Sometimes a situation can develop at work where the interests of two employees don't match. It can lead to a personality clash, which can lead to your business labouring under conflicting interests.
The issue can go a lot further, too, and affect company directors and managers.
This guide explores the issues that can arise and how your business should deal with them.
How to handle conflicting interests
If there’s an apparent conflict of interest in your business, what should your business do?
There are a variety of rules and policies that you can establish to ensure you limit the potential issues developing. These can be in your contracts of employment and your company handbook. If you have an onboarding process, you can also explain your policies to new starters while they go through that.
Conflict of interest (in company time or otherwise) is typically banned by most businesses. You can make that clear in your terms and conditions, as well as your company handbook. The main reason is that it can cause your staff to act out of the interests of your business. Advise employees to act in a way that respects your business policies and doesn’t create problems. If you don’t, the knock-on effect is that you could face damages to your public image.
Some of the main consequences can be to:
- Reputation
- Integrity
- Trustworthiness
It’s important to remember that some of your business policies may create an unwaivable conflict of interest.
This is where it’s unavoidable—an example of this is where your business doesn’t have policies blocking the opportunity for conflicts of interests. Such as an employee setting up a business in their spare time that directly competes with you. Your contract of employment should indicate that you do not allow this, which will ensure you avoid the issue from developing.
Examples of conflict of interest
This can be a difficult topic to define as there are so many ways it can play out. Here are some examples you can refer to for a better understanding of it:
- Male and female colleagues dating, with one reporting to the other.
- An employee starting a company that is in direct competition with who they work for full-time.
- A manager offering consulting services to customers from their employer.
- Members of staff working part-time for a rival company to their main employer.
- If a business owner hires a relative and treats them with favouritism.
- If a staff member accepts a gift from a customer for a discount on one of your products or services.
- The use of your resources to provide a gift.
Need our help?
Faced with a conflict of interest in your business? Speak with an expert today on 0818 923 923 for immediate guidance.
