Conflict of Interest: An Important Pillar of Organisational Ethics
A conflict of interest can arise whenever an Employee acts in a manner, or participates in any transaction, relationship or situation, which conflicts with or may appear to conflict with the best interests of the Company. These are potential situations in which personal interests can be prioritised over the organisational interests without considering honesty and fairness.
In an organisation all employees have interests that could influence the way they do their work and the decisions they make. Conflict of interest could be related to family, finances, trade secrets etc.
Disclosing conflicts of interest is important for an organisation as it can have adverse impact on the work atmosphere of the company and compromise transparency. Our Code of Conduct says that all employees shall always act in the interest of the Company and ensure that any business or personal association which they may have, does not involve a conflict of interest with the operations of the Company and their role therein.
It also guides that an employee should not engage in any business, relationship or activity which might conflict with the interest of Company. As per our Code a conflict of interest, actual or potential, may arise in the following situations where, directly or indirectly:
- An employee of the Company engages in a business, relationship or activity with anyone who is party to a transaction with his / her Company.
- An employee is in a position to derive an improper benefit, personally or to any of his / her relatives, by making or influencing decisions relating to any transaction.
- An independent judgment of the Company’s interest cannot be exercised. As per our Code of Conduct the main areas of such actual or potential conflicts of interest shall include the following:
- An employee of the Company conducting business on behalf of his / her Company or being in a position to influence a decision with regard to his / her Company’s business with a supplier or customer where his / her relative is a principal officer or representative resulting in a benefit to him / her or his / her relative.
- Award of benefits such as increase in salary or other remuneration, posting, promotion or recruitment of a relative of an employee of the Company, where the employee is in a position to influence decisions with regard to such benefits.
In order to spread awareness on the various aspects of our Code, including on subjects like Conflicts of Interest, regular focused communications are disseminated to employees from time to time.
