Conflicts of Interest Policy
Author: Jason Habinsky, Hughes Hubbard & Reed LLP
When to Use This Policy
Most employers, especially large employers and those working in manufacturing or development, find it beneficial to develop Conflicts of Interest Policies. Such policies put employees on notice as to what the employer will not tolerate, and thus avoid potential conflict of interest issues before such issues escalate into a real problem. Conflicts of interest may arise in any situation in which an employee has interests or loyalties that compete, or differ, from those of the employer.
This policy should be communicated to employees upon beginning employment and the employer should make sure that employees sign and acknowledge that they have received and understand the policy and consent to its terms. The policy should be included in the employee handbook and used as a continual reference by employees and supervisors in determining what constitutes a conflict of interest.