CONFLICT OF INTEREST AS AN UNETHICAL ISSUE IN THE BUSINESS
ADMINISTRATION
WHY ADDRESSING CONFLICT OF INTEREST IN BUSINESS IS IMPORTANT
Conflict of interest in any business is a critical ethical issue that must be addressed more
wholesome and conclusive. This will allow other stakeholders to evaluate the matter and make
objective decisions rather than keep it to themselves and create an ethical or legal situation.
INTRODUCTION
In assessing how an issue of conflict of interest affects businesses, I shall focus on its
impact and various ramifications, the suggested solutions to the problem and the Possible Risks
and Plans for Mitigation of the issue.
IMPACT OF CONFLICT-OF-INTEREST TO BUSINESSES
Conflict of interest in businesses has negatively impacted business decisions, where
personal interests jeopardize the businesses' core objectives. Some of the impacts of this project
include trust erosion, compromised decision-making processes, harming individual reputations,
and undermining organizational integrity and success (Feldman & Halali, 2019).
Trust erosion
With conflict of interest in any business, stakeholder confidence gets destroyed; hence,
the company loses its reputational goodwill.
Compromised decision-making process
When self-interest takes priority in any business organization, it is directly related to
conflict of interest, and immoral decisions become apparent. This, in return, jeopardizes the
business' reputation, leading to adverse legal and financial effects.
Harming individual reputations
Individuals in any business who resort to engaging in activities relating to conflicts of
interest run the danger of harming their reputations. This can affect them both within and beyond
the business entity.
Undermining organizational integrity and success
When a business entity is experiencing too much attention relating to conflicts of interest,
the business's long-term viability and moral character are destroyed.
SUGGESTED SOLUTIONS TO THE CONFLICTS OF INTEREST ISSUE
Some of the solutions towards managing the conflicts of interest issue in any business entail;
i. Implementation of a comprehensive code of ethics
ii. Practising the rules relating to conflicts of interest
iii. Promoting a speak-up culture
IMPLEMENTATION OF A COMPREHENSIVE CODE OF ETHICS
A comprehensive code of ethics can spell out what conduct is appropriate and what is not.
Hence, this will guide how to manage and resolve disputes relating to conflicts of interest.
Moreover, a comprehensive code of ethics can promote significant accountability and openness
in any business environment. Regular training and communication may ensure the efficacy of the
code of ethics (Darwish & Abdeldayem, 2019).
PRACTISING THE RULES RELATING TO CONFLICTS OF INTEREST
Explicit rules relating to conflicts of interest in any business entity should be created and
implemented for the latter. With these rules, employees, executives and board members should
be encouraged to report any possible conflicts. In order to avoid abuses, these regulations must
be independently monitored and enforced. Moreover, these rules should develop a procedure for
assessing and addressing them to lessen the effect of disputes (Tourish & Craig, 2020).
PROMOTING A SPEAK-UP CULTURE
In an ideal working environment, staff members should feel free to bring up ethical or
conflict-of-interest issues without fear of reprisal. Moreover, mechanisms for anonymous
reporting may improve openness and responsibility in any business environment. This can be
actualized through the efficiency of reporting channels, safeguarding whistleblowers and regular
audits and evaluations (Turyakira, 2018).
SUMMARY
For sure, an issue relating to conflict-of-interest has managed to the success and integrity
of an organization, undermine confidence, ruin people's reputations and even undermine the
moral judgment of decision makers. Despite all these, all the relevant problems relating to the
conflict-of-interest issue in any business can be resolved through a welcoming speak-up culture,
proper regulations and strong codes of ethics. By being aware of the potential risks associated
with conflicts of interest, businesses may promote a moral decision-making process and a culture
of trust, hence advocating for long-term success.
References
Darwish, S., & Abdeldayem, M. M. (2019). RISK MANAGEMENT AND BUSINESS ETHICS:
RELATIONS AND IMPACTS IN THE GCC.
Feldman, Y., & Halali, E. (2019). Regulating “Good” People in Subtle Conflicts of Interest
Situations. Journal of Business Ethics, 154(1), 65–83. https://doi.org/10.1007/s10551-
017-3468-8
Tourish, D., & Craig, R. (2020). Research Misconduct in Business and Management Studies:
Causes, Consequences, and Possible Remedies. Journal of Management Inquiry, 29(2),
174–187. https://doi.org/10.1177/1056492618792621
Turyakira, P. K. (2018). Ethical practices of small and medium-sized enterprises in developing
countries: Literature analysis. South African Journal of Economic and Management
Sciences, 21(1). https://doi.org/10.4102/sajems.v21i1.1756
