Conflicts of Interest: Why We Need to “Take a Step Back”

Organizations generally have a clear definition of a conflict of interest: a situation in which an employee’s personal interest conflicts with that of the organization. While this definition is accurate, it is also too narrow. It creates an important blind spot. By focusing exclusively on situations where an employee acts against the organization, we overlook situations where their interests are aligned with the organization’s interests—but conflict with those of other stakeholders. Yet these situations can be just as risky. They do not necessarily generate direct losses or obvious warning signs, which contributes to their being underestimated.

This limitation is also reflected in the way organizations manage interest disclosures. Organizations typically ask employees to disclose interests that may conflict with those of the organization. However, many interests are disclosed but never addressed, simply because they are not considered incompatible with organizational interests. Yet those same interests may conflict with the interests of other stakeholders—clients, partners, public institutions—and lead to misconduct. A close relationship with a contracting authority, for example, may facilitate access to sensitive information or influence a decision-making process. Even if this appears beneficial in the short term, it can lead to practices such as favouritism, unregulated lobbying, or collusion. Too often, the analysis stops at the immediate benefits without considering the full extent of the possible consequences—particularly the impact on trust and organizational credibility when these situations become visible.

This is why it is worth moving beyond the notion of conflicts of interest and adopting a broader perspective: the management of interests. The goal is no longer simply to identify what may harm the organization directly, but to understand the full range of interests held by individuals—relationships, affiliations, financial interests—and assess their compatibility with the values upheld by the organization, as defined through the expectations of its strategic stakeholders. This broader perspective helps identify risks that fall outside traditional frameworks, including collusion, corruption, and anti-competitive practices. It also moves beyond an approach focused solely on the organization’s interests by taking into account those of all stakeholders. In this sense, the management of interests represents a more comprehensive approach to ethics: one that seeks to promote behaviours that are consistent with the legitimate expectations of stakeholders and to maintain relationships of trust with them. That trust remains essential to the long-term success of any organization.