{"id":9970,"date":"2020-10-26T18:33:53","date_gmt":"2020-10-26T18:33:53","guid":{"rendered":"http:\/\/localhost:10245\/?p=9970"},"modified":"2021-01-11T18:33:53","modified_gmt":"2021-01-11T18:33:53","slug":"what-is-a-conflict-of-interest-389-en","status":"publish","type":"antikorupcija","link":"https:\/\/transparency.vdevs.eu\/en\/antikorupcija-detalji\/what-is-a-conflict-of-interest-389-en\/","title":{"rendered":"What is a conflict of interest?"},"content":{"rendered":"<p>A conflict of interest involves a person or entity that has two relationships competing with each other for the person&#39;s loyalty. 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 <strong>personally<\/strong> and <strong>professionally<\/strong>.<\/p>\n<p>A conflict of interest can exist in many different situations involving personal loyalty and loyalty to a private employer, government employer, or professional relationship. Specific instances of conflicts of interest can include a public official whose personal interests conflict with their expected loyalty to the organization, a person of authority in one business that conflicts with their interests in another company or organization, or an attorney who attempts to represent both parties in a divorce.<\/p>\n<p><strong>Types of Conflicts of Interest<\/strong><\/p>\n<p>Several common activities that can create a conflict of interest include:<\/p>\n<ul>\n<li>Nepotism<\/li>\n<li>Self-dealing<\/li>\n<li>Excess compensation<\/li>\n<\/ul>\n<p><strong>Nepotism<\/strong> is the practice of giving favors to relatives and close friends in matters of hiring, promotion, transfer, or termination. The term comes from the word for &quot;nephew,&quot; and it was common practice in ancient times. Nepotism is considered a conflict of interest because the relative may not be the best person for the job.<\/p>\n<p><strong>Self-dealing<\/strong> is an action taken by a corporate fiduciary for that person&#39;s personal gain, rather than for the benefit of the company. Examples including using corporation funds as a personal loan, or buying company stock based on insider information&mdash;which is also an insider trading violation.\ufeff In a non-profit organization, setting compensation or benefits for officers, directors, or trustees may result in a conflict of interest. For instance, paying an employee in a position or substantial authority excessive compensation serves a private interest.<\/p>\n<p><strong>Conflicts of Interest in the Workplace<\/strong><\/p>\n<p>Conflicts of interest in the workplace&nbsp;can take on many different forms. There are business-related situations, such as an employee having a side business that competes with the employer, and there are personal matters, such as a manager in a romantic relationship with an employee. The latter presents a conflict because the manager has the power to give raises or promotions to the employee, and discussions about the company between the two people may also breach confidentiality restrictions.<\/p>\n<p>For companies that rely on a supply chain, conflicts of interest are more likely to happen. For instance, an employee who has a friendship with a supplier may allow them to go around the bidding process and win contracts with little to no competition.&nbsp;<\/p>\n<p>Many organizations have policies and procedures that don&#39;t allow a conflict of interest, such as regulations against hiring relatives in certain situations.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>A conflict of interest involves a person or entity that has two relationships competing with each other for the person&#39;s loyalty. 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. [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"menu_order":0,"template":"","categories":[],"antikorupcija_category":[204],"class_list":["post-9970","antikorupcija","type-antikorupcija","status-publish","hentry","antikorupcija_category-sukob-interesa-2-en"],"acf":[],"_links":{"self":[{"href":"https:\/\/transparency.vdevs.eu\/en\/wp-json\/wp\/v2\/antikorupcija\/9970","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/transparency.vdevs.eu\/en\/wp-json\/wp\/v2\/antikorupcija"}],"about":[{"href":"https:\/\/transparency.vdevs.eu\/en\/wp-json\/wp\/v2\/types\/antikorupcija"}],"author":[{"embeddable":true,"href":"https:\/\/transparency.vdevs.eu\/en\/wp-json\/wp\/v2\/users\/1"}],"wp:attachment":[{"href":"https:\/\/transparency.vdevs.eu\/en\/wp-json\/wp\/v2\/media?parent=9970"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/transparency.vdevs.eu\/en\/wp-json\/wp\/v2\/categories?post=9970"},{"taxonomy":"antikorupcija_category","embeddable":true,"href":"https:\/\/transparency.vdevs.eu\/en\/wp-json\/wp\/v2\/antikorupcija_category?post=9970"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}