A conflict of interest can arise when a person or entity has 2 or more relationships which have competing interests. A problem arises when the person acts in favor of one to the detriment of the other.
Examples of inappropriate actions as a result of a conflict of interest:
(1) nepotism
(2) self-dealing
(3) inside information
(4) decision-making in the presence of a relationship
Ethics dictates identification and resolution of any conflicts prior to a potentially detrimental action. Failure to do so causes suspicion of corruption even if none occurred.
Prevention of an inappropriate action may involve:
(1) full disclosure
(2) recusal
(3) independent decision review (oversight)
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