Conflicts of Interest Flashcards
What is a conflict of interest?
A conflict of interest arises when a person’s or organization’s objectivity and impartiallity may be compromised due to a prior or existing relationship
Why are conflicts of interest a concern in professional settings?
They can lead to biased decisions, unfair treatment, and loss of trust, as the individual or organization might prioritize one interest over others, compromising their impartiality.
What are common examples of conflicts of interest?
Examples include a surveyor valuing a property they have a financial stake in, or an employee making procurement decisions that benefit a relative’s business.
How can conflicts of interest be managed?
Through disclosure, where the interested parties inform others of the conflict; avoidance, where possible; and by implementing procedures to manage or mitigate the conflict.
What is ‘disclosure’ in the context of conflicts of interest?
Disclosure involves openly declaring any personal or financial interests that could potentially influence one’s professional judgment or actions.
What steps should organizations take to handle conflicts of interest?
Organizations should have clear policies and procedures for identifying, disclosing, and managing conflicts of interest, as well as training staff on these policies.
Organizations can only proceed with an instruction on the basis of INFORMED CONSENT
What role does transparency play in managing conflicts of interest?
Transparency helps ensure that all relevant information is known to all stakeholders, fostering trust and allowing for informed decisions about how to manage potential conflicts.
What is the potential impact of failing to manage conflicts of interest?
Failure to manage conflicts can lead to ethical breaches, damage to reputation, legal consequences, and loss of stakeholder trust.
