctor or lawyer, who has competing professional or personal interests. These competing interests make it hard to act on behalf of one interest without compromising the integrity of the other.
The following are some of the most common forms of conflict of interest:
- Self-dealing, in which a person with decision-making authority causes the organization they represent to enter into a transaction that benefits themselves. This is sometimes described as being on both sides of the deal. Suppose a high school soccer coach needs new uniforms for the team. The coach arranges for the uniforms to be purchased from a sporting goods business in which he is part owner.
- Outside employment, in which the interests of one job contradict another. For example, you work for a business that provides computer repair services. When you finish with an assigned job, you give the customer your own business card and tell them to hire you on a freelance basis in the future.
- Nepotism, in which businesses decisions, especially involving hiring, involve family members. For this reason, many employment applications ask if one is related to a current employee. In this event, the relative may be told not to participate in hiring decisions.
- Gifts from friends or associates who also do business with the person receiving the gifts (may include non-tangible things of value, such as transportation and lodging). For example, publishing companies have been known to pay transportation and lodging for teachers who use their textbooks to travel to a conference and make presentations about the benefits of using the company’s materials.