Conflicts of Interest Essay

There are many a(prenominal) different definitions for Conflict of Interest, barely most(prenominal) all mean the analogous or point to the same direction. When gifts, extraneous activities much(prenominal) as consulting, or fiscal and fiduciary relate have potential to fix a certain decision or commitment with a business it is considered difference of opinion of lodge in. Although there are legion(predicate) definitions the one adopted by the Institute of Medicine is helpful. It states, A action of take is a set of circumstances that creates a risk that maestro judgment or actions regarding a primary bet leave alone be unduly influenced by a secondary interest. A troth of interest usually occurs in a a couple of(prenominal) common ways.One whitethorn be when an item-by-item has the opportunity to use his/her partners position for personal financial gain or gain ground a ships company in which the individual has a financial interest. Another way is when outside financial unsuitably influence the way in which an individual carries out his/her partners responsibilities. The last most common way of conflict of interest is when an individuals outside interests otherwise whitethorn cause harm to partners reputation, staff, or patients. Conflicts of interest are often unavoidable and in many cases foundation be befittingly managed or reduced to an acceptable level. The people in the business should beak outside activity, interest, or interaction that has potential to create conflict. A few conflict of interest examples that are not acceptable are Receiving a gift from a vendor.For example, Aaron works for a consulting firm. He accepts a gigantic gift from a client in exchange for a send away on the services his employer provides. Being related to workers and giving them different give-and-take than the standard employee. For example, lavatory works for a company that is managed by Uncle Steve. John reports to Uncle Steve to receive pay r aises, promotions and other benefits that others in his same position do not receive. Doing freelance work for a competing company on the side.For example, genus Melissa works full time for Canon as a selling director. In her spare time, she does freelance work for Nikon, helping to market their company with the skills she has learned from Canon. Richard Parsons is a part of two different businesses. Because Parsons has a clear(p) fiduciaryduty to Citibanks shareholders and must put their interest beforehand of his or anyone elses, his financial stake in Providence looks like a paradigm of a conflict of interest not to mention the point that Citibank, with all its problems, probably needs the full-time attention of the chairman of its board. As stated in the text it is believed to be conflict of interest since Mr. Parsons is compound in both(prenominal) companies. Citibank however does not discern it being a conflict of interest, and in fact says they would not allow even t he look of conflict of interest. At times Providence needs financing and Citibank often lend them money. It is believed the two companies have much(prenominal) great relation because of Richard Parsons. twain businesses accept a sleep with they get out benefit from, alone is it the beaver deal Citi can have?Although Citibank believes there is no conflict of interest there may be. Both businesses can benefit from one deal, provided Citi bank can negotiate a deal that they can benefit from more. Why dont they negotiate a better deal though? If they do receive a better deal it will have the possibility of hurting Providence. Richard Parsons may not be a part of the deal, but the negotiators know who their boss is and do not exigency to make his business look bad. Because Richard Parsons is in both business it creates conflict of interest he does not intend for. It also creates unethical actions occur. Although they arent intentional they still happen. It is unethical for one p erson to affect both businesses, their deals, and their success. Keyon Communications is a broadband provider that is worth about moreover four cents. In 2009 the companies strained climbed from four cents to two dollars and ten cents. The monumental question is how? Investors bid up the companys stock and rely for it to take off. Of course the company believed it was a billion dollar company, but the truth is the stocked was fueled up by Joe Noel. Joe Noel was an analyst for rising Growth Research. He keeps a secret that Keyon awarded him seventy five green shares before he even began covering the company.The companys stock eventually went down and showed that the companys stock was unfeignedly altogether ninety five cents. The texts states that it is less certain whether there is conflict of interest or not, but it believe it is easier to determine in the case with Joe Noel and Keyon Communication. Joe Noel sure a great amount of shares before he boosted their sock. Givin g Joe Noel such shares moved him to invest in their company. One of the easiest conflict of interest to see is when a gift orsomething is accepted from a vendor, and the vendor knows it will eventually benefit them. It was unethical for Joe Noel to boost their stock so much. It lead astray others in thinking the company was better and worth more than it truly was. I believe people do not go around discussing or recommending specific stocks unless they are asked. It can be considered to be conflict of interest to discuss investments because someone can invest in a certain company to benefit someone or a business.Friends may discuss stocks and investments and can create conflict of interest or can just simply recommend certain investments and discuss what may be best. If someone ask about your investments it is okay to discuss, but not to create deals that will be considered conflict of interest. Every company should have a policy to avoid conflict of interest. The policy must inclu ded many things but some main ones are The employee owes a duty of committedness to the company.At all times when on duty, without regard to time or place, employees should devote their full attention to the companys business and their duties. An employee must avoid any activity that conflicts with their interest of the company. An employee must disclose a potential conflict in advance.Outside employment is prohibited unless okay by the employer in advance. The company will deny permission for such outside employment if at any point it adversely affects the employees ability, fitness, or readiness to work.