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A conflict of interest policy is used to outline procedures for employees when a possible conflict exists between their own personal interests and the interests of the organization.
How a written conflict of interest policy helps protect your organization. To address potential conflicts of interest, your company should create a policy that governs situations where employees, or others acting on behalf of your company, personally benefit from actions that contradict the companys best interests.
A conflict of interest policy is intended to help ensure that when actual or potential conflicts of interest arise, the organization has a process in place under which the affected individual will advise the governing body about all the relevant facts concerning the situation.
A conflict of interest is a set of circumstances that creates a risk that professional judgment or actions regarding a primary interest will be unduly influenced by a secondary interest.
The purpose of the conflict of interest policy is to protect the FIRSTs (Organization) interest when it is contemplating entering into a transaction or arrangement that might benefit the private interest of an officer or director of the Organization or might result in a possible excess benefit transaction.
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A conflict of interest involves a person or entity that has two relationships competing with each other for the persons loyalty. For example, the person might have a loyalty to an employer and also loyalty to a family business. Each of these businesses expects the person to have its best interest first.
There are also situations where you might have more than one type of conflict.Part 3: Different types of conflicts of interest financial conflict; non-financial conflict; conflict of roles; or. predetermination.
9. How should an employee disclose potential conflicts of interest and commitment? A disclosure of potential conflicts of interest and/or duality of interest form should be signed annually by all employees who have business dealings with outside individuals, agencies, or vendors.
Such a conflict occurs when a company or person has a vested interestsuch as money, status, knowledge, relationships, or reputationwhich puts into question whether their actions, judgment, or decision-making can be unbiased.
Example 1: An organization purchases insurance coverage through a firm owned by a board member. This would constitute a conflict of interest. Even though insurance purchases might normally be a CFOs or business administrators function, a transaction with a board member must always be approved by the board.

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