What is a Conflict of Interest?
A conflict of interest is a circumstance in which an individual or organization is unable to remain impartial, or able to exploit, a professional or official position for their own benefit. A conflict of interest can exist whether any impropriety was acted upon.
Best Practices for Avoiding a Conflict of Interest
A board of directors
should maintain a policy to avoid conflicts of interest and take steps to mitigate any appearance of impropriety. A conflict of interest policy should require those with a conflict and those who believe they may have a conflict to disclose the conflict, and prohibit interested board members from involvement on any matter in which there remains a conflict. If a director has a conflict of interest then that director
is often referred to as “Interested Director."
Managing Conflicts of Interest With a Board Portal
utilize a granular permission management system – a platform where each individual is assigned permissions to read and access materials. When a conflict of interest arises, a board administrator can simply remove access for those individuals (redact), omitting any materials or preventing their access to votes, approvals, and actions associated with any conflict.
Browse More Terms and Definitions:
Select a Letter