Conflicts of Interest

SMEs are often family businesses and small companies are often founded on relationships that go beyond the organisation’s boundaries. So, giving everyone equal opportunities both in the hiring process and when making decisions about promotions and career advancements is an essential first step to treating employees fairly. Conflicts of interest can also arise with customers and suppliers when working within a small community.

However, it is important that friendship or family relationships don’t influence business decisions and that conflicts of interest are avoided. This will show that favouritism and nepotism are not tolerated and that the company considers fairness to be an important ethical value. 

IBE Guidance
  • All work-related decisions need to be based on personal merits, without allowing personal relationships to influence business decisions (e.g. hiring or promoting employees, selecting business partners or suppliers, etc.)
  • All team members are encouraged to declare to their line manager or other appropriate person a potential conflict of interest and, if possible, take themselves out of the decision-making process.
  • When employees accept outside employment or positions, they need to make sure they do not conflict with their company’s interests and do not use potential business opportunities for their own personal gain. If there is a conflict of interest, it is always important to declare it.
Subject Matter Expert Resources