Competing loyalties.
WHAT A CONFLICT IS
A situation where personal interest could improperly influence a business decision.
WHAT FORMS IT TAKES
Awarding business to a company you or a relative own Employing relatives without process Outside employment with a competitor or supplier Personal relationships with suppliers or customers Investments in parties you deal with Accepting benefits from those seeking decisions
WHY IT MATTERS EVEN WITHOUT WRONGDOING
The appearance undermines confidence in every decision that person made.
WHAT TO ESTABLISH
Disclosure of interests.
WHAT TO REQUIRE DISCLOSURE OF
Interests in suppliers, customers and competitors Relatives employed or doing business with you Outside business activities Anything that could appear to influence a decision
WHEN
On joining, annually, and whenever something changes.
WHAT TO DO WITH A DISCLOSED CONFLICT
Remove the person from the decision Or manage it transparently with additional oversight
WHY REMOVAL IS USUALLY BETTER
Managed conflicts are still questioned.
WHAT TO ESTABLISH ABOUT FAMILY IN BUSINESS
That it is permitted, and how.
WHY IT DESERVES ADDRESSING DIRECTLY
Family involvement is normal and it is not inherently improper, but it must be visible.
WHAT TO REQUIRE
That family appointments follow the same process That family members are not supervised by relatives That decisions involving them are made by others
WHY THE SUPERVISION POINT
It is where problems become unmanageable.
WHAT TO RECORD
Every disclosure and how it was handled.
WHAT TO REVIEW
Whether disclosed interests are being properly managed.
