LETTER | Avoid workplace conflict of interest

LETTER | Workers have a duty towards the employer and this includes the duty of fidelity and fiduciary. An essential component of the duty of fidelity is his obligation to serve the best interest of the employer.

He must avoid any conflict of interest or even potential conflict of interest where his personal interests could inappropriately influence, or appear to influence the business judgment.

In the performance of his official duties, the employee should avoid giving preferential treatment to an individual, corporation or organisation in which he or a relative or friend has an interest, financial or otherwise. 

For example, hiring a family member as a vendor or buying goods or services from a family business on their employer’s behalf.

It is common that by transacting business with a family member or friend, the employee may feel the urge to favour the interests of the family member over the interests of his employer.

Further, no employee should use a company’s property, facilities, equipment or other resources to pursue his personal interests or the interests of another organisation.

Likewise, he should not conduct his private business dealings during working hours’ even if the activities did not directly compete with the employer’s business, as such acts are plainly unacceptable and wrong and in breach of the fiduciary relationship.

An employee who finds himself in a conflict of interest situation must disclose the matter to his superior or the designated officer in the organisation.

The disclosure must be made as soon as the employee knows of the conflict, and thereafter for as long as the conflict continues to exist. The disclosure is primarily to safeguard the interests of the employer.

Any non-disclosure of a conflict of interest or even a potential conflict of interest is viewed seriously and may warrant dismissal from employment.

Further, knowingly making a false declaration that he was not having any outside business interests or serving on the board of directors of any other company is in fact gross misconduct.

An employee who acts against the best interests of the employer would clearly be perceived as being dishonest which inevitably reflects both on the fitness of the employee to continue in office and the discipline and morale of the service. 

ASHGAR ALI ALI MOHAMED is a law professor at the International Islamic University Malaysia (IIUM).

The views expressed here are those of the author/contributor and do not necessarily represent the views of Malaysiakini.