Common Conflict of Interest Examples

You have likely heard the term “conflict of interest”—perhaps there is even a glancing reference to it in your employee handbook—though you probably thought this unethical practice could not apply to you. The reality is, nearly everyone can make this mistake. There are certain conflict of interest examples that are more familiar than others. This is how to identify them and avoid any complications.

What Is a Conflict of Interest?

Basically, a conflict of interest is any scenario wherein a person (or a company) can benefit from actions or choices made in their official capacity. The conflict in question is between their& personal gain and their professional duties.

The clashes can involve perks in many forms: money, status, and power are common ones. If such a situation is discovered, the guilty employee may be required to remove themselves from the situation—depending upon the severity, the individual may be asked to switch departments, lose their job, or may even face legal trouble.

That is still a bit nebulous, right? Below you’ll find some real-life scenarios that will help define the ways in which conflicts of interest may manifest in the workplace.

Conflict of Interest Examples

Insider trading

We’ve all heard of insider trading, and it is a fairly clear form of wrongdoing—a classic, if you will, among conflict of interest examples. It occurs when someone at a publicly traded company uses the knowledge they’ve gained at work to time the buying of personal stock before the price of shares shoots up.

For example, if someone has advance knowledge of a new technical development before it is public, and uses it to game the market for profit, that is a clear conflict of interest between their company’s reputation and their own bank account.

Dating a subordinate

Another conflict of interest example is more personal: Office romances do happen. However, if that love occurs between a manager and one of their direct reports, things can get messy—with the superior perhaps rewarding their partner with preferential treatment or raises—which is why most companies discourage them. Most of the time, a firm will move one of the partners to another department to avoid any possibility of favoritism.

Patronizing the businesses of friends and family members

Yet another instance could be using your company’s purchasing power to enrich friends and relatives. For example, if you work for a printing company and buy the lion’s share of supplies from your sister’s paper company, that’s also a no-no.

Other examples include things like taking gifts, meals, and other perks from a vendor and then rewarding them with contracts; working after-hours for a competitor; and using what you know about the software your company produces to teach classes on it on weekends.

What to Do If You’re Unsure If Something Is Unethical

If you feel a bit uneasy about some action you are taking—or plan to take—at work, and think it may be a conflict of interest, pause and reflect. If you were in your boss’s or CEO’s shoes, could your intentions be seen as self-serving at the expense of the company? If so, get some advice. Definitely run it up the flagpole: Ask your direct supervisor or someone from your company’s legal department to review your plan and let you know for certain whether it is okay before you proceed.

Always remember that your reputation is everything in the working world, and all it can take is one bad decision to sully it. Of course, everyone has a job to make money: However, be wary of people that may try to use their relationship with you for personal profit, and don’t try to secretly gain more than your share. It’s much easier to get a new job that pays more than to try to rebuild a negative professional profile, and you’ll also be able to sleep much better at night.

Find Your Way to a Conflict-Free Job

These conflict of interest examples are definitely not good omens, but the more you know what to look out for, the better off you'll be. Need more advice on murky topics? When you create a free profile on Monster, we can send you workplace insights, career advice, and job search tips directly to your inbox. Monster's expert info can help keep your career path clear of any questionable happenings.