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Message
xkekg34fa
Posted: Sat 16:58, 17 Aug 2013
Post subject: www.vivid-host.com/barbour.htm Conflict Of Interes
I've found that a person with a hobby is a person with what ispotentially a
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fascinating conflict of interest. For example,when I was just seventeen years old, I managed a liquor
barbour paris A Multiple Criteria Decision Making
store.My boss was a German U-boat commander from World War II, and heloved German wine. We had German wines all over the place. Thestuff never sold, not a single bottle, but regardless we had thebottles everywhere. I distinctly remember having to dust themconstantly. I used to wonder why we carried these dogs, but nolonger. The boss had a hobby. He liked German wines, and inspite of the fact that each bottle on the shelf was wasted money(and a
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lot of it, these bottles were not cheap) he continued topurchase them. This part of the business was actually his hobby.
A boss who hires a friend or relative is also guilty of aconflict of interest - in fact,
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the boss will find this conflictwill only get worse as time goes on. No matter thecircumstances, employees will never respect the boss whoperformed this hiring or the employee who was hired. In thisinstance, even if
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there is no conflict of interest, theappearance is so strong that it cannot be overcome.
There are many ways that conflicts of interest appear. Sometimesthey are hobbies, sometimes gifts from people, sometimes simplyhaving an
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agenda other than that of the company.
Good employees and good managers avoid situations like these asif their lives depended on it. A conflict of interest, apparentor otherwise, is never a good thing. Decisions must be madebased upon facts and must be made to the advantage of thecompany to which you work for (and owe your allegiance). Themost ethical thing to do is to make decisions which fulfill thegoals of the company,
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and not which fulfill your own personalagenda.
One of the most insidious traps in the world of business (or inany other place for that matter) is this thing called a"conflict of interest". The conflict produces
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a situationwhereby your decision to do or not do something is swayed byother or outside interests. In other
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words, you need to make abusiness decision, and your decision is changed (or appears tohave been changed) based upon something other than what's goingon at your job.
Sometimes these conflicts are completely and totally obvious. Inour company we are all forbidden to accept any gifts from anyvendor. In fact, this policy is brutally enforced by suspensionand possible termination. Why? Well, let's say a buyer has topurchase a million dollars worth
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of product and he receives"gifts" from various competing vendors. Is he
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making decisionsthat are in the best interest of the company or is he simplyrepaying that "special" vendor who gave him a trip to Hawaii?
I remember at one job the boss (and owner) hired his wife as thesecretary for the company. She was soon promoted to a vicepresident. This cause no end of problems at our company. Severalother competent people were passed over for the promotion, whichcreated a huge amount of bad feelings among the staff. Everydecision that she made was questioned, and after that no onereally trusted the owner anymore. In this case the problem wasnot that she was hired or even promoted - the problem as thatthe boss promoted his own wife. If she had earned her way up andbeen promoted (or not) by other managers based upon her merit,then the conflict could have been avoided.
I've seen
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people in situation where they had to make a decisionand took into account "what was best for their career" or madethe decision that would give them the best raise or bonus. Thereis nothing wrong with pursuing a career or working towardsbetter pay, but decisions must be made which are best for thecompany and which are ethical. Period. Thus, if there is achoice between a good decision for my company or a good decisionfor my career, then the
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company wins every time. And in the longterm, this is the best decision for any career.
A more obvious conflict is the one between an auditor from anoutside firm and the auditor's firm. Let's say you hire Joe fromXYZ company to audit your books. You hire lots of people fromthis company to perform audits all of the time. Since theauditing firm makes money from your business, there is anapparent conflict of interest here - an auditor which findsproblems may find himself out of
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a job. This conflict becomeseven greater if the auditing firm gets follow-up work based uponthe results of the audit. That's why intelligent managers makeit very clear to their auditing firms that they understand thisnatural conflict. These managers also MUST make it
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clear thatthey expect unbiased results, and attach severe penalties forimproprieties.
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