What are Some Common Workplace Conflicts of Interest?
Workplace conflicts of interest, also known as COI, are a common concern that all establishments must be mindful of. Not heeding these conflicting interests on the other hand can be quite detrimental to the ultimate bottom-line of the business affected. So, what are these conflicts of interest? Before we get into specific examples, let’s highlight the basic defines of this concept.
COI: The Basics
A conflict of interest is the existence of differing interests or goals within one establishment or setting. It is when a group or an individual employee within a said business is directly motivated in the pursuit of an interest that is contradictory to that of the company. When COI’s exist within a company, they can be quite toxic and actually help opposing causes and competition.
In many places, workplace conflicts of interest can be so detrimental in fact that they are strictly targeted and prohibited by ethics laws and other strong regulations. One great example of the specific targeting of this issue can be seen in the New York City COI Board, or COIB. This agency governs this issue within all of the legal limits of the city of New York. It is comprised of an active oversight board, enforcement arms, community outreach mechanisms, and more, all in the name of the prevention of COI.
To better glean a clear understanding of real-life conflicts of interest, let’s now get into some specific examples.
Contractor Selection COI
In virtually all businesses, organizations, and government bodies exists the occasional need to hire an outside contractor. This contractor is meant to serve a specific need of the hiring entity that cannot effectively be resolved in-house. Examples could include landscaping work, building repair work, document management, or employee uniform services.
An example of COI in this function can be seen when the employee making the choice of which contractor to hire for their company does this hiring based on prior or familial relations. As a result, the company is tied into a long-term arrangement with this employee’s friend or family member as opposed to the best, most qualified contractor available. Later, this slanted relationship can often give way to unfair pricing, preferential treatment, dereliction of duties that were meant to be addressed by the arrangement, and much more. This may help the side interests of this individual employee, but their company’s interests may be simultaneously jeopardized.
Hiring and Employee COI
On most job applications, the applicant will find an area in which to indicate any relations shared with current workers within the company. This is specifically meant to thwart this particular conflict of interest. By identifying family and friend relationships first, the company can avoid unfair COI’s within the workforce later.
By hiring a relative or friend, the manager is then suspect to the confines of their previous relationship with the individual. It will certainly be harder for them to be fair in oversight and discipline. It will also be suspect whenever accommodations are made to that employee from this manager or their department. The implications can become quite complicated and messy, and therefore,wisely, companies want no part in it.
This is just a basic rundown of the world of workplace COI’s as well as a few of the many examples. Ethics and company interests depend on a keen awareness of this particular concept. Without this awareness, countless future issues are likely. For additional reading and resources on workplace conflicts of interest, the aforementioned NYC COI Board provides an excellent question-and-answer, public education area on the matter here.
