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Management & Leadership vocabulary · Corporate Governance

Conflict of interest

Meaning in management & leadership, with examples

nounCommon term

In management & leadership, conflict of interest means: A situation in which a person's private interests, such as money, family or another job, could affect, or seem to affect, the decisions they make for their organisation.

In Turkish: çıkar çatışması, menfaat çatışması

How it is used

A key term in governance, compliance and ethics policies. Employees and directors are expected to declare or disclose a conflict of interest and may need to step back from the related decision. Companies keep a record of these declarations.

Example sentences

  1. I need to declare a conflict of interest: my brother works for one of the bidders.

  2. To avoid a conflict of interest, she stayed out of the supplier selection.

Common collocations

  • declare a conflict of interest
  • potential conflict of interest
  • avoid a conflict of interest
  • conflict of interest policy
  • code of conductA written set of rules and principles that explains how the employees and managers of an organisation are expected to behave, for example on honesty, gifts and respect.
  • complianceFollowing the laws, regulations, internal policies and standards that apply to an organisation; also the name of the department that checks this.
  • transparencyThe practice of sharing information openly and honestly, so that employees, shareholders or the public can see how decisions are made and how the organisation is doing.
  • fiduciary dutyA legal duty to act in the best interests of another person or organisation, such as the duty of company directors to act honestly and carefully for the company.
  • non-executive directorA board member who is not part of the management team and does not work in the business day to day, but advises and monitors the executives.

This word in other fields

The same English word can have a different meaning in another field:

More terms: Corporate Governance

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