What Is Conflict Of Interest

Every day people make decisions that may have profound effect on their personal and/or professional lives as well as the lives of others. The decision people make have a foundation on their personal, cultural, and perhaps organizational values. When these values are in disagreement, an ethical dilemma occurs.

RULE OF LAW: Corporate promoters owe a fiduciary duty to one another, the company, its

The final category is conflict of interest. A conflict of interest occurs when an employee has an undisclosed economic benefit in a situation. For example, maybe the employee has a family member who works for one of the companies bidding on a project. If the employee knows that the family member will benefit and does not disclose the information to his superior than that is a conflict of interest.

“Unethical thinking is not just “bad business”; it is an invitation to disaster in business, however rarely (it may sometimes seem) unethical behavior is actually found out and punished” (Solomon, 1997:17) An ethical dilemma happens when an intricate circumstance which often originates from a struggle amongst the moral requirements of two persons.

conflicts of interest can have long lasting detrimental affects on the company. To this end,

“A conflict of interest arises when a trustee has an interest that conflicts with the interest of the organization”. (American Medical Association, 2010).

The treatment of conflicts of interest and other ethical dilemmas that may arise in investment decisions.

All staff members have responsibilities with respect to our Company and its stockholders. Accordingly, staff members must avoid situations that create a conflict of interest or the appearance of a conflict of interest with the Company. A conflict of interest often arises when an individual’s personal interests conflict with those of the Company.

Diworth, J. Perterson & Seligman, (2004). The Ethical Importance of Conflicts of Interest: Accounting and Finance Examples. Business & Professional Ethics Journal, 3(1), 25-40.

It is a relevant ethical dilemma because it is a situation in which an ethical decision needs to be made by a businessman (CFO of Gabriel Resources) where viable options to this case are available which will be judged further in this essay by applying ethical theory and concepts.

Ethical theory fails to provide a solution when there is a conflict of interest. A moral theory

Fiduciary Principle. As part of the legal structure of a business organization, each officer and director of a company has a legal fiduciary duty to act in the best interest of the stakeholders and other employees within the firm. Furthermore, there is also an implied fiduciary duty for every employee within the organization to also act in a way that

Our employees are expected to follow and practice high ethical standards, and to avoid situations that create an actual or potential conflict of interest between the employee’s personal interests and that of Bulsho Group. A conflict of interest exists when the employees actions as are advise to Bulsho Group. Even that appearance of conflict of interest must be deterred. Bulsho Group may take Corrective Action process may be taken or may end your employment immediately upon violation. Conflicts of interests may include accepting money or access to potential suppliers and vendors of goods and services.

Conflict of interest- any relationship, that is not in the best interest of the organization.

Economic science teaches us that due to their subjective needs, individuals have subjective preferences, and hence different interest. Occasionally different subjective interests give rise to conflicts of interest between contracting partners. These conflicts of interest may result in turn, in one or both parties undertaking actions that may be against the interest of the other contracting partner. The primary reason for the divergence of objectives between managers and shareholders has been attributed to separation of ownership (shareholders) and control (management) in corporations. As a consequence, agency problems