Conflict Of Interest Flashcards, test questions and answers

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What is Conflict Of Interest?

A conflict of interest occurs when an individual is in a situation where they have a vested interest in the outcome of a situation, which is at odds with their professional obligations. This can be either financial or personal interests. Conflict of interest can arise in both private and public sectors, as well as within organizations. It can cause significant damage to an organization’s reputation and integrity if not managed properly.The most common type of conflict of interest is financial, when an individual has a vested interest in the outcome of their professional conduct due to personal gain. An example would be if a lawyer had shares in a company they were representing in court. In this case, the lawyer would need to recuse themselves from the case as it could potentially create bias and unethical behaviour on their behalf. Conflict of interests can also occur between two parties with competing interests such as where one party has more power than the other or where one party stands to benefit more than another from certain decisions made by them both. The main risk associated with conflicts of interest such as these are that decisions are being made based on biased opinion rather than objective reasoning leading to unfairness and corruption within organizations or government departments. Organizations should have policies which recognize potential conflicts of interests which may arise amongst its employees, especially those working within positions which carry authority or influence over decision-making processes and outcomes.