what safeguards are necessary to identify and/or prevent potential conflicts of interest?\

Solutions

Expert Solution

It is important for business to manage potential conflict of interest that can happen in the firm. Some of the measures to identify or prevent such issues are given below.

Business needs to establish a policy and governance structure which can handle itself and clearly defined process which will reduce conflict of interest.
Include atleast 2 ways of reporting an issue to the stakeholders to ensure higher level officials are not insulated from such complaints
Create a sound whistle blower policy in the company
There should be proper rules which prohibit actions like self dealing, nepotism, getting gifts etc which is clear evidence of conflict of interest.
The company should be willing to pursue legal actions for such identified incidents which can make others aware about the problems due to such activities
Proper training and awareness should be given to the employees regarding such issues

jeff jeffy answered 1 year ago

Next > < Previous

Related Solutions

what are the safeguards that are in place to prevent corruption in the Caribbean Court of...

what are the safeguards that are in place to prevent corruption in the Caribbean Court of Justice

Discuss corporate governance, its importance and the potential conflicts of interest.

Highlight each of the potential or actual conflicts of interest. • Taking a client or group...

Highlight each of the potential or actual conflicts of interest. • Taking a client or group of children to a movie you want to see • Using a client’s credit card to pay your electricity bill • Telling your client or a family about another Individual Support Worker or Early Childhood Educator looking for work • Leaving work early without prior approval • Organising a cooking activity because you and your client/ the children you are caring for enjoy baking

Learning Objective: Identify the potential conflicts that arise within the firm between stockholders and managers and...

Learning Objective: Identify the potential conflicts that arise within the firm between stockholders and managers and between stockholders and bondholders, and discuss the techniques that firms can use to mitigate these potential conflicts. Topic: A well-run company should align the management’s interest and with the owner’s interests. What are some actions that stockholders can take to ensure that management’s and stockholders’ interests are aligned? Is this important? What are some of the risks/consequences if the management’s interests are not aligned...

Identify and evaluate examples of conflicts of interest raised in Part II of the Henrietta Lacks...

Identify and evaluate examples of conflicts of interest raised in Part II of the Henrietta Lacks book

which of the following actions would most likely to reduce potential conflicts of interest between stockholders...

which of the following actions would most likely to reduce potential conflicts of interest between stockholders and managers? A. make the bond covenants more restrictive B. pay managers cash salaries and give them no stock options C.make it more difficult for the board of directors to fire corporate managers D. promise managers that they will receive a generous compensation packages if the corporation is taken over by another firm E.None of the answers are correct

Question