What is a Conflict of Interest?

What is a Conflict of Interest?

A ‘conflict of interest’ is a situation where the firm or an employee, or other associate of the firm has competing professional or personal interests, which may prevent services being provided to clients in an independent or impartial manner.

For example, the person might have a loyalty to an employer and also loyalty to a family business. Each of these businesses expects the person to have its best interest first. Thus, the conflict. Conflicts of interest can happen both personally and professionally but they almost always have a professional impact. Understanding both types of potential conflicts of interest can help you avoid them.

Some situations will present employees with the potential for a conflict of interest, both personal and professional, so it is important you are able to identify them and act accordingly.



How a Conflict of Interest Works
A conflict of interest can exist in many different situations involving personal loyalty and loyalty to a private employer or professional relationship.

Let’s take a look at some general examples for understanding:

• An attorney who attempts to represent both parties in a divorce
• Accepting payment from another company for information about your employer

Accepting payment from another company for information about your employer
A person of authority in one business that conflicts with their interests in another company or organization