There are many different definitions for Conflict of Interest, but most all mean the same or point to the same direction. When gifts, outside activities such as consulting, or financial and fiduciary interest have potential to create a certain decision or commitment with a business it is considered conflict of interest. Although there are numerous definitions the one adopted by the Institute of Medicine is helpful. It states, “A conflict of interest is a set of circumstances that creates a risk that professional judgment or actions regarding a primary interest will be unduly influenced by a secondary interest.” A conflict of interest usually occurs in a few common ways. One may be when an individual has the opportunity to use his/her partners’ position for personal financial gain or benefit a company in which the individual has a financial interest. Another way is when outside financial inappropriately influence the way in which an individual carries out his/her partners’ responsibilities. The last most common way of conflict of interest is when an individual’s outside interests otherwise may cause harm to partners’ reputation, staff, or patients. Conflicts of interest are often unavoidable and in many cases can be appropriately managed or reduced to an acceptable level. The people in the business should notice outside activity, interest, or interaction that has potential to create conflict. A few conflict of interest examples that are not acceptable are: Receiving a gift from a vendor.
For example, Aaron works for a consulting firm. He accepts a large gift from a client in exchange for a discount on the services his employer provides. Being related to workers and giving them different treatment than the standard employee. For example, John works for a company that is managed by Uncle Steve. John reports to Uncle Steve to receive pay raises, promotions and other benefits that others in his same position do not receive. Doing freelance work for a competing...
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