Conflicts of interest can be defined as any situation in which an individual or corporation (either private or government) is in a position to exploit a professional or official capacity in some way for his/her personal or corporate benefit.
The following are the most common forms of conflicts of interest:
- Self-dealing – an employee or board member who controls an organization causes the organization to enter into a transaction with the individual, or with another organization that benefits the individual. The individual is on both sides of the “deal.”
- Outside employment – the interests of one job contradict another.
- Gifts from friends – receiving the gifts from a person with whom you do business. Such gifts may include non-tangible things of value such as transportation and lodging.