{"id":2927,"date":"2023-02-19T16:11:09","date_gmt":"2023-02-19T16:11:09","guid":{"rendered":"https:\/\/content.one.lumenlearning.com\/introductiontobusiness\/chapter\/conflict-of-interest\/"},"modified":"2025-05-20T22:44:59","modified_gmt":"2025-05-20T22:44:59","slug":"conflict-of-interest","status":"publish","type":"chapter","link":"https:\/\/content.one.lumenlearning.com\/introductiontobusiness\/chapter\/conflict-of-interest\/","title":{"raw":"Learn it 6.2.3: Ethical Challenges","rendered":"Learn it 6.2.3: Ethical Challenges"},"content":{"raw":"

Conflicts of Interest<\/h2>\r\n
\r\n

conflicts of interest<\/h3>\r\n

A conflict of interest (COI)<\/strong> 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.<\/p>\r\n<\/section>\r\n

\u00a0The following are some of the most common forms of conflict of interest:<\/p>\r\n

    \r\n\t
  • Self-dealing<\/strong>, in which a person with decision-making authority causes the organization they represent to enter into a transaction that benefits themselves.\u00a0 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.<\/li>\r\n\t
  • Outside employment<\/strong>, 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.<\/li>\r\n\t
  • Nepotism<\/strong>, 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.<\/li>\r\n\t
  • Gifts from friends\u00a0or associates<\/strong> 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.<\/li>\r\n<\/ul>\r\n
    [ohm2_question height=\"300\"]4310[\/ohm2_question]<\/section>","rendered":"

    Conflicts of Interest<\/h2>\n
    \n

    conflicts of interest<\/h3>\n

    A conflict of interest (COI)<\/strong> 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.<\/p>\n<\/section>\n

    \u00a0The following are some of the most common forms of conflict of interest:<\/p>\n

      \n
    • Self-dealing<\/strong>, in which a person with decision-making authority causes the organization they represent to enter into a transaction that benefits themselves.\u00a0 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.<\/li>\n
    • Outside employment<\/strong>, 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.<\/li>\n
    • Nepotism<\/strong>, 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.<\/li>\n
    • Gifts from friends\u00a0or associates<\/strong> 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.<\/li>\n<\/ul>\n