25 Conflict of Interest Key Terms for Business

Welcome to our guide on Conflict of Interest Key Terms for Business!

In this comprehensive resource, we will cover 25 important terms related to conflict of interest that every business owner should know. Whether you are a seasoned entrepreneur or just starting out, understanding these key terms is crucial for maintaining ethical and successful business practices.

1. Conflict of Interest: A situation where a person’s or organization’s responsibilities or obligations are potentially competing with their own interests.

    

2. Ethical Dilemma: A moral problem with a choice between potential right or wrong decisions.

    

3. Recusal: The act of abstaining from participation in an official action such as a legal proceeding due to a conflict of interest.

    

4. Self-Dealing: Conducting affairs of an organization for personal benefit rather than in the best interests of the organization.

    

5. Insider Trading: The trading of a public company’s stock or other securities by individuals with access to non-public information about the company.

    

6. Nepotism: Favoritism granted to relatives or friends in various fields, including business, politics, entertainment, sports, religion, and other activities.

    

7. Fiduciary Duty: A legal obligation of one party to act solely in the interest of another party.

    

8. Kickback: A form of negotiated bribery in which a commission is paid to the bribe-taker in exchange for services rendered.

    

9. Whistleblower: A person who informs on a person or organization engaged in illicit activities.

    

10. Due Diligence: The investigation or exercise of care that a reasonable business or person is expected to take before entering into an agreement or contract.

     

11. Transparency: The quality of being easily seen through, understood, or detected.

     

12. Influence Peddling: The illegal practice of using one’s influence in government or connections with persons in authority to obtain favors or preferential treatment.

     

13. Code of Conduct: A set of rules outlining the social norms, rules, and responsibilities of, or proper practices for, an individual, party, or organization.

     

14. Impartiality: Not being partial or biased, treating all rivals or disputants equally.

     

15. Disclosure: The action of making new or secret information known.

     

16. Undue Influence: Excessive pressure or influence put on someone to change a decision or outcome.

     

17. Compliance: The act of conforming to a rule, such as a specification, policy, standard, or law.

     

18. Ethics Committee: A group of individuals appointed to oversee and address ethical issues and conflicts within an organization.

     

19. Gift Policy: Guidelines within an organization about the acceptance of gifts to prevent the appearance of impropriety.

     

20. Revolving Door: A movement of personnel between roles as legislators and regulators and the industries affected by the legislation and regulation.

     

21. Bribery: The act of giving money, goods, or other forms of compensation to influence the recipient’s behavior.

     

22. Arm’s Length Transaction: A transaction in which the buyers and sellers of a product act independently without one party influencing the other.

     

23. Fair Dealing: A basic principle of securities regulation and corporate governance that ensures all investors have equal access to information.

     

24. Corporate Governance: The system of rules, practices, and processes by which a firm is directed and controlled.

     

25. Conflict Resolution: The process of resolving a dispute or a conflict by meeting at least some of each side’s needs and addressing their interests.

Understanding these terms is crucial for identifying, managing, and resolving conflicts of interest, thus ensuring ethical conduct and decision-making in business practices.