Recognising and avoiding conflicts of interest
Conflicts of interest are often a trigger for workplace tension and gossip, reducing productivity and damaging employee relations.
Common examples of conflicts of interest in business include:
- Recommending a friend or family member for a job position.
- Employers not disclosing that a candidate being considered for a job is a friend or family member.
- An employee starting their own business that provides similar products or services, especially if a non-compete agreement has been signed.
- Working for a competing company.
- Posting to social media about the business’ failures.
- Romantic relationships between an employee and their supervisor.
- Accepting a favour or gift beyond the agreed amount from a client.
The best way to avoid conflicts of interest in the workplace is to establish a code of conduct that clearly outlines the standards and expectations of the business. It should cover details of business policies and list everyone it applies to, including employers and employees, board members, management, officers, and contractors. This code of conduct should be communicated to employees verbally and re-enforced through discussions.
A good code of conduct will reflect the culture and values of the business, provide information on how workers can expect to be treated and how they are expected to behave. It should be accessible to all employees, be well organised and comprehensive but also easy to understand. This can be achieved by providing situational examples, answering common questions workers may have, and avoiding technical or legal jargon that may be confusing.
Using the margin scheme correctly
20th January 2020
The margin scheme is a way of working out the GST you must pay when selling property as part of your business. The amount of GST normally paid on a property sale is equal to one-eleventh of the... more
What are the tax implications of termination payments for employers?
13th January 2020
When making an employment termination payment (ETP), employers should be aware of the tax implications for different circumstances.
An ETP is a lump sum payment you make:
3 business service components your company strategy needs
8th January 2020
At the end of the day, it is every company's goal to find success in some capacity. Often that achievement is multi-pronged; businesses want both clients and employees to be happy, while also meeting... more