Question

What are conflicts of interest, in regards to ethics? What types of conflicts of interest are there?

Answer 1

answer-

Conflicts of interest in context of ethics occurs when one party takes unethical decision which is in their own interest but not in interest of another person or company that first person works for.

for example- We know that taking bribe is unethical so when a purchasing manager takes bribe and pass or purchase supplies of poor quality which may hurt the company and customer but benefit the purchase manager.

another example of conflict of interest in context of ethics like when A accounting manager manipulate the accounting data and withdraw money from company's account. this practice affect business profit but benefit accounting manager.

another example- Promoting a employee to position because employee is friend while not considering actually worthy and qualified employee for promotion.

there are some types of conflicts of interest -

Actual conflict of interest:

There is a real conflict between an employee or director’s public duties and private interests.

Potential conflict of interest:

An employee or director has private interests that could conflict with their public duties. This refers to circumstances where it is foreseeable that a conflict may arise in future and steps should be taken now to mitigate that future risk.

Perceived conflict of interest:

The public or a third party could form the view that an employee or director’s private interests could improperly influence their decisions or actions, now or in the future.

Private interests may be direct or indirect, and financial or non-financial:

Direct interests:

Includes an employee or director’s own personal, family, professional or business interests.

Indirect interests:

Includes the personal, family, professional or business interests of individuals or groups with whom the employee or director is, or was recently, closely associated.

Financial interests:

Involves an actual, potential or perceived financial gain or loss. Money does not need to change hands for an interest to be financial.