Employee Conflict of Interest Policy

Employee Conflict of Interest Policy

Employee Conflict of Interest Policy

This customizable Employee Conflict of Interest Policy- template is ready to be adapted to your company’s specific needs and can serve as an initial point for establishing your policies. Here is the overview of the Employee Conflict of Interest Policy.

The Conflict of Interest Company Policy deals with scenarios in which an employee’s interests may clash with the company’s. It highlights the importance of trust, identifies possible conflicts, and offers steps for resolving them to safeguard the company’s objectives.

This template for an Employee Conflict of Interest Policy is customizable to suit your company’s requirements and can serve as a foundation for establishing your employment policies. It is essential to adjust this conflict of interest statement according to your company’s guidelines.

The conflict of interest company policy should cover the following:

  • Provide clear definitions and examples of potential conflicts of interest.
  • Outlining procedures for reporting and resolving identified or suspected conflicts.
  • Detailing disciplinary consequences for failing to disclose conflicts or address unresolved issues.

Can you provide an example of a conflict of interest in company policy?

This policy outlines how to recognize and address situations in which an employee’s personal interests may clash with the company’s interests.

Can you provide an example of a conflict of interest policy within a company?

This policy outlines how to recognize and address situations where an employee’s interests may clash with the company’s.

[Organization Name] Employee Conflict of Interest Policy

Policy Overview & Objective

Our company’s Conflict of Interest Policy addresses situations where an employee’s interests may conflict with the company’s. Such scenarios can adversely affect an employee’s decision-making and loyalty to the company, potentially hindering company goals. This policy lays out guidelines for handling conflicts of interest and the roles of both employees and the company in addressing and resolving such issues.


This conflict of interest policy applies to all current and potential employees, independent contractors, and individuals representing the company in any capacity.

Policy elements

The company values mutual trust in its relationship with employees. It is dedicated to safeguarding the interests of its staff and expects them to prioritize the company’s best interests. Employees should avoid conflicts of interest that could compromise the company’s position and put it at a disadvantage.

What constitutes an employee conflict of interest?

 This can manifest in various ways, such as but not limited to the following examples of conflict of interest:

  • Employee’s misuse of their position for personal gain.
  • Employee’s involvement in activities benefiting a competitor.
  • Employee’s ownership of shares in a competitor.
  • Employee’s misuse of company connections for personal gain.
  • Employee’s use of company resources for outside business ventures.
  • Employees engage in illegal activities that could harm the company.

Employees should address and resolve potential conflicts of interest before they cause harm. If an employee suspects a conflict of interest, they should report it to management for corrective action.

Supervisors should also monitor conflicts of interest among their team members. Resolving conflicts of interest begins with the immediate supervisor and may involve senior management.

All conflicts of interest will be resolved relatively, with senior management making the final decision if needed. Employees are advised to avoid letting personal or financial interests conflict with the company’s interests.

Please be aware that the company follows the same principles regarding its clients. We are dedicated to avoiding providing services or entering into partnerships with companies directly competing with our current clients.

Disciplinary Consequences

If a conflict of interest is intentionally hidden or a resolution cannot be reached, disciplinary measures, including termination, may be taken.


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Additional Information

Definition: A policy is a deliberate system of guidelines that guides decisions and achieves rational outcomes that affect an entity’s organization and operations. It is a statement of intent implemented as a procedure or protocol. Various entities, including a governance body, generally adopt policies.

Policies can assist in both subjective and objective decision-making. Policies used in subjective decision-making generally support senior management with decisions that must be based on the relative merits of several factors and, as a result, are often difficult to test objectively, e.g. discrimination policy.

Generally, governments and other institutions have policies in the form of laws, regulations, procedures, administrative actions, incentives and voluntary practices. Similarly, private entities deploy policies for internal and external protocol procedures to be followed. Frequently, resource allocations mirror policy decisions.

Refer to the relevant resources and documents to learn about policies and procedures.

Disclaimer: This policy template serves as a general guideline and should be used for the convenience of reference. It may not encompass all relevant local, provincial, or federal laws and does not constitute a legal document. Neither the author nor assumes any legal liability for using this policy.

Source: Canada Small Business

May 17, 2024