Conflict of interest

A conflict of interest is a situation in which a person’s self-interest may interfere with his duty to make a decision in the public interest or for an employer. For example, there is a conflict of interest when a company’s purchasing manager also owns one of the suppliers to which the company issues purchase orders. As another example, a company CEO decides to relocate the company headquarters closer to his personal residence, though doing so will be expensive for the company and require longer commute times for employees.

A good way for an individual to deal with a conflict of interest situation is to state the situation and remove himself from the decision-making process that is causing the conflict.