Every business should have a plan for employees to disclose potential conflicts of interest and a way to resolve them.
As an example, if your business is selling paint products do you want an employee who sells paint as a side business? A definition of a conflict of interest is any activity, financial investment, interest, association, or relationship, (including relationships with family members, relatives, friends, and social acquaintances), that conflicts with an employee’s independent exercise of judgment concerning their employment.
An example is a father and son working in the same business unit.
They should not be allowed to ring sales or supervise each other.
Policies on this range from not allowing outside employment by full-time associates to case-by-case approval by a senior member of management.
Some companies’ limit providing consulting services for one year after your employment terminates.
The problem is acute for the FDA, for example, which so fears the release of harmful drugs that it often keeps beneficial ones off the market.
" That problem is more acute today, because many of our social watchdogs are in fact complex organizations that are rife with their own internal conflicts of interest.
This would not include nominal or non-controlling interest in holdings of bonds or securities.
• Maintaining outside employment with or providing consulting services to any competitor, vendor, or customer.
Although it is not possible to identify all possible situations, reasonable business judgment should be sufficient to evaluate most situations.
Managing a potential conflict of interest starts with the employee notifying an immediate supervisor that the potential for conflict exists.
These restrictions would be effective as long as both relatives worked for the same company.