CAusEs AnD ConsEquEnCEs
Last week, when I wrote a note on conflicts of interest on my Linkedin page, there were visible comments, but many preferred to discuss the subject privately.
Yes, we can write not one but many books on this controversial subject especially within the Pacific region. Globally, the same has led to many corporate collapses including some of the biggest in the U.S as well as Europe.
It could be a simple disclosure of conflict of interest or a series of conflicts leading to fraudulent activities and eventual corporate collapse. public office when elected officials, government employees, or others in positions of public trust have private interests that could influence their actions or decisions in their official capacities.
This can create a perception that their actions are not motivated by the public interest, but by their own personal or financial gain.
To avoid conflicts of interest in public office, many governments have laws and regulations that require public officials to disclose their financial interests and to avoid situations that could create conflicts of interest.
For example, some public officials may be required to divest from certain investments or to recuse themselves from certain decisionmaking processes if a conflict of interest exists.
Former U.S. President Donald Trump during his presidency, faced allegations of conflicts of interest due to his business interests. Trump did not divest from his businesses before taking office, which raised concerns that he could use his position as president to benefit his businesses.
Former British Prime Minister David Cameron faced allegations of conflicts of interest related to his personal financial investments. Cameron’s father had established an investment fund that held shares in offshore accounts, and Cameron held shares in the fund.
In 2017, Canadian Prime Minister Justin Trudeau was found to have violated conflict of interest rules by accepting a vacation on a private island owned by a wealthy philanthropist and spiritual leader.
It is said that Trudeau had violated the rule prohibiting public officials from accepting gifts that could influence their official duties.
Conflict of interest can erode public trust in government and undermine the integrity of democratic institutions. It is essential that politicians and public officials avoid conflicts of interest and act in the best interests of the public they serve.
Conflict of Interest doesn’t occur accidently nor over-night.
There could be some exceptions to this. In practice, conflicts of interest are caused by personal relationships, financial interest or due to power imbalances.
Personal relationships, such as family or friendship ties, can create conflicts of interest when they interfere with a person’s ability to perform their duties impartially or objectively.
Some employers allow spouses to work in the company but is it advisable to have spouses or parentchildren at the executive team in a not-so private organization?
Financial interests, such as ownership or investment in a company, can create conflicts of interest when they interfere with a person’s ability to make unbiased decisions. Few years ago, a CFO of a company which produces a product solely for an external organisation became the chairman of that external organization.