Question

Case questions:

Pick an organization (public or private) and then choose a particular type of Conflict of Interest (COI) that is associated with this type of organization.

Locate and describe any laws that are designed to discourage or prevent this type of COI in your country. If there are no laws particular to the type of COI you chose, discuss why this is the case.

Locate examples of organizational policies used to also discourage the particular COI and discuss how the main features of the policy around the particular COI.

Discuss ways that managers can use both policy and the existing laws in your home country to discourage employees seeking their own interests over that of the employer.

In your estimation, do laws and policies help promote ethical behavior? Do you feel that the laws, as they are currently, are sufficient and effective?

Finally, suggest ways that the laws and/or policies could be improved to both motivate employees to pursue the interests of their employers, as well as to minimize the costs of employers complying with or enforcing the laws.

Answer 1

This is my answer

Conflict of interest arises when an employee while serving his duty give more importance to his/her private interests which could improperly influence the performance of his/her official duties and responsibilities. This should not happen, it is the responsibilty of an employee to work in the best interest of an organization. I would like to pick a private organization. The conflict of interests associated with this organization is that one of the staff member who plays a major role in staff selection has a close relationship with an outsider & he believes in hiring the individuals that are recommended by that outsider and this member for providing this favour to the outsider gets various sorts of benefits from the outsider in form of gifts, hospitality, etc. This sort of behaviour of the staff member is biased & he deserves to be punished. Accepting benefits describes that employees should not solicit nor, unless duly authorized, accept transfers of economic value from persons with whom they have contact in their official capacity. Such benefits range from token gifts to significant "transfers" prohibited by the criminal code. So, this is basically a form of corruption & there are various laws to deal with this problem. Corruption is basically a criminal offence & there are various kinds of serious repercussions attached to it. The laws dealing with this situation are that the official can be immediately removed from the decision making committee as well as he can also be sentenced to jail for a period of time or can be fined on the charges of corruption, he can also be removed or suspended from his job.  

Organizational policies to deal with this situation are as follows:

1) Paying the employees well: The employees should be paid appropriate salaries so that employees do not find themselves under pressure to supplement their incomes in “unofficial” ways.

2) Procedures of staff selection should be made transparent and open so that there is no space for biased-ness while making such decisions.

3) Various sorts of fines & punishments should be attached with unethical business practices.

Appropriate policies and laws in place will prevent employees from pursuing unethical business practices. These policies and laws act as tools in the hands of the managers by which they can control the unethical behaviour of employees. Various policies and laws in connection to any kind of confict of interest should be well communicated to the employees, so that they avoid any kind of unethical business practices. These policies & laws will help the employees to easily understand what is expected from them with respect to the standards of behaviour and performance.

Laws & policies significantly help to promote ethical behaviour. Laws & policies made an employee aware of the advantages that are attached with the ethical behaviour & the disadvantages attached with the unethical behaviour. So, the employee is able to measure the pros & cons attached with ethical & unethical behaviour. By knowing the laws & policies well the employee is able to understand that he/she should work in the best interest of the organization. Also by following business ethics an employee can significantly improve his/her performance. Proper understanding of laws & policies results in employee's behaviour that helps to achieve its objective along with the objectives of the organization. Thus, laws & policies help to promote ethical behaviour.

To deal with the above mentioned problem of conflict of interest, sufficient and effective laws have been made & these laws help to prevent such problems on large scale.

Laws & policies should always be made in the best interest of the employees. They should be so that they promote ethical behaviour. Various kinds of incentives attached with the ethical practices prevent employees from adopting unethical measures. An employer should always frame policies that promotes the skills of the employees, employees should always be made realised how important they are for the success of the organization, their contributions should always be valued, a sense of belongingness should be infused among the employees, an organization should share its profits with its employees, there are various ways of doing so, etc.. All this will promote ethical behaviour of employees & will significantly improve their performance & they will always work in the best interest of the organization. So, there will be no unnecessary conflicts which give rise to unnecessary costs & employees will work for the long run prosperity of the organization.

Thank you..