Conflicts of Interest Are Everywhere- Just Like Germs

Joan Dubinsky
Fellow, Rutland Institute for Ethics

August 1, 2023

Do you suspect that conflicts of interest are sprouting up everywhere?  If so – you are not alone.  

Conflicts of interest can arise in so many contexts, like business gifts, offers of home hospitality, procurement, workplace friendships, hiring decisions about relatives, second jobs, outside affiliations, and interests. At universities, actual or potential conflicts of interest can impact funding and hiring decisions, peer reviews of research findings, grant making, service on outside boards or advisory panels, or political activities—to name just a few.

We question disclosure requirements, financial self-dealing, the impact of funding sources on scientific research, and whether unresolved conflicts of interest are the gateway drugs to corruption. We hear about conflicts of interest on the part of leaders everywhere—whether in private industry, our federal and state governments, Congress, or the judiciary.

The U.S. Supreme Court is under the ethical microscope as our nation’s top jurists find themselves challenged by concerns that their independence and objectivity—even their judicial temperaments—are unduly influenced by their personal or private relationships. My goodness!  Are we experiencing a new contagion? 

I think the answer to that question is no. We are neither more nor less ethical than any other human being who has lived on this planet during the last 5000 years of recorded history. But – we are becoming sensitized to the many ways that we experience conflicts of interest.

Conflicts of interest matter. They reflect the real and imperfect world in which we live, work, study, and play. In the world of ethics, we blend rationality with compassion, respect, objectivity, and independence. Conflicts of interest reveal just how easy it is to slip into unethical action and use flimsy rationalizations to justify our less than ethical decisions. 

Think for a moment about a common ethical dilemma:

You collect rare seashells. On your birthday a few months ago, one of your employees gave you a beautiful addition to your collection. Now it’s time to complete the annual performance reviews for everyone on your team.

Is this a real conflict of interest? At this point—not yet. You haven’t completed anyone’s performance review. You did accept a gift from a subordinate. Can you honestly say that you will be completely even-handed when it comes time to award raises? Can you ignore how pleased you were when someone remembered your birthday? Has your opinion of the gift giving employee subtly changed? Will other employees believe that you are fair and even-handed?  How will you ensure that when you do sit down and complete those performance reviews that you will only consider the contributions that each person made this past year? Can you really forget that seashell?

Accusations of conflict of interest can arise before anything “bad” has happened.  Consider the category called “possible” conflicts of interest – where a person looking from the outside might believe that you have a conflict of interest. It is the context that gives rise to the potentiality of future conflicts if steps are not taken to avoid, eliminate, or mitigate the situation. It’s the perception of a conflict that creates the ethical challenge—even before you do or say anything.

Even though you may have acted with the utmost integrity, a possible conflict of interest can be just as damaging as an actual conflict of interest.

If you work in public policy, many people could be interested in your position on hot button questions like ensuring social justice and human rights, protecting the natural environment, promoting democracy, supporting capitalism, legislating good governance, expanding voting rights, advancing public education, or protecting free speech. It’s possible that some of those people may want to meet with you informally so that you hear their perspectives. How do you make sure that you are not tipping the policy scales because of your favorable impressions of someone who paid for your vacation or helped your child get into an exclusive university?

Conflicts of interest are not wrong in themselves.   It is how they are managed that is important. Unresolved conflicts of interest can mature into misconduct. What is wrong is to do nothing when you suspect that you are engaging in an actual or possible conflict of interest.

Each of us needs to be able to recognize, appreciate, and resolve personal conflicts of interest. We must recognize our overlapping relationships, roles, and situations where conflicts of interest can arise. We must be able to appreciate the risks and benefits of the various actions we can take to eliminate or reduce those conflicts. And we must be willing to take action to resolve our own conflicts of interest.

As humans, we tend to avoid that which causes us pain or discomfort. Conflict of interest policies and rules that are overly complex are less likely to be followed because it may be just too difficult to figure out what you are expected to do.

We are more likely to follow rules and standards that show us how to incorporate ethics into our everyday work. We will need to understand how conflicts of interest policies apply to the specific work that we do and our own situations.  We are more likely to comply when the rules and policies are readily available and written in an understandable way.  If the rules are opaque or difficult to find, it is on us to speak up and ask for guidance.

None of us are unbiased judges of our own conflicts of interest. In fact, we are some of the worst evaluators of our own situations. Our tendency towards self-bias and self-justification makes us unreliable arbitrators of our own potential and actual conflicts of interest.

There’s no vaccine against conflicts of interest. But you can build the habits that help you detect conflicts of interest, disclose them to a third party who has the authority to resolve ethical dilemmas, and then implement the guidance that you receive.

Conflicts of interest are like germs. They are everywhere. It is what you do about a conflict of interest that matters the most. How you handle a personal conflict of interest broadcasts your personal values and reflects your reputation as an ethical person. Ignoring possible or actual conflicts of interest is never the right course of action.