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Examples of Potential Workplace Conflicts of Interest - The ...

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For example, consider a manager who was promoted from a job where he worked with his wife. The promotion made him his wife's boss, ... LinkedInwithBackground HumanResources EmploymentLaw ConflictsofInterestintheWorkplace Theseexamplesshedlightonanconceptthat'shardtodefine •••  Westend61/GettyImages By SusanM.Heathfield FullBio LinkedIn Twitter SusanHeathfieldisanHRandmanagementconsultantwithanMSdegree.Shehasdecadesofexperiencewritingabouthumanresources. Learnaboutour editorialpolicies UpdatedonMarch01,2021 Aconflictofinterestarisesintheworkplacewhenanemployeehasinterestsorloyaltiesthatare—oratleastpotentiallycouldbe—atoddswitheachother. Forexample,consideramanagerwhowaspromotedfromajobwhereheworkedwithhiswife.Thepromotionmadehimhiswife'sboss,whichcreatedaconflictofinterest.Thecompany,afterdiscussionwiththecoupleandHR,maydecidetotransferhertoanotherdepartment. DivergingAllegiances Aconflictofinterestcausesanemployeetoexperienceastrugglebetweendiverginginterests,pointsofview,orallegiances.Suchconflictsaregenerallyforbiddenincompanycodesofconductoremployeehandbooks. Conflictsofinterestcancauseanemployeetoactoutofintereststhatareatoddswiththoseofhisorheremployerorco-workers.Inworkplaces,employeeswanttoavoidanybehaviororchoicesthatcouldpotentiallysignalaconflictofinterest.Theyareamarkagainsttheemployee'sreputation,integrity,andtrustworthinessintheeyesofmanagement. It'sdifficulttodefineconflictsofinterestwithoutconcreteexamples.Thefollowingadditionalexampleswillilluminatetherangeofbehaviorsandactionsthatcanfallwithinthedefinitionofconflictsofinterest.Theyareasdiverseastheworksettingsinwhichtheyoccurandinvolveemployeeinteraction,actions,andsituationsinwhichpersonalbenefitstakeprecedenceoverwhatisinthebestinterestsoftheemployer. Theseexamplesshouldserveasaguidetobehaviorsthatyouwanttoavoidasapersonofintegrityinyourworkplace. Itisbynomeansacomprehensivelist. ExamplesofPotentialWorkplaceConflictsofInterest Theseareexamplesofsituationsinwhichanemployeemightexperienceaconflictofinterest. Anemployeereportstoasupervisorwhoisarelativeorclosefriendandhascontrolovertheirjobresponsibilities,salary,andpromotions. Amalemanagerdatesafemaleemployeewhoreportstohimorviceversa. Alawyerrepresentsaclientinacivildisputewhileacceptingfeesfromlitigantswhoholdtheopposingpointofview. Apurchasingagenthireshisbrother-in-lawtoprovidevendingservicestothecompanylunchareas. Anemployeestartsacompanythatprovidessimilarservicestosimilarclientsasthoseofherfull-timeemployer.Thisisespeciallyaconflictofinterestifheremployerhashadhersignanon-competeagreement. Anemployeewhoisamemberofacompanyemployeeselectionteamfailstodisclosethatheisrelatedtoajobcandidatewhomthecompanyteamisconsideringforaposition. Amanagerprovidespaidconsultingservicesontheweekendtoacompanycustomerorsupplier. Anemployeeworkspart-timeintheeveningforacompanythatmakesaproductthatcompeteswiththeproductsofhisfull-timeemployer. Amemberofthecompanyboardofdirectorsacceptsfeesandprovidesadvicetoacompanythatisindirectcompetitionwiththecompanyonwhoseboardofdirectorshesits. AnHRdirectordecidestoinvestigateaformalchargeofsexualharassment,usinginternalresourcesthatshecontrols,againstafellowcorporateexecutivewhomshehasknownandworkedwithprofessionallyforyears. Thiswouldnotconstituteaconflictofinterestifshehiredanexternalemploymentlawfirmtoconducttheinvestigationandrecommenddisciplinarymeasures. Apurchasingagentacceptstripsandgiftsfromavendorandthenselectsthevendor'sproductsforpurchasebythecompany. Anemployeeacceptsfreegiftsandfreeproductsfromatraininganddevelopmentcompanyandthenrecommendsthepurchaseoftheseproductswithoutcomparingthemtocomparableproductsfromothervendors. ACFOnegotiatesanagreementonhisemployer'sbehalfforastockoptionplanfromwhichhewilldirectlybenefit. Atrainerispaidtoprovidetrainingclassesthatteachcustomershowtousethecompany'ssoftwareproducts.Heputsupawebsitethatoffershissametrainingontheproductsasafor-profitenterpriseinhissparetime.Whywouldheeveragaindirectcustomersinneedoftrainingtohiscompany'sclasses? Themanagerofamarketingdepartmentdatedaco-workerwhoisalsoamanagerinthesamedepartment.Theypartwaysovertime,butwhenheispromotedtothemarketingdepartmentdirectorrole,shefindsherselfreportingtohim. Theexistenceoftheformerrelationshipcreatesapotentialconflictofinterest,especiallyintheeyesofcoworkers.Thecompanyisforcedtochangethereportingchainofthedepartmentshemanagedeventhoughthemanageranddirectorarenolongerdating. Anemployeesetsupapersonalwebsiteonwhichhesellshisemployer'ssoftwareproducts. TheBottomLine Therearemanymoreexamplesthatcouldbeexplored,butthegeneralideahereisclear.Alloftheseexamplesdescribeascenarioinwhichanemployeeistornbetweenservingmorethanoneperson'sororganization'sbestinterests.Ifyou'reunsurewhetherthereisaconflictofinterest,looktoseewhetherthereareanycompetingloyalties. Share Tweet Share Email ExamplesofCommonEmployeeWorkplaceViolations WhatEmployeesandEmployersNeedtoKnowAboutNegotiating HowtoAnswerInterviewQuestionsAboutWorkingWithOthers HowtoAnswerJobInterviewQuestionsAboutHandlingChallenges TipsforSharingExamplesofTeamworkatanInterview ExamplesofSexualandNon-SexualHarassmentintheWorkplace PurchasingCareers:Options,JobTitles,andDescriptions WhyYouNeedanEmployeeGiftPolicyandaSampleGiftPolicy USMilitaryStandardsofConduct WhatYouNeedtoKnowAboutWorkplaceViolence StepsinMediatingWorkplaceConflictforEffectiveResolution HowtoBestRespondtoaRequestforaReferenceCheck ForWhatReasonsWillanEmployerFireanEmployeeImmediately? SeeSampleReferenceLetterstoRecommendanEmployee WhyYouNeedaNepotismPolicyandaSampleNepotismPolicy SampleFraternizationPolicyfortheWorkplace

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