In an era, where investors, consumers and employees alike value integrity and ethics and more often base their decisions to invest, buy or work on the integrity and ethical behavior of organizations, it becomes a necessity to walk the talk for organizations and its leadership and staff. The adoption of a Conflict of Interest Policy is an important step in this process. 

What are Conflicts of Interest?

Conflicts of Interest rise when different interests emerge in the head of the same person, working in an organization.
These Conflicts of Interest could for example be:

• Between the interest of Directors and the interests of the organization
• Between the interest of employees and the interests of the organization and its clients 
• Between clients
• Between shareholders
• Between an organization and its mother company or with subsidiaries.

How does a Conflict of Interest Policy address this challenge?

Accenture Strategy’s Global Consumer Pulse Research, revealed that consumers, across all generations, care about what organizations say and how they act. “Five years ago, trust in a company was really that they did what they said they would,” said Rachel Barton, managing director at Accenture Strategy. “In the last few years, it has moved to trusting the foundations and purpose on which a company is built.”

Moreover, recent research has shown that more than six in ten younger consumers closely consider a company’s ethical values and authenticity before buying their products, making integrity and walking the talk a real topic for the future of conducting business.

Conflict of Interest Policies identify and manage Conflicts of Interests, without damaging the interests of clients and by providing relevant information. Such a Policy needs to apply to all employees and Directors of an organization.

A Conflict of Interest Policy can contain following type of measures:

• Have the responsibility for potentially conflicting services allocated to different persons
• Information barriers within the organization, avoiding Conflict of Interest to occur 
• Avoid that persons from in or outside the organization with a Conflicting Interest have an unjustified influence in the organization
• Code of Conduct for Directors
• Limit external activities of staff and Directors
• …

Depending on the sector in which your organization is active, there might be some legal obligations, favoring the avoidance of Conflict of Interest.

Are you interested in developing or reviewing your Conflict of Interest Policy?

Do not hesitate to contact us, if you are interested in developing or reviewing your Conflict of Interest Policy.