Basic Conflict of Interest Policy

by Sam Grover - Updated September 26, 2017
Hopefully conflict of interest won't come to this.

Conflict of interest policies are standard agreements that protect both companies and their employees. A conflict of interest policy essentially prevents employees with decision-making duties from making decisions that are against the organization for which they work.

Definition

A basic conflict of interest policy must first define what constitutes a conflict of interest for that particular company and industry. Without this definition, employers cannot enforce the policy.

Disclosure Policy

Conflict of interest policies rely on disclosure. The agreement requires affected parties to disclose all potential conflicts of interest.

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Leeway

A basic conflict of interest policy gives managers a lot of leeway in establishing conflicts of interest. It provides guidelines, but the ultimate decision as to whether a conflict of interest exists falls on directors, senior management and executives.

About the Author

Sam Grover began writing in 2005, also having worked as a behavior therapist and teacher. His work has appeared in New Zealand publications "Critic" and "Logic," where he covered political and educational issues. Grover graduated from the University of Otago with a Bachelor of Arts in history.

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