What is Conflict of Interest ?
A ‘Conflict of Interest’ occurs when two parties have different opinions or interests in tackling a problem or arriving at a conclusion. Concerning HR, conflict of interest might happen in a variety of contexts.
When it comes to businesses, it has been observed that a conflict of interest arises whenever an individual has a vested interest in the conflict at hand. In such a scenario, they might act in such a manner that is detrimental to the company, while helping with their personal gain.
Some of the most common factors leading to a conflict of interest are, self-dealing, gift issuance, insider trading, nepotism, etc. Hence, companies take extra precaution to make sure that conflicts of interest don’t arise by restricting the chances of these scenarios happening.